TaxTMI 
TaxTMI 
TaxTMI 
2016 (3) TMI 819
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.... 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, allow or amend any or all the ground of appeal before or during the c....
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....ove 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 shareholders Register, Share Application Forms, Share Transfer Register etc. it ....
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.... 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 Form 3CD in case of Avinash Lal Sachdeva and Soma Rani) of all the three creditors were also filed to prove their creditworthine....
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.... 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 record. Therefore, without conducting any inquiry and without bringing any material on record, the documentary evidence filed by ....
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.... 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 were diverted towards interest free advances and deposits and investments which did not result in any income. 9.2 On the other hand, Ld. Counsel of the Assessee....