Mr. Dhiren Pradip Sadiwala Vs. ITO, Ward-23(1)(6)

Parties Involved

Facts Summary

The assessee, Mr. Dhiren Pradip Sadiwala, filed his return of income for the assessment year 2012-13 declaring a total income of Rs. 7,55,020/-. A search and seizure action under section 132 of the Income Tax Act was carried out in the case of M/s Evergreen Enterprises, where Mr. Nilesh Bharani is one of the partners. It was found that Mr. Dhiren Pradip Sadiwala had lent a cash loan of Rs. 17,00,000/- to/through M/s Evergreen Enterprises. Consequently, the case of the assessee was reopened under sections 147/148. During the assessment proceedings, the assessee was asked to explain the transactions, but he failed to provide any explanation or documentary proof. The Assessing Officer (AO) added Rs. 17,00,000/- to the assessee's income under the head 'Income from other sources'. The assessee appealed against this addition, which was dismissed by the Commissioner of Income-tax (Appeals) (CIT(A)). The assessee then filed the present appeal before the ITAT.…

Legal Issues

• 1. Whether the Additional Commissioner of Income-tax (Appeals), Agra erred in upholding the action of the Income-tax Officer 23(1)(6) Mumbai in issuing a notice under section 148 of the Act.
• 2. Whether the Additional Commissioner of Income-tax (Appeals), Agra erred in upholding the action of the Assessing Officer in making an addition under the head 'income from other sources' of a sum of Rs 17,00,000, being unexplained cash loan given to Mr Nilesh Bharani.

Judgment Outcome

Decided in favour of Assessee.

Precedents Relied Upon

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