{"id":57348,"date":"2025-10-31T11:56:08","date_gmt":"2025-10-31T06:26:08","guid":{"rendered":"https:\/\/itatonline.org\/digest\/ito-1231-v-manju-diamonds-pvt-ltd-mum-trib-www-itatonline-org\/"},"modified":"2025-10-31T11:56:08","modified_gmt":"2025-10-31T06:26:08","slug":"ito-1231-v-manju-diamonds-pvt-ltd-mum-trib-www-itatonline-org","status":"publish","type":"post","link":"https:\/\/itatonline.org\/digest\/ito-1231-v-manju-diamonds-pvt-ltd-mum-trib-www-itatonline-org\/","title":{"rendered":"ITO-12(3)(1) v. Manju Diamonds Pvt. Ltd ( Mum)( Trib) www.itatonline.org"},"content":{"rendered":"<p>In a search on the Sushil Lahoti group, statements indicated accommodation entries; relying on this information (and not on any seized material \u201cbelonging to\u201d the assessee), the AO reopened the case of Manju Diamonds Pvt. Ltd<strong>.<\/strong> u\/s 147 and added \u20b975.50 lakh u\/s 68 for unsecured loans from four Lahoti-linked companies after 133(6) notices went uncomplied. On appeal the CIT( A)\u00a0 deleted the additions on\u00a0 merits, on the ground \u00a0that the addition rested solely on Lahoti\u2019s untested statement without supplying the statement or permitting cross-examination and \u00a0breach of natural justice and shifted onus under S. 68 once confirmations\/PANs\/bank statements were filed. \u00a0On appeal by the revenue \u00a0\u00a0before the Tribunal \u00a0the assessee invoked Rule 27 to contend that the correct route was 153C \u00a0and not reassessment proceedings under section 147, \u00a0\u00a0hence re assessment was bad in law . The Tribunal admitted the application under Rule 27 of the ITAT Rules . \u00a0The Tribunal held that since no document\/material \u201cpertaining to\/belonging to\u201d the assessee was found in the Lahoti search, 153C was not attracted and the AO could invoke 147 on external information; therefore, the reassessment was upheld and application under Rule 27 was rejected on merits . As regards the deletion of addition by the CIT( A), on merit the Tribunal held that \u00a0as the CIT(A) had deleted the addition outright without a full appraisal vis-\u00e0-vis the AO\u2019s enquiries and the assessee\u2019s primary evidence, and because the foundation was largely a third-party statement without cross-examination, the issue on merits was set aside and remanded to the CIT(A) for fresh decision after supplying material and affording effective cross-examination\/verification as per law. ( AY. 2017-18 ) \u00a0ITA No. 2766\/MUM\/2025, dt . \u00a030-07-2025)<\/p>\n<p>\u00a0<\/p>\n","protected":false},"excerpt":{"rendered":"<p>S. 147 : Reassessment \u2013 Information from third-party search \u2013 Accommodation entries \u2013 Cash credits -Section 153C not triggered, reopening u\/s 147 is valid-On merits, addition based mainly on untested third-party statement without cross-examination requires fresh adjudication by CIT(A). [S. 68, 132(4), 133(6), 148, 151, 153C, ITAT Rule, 1963 ,R. 27] <\/p>\n","protected":false},"author":3,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"jetpack_post_was_ever_published":false,"_jetpack_newsletter_access":"","_jetpack_dont_email_post_to_subs":false,"_jetpack_newsletter_tier_id":0,"_jetpack_memberships_contains_paywalled_content":false,"_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[21],"tags":[],"class_list":["post-57348","post","type-post","status-publish","format-standard","hentry","category-income-tax-act"],"acf":[],"jetpack_featured_media_url":"","jetpack_shortlink":"https:\/\/wp.me\/p9S2Rw-eUY","jetpack-related-posts":[],"jetpack_sharing_enabled":true,"_links":{"self":[{"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/posts\/57348","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/users\/3"}],"replies":[{"embeddable":true,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/comments?post=57348"}],"version-history":[{"count":1,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/posts\/57348\/revisions"}],"predecessor-version":[{"id":57349,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/posts\/57348\/revisions\/57349"}],"wp:attachment":[{"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/media?parent=57348"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/categories?post=57348"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/tags?post=57348"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}