A ONE SIZING WORKS,BHIWANDI vs. THE ASST COMMISSIONER OF INCOME TAX, CENTRAL CIRCLE - 3 , THANE

IN THE INCOME TAX APPELLATE TRIBUNAL
MUMBAI BENCH “A” MUMBAI

BEFORE SHRI OM PRAKASH KANT (ACCOUNTANT MEMBER)
AND MS. KAVITHA RAJAGOPAL (JUDICIAL MEMBER)
Assessment Year: 2014-15

A One Sizing Works,
House No. 1237, Opp. Ganesh
Compound, Behind Mahakali
Dyeing Narpoli,
Bhiwandi-421302. Vs.
The Asst. CIT Central Circle 3,
12, A Wing, Ashar IT Park, 6th floor, Road No. 16Z, Wagle
Industrial Estate,
Thane West-400604. PAN NO. AAJFA 6696 F
Appellant
Respondent

IT(SS)A. 6459, 6460, 6461, 6462 & 6463/MUM/2024
Assessment Year: 2015-16, 2016-17, 2017-18, 2018-19 & 2019-2020

A One Sizing Works,
House No. 1237, Opp. Ganesh
Compound, Behind Mahakali
Dyeing Narpoli,
Bhiwandi-421302. Vs.
The Asst. CIT Central Circle 3,
12, A Wing, Ashar IT Park, 6th floor, Road No. 16Z, Wagle
Industrial Estate,
Thane West-400604. PAN NO. AAJFA 6696 F

Appellant
Respondent

Assessee by :
Ms. Simran Dhawan
Revenue by :
Mr. Satya Pal Kumar, CIT-DR

Date of Hearing
:
16/06/2025
Date of pronouncement
:
10/07/2025

PER Bench

These appeals b to 2019-20 respectiv
29.11.2024 passed
(Appeals) – 11, Pun assessments framed
1961 (hereinafter refe seizure operation co the Act.
2. As common iss and therefore, same w this consolidated ord
3. Briefly stated, f action u/s 132 of th premises of “Dodhia”
with other concern/b search, various docu individuals were reco
Dodhia, who, in his s
Act, was confronted unsecured loans/sh
ITA No. 6458, & IT(

ORDER by the assessee for assessment ely are directed against a comm by the Ld. Commissioner ne [in short ‘the Ld. CIT(A)’]
under Section 153A of the I ferred to as "the Act") pursuant nducted on 27.11.2019 under sues-in-dispute are involved in were heard together and dispos der for the sake of convenience.
facts of the case are that a sea he Act was carried out on 27. ” Group of cases including the business associates. During th uments were seized, and statem orded. One such individual was statement recorded under Secti with questions regarding the are application money receive
A One Sizing Works
2
SS)A. 6459, 6460, 6461, 6462
& 6463/MUM/2024
t years 2014-15
mon order dated of Income-tax arising out of Income-tax Act, to a search and Section 132 of n these appeals sed off by way of arch and seizure
.11.2019 at the assessee along he course of the ments of various s Shri Bhadresh on 132(4) of the genuineness of ed from several

Kolkata-based comp clarify the source or the basis of pages residence of one Shr to Shri Bhadresh D titled “return” in repayments after ded offer any explanation certain accommodat admitted that the unaccounted cash in Finance Pvt. Ltd.
3.1 In view of sear assessee notices u/s years from 2014-15
Act were according
Assessing Officer ma thereon in relevant as 3.2 In assessment addition of Rs.55 lakh entry of unsecured lo
Commodities Pvt. Ltd
Pvt. Ltd. (Rs.20,00,0
ITA No. 6458, & IT( panies. Initially, he declined t veracity of the transactions. Su
36 to 38 of Bundle No. 3 s i Divyesh Dhanani, further que
Dodhia, particularly in relation seized document indicating duction of commission. Yet again n. It was only upon being show tion entry operators , Shri Bh
Dodhia Group had engag nto its books through entities rch action carried out at the p s 153A of the Act were issued to 2020-21 and assessment u gly completed on 28.09.2021
ade additions for the various loa ssessment years.
year 2014-15, the Assessing hs u/s 68 of the Act for alleged oan received from three parties d. (Rs.15,00,000/-); (ii) Value Ad
000/-); and (iii) Dolphin Comm
A One Sizing Works
3
SS)A. 6459, 6460, 6461, 6462
& 6463/MUM/2024
to comment or ubsequently, on seized from the estions were put to the column probable cash n, he declined to wn statements of hadresh Dodhia ged in routing such as Vinam premises of the for assessment u/s 153A of the , wherein, the ans and interest g Officer made accommodation namely, (i) Mili dded Merchants merce Pvt. Ltd.

