TaxTMI 
TaxTMI 
2016 (3) TMI 819
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....following grounds in its appeal which reads as under:- "1. On the facts and in the circumstances of the case and in law, the Ld. CIT(A) has erred in deleting addition of Rs. 2.21 Crores under section 68 of the I.T. Act, 1961. 2. The appellant craves leave for reserving the right to amend, modify, alter, add or forego any ground(s) of appeal at any time before or during the hearing of this appeal." 3. The Revenue further raised the following additional grounds on 10.7.2013: "1. On the facts and in the circumstances of the case, the ld. CIT(A) has erred in deleting addition of interest of Rs. 9,99,175/- debited to P&L account on the unsecured loan of Rs. 2.21 Crores. 2. The Appellant craves leave to add,....
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.... concerned, it was the main contention of the Ld. DR that assessee failed to prove the creditworthiness and genuineness of the transactions by way of adducing any corroborative evidence and therefore, the AO has rightly held that initial onus cast upon the assessee has not been satisfactorily discharged, hence, the addition was rightly made by the AO and may be upheld accordingly. 7.2 On the other hand, Ld. Counsel of the Assessee relied upon the order of the Ld. CIT(A) and stated that Ld. CIT(A) has passed a well reasoned order which does not need any interference and the same may be upheld. He stated that relevant details of the address or PAN identity of the creditor/ subscriber were furnished to the Department alongwith copies of the....
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....n under which the A.O. has added back the amount of unsecured loans from the three creditors to the income of the assessee is that there were cash deposits in their bank accounts, out of which various payments were made by the creditors to the assessee through cheque. The A.O., therefore, held that the assessee had failed to prove the genuineness of the transaction and the creditworthiness of creditors. 8.1 We note that the assessee had filed during the course of the assessment proceedings confirmations from all the three creditors giving their, PAN and complete address along with a copy of their bank accounts. During the course of the appellate proceedings, copies of the audited accounts (audited balance sheet and P&L account and also F....
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....the Profit & Loss account alongwith interest income earned on the amount of unsecured loan advanced to the appellant. Substantial amount of net profit has also been reflected in the Profit & Loss account of all the creditors, the details of which have already been reproduced above. In the balance sheets of the creditors, amounts receivable from various persons have been duly reflected under the head sundry debtors. No enquiries have been made by the A.O. even after the copies of audited accounts were forwarded to him. So nothing has been brought on record by the A.O. to show that these audited accounts are false or fabricated. Further, no enquiries have been made from the creditors, in spite of the information about them being available on ....
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....he contentions raised in the grounds of appeal filed by the Revenue. Ld. DR stated that assessee had claimed an amount of Rs. 29,68,675/- as interest expenditure in the Profit and Loss account.. Out of this an amount of Rs. 9,99,175/- was disallowed on the unsecured loan raised during the year on the ground that same were disallowed u/s. 68 of the Act. The balance amount of Rs. 19,97,500/- was disallowed by observing that the assessee has debited its income and expenditure account by interest component towards liabilities, whereas no income has been shown from investment and loan and advances given. Therefore, he stated that the balance interest amount was rightly disallowed by the AO on the ground that interest paid was on the funds which ....