SNEHA HEMANT SAWANT,MUMBAI vs. ITO WARD 41(1)(3), MUMBAI

PER PAWAN SINGH, JUDICIAL MEMBER: 1. This appeal by assessee is directed against the order of ld. CIT(A / NFAC dated 16.10.2025for Assessment Year (A.Y.) 2023-24. The assessee has raised following grounds of appeal: “1. On the facts and circumstances of the case and in law, the Ld. CIT(A)/NFAC erred in confirming the addition with respect to receipt of interest amounting to Rs 1,73,250/- from Vinod P Bhanushali, without appreciating the fact that the said receipts pertained to interest earned by the assessee over a period of six years and that the assessee had duly offered it to tax on accrual basis in the respective years. 2. On the facts and circumstances of the case and in law, the Ld. CIT(A)/NFAC erred in confirming the addition with respect to receipt of interest amounting to Rs 84,450/- under section 69A of the Act. without appreciating the fact that the same was already offered to tax by the assessee on accrual basis in the respective years.

Sneha Hemant Sawant ITA No. 9334/M/2025 (AY: 2023-24) 3. On the facts and circumstances of the case and in law, the Ld. CIT(A)/NFAC erred in confirming addition of Rs 7,50,000/- under section 69A of the Act, being loan taken by the assessee during the assessment year under consideration. 4. On the facts and circumstance of the case and in law, the Ld. CIT(A)/NFAC erred in confirming addition of Rs 7,44,612/- under section 69A of the Act, being the loan and interest thereon repaid by the borrowers to whom the assessee had given loans aggregating to Rs 6,75,000/-. 5. On the facts and circumstances of the case and in law, the Ld. CIT(A)/NFAC failed to appreciate the fact that out of the total addition of Rs 7,44,612/- under section 69A of the Act as mentioned in ground no. 4 above, the assessee had already offered the interest element of Rs 69,612/- (net of interest paid) to tax on accrual basis in the respective years. 6. On the facts and circumstances of the case and in law, the Ld. CIT(A)/NFAC erred in confirming addition of cash deposits amounting to Rs 20,000/- under section 69A of the Act. 7. On the facts and circumstances of the case and in law, the Ld. CIT(A)/NFAC erred in confirming the action of the Ld. Assessing Officer in disallowing deduction under section 80C of the Act amounting to Rs 63,136/-. The Appellant craves leave to add, alter, amend, vary and/or withdraw any or all the above grounds of appeal.” 2. Brief facts of the case are that assessee is individual filed her return of income for A.Y. 2023-24 on 07.07.2023 declaring income of Rs. 3,68,180/-. Case was selected for scrutiny. During the assessment, the assessing officer noted that a search was carried out in Bhanushali group on 19.04.2023. Bhanushali group consists of Vinod Bhanushali, Vinod Bhanushali (HUF) and SmtRinkuBhanushali. During search various incriminating evidence about providing accommodation entry of unsecured loan in lieu of cash was found. During search action statement of Vinod Bhanushali was recorded regarding the entries of loans and to disclose the identity, creditworthiness and genuineness of these loans. Vinod 2

Sneha Hemant Sawant ITA No. 9334/M/2025 (AY: 2023-24) Bhanushali was unable to provide any details. However, he accepted that loans were taken through Naresh Agarwal who was Kolkata based consultant at a commission of Rs. 1 to 3%. The statement of accountant of Vinod Bhanushali and Vinod Bhanushali HUF were also recorded. In the assessment order the AO recorded the modus adopted by the Bhanushali group for providing accommodation entry from page no. 1 to 14. On verification of various evidences including of excel sheet, it was found that assessee is one of the beneficiaries of loan. During assessment proceeding, the assessing officer noted Vinod Bahnushali received a loan of Rs. 4,50,00/- from assessee and thereafter on 10.10.2022 paid repaid Rs. 6,23,500/- including interest of Rs. 1,73,250/-. The assessee was asked to furnish details lending of loan and interest and to furnish bank statement. The AO recorded that despite allowing opportunity, the assessee failed to furnish such details. In absence of details the interest of Rs. 1,73,250/- was treated as undisclosed interest income and brought to tax under the head income from other sources. 3. The AO further noted that there was credit entry in the Bank Account of assessee in Bharat Co-operative, which is tabulated in para 6.1 of his order. The AO recorded that there was aggregate credit of Rs. 16,00,242/-, which were not disclosed in the financial transactions of the assessee. In response to show cause notice the assessee filed her reply, contents of which is recorded in para- 6.3 of assessment order. The AO recorded certain contradiction in the reply of assessee. The assessee claimed that she has availed loan of Rs. 7,50,000/- on