(Rs.20,00,000/-). Fu respect of these loans
3.3 In assessment
Rs.1,50,00,000/- fro invoking section 68
Rs.17,84,744/- in res disallowed.
3.4 In assessment addition of Rs.1,95,0
as accommodation e
(Rs.75,00,000/-), (ii)
(iii) Vinam Finance P also disallowed the assessee as revenue loans.
3.5 In assessment y loan of Rs.50,00,000
invoking section 6
Rs.46,67,717/- claim
3.6 In assessment disallowance of Rs.3
claimed by the asses paid towards bogus a ITA No. 6458, & IT( urther, interest of Rs.17,18, s was also disallowed.
year 2015-16 addition for uns om Vinam Finance Pvt. Ltd.
of the Act. Further interest spect of loans claimed by the as year 2016-17, the Assessing
0,000/- u/s 68 of the Act for tr entries from (i) Manyata Merc
Safalta Vinimay Pvt. Ltd. (Rs.4
Pvt. Ltd. (Rs.75,00,000/-). The A interest of Rs.43,36,689/- c e expenditure in respect of th year 2017-18, the Assessing Of 0/- received from Kirteshwari Vi
8 of the Act and disallow med in respect of unsecured loan year 2018-19, the Assessing
34,03,144/- on account of inte ssee as revenue expenditure ho and unsecured loans.
A One Sizing Works
4
SS)A. 6459, 6460, 6461, 6462
& 6463/MUM/2024
794/- paid in secured loan of was disallowed expenditure of ssessee was also g Officer made eating the loans chants Pvt. Ltd.
5,00,000/-) and Assessing Officer claimed by the hese unsecured fficer disallowed intrade Pvt. Ltd.
wed interest of ns.
g Officer made erest which was olding the same

