##PAGE1##

IN THE INCOME TAX APPELLATE TRIBUNAL

“SMC” BENCH, SURAT

BEFORE S/SHRI SANJAY GARG, JUDICIAL MEMBER AND

BIJAYANANDA PRUSETH, ACCOUNTANT MEMBER

ITA Nos.479 & 480/SRT/2025

Asstt Years: 2016-17 & 2017-18

Kanchan Devi Agarwal ITO, Ward-1(2)(1)

409, Chandanvan Apartment Vs Surat.

Majura Gate

Surat 395 002.

PAN : ABQPA 9681 E

(Applicant) (Responent)

Assessee by : Shri Ramesh Malpani, CA

Revenue by : Shri Ajay Uke, Sr.DR

Date of Hearing 25-09-2025

Date of Pronouncement 23-12-2025

O R D E R

Per Sanjay Garg, Judicial Member :

These two appeals are filed by the assessee against the separate

orders of the National Faceless Appeal Centre (NFAC), Delhi (in short

“the CIT(A)”), both dated 03.03.2025, for the Assessment Years (A.Y.)

2016-17 & 2017-18 in relation to assessment orders passed under

Section 147 r.w.s. 144B of the Income Tax Act, 1961 (hereinafter

referred to as ‘the Act’).

2. As the facts involved in these two cases are identical, both the

matters were heard together and are being disposed of vide this common

order for the sake of convenience. We will first take up the appeal of the

assessee for the A.Y. 2016-17.

ITA Nos.479 & 480/SRT/2025

Page 2 of 11

ITA No.479/SRT/2025 for A.Y. 2016-17

3. The brief facts of the case are that the assessee had filed her

return of income for the A.Y. 2016-17 on 03.08.2016 declaring income

of Rs.4,99,060/-. Subsequently, the case of the assessee was reopened

by the AO by issuing a notice under section 148 of the Act with the

specific reason to verify the genuineness of unsecured loan credit of

Rs.25,00,031/- received by the assessee from M/s.ECLAT Construction

P.Ltd., a paper/shell company managed and run by Banka Group of

companies in the form of accommodation entry, which was explained

by the assessee to be an amount of Rs.25.00 lakhs taken from the

M/s.ECLAT Construction Pvt. Ltd. as advance for the purpose of

purchase of equity shares of M/s.Dhanurdhar Processer P.Ltd. The said

ECLAT Construction P.Ltd. confirmed the same in response to the

notice under section 133(6) of the Act. However, the ld.AO did not get

satisfied with the explanation of the assessee and completed the

assessment by making an addition of Rs.25.00 lakhs under section 68

of the Act. Aggrieved by the said order of the AO, the assessee went in

appeal before the ld.CIT(A).

4. Before the ld.CIT(A) the assessee challenged the assessment on

two counts (i) validity of reopening of the assessment by issuance of

notice under section 148 in view of the decision of the Union of India

Vs. Aashish Agawal, and (ii) merit of the impugned addition. The

ld.CIT(A), however, upheld the finding of the AO and confirmed his order

on both the counts. Hence, the assessee has come in further appeal

before the Tribunal.

5. In this appeal, the assessee has raised the following grounds:

1. That on the facts and in the circumstances of the case as well as in law, the

Id. CIT (A), NFAC, DELHI [CIT (A)] has erred in upholding the validity of the

ITA Nos.479 & 480/SRT/2025

Page 3 of 11

order passed u/s 148A (d) and notice issued u/s 148 of the I. T. Act, 1961

(the Act), which is invalid, time barred, bad in law and beyond the law and

without sanction of appropriate authority u/s 151 and thereby erred in

upholding the validity of the consequent assessment order passed u/s 147

r.w.s. 144B of the Act, which are invalid and bad in law ab initio. Appellant

prays for quashing the same.

2. Without prejudice to above grounds of appeal, that on the facts and in the

circumstances of the case as well as in law, the Id. CIT (A) has erred in

upholding the addition of Rs. 25,00,031/- u/s 68 of the Act by assuming the

duly explained amount of advance received from Eclat Construction Pvt. Ltd.

as unexplained cash credit. The reasons mentioned for making this addition

are factually wrong and contrary to the settled law and the addition made

is wrong and unjustified on facts as well as in law. Appellant prays for

deleting the same.

3. Without prejudice to other grounds of appeal, that the interest charged by

Id. A