₹5 Crore Income Tax Demand Dropped! CA Praises Faceless Appeal for Hassle & Corruption Free Process
CA Pradeep Goyal hails the faceless appeal system after Rs. 5 crore tax demand was dropped, calling it a win for hassle-free and corruption-free tax justice
A proposed tax addition of Rs. 5 crores was dropped during the faceless appeal process by the Income Tax Department. The case involved an alleged unexplained unsecured loan under Section 68 of the Income Tax Act, which was being considered for addition during the first appeal. Chartered Accountant (CA) Pradeep Goyal, who represented the taxpayer, shared the news on X (Twitter), calling...
A proposed tax addition of Rs. 5 crores was dropped during the faceless appeal process by the Income Tax Department. The case involved an alleged unexplained unsecured loan under Section 68 of the Income Tax Act, which was being considered for addition during the first appeal.
Chartered Accountant (CA) Pradeep Goyal, who represented the taxpayer, shared the news on X (Twitter), calling it a big victory for India's faceless and transparent tax system. The case was for the Assessment Year 2014-15, and the proposed addition could have led to a huge financial burden on the taxpayer, including tax liability, interest, and penalties.
CA Goyal explained that the appeal was handled through written submissions followed by an oral hearing conducted virtually, as part of the government’s Faceless Appeal Scheme. He provided detailed documents and facts to show that the unsecured loan in question was genuine and properly explained.
The loan had been taken from Campbell Advertising Pvt. Ltd., which had received the funds from Chandra Prabhu International Ltd. (CPIL). The authorities initially doubted the source and proposed to treat it as unexplained income. The faceless appeal unit accepted the CA’s arguments and evidence that the lender (CPIL) had sufficient income and capacity to provide the funds.
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The appellate authority ruled that the taxpayer had clearly proved the identity, creditworthiness, and genuineness of the transaction. There was no reason to treat the Rs. 5 crore as unexplained income.
CA Goyal thanked the Income Tax Department, the Finance Ministry, and the government, particularly Finance Minister Nirmala Sitharaman and Prime Minister Narendra Modi, for making the tax process corruption-free and hassle-free through the faceless system.
“This appeal was for AY 2014-15 and if not allowed, it supposed to have serious consequences on the business of assessee due to tax, interest & penalties.
Thanks @IncomeTaxIndia for providing such corruption free and hassle free faceless system for assessments and first appeal.
Big thanks from my client assessee to @FinMinIndia @nsitharaman ji Sh. @narendramodi ji.”
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