AY 2017-18
6. On the fact in law, the L upholding th incriminating
& seizure acti
AY 2018-19
3. On the fact in law, the L upholding th incriminating
& seizure acti
AY 2019-2020
3. On the fact in law, the L upholding th incriminating
& seizure acti
4.1 We have heard issue in dispute as material qua the as whether any additio orders passed u/s 15
material found and s issue is no longer re
PCIT [(2023) 454 IT that in the case of un can be made under incriminating materia
ITA No. 6458, & IT( ts and in the circumstances of the appella
Ld. Commissioner of Income Tax (Appe he addition of Rs 89,01,817/- in abs material whatsoever found during the co ion, pertaining to the year under conside ts and in the circumstances of the appella
Ld. Commissioner of Income Tax (Appe he addition of Rs 24,00,526/- in abs material whatsoever found during the co ion, pertaining to the year under conside ts and in the circumstances of the appella
Ld. Commissioner of Income Tax (Appe he addition of Rs 18,28,145/- in abs material whatsoever found during the co ion, pertaining to the year under conside rival submissions of the parties s regards to the existence o ssessment years 2014-15 to A on could be sustained in tho
53A of the Act in absence of an seized from the premises of th es integra. In Abhisar Buildwe
R 212 (SC)], the Hon’ble Supr nabated or completed assessme
Section 153A of the Act in the al found during the search. In A One Sizing Works
6
SS)A. 6459, 6460, 6461, 6462
& 6463/MUM/2024
ant's case and eals) erred in sence of any urse of search eration.
ant's case and eals) erred in sence of any urse of search eration ant's case and eals) erred in sence of any urse of search eration.
s on the specific of incriminating
AY 2018-19 and ose assessment ny incriminating he assessee. The ell Pvt. Ltd. v.
eme Court held ents, no addition absence of any case of abated assessment years, th information or entry any on the basis of i
Hon’ble Supreme Cou
“14. In view of th concluded as under:
i) that in case of se
132A, the AO ass section 153A; ii) all pending asses iii) in case any incr of unabated/comp juri iction to ass consideration the in the other material a the returns; and iv) in case no in search, the AO consideration th assessments/unab completed/unabated absence of any incr under Section 132
However, the compl
AO in exercise of po fulfilment of the c
147/148 of the Act
4.2 To ascertain th
(supra), it is necessa
ITA No. 6458, & IT( he AO could make addition on t in the return of income along incriminating material. The rel urt (supra) is reproduced as und he above and for the reasons stat
:
earch under Section 132 or requisitio sumes the juri iction for block ass sments/reassessments shall stand a riminating material is found/unearthe pleted assessments, the AO woul sess or reassess the ‘total incom criminating material unearthed during available with the AO including the inc ncriminating material is unearth
O cannot assess or reassess e other material in respect bated assessments. Meaning thereb d assessments, no addition can be ma riminating material found during the or requisition under Section 132A of leted/unabated assessments can be r owers under Sections 147/148 of th conditions as envisaged/mentioned and those powers are saved.”
(emphasis sup he applicability of the ratio in Ab ary to determine whether the a A One Sizing Works
7
SS)A. 6459, 6460, 6461, 6462
& 6463/MUM/2024
the basis of any with addition if levant finding of der:
ted above, it is on under Section sessment under bated; ed, even, in case ld assume the me’ taking into g the search and come declared in hed during the taking into of completed by, in respect of ade by the AO in course of search of the Act, 1961. re-opened by the he Act, subject to under sections pplied externally) bhisar Buildwell assessments for each of the years in search, i.e., 27.11.20
issuance of notice u respect of AYs 2014
were pending on th those years stood unabated assessmen were within the lim
Section 143(2), and h
4.3 Accordingly, in abated or unabated assessment years is s
Assessment year
Due date/dat filing
Return
2014-15
31/10/2
2015-16
31/10/2
2016-17
31/10/2
2017-18
31/10/2
2018-19
31/10/2
2019-20
31/10/2
2020-21
(current year)
31/10/2
4.4 There is no disp assessment year as table. Therefore, the ITA No. 6458, & IT( question were abated or not as 019. It is not in dispute that th under Section 143(2) had alre
–15 to 2018–19, and no scrut he date of search. Therefore, a completed and fall within t nts. Conversely, AYs 2019–20
mitation period for issuance o hence are to be treated as abated the case of assessee status of for relevant current year and summarised as under:
te of of Limitation for issue of notice u/s 143(2) of the Act
Whether any scrutiny proceeding pending for the AY
014
30/09/2015
No 015
30/09/2016
No 016
30/09/2017
No 017
30/09/2018
No 018
30/09/2019
No 019