Sneha Hemant Sawant ITA No. 9334/M/2025 (AY: 2023-24) which no interest was paid. Rs. 1180/- was received as refund of interest. Rs. 84,450/- was received back earlier loan given by her. She has also received back her loan amount of Rs. 20,000/-, which was also part of cash deposits. The AO accepted explanation of income tax refund. However, all other credits that is Rs. 7,50,000/- + 744,612/- + 84,450/- + 20,000/- were added under section 69A for the want of supporting documents. 4. The AO further noted that the assessee claimed deduction under section 80C of Rs. 1,23,675/-. The assessee was asked to furnish supporting evidence. The AO recorded that no evidence was furnished by the assessee. But of further show cause notice the assessee filed LIC premium receipt in the name of her Husband. The AO recorded that on further show cause notice the assessee filed copy of certificate of housing loan from Indiabulls which was in the joint name of assessee and her husband. The AO allowed 50% of total deduction ½ of Rs 1,23,675/- i.e. Rs. 60,539/- and remaining 50% was disallowed. 5. Aggrieved by various additions/ disallowance the assessee filed appeal before ld CIT(A). before ld CIT(A) the assessee filed detailed statement of facts and written submissions. The statement of facts and the written submissions of the assessee are recorded in para-3 and 4 of order of ld CIT(A). The assessee along with her written submissions submitted that her Bank statement and also filed supporting evidences. It was submitted that interest was offered to the tax in the computation of income. Loan was given through banking channel. The bifurcation of interest and details of loan availed and give was explained. To

Sneha Hemant Sawant ITA No. 9334/M/2025 (AY: 2023-24) substantiate deduction under section 80C the assessee filed bank statement, copy of loan certificate, certificate of insurance premium. The ld CIT(A) after considering the submissions of the assessee confirmed all the additions / disallowances by taking view that the assessee has not given evidence of interest received or the details of loan and the evidences of LIC premium. Further aggrieved the assessee has filed present appeal before this Tribunal. 6. We have heard the submissions of both the parties and have seen the orders of lower authorities. The ld authorised representative (AR) of the assessee also filed short written synopsis in support of his submissions. The ld AR of the assessee submits that he has also filed an Application for admission of Additional Evidence. The ld AR of the assessee submits that the evidence filed in the form of additional evidences are essential, material and crucial for proper appreciation of various additions and disallowances. The assessee filed certain details before ld CIT(A), but the same was not considered nor remand report was sought from AO. The assessee has good case on merit and is likely to succeed if such additional evidences are considered. The lower authorities made additions/ disallowances for the want of supporting evidences, which the assessee has now placed on record alongwith application dated 4th March 2026. The assessee was not properly advised during assessment about filing of such evidences. The evidences consist of bank statement, ITR, capital account and balance sheet of Markand C Sawant. Bank statement, ITR, capital account and balance sheet of Hemant M Sawant. Bank statement of assessee showing loan advanced by

Sneha Hemant Sawant ITA No. 9334/M/2025 (AY: 2023-24) assessee to Paddie point BPO Venture LLP and ITR, capital account and balance sheet of Hemant M Sawant. On merit, in support of all the grounds of appeal, the ld AR of the assessee submits that all the additions made under section 69/69A as well as disallowance under section 80C were made for the want of evidence, therefore, he prayed that after admission of additional evidence matter may be restored back the file of AO to decide all the issues afresh. He undertakes on behalf of assessee to be more vigilant in making timely compliance as all the required evidence is now readily available. 7. On the other hand, the learned senior departmental representative (Sr DR) for the revenue on the issue of admission of additional evidences submits that sufficient opportunity was allowed to the assessee for filing evidences by AO. The assessee has not shown any ground or reasonable ground for admission of additional evidences. In alternative submissions, the ld Sr DR for the revenue submits that in case the additional evidences are admitted, in such situation the matter may be restored to the file of AO for verification as the same were not filed before him. 8. We have heard considered the submissions of both the parties and have also gone through the contents of application for admission of additional evidences filed by the assessee running into 58 pages. We find that all the additions/ disallowance in the assessment order under section 69/69A and under section 80C is made for the want of supporting evidences. Now before us, the ld AR of the assessee has filed of bank statement, ITR, capital account and balance sheet

Sneha Hemant Sawant ITA No. 9334/M/2025 (AY: 2023-24) of Markand C Sawant, Bank statement, ITR’s, capital account and balance sheet of Hemant M Sawant and Bank statement of assessee showing loan advanced by assessee to Paddiepoint BPO Venture LLP alongwith ITR, capital account and balance sheet of Hemant M Sawant. Various loan confirmations. We find that all the evidences filed by the assessee are crucial and have direct bearing on all the additions. Thus, considering the veracity of all such evidences, the additional evidences filed by the assessee are admitted and taken on record. Considering the fact that all such evidences were not examined and verified by the AO, therefore, we deemed it appropriate to restore all the grounds of appeal to the file of jurisdictional AO to consider all such evidence or any other evidences in support of various claims/ credits and other issues and to pass order afresh and in accordance with law. Needless to direct that before passing the order afresh the AO shall provide reasonable opportunity to the assessee. The assessee is also directed to be more vigilant in future and to make timely compliance before AO. In the result, all the grounds of appeal raised by the assessee are allowed for statistical purpose. 9. In the result, the appeal of the assessee is allowed for statistical purpose. Order was pronounced in the open Court on 31/08/2026. /- S/- /- Sd/-SSS Sd/- GIRISH AGRAWAL PAWAN SINGH ACCOUNTANT MEMBER JUDICIAL MEMBER Mumbai, Dated: 31/08/2026 Biswajit

Sneha Hemant Sawant ITA No. 9334/M/2025 (AY: 2023-24) Copy of the order forwarded to: (1) The Assessee; (2) The Revenue; (3) The PCIT / CIT (Judicial); (4) The DR, ITAT, Mumbai and (5) Guard file.

By Order

Assistant Registrar / DDO ITAT, Mumbai