Sangita Garg vs Income Tax Officer, Ward 5(3)(3), Noida

PER MANISH AGARWAL, A.M. :

The present appeal is filed by assessee against the order dated 18.09.2025 passed by Ld. Commissioner of Income Tax (A), National Faceless Appeal Centre (“NFAC”), Delhi [“Ld. CIT(A)”] in Appeal No. CIT(A), Noida-1/10948/2019-20 u/s 250 of the Income Tax Act, 1961 [“the Act”] arising out of assessment order dated 13.12.2019 passed u/s 143(3) r.w.s. 147 of the Act pertaining to Assessment Year 2012-13.

Brief facts of the case are that the assessee is an individual and based on the information received that the assessee has purchased an immovable property for INR 3.00 crores in the previous year during the relevant year, case of the assessee was reopened u/s 147 and notice u/s 148 was issued on 20.03.2019. Thereafter, the AO observed that the assessee has purchased an immovable property situated at C-54, Sector-44, Noida for a total consideration of INR 3.00 crores jointly with her husband, Shri Pramod Kumar Garg and the assessee has contributed a sum of INR 1.75 crores and further paid INR 15.00 Lakhs towards stamp duty. Regarding immediate source of the payment of INR 1.75 crores, it was the claim of the assessee that the said amount was paid out of the loan taken from M/s Akash Packaging India Pvt. Ltd and was repaid from the loan taken from M/s Pradeep Sons Pvt. Ltd., an NBFC company and filed all the relevant details of both the companies. The AO doubted the creditworthiness of the lender company and made the addition of the said amount u/s 68 of the Act. Besides this, regarding the payment of INR 15 Lakhs, it was stated that the same was paid out of the bank withdrawals however, the same was not verifiable and, therefore, the same was also added in the hands of the assessee company.

Against the said order, assessee filed an appeal before Ld. CIT(A) who vide impugned order dated 18.09.2025, confirmed the additions made by AO and dismissed the appeal of the assessee.

Aggrieved by the order of Ld.CIT(A), assessee is in appeal before the Tribunal by taking various Grounds of appeal mentioned in the appeal memo.

During the course of hearing, the assessee has not pressed Ground of appeal No. 3 regarding re-opening of the assessment based on mechanical approval and thus, the same is dismissed.

The remaining Grounds of appeal Nos. 1 to 2 & 4 to 8 are with respect to the confirmations of addition of INR 1.90 crores made by the AO therefore, all the Grounds of appeal raised by the assessee are taken together for consideration.

Before us, ld. AR for the assessee submits that during the year under appeal, the assessee has purchased an immovable property jointly with her husband, Shri Pramod Kr. Garg situated at C-54, Sector-44, Noida for INR 3.00 crores. The assessee has contributed INR 1.75 crores which were paid out of her bank account maintained with Union Bank of India, Noida. The assessee filed copy of bank statements, as per which a sum of INR 1.75 crores was received on 26.09.2011 from M/s. Aakash Packaging Pvt. Ltd. The confirmation from M/s. Aakash Packaging Pvt. Ltd. was also filed. Ld. AR further submits that thereafter, the assessee has taken loan of INR 1.75 crores from M/s. Pradeep Sons Pvt. Ltd. and repaid the loan of INR 1.75 crores received from M/s. Aakash Packaging Pvt. Ltd. Ld. AR submits that M/s. Pradeep Sons Pvt. Ltd. is an NBFC company and copy of its bank statements were also provided. Ld. AR further submits that in the case of M/s. Pradeep Sons Pvt. Ltd., the assessment was completed u/s 153A r.w.s. 143(3) vide order dated 30.03.2015 for AY 2012-13 wherein the fact that the company is an NBFC company was accepted and no addition was made. Further, he Ld. AR filed a copy of the order passed in the case of husband of the assessee for AY 2012-13 wherein the source in the hands of Shri Pramod Kr. Garg for the remaining investment has been accepted vide order dated 22.12.2019 passed u/s 143(3) r.w.s. 147 of the Act. Ld.AR submits that under identical circumstances, funds received from M/s Akash Packaging Pvt. Ltd. were accepted in the case of Shri Pramod Kumar Garg, husband of the assessee, thus the funds received by the assessee should also be accepted and additions made be deleted. He prayed accordingly.

On the other hand, Ld. Sr. DR for the Revenue vehemently supported the orders of the AO and submits that assessee has failed to substantiate the source of loan taken from M/s. Aakash Packaging Pvt. Ltd. from whom initially funds were received by the assessee at the time of purchases of the property. Ld. Sr. DR further submits that the assessee also failed to justify the claim of payment of stamp duty as made out of withdrawal from the bank account. Ld. Sr. DR submits that from the perusal of the bank statements of the assessee, there is no entry for withdrawal of cash for payment of stamp duty therefore, the immediate source of INR 15 Lakhs remained unsubstantiated. Regarding the source of INR 1.75 crores, ld. Sr. DR submits that though the said loan taken from M/s. Aakash Packaging Pvt. Ltd. was repaid out of the funds borrowed from M/s. Pradeep Sons Pvt. Ltd., an NBFC company however, the creditworthiness of M/s. Aakash Packaging Pvt. Ltd. remained unverified. She thus, prayed for the confirmation of the addition made by the AO.

Heard the contentions of both parties at length and perused the material available on record. It is a matter of fact that the assessee has purchased an immovable property jointly with her husband, Shri Pramod Kr. Garg situated at C-54, Sector-44, Noida for a total sum of INR 3.00 crores and further paid INR 15 Lakhs towards stamp duty charges. The assessee has made payment of INR 1.75 crores for acquisition of the said property and balance was paid by her husband. The immediate source of INR 1.75 crores was stated to have been out of the loan received from M/s. Aakash Packaging Pvt. Ltd. of INR 1.75 crores for which confirmation is filed. The assessee claimed that said loan was repaid after taking loan from M/s. Pradeep Sons Pvt. Ltd., an NBFC company and filed all the details such as bank account, ITR, confirmation, financial statement of M/s. Pradeep Sons Pvt. Ltd. However, with respect to the loan taken from M/s. Aakash Packaging Pvt. Ltd., only confirmation is filed and no further documents were filed such as bank statement, its financial statements to prove the creditworthiness of the said company. For this, the sole reliance was placed by the assessee on the assessment order passed in the case of her husband, Shri Pramod Kr. Garg u/s 147 r.w.s. 143(3) of the Act dated 22.12.2019 wherein Revenue has accepted the source in his hands as loan taken from M/s. Aakash Packaging Pvt. Ltd. Further, the immediate source of INR 15 Lakhs paid as stamp duty and claimed as made out of bank withdrawal also remained unverified. Since the said loan was repaid out of the funds borrowed from M/s Pradeep Sons Pvt. Ltd. and neither its identity nor the creditworthiness was doubted by the AO thus we are not commenting upon the same. The only issues remained to be examined are the creditworthiness of M/s Akash Packing Pvt. Ltd. and source of Rs. 15.00 lacs paid for stamp duty. Thus, in the interest of justice, we remand both the issues back to the file of AO with the directions to examine the immediate source of the funds borrowed from M/s. Aakash Packaging Pvt. Ltd. and further source of stamp duty paid as claimed by the assessee and decide the issue in accordance with law. With these directions, all Ground of appeal Nos. 1 to 2 & 4 to 8 raised by the assessee are allowed for statistical purposes except Ground of appeal No.3 raised by the assessee which stood dismissed as withdrawn.

In the result, appeal filed by the Assessee is partly allowed for statistical purposes.