SANSKRUT INFRABUILD LLP,AHMEDABAD vs. THE ITO, WARD-5(2)(3), AHMEDABAD

The brief facts of the case are that assessee had filed its original return of income for AY 2016-17 on 17.10.2016, declaring total loss of Rs.5,91,917/-. The case was selected for scrutiny under CASS. In the course of assessment, the AO found that the assessee had shown unsecured loan of Rs.468939908/-. The assessee was required to submit loan confirmation and other documentary evidences to establish identity, creditworthiness and genuineness of the loan creditors. The assessee, however, had furnished information in respect of only few of the creditors, in respect of whom enquiry was made by the issuance of notice u/s.133(6) of the Act. Only one person had responded to the notice of the AO. Thereafter, no compliance was made by the assessee. As the AO was not satisfied with the identity, creditworthiness and genuineness of loan of Rs.2,79,78,519/- taken from 12 persons, the same was added to income u/s 68 of the Act. The assessment

Aggrieved with the order of the AO, the assessee had filed an appeal before the First Appellate Authority which was decided by the Ld. CIT(A) vide the impugned order and the appeal of the assessee was dismissed.

Now the assessee is in second appeal before us. The following grounds have been taken in this appeal:

Shri Hardik Vora, Ld. AR appearing for the assessee, submitted at the outset, that no compliance was made before the Ld. CIT(A). Therefore, the Ld. CIT(A) had dismissed the appeal of the assessee without adjudicating the grounds taken by the assessee on merits. He, therefore, requested that the assessee may be allowed another opportunity to represent its case by setting aside the matter to the file of the learned CIT(A).

We have considered the submission of both the parties. It is true that the Ld. CIT(A) had allowed six opportunities to the assessee, but no compliance was made and no material in support of the grounds taken before the Ld. CIT(A) was brought on record. In the absence of any additional material, the Ld. CIT(A) had dismissed the appeal of the assessee. The contention of the assessee is that it had taken considerable time to collect the evidences from the third party and, therefore, another opportunity should be provided to submit the material in order to enable the Ld. CIT(A) to adjudicate the grounds on merits. Considering the request of the assessee, we deem it appropriate to set-aside the matter to the file of the Ld. CIT(A) with a direction to allow a final opportunity to the assessee to submit the materials/information in support of grounds as taken before him; subject to the payment of cost of Rs.5000/- which should be deposited in the “Prime Minister National Relief Fund” within a period of 15 days from date of receipt of this order. The assessee is also directed to make compliance before the Ld. CIT(A) in the course of set-aside proceeding and furnish the necessary documents/evidences/clarifications as required by the Ld. CIT(A). In case, the assessee does not make any compliance, the Ld. CIT(A) will have liberty to pass the order on merits on the basis of materials available on record. In the result, the appeal of the assessee is allowed for statistical purposes.

In this year the AO had made addition of Rs.10,00,000/- only in respect of loan taken from Pari Ashsish Kumar Dashratlal in respect of which no document was furnished. Further, addition of Rs.2182174/- u/s. 40(a)(i) of the Act was also made. The Ld. CIT(A) had reduced the disallowance u/s.40(a)(i) of the Act to Rs.6,54,652/- @ 30% of total payment made and allowed partial relief to the assessee, despite non-compliance by the assessee before him. Considering the request of the assessee to allow one more opportunity, the matter is set-aside to the file of Ld. CIT(A) with a direction to allow a final opportunity to the assessee to furnish documents and evidences in support of grounds as taken, subject to the payment cost of Rs.5000/- which should be deposited in the “Prime Minister National Relief Fund” within a period of 15 days from date of receipt of this order. The appeal is allowed for statistical purpose.

These two appeals pertain to AY 2018-19. In this case original assessment was completed u/s.143(3) of the Act on 22.04.2021 in which addition of unsecured loan of Rs.18,78,21,846/- taken from 11 persons was made. This apart, credit of Rs.52,60,439/- appearing in the partner’s credit account was also held as unexplained and added to income. Thereafter, an order u/s.143(3) r.w.s 263 of the Act was passed on 25.03.2025 and interest of Rs.2,11,06,803/- on unsecured loan of Rs.18,78,21,846/- disallowed in the

The direction to the assessee regarding compliance before the Ld. CIT(A) in the set-aside appellate proceeding, as given in ITA No. 246/Ahd/2026 for AY 2016–17, shall apply to all the appeals.

In the result, all the four appeal filed by the assessee are allowed for statistical purposes.