IN THE INCOME-TAX APPELLATE TRIBUNAL “A” BENCH, MUMBAI BEFORE SHRI SANDEEP GOSAIN, JUDICIAL MEMBER &

SHRI PRABHASH SHANKAR, ACCOUNTANT MEMBER ITA No. 4684/MUM/2025 (A.Y. 2014-15)

Abhubhai Hirabhai Desai v/s. Deputy Commissioner of 26, Anandan Bungalow, बनाम Income Tax, Circle – 19(1), Presidency Sons, Road No. 7, Piramal Chamber, Mumbai –

Juhu Scheme, Vile Parle 400012, Maharashtra West, Mumbai – 400 049, Maharashtra स्थायी लेखा सं./जीआइआर सं./PAN/GIR No: AAEPD6011A Appellant/अपीलार्थी .. Respondent/प्रतिवादी

Appellant by : Shri Bhupendra Shah, AR Respondent by : Shri Surendra Mohan, (Sr. DR)

Date of Hearing 23.12.2025 Date of Pronouncement 02.02.2026 आदेश / O R D E R PER PRABHASH SHANKAR [A.M.] :-

The present appeal arising from the appellate order dated

09.07.2025 is preferred by the assessee against the order passed by the Learned Commissioner of Income-tax (Appeals)/National Faceless Appeal Centre, Delhi [hereinafter referred to as “CIT(A)”] pertaining to assessment order passed u/s. 143(3) r.w.s. 147 of the Income-tax Act, 1961 [hereinafter referred to as “Act”] dated 30.12.2017 for the Assessment Year [A.Y.] 2014-15.

2. The grounds of appeal are as under:

1. In the facts and circumstances of the case and in law, the AO erred in issuing notice u/s 148 of the Act and passing the Assessment order u/s

143(3) r.w.s 147 is illegal, bad in law and without jurisdiction.

2. In the facts and the circumstances of the case and in law, the learned Assessing Officer erred in reopening the assessment.

3. In the facts and circumstances of the case and in law, the Assessing Officer erred in making unjustified addition of Rs. 47,58,911/- on account of interest allegedly received in cash.

4. In the facts and circumstances of the case and in law, the Assessing Officer erred in charging interest u/s 234A, B, C and D and initiating penalty u/s 271[1][c].

3. The assessee, an individual derived income from salary, house property, profit and gain from business etc. Fact of the case as narrated in the assessment order reveal that the Assessing Officer of one Shri Jaikishin Rohra handed over the documents which pertained to/related to the assessee, in whose case search action u/s.132 of the Act was conducted on 24.02.2014.Loose papers and other documents were seized. It was found that page nos. 118 and 119 of Annexure A-1 contained financial transaction in cash and cheque which belonged to one Shri Kumar Mordani, who was partner in Paramvir Developers LLP. The statement of Shri Jaikishin Rohra was recorded u/s.131 of the Act in which he stated that the said documents and transactions belonged to Shri Mordani whose name appeared in the said seized page no.118. The said person was summoned and his statement was recorded in which he admitted that cheque entries appearing on page 118 were accounted for in the books of account of M/s. Paramvir Developers LLP (formerly known as K. Mordani Realtors) in which he was a partner. These amounts were received by the firm from Shri Vasant Parikh, Shri A.H. Desai (AHD), Smt. Ichhhaben H. Desai (IHD) and M/s. D. N. Infrastructure Pvt. Ltd (DNI).After examining and analysing the information that the seized documents mentioned incriminating information that pertained to the assessee, notice u/s.147 for re-opening the assessments was issued.

3.1 The AO observed that the assessee had paid certain amount of loan/capital to Sri K. Mordani, partner of Paramveer Developers. The assessee had taken the stand that the entries of cash in the said sheet did not pertain to him. However, the assessee had given the details/copy of ledger accounts and cheques details of the entries. It was noted by him that when the cheque entries were accepted by the assessee, refusal to accept the cash component recorded therein was not acceptable. He also issued notice u/s 133(6) of the Act to Shri K Mordani. In reply, he stated that "Further, we would like to inform you that we have paid interest payment @ 6% in cash, which is paid as a part of composite t