30/09/2020
No 020
30/09/2021
No pute between parties on the iss abated or unabated as summ issue of whether there was an A One Sizing Works
8
SS)A. 6459, 6460, 6461, 6462
& 6463/MUM/2024
s on the date of he limitation for eady expired in iny proceedings assessments for he category of 0 and 2020–21
of notice under d assessments.
f assessment as d six preceding
Abated/unabated unabated unabated unabated unabated unabated
Abated
Abated sue of particular marised in above ny incriminating material found from assessment years 20
years , is to be exam with the ratio of the Buildwell Pvt. Ltd. (su
4.6 We note that Officer in the assessm is available on page reference, which is re
“You have bee make submiss have not made date. Hence on this showcause
It is seen tha unsecured loan
FY
Loan Taken
2013^14
A One Sizin
2013-14
A One Sizin
2013-14
A One Sizin
2014-15
A One Sizin
2015-16
A One Sizin
2015-16
A One Sizin
2015-16
A One Sizin
Works
2016-17
A One Sizin
As per the en established tha taken unsecur being given to ITA No. 6458, & IT( m the premises of the assesse
014-15 to 2018-19 i.e. unaba mined in the case of the assesse
Hon’ble Supreme Court in the upra).
in assessment year 2014-15, ment order has issued show ca e 3 to 4 of the assessment o eproduced as under:
en provided with several opportunities by th ions/explanations in your case. But it is see e any submissions in response to the notices ne final/last opportunity is being presented t e notice to make submissions/explanations.
at for the year under consideration, you h ns from the following companies as mentioned n By Loan Taken From Amount of Loan received (Rs)
A in ( ng Works Dolphin Commerce P. Ltd
20,00,000
8
ng Works Mili Commodities P. Limited
15,00,000
7
ng Works Value Added Merchants P.
Limited
20,00,000
1
ng Works Vinam Finance P. Limited
1,50,00,000
6
ng Works Manyata Merchants P. Limited 75,00,000
6
ng Works Safalta Vinimay P. Limited
45,00,000
3
ng
Vinam Finance P. Limited
75,00,000
1
ng Works KirteshwariVintrade P. Limited 50,00,000
3
Total4,50,00,000
3
nquiries conducted by the department, i at the above mentioned companies from whic red loans are bogus. Hence one more opp you to present the directors of the above
A One Sizing Works
9
SS)A. 6459, 6460, 6461, 6462
& 6463/MUM/2024
ee in respect of ated assessment ee for complying case of Abhisar the Assessing ase notice which order, for ready his office to en that you s issued till to you vide have taken d below:
Amount of nterest
(Rs)
86,137
7,06,685
1,59,123
65,950
6,35,506
3,15,124
16,01,315
3,31,028
39,00,868
it has been h you have portunity is mentioned companies in 20/09/2021 a of failure to pr before the u showcaused a 4,50,00,000/- should not be t and the interes disallowed.
As per the lo during the co the residence transaction am
M Dodhia has 1,27,000/-. In the expenses accounts with submissions i
Therefore, in vi as to why the treated as unex
If you fail to showcause not the matter and this show caus of material ava
4.7 In above show c to two sources for pro inquiry conducted by loans as unexplained
(Bundle No. 1, page 8
132 from the reside
(West) for transaction assessment year 20
referred to question
Dodhia, wherein he w the Bundle No. 3 fou
ITA No. 6458, & IT( the undersigned office for cross verif at 11:30 alongwith documentary evidences. O resent the directors of the above mentioned undersigned on or before 20/09/2021, as to why the unsecured loans amount taken from the above mentioned compa treated as unexplained credit and added in y st paid thereon of Rs.39,00,868/-by you, sho ose paper/documents (Bundle No-1, page ourse of search action u/s 132 on 27/11/2
e of Shri Harakchand M Dodhia, Mulu mounting to Rs 1,27,000/- is noticed. Shri H s explained that the details are of expen this connection you were requested to subm of Rs 1,27,000/- has been recorded in the h documentary evidences in support. Til in this regard has been received from iew of the above, you are hereby required to s e expenses amounting to Rs 1,27,000/- m xplained expenditure and added to your incom make submissions/ explanations in respon tice, it will be presumed that you have nothin d you accept proposed additions as stated se notice and assessment will be completed o ailable on record."
cause notice, the Assessing Offi oposing addition of unsecured lo y the Department for considering d cash credit, secondly, loose p
8) seized during the course of se ence of Shri Harakchand M D n amounting to Rs.1,27,000/- i
020-21. Thirdly, the Assessi n No. 60 of the statement of was questioned regarding page und during the course of searc
A One Sizing Works
10
SS)A. 6459, 6460, 6461, 6462
& 6463/MUM/2024
fication on On account companies you are ting to Rs nies anies your income ould not be e-8) seized
2019 from und (W), a Harakchand nses of Rs mit whether e books of ll date no your end.
showcause may not be me.
