Any instance of diversion of bank loan can lend the entire case to income tax scrutiny.
The judgement in [2024] 169 taxmann.com 682 (Delhi)[10-07-2024] is a testimony to selection of case to examine diversion of loans to sister concerns.
It so happened that in this property developer case loans taken for a project were siphoned off by transfer to sister concerns even when the company owed statutory liabilities and dues to creditors in their financials. In this case most of the information has been perused from the financials of the assessee showing significant liabilities year after year even when loans taken were seen diverted to sister concerns.
This alone as per Court constituted credible information for reopening of entire assessment as it is held that the AO was clearly not disabled from proceeding to examine the entire case including on the basis of the allegations of diversion of loans