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Facts
The assessee, a Non-Banking Financial Company, engaged in share trading, investment, and providing loans, earned interest. Its case was reopened under Section 147, and the Assessing Officer made various additions, including for undisclosed interest income and for treating certain advances as "entry operations" with 1% commission added. The CIT(A) dismissed the assessee's appeal, upholding these additions.
Held
The Income Tax Appellate Tribunal found no infirmity in the impugned orders of the CIT(A). No material was presented by either side to justify interference or modification. Consequently, the tribunal upheld the orders of the CIT(A), and all appeals filed by the assessee were dismissed.
Key Issues
The key legal issues involved the validity of additions made by the AO for (i) undisclosed interest income where TDS was claimed but corresponding income not shown in ITR, and (ii) treating certain advances as accommodation entries and adding 1% commission. Another issue was the premature nature of deciding on penalty proceedings under Section 271(1)(c).
Sections Cited
Section 147, Section 143(3), Section 271(1)(c)
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Income Tax Appellate Tribunal, LUCKNOW BENCH ‘A’, LUCKNOW
Before: SHRI KUL BHARAT & SHRI ANADEE NATH MISSHRA
(A) These three appeals have been filed by the assessee pertaining to assessment years 2014-15, 17-18 and 18-19 against impugned appellate orders dated 30/11/2023 (DIN & Order No.ITBA/APL/S/250/2023- 24/1058365951(1), dated 08/12/2023 (DIN & Order No.ITBA/APL/S/250/ 2023-24/1058606785(1) and dated 08/12/2023 (DIN & Order No.ITBA/APL/S/250/2023-24/1058606785(1) respectively of Commissioner of Income Tax (Appeals) [“CIT(A)” for short].
, 48 & 49/Lkw/2024 Asstt. Years:2014-15, 17-18 & 18-19 2 (B) The facts of the case, in brief, are that the assessee is a Non- Banking Financial Company engaged in share trading and investment business. The company provides short term and long term loans/advances to body corporate and thereby earns interest on it. The assessee’s case was reopened u/s 147 of the I. T. Act. The assessee is assessed to tax and filed its return of income. The Assessing Officer completed the assessments and made various additions against which the assessee went in appeal before the learned CIT(A). The learned CIT(A) dismissed the appeal of the assessee observing as under:
, 48 & 49/Lkw/2024 Asstt. Years:2014-15, 17-18 & 18-19 3 , 48 & 49/Lkw/2024 Asstt. Years:2014-15, 17-18 & 18-19 4 , 48 & 49/Lkw/2024 Asstt. Years:2014-15, 17-18 & 18-19 5 (C) During the course of hearing, none was present on behalf of the assessee. In the past also the appeals were fixed for hearing on 29/04/2024, 05/08/2024, 10/09/2024, 25/11/2024, 02/01/2025, 06/03/2025, 03/06/2025, 21/07/20254, 01/09/2025, 03/11/2025 and 18/12/2025 on which dates either the hearing was adjourned on the request of the assessee or there was no representation from the assessee’s side. On 18/12/2025 also, when the hearing was last fixed, none was present on behalf of assessee. In the absence of any representation from the side of the assessee, learned Departmental Representative for Revenue was heard, who relied on the orders of the authorities below. On careful perusal of the 48 & 49/Lkw/2024 Asstt. Years:2014-15, 17-18 & 18-19 6 impugned order of the learned CIT(A), and other materials on record, no infirmity is found in it. No material has been presented from either side to justify any interference with or modification of the impugned orders of learned CIT(A). Therefore, the impugned orders of learned CIT(A) are upheld and the appeals are dismissed.
(D) In the result, all the appeals of the assessee are dismissed.
(Order pronounced in the open court on 05/01/2026)