nse to this ng to say in above vide n the basis icer has referred oan, firstly, the g the unsecured paper/document earch action u/s Dodhia, Mulund
.e. pertaining to ing officer also Shri Bhadresh
No. 36 to 38 of ch action at the residence of Shri Di asked regarding the return of cash after question and answer
Q.60 I am sho and seized d
Shri Divyesh from some of per these pag received back deducting the these compan
Dodhia group
Ans. Cash is explain the co and verify the 4.8 In addition to th statement of sh Su provided by the inve
Jakharia and sh Min ltd have been referre commission was issu of the unsecured loa referred by the Asses
4.9 In the light of a agitated the issue material was found f
2014-15 to AY 2018-
ITA No. 6458, & IT( vyesh Dhanani. In the said qu column “return” in loose pape deducting the commission of 3
is reproduced as under:
owing you page no. 36 to 38 of the Bundl uring the course of search action at the Dhanani. These pages contain the deta f the Kolkata based companies mentione ges it is clear that Interest paid in cheq k (mentioned under column "return")in e commission of 3%. Hence, it shows tha nies are accommodation entries taken in p.
s not mentioned in these pages. I am olumn "return" as of now. will go throug e same and submit a reply.
he above sources, in AY 2015-1
shil Goyal , a Kolkata based estigation wing and statements nesh Dhodia i.e Directors of Vi d. In AY 2017-18 in post searc ued to Investigation wing Kolkata an parties and report obtained sing Officer in assessment.
above sources for making additio before the Ld. CIT(A) that n from the premises of the assess
19 , but the Ld. CIT(A) dismisse
A One Sizing Works
11
SS)A. 6459, 6460, 6461, 6462
& 6463/MUM/2024
uestion, he was er alleging to be %. The relevant le no.3 found residence of ails of loans ed above. As que has been n cash after t, loans from the books of not able to gh the books
16 to 2016-17, , entry operator of Shri Bhavik inam Finance p ch investigation, a for verification d has also been on, the assessee o incriminating see qua the AYs ed the ground of the assessee. The re reproduced as under “42. For the y a technical g been made b material foun separate sub the appellate want to pres adjudicating pages (page n the premises documents h paid by entitie these seized back by the g and the figure is mentioned assessee is a of M/s. Dolp
Merchants Pv details of amo with Shri Bh the search in explain the sa
Shri Bhadres from various during the s
Bhadresh
D explanation. F
70 and 72 th routed in the Vinam Finan search invest investigation
Dhodia Group well as Mum called loan cre
43. The abov material rega the search as and therefor incriminating
ITA No. 6458, & IT( elevant finding of ld CIT(A) in r:
year under consideration, the appellant h round (ground no. 3) that no addition c by the AO in the absence of any inc nd during the search operation. In this r bmission has been made by the appella proceedings indicating that the appellan ss this ground. In any case, as discus the appeal for AY 2013-14, it is seer no. 37 and 38 of bundle no: 3/Party no. M s of Shri Divyesh Dhanani) were seize ave details of various loans raised an es of Dodhia Group including the appella pages, the amount of interest paid was group entities, after deducting a commiss e of arnount, received back from the loan d under the column 'return'. The nam also appearing at seized page no. 37 and phin Commerce Pvt. Ltd. and M/s. Valu vt. Ltd is mentioned on this page, along ount received back. The said page was c hadresh Dhodia in the statement record question no. 60 of the statement and he ame. Furthermore, it is seen from the sta sh Dhodia that documents relating to loa shell companies by the group entities w earch and the same were confronted
Dhodia and he could not give sa
Furthermore, he admitted in reply to qu hat the cash available with the Dhodia G e form of accommodation entries thro ce Pvt. Ltd. In this background, during tigation, the DDIT (Inv.) got conducted ind regarding the existence of various loan c p These enquiries were conducted at K mbai and these enquiries suggested tha reditors were not existing on the given add ve discussion clearly suggests that inc rding the accommodation entries was fou s well as collected during the post search re the contention of the appellant material was found during the search is A One Sizing Works
12
SS)A. 6459, 6460, 6461, 6462
& 6463/MUM/2024
AY 2014-15 is had raised could have riminating regard, no ant during nt does not sed while r that two
MN5, from ed. These nd interest ant. As per s received sion of 3%
n creditors me of the d the name ue Added g with the confronted ded during e could not atement of ans taken were found with Shri atisfactory uestion no.
Group was ough M/s.
g the post dependent reditors of Kolkata as at the so- dresses.
riminating und during h enquiries that no s incorrect.

