TaxTMI 
TaxTMI 
2016 (5) TMI 325
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....f interest income amounting to Rs. 48,84,624/-which had not been shown as income as per Note No.21 to Final account attached with the Return of Income duly certified by a Director of the assessee company. 2. On the facts and in the circumstances of the case and in law, the Ld. CIT(A) erred in deleting the addition on account of unexplained cash credit when the genuineness of transaction and credit-worthiness of the party could not be satisfactorily proved during the assessment proceedings as well as remand report stage." 2. The brief facts of the case are that the assesee is a Private Limited Company and is engaged in the business of Investment and Finance. The assessee company filed the return of income on 30/10/2005 declaring ....
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.... 2-3 of the AO's order where detailed findings have been recorded by the AO while adding a sum of Rs. 48,84,624/- in the income while treating the same as income from other sources. The CIT(A) while admitting additional evidence filed by the assessee during the course of appellate proceedings decided this ground in favour of assessee, the operative para of CIT(A) is reproduced below. "I have considered the facts of the issue and the submissions made by the AR. A perusal of the original final accounts filed by the appellant containing notes to accounts indicates that the said accounts were only 'certified true copy' and were not signed by either the Auditors or the Directors at the appropriate place, to authenticate the same. It is ....
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....pugned order and we are of the considered view that the CIT(A) has decided the said issue after noticing that the final accounts filed by the assesee, was approved by Auditors, Board of Directors and Shareholders. The CIT(A) further took into consideration that the auditors have issued the separate certificate thereby confirming the stand taken by the ld. AR. Hence, we are of the view that the AO was not justified in placing reliance on financial statements which were not approved by shareholders. After appreciating the same the ld. CIT(A) has rightly held that AR of the assessee had established that the final accounts approved by the Auditors, Board of Directors and Shareholders of the Company as well as the final accounts filed before the....
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....n. The order also mentions that the AR of the appellant had submitted that the said addition could be made, subject to rectification, if the confirmation was not filed by a certain date. In the absence of the said confirmation, the AO proceeded to make the impugned addition. Now, that the said confirmation and other related evidence have been filed by the AR which have been duly examined by the AO in the remand proceedings, there is no warrant for sustaining the said addition. Hence, the addition made by the AO is deleted and this ground is allowed." 8. We have analysed the orders passed by the CIT(A) and we noticed that the CIT(A) has correctly held that the AO proceeded to make the additions only on the ground that no confirmation was ....