Accordingly, appellant is 4.10 Upon careful sc relied upon by the R statements relied upo
 Seized from thi
Divyesh Dhanan
 Statements of t search; or  Post-search inv
Investigation Wi
4.11 We find that th any of the incrimina assessee in respect o show cause notices t premises and person
36–38 of Bundle No.
party and not from th absence of invocation to make additions in As far as statements are concerned, not a premises of the asse incriminating materi
ITA No. 6458, & IT( the ground no.
3
raised
DISMISSED.”
crutiny of the assessment orde
Revenue, it is evident that the on by the Assessing Officer (AO) ird party premises (such as re ni); or third parties recorded during vestigation reports obtained fro ing.
he Assessing Officer has no wh ating material found from the of AYs 2014–15 to 2018–19. In themselves refer to seized mate ns. The materials relied upon —
3 — were found from the resid he assessee. Therefore, such do n of Section 153C of the Act, ca the hands of the assessee unde s of Shri Bhadresh Dodhia and a single statement has been rec ssee and therefore, same canno ial seized or found from the p
A One Sizing Works
13
SS)A. 6459, 6460, 6461, 6462
& 6463/MUM/2024
by the ers and material documents and were either:
esidence of Shri search or post- om the Kolkata here referred to premises of the n fact, the AO’s erials from other including pages dence of a third ocuments, in the annot be utilized er Section 153A.
 For the unaba
2018–19, no a 153A of the Act found during th assessee.
 Statements of premises, not cannot form th respect of comp other provisions done in this cas
ITA No. 6458, & IT( und that Hon’ble Delhi High Co
Aggarwal reported in 290 CTR u/s 132(4) of the Act do ial found from the premises o d. CIT(A) in his appellate orde
Bundle No. 3 were seized from a Bhadresh Dodhia, who could ch confrontation cannot sub nt that incriminating material of the assessee, not third part unabated assessments.
bove analysis, we hold that:
ated assessment years viz. AY addition could have been made t in the absence of any incrimi he course of search from the third parties, or material fou being relatable to the asses e basis for additions in a 153A pleted assessments, unless pro s are separately initiated — whic se.
A One Sizing Works
14
SS)A. 6459, 6460, 6461, 6462
& 6463/MUM/2024
ourt in the case
R 263 held that not constitute of the assessee.
r admitted that third party and not explain the bstitute for the must be found ties, in order to Ys 2014–15 to e under Section inating material premises of the und from other ssee's premises,
A proceeding in oceedings under ch has not been  Consequently, loans and disal years are unsus
4.13 For the reasons of law laid down by t of the considered op years 2014–15 to 2
without juri iction ground of appeals r raised in AYs 2014- held that in absence have been made in th
2018-19 therefore, rendered academic a same.
5. As far as appeal
Officer has made a unsecured loans wh cash credit by the A which we have alre interest in respect o
Accordingly, the add
2019-2020 is also de
ITA No. 6458, & IT( all additions made in respec llowances of interest for the ab stainable in law.
stated above and in view of the this Court in Abhisar Buildwell pinion that the additions made
2018–19 under Section 153A and liable to be deleted. A related to existence of incrimi
15 to AY 2018-19 is allowed.
e of incriminating material, no he case of the assessee from AYs all other ground raised by th and hence, we are not adjudic l for AY 2019-2020 is concerned addition in respect of interest hich have been held as bogus
AO in assessment years 2014- eady deleted and therefore, t of those unsecured loans also dition of interest made in as leted.
A One Sizing Works
15
SS)A. 6459, 6460, 6461, 6462
& 6463/MUM/2024
t of unsecured bove assessment settled position l (supra), we are e in assessment of the Act are Accordingly, the inating material
Since we have o addition could s 2014-15 to AY he assessee are cating upon the d, the Assessing related to the or unexplained
-15 to 2017-18, the addition of cannot survive.
sessment years

Copy of the Order forward
1. The Appellant
2. The Respondent.
3. CIT
4. DR, ITAT, Mumbai
5. Guard file.

////

ITA No. 6458, & IT( l the appeals of the assessee are unced in the open Court on 10
/- AJAGOPAL)
(OM PRAK
MEMBER
ACCOUNTA ded to :

BY ORDER

(Assistant Re

ITAT, Mu

A One Sizing Works
16
SS)A. 6459, 6460, 6461, 6462
& 6463/MUM/2024
e allowed.
0/07/2025. d/-
KASH KANT)
ANT MEMBER
R, gistrar) umbai