TaxTMI 
TaxTMI 
2016 (8) TMI 469
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....isposed off, by this common order for the sake of convenience. 2. The brief facts of the case are that the assessee is a partnership firm which is engaged in the finance business, filed its return of income for the assessment year 2010-11 on 16.12.2010 declaring total income of Rs. 1,08,158/-. The case was selected for scrutiny and accordingly, notice u/s 143(2) of the Income Tax Act, 1961 (hereinafter called as 'the Act') was issued. In response to notice, the authorized representative of the assessee appeared from time to time and furnished books of accounts and other information called for. During the course of assessment proceedings, the assessing officer noted from the assessee's balance sheet for the year ended 31.3.2003 th....
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....ions of Rs. 55,63,980/-. 3. Aggrieved by the assessment order, the assessee preferred an appeal before the CIT(A). Before the CIT(A), the assessee has filed written submissions along with confirmation letters, statement of unsecured loans for the year 2008-09 and 2009-10 and copies of relevant ledger accounts of loan creditors. The assessee further submitted that loans in the name of 5 persons are accepted during the financial year 2008-09 and during the financial year 2009-10, the individual loans of various persons have been re-grouped into 5 persons by passing necessary journal entries in the books of accounts of the firm. The firm has not accepted any fresh loans from these persons during the financial year 2009-10. The A.O. without ....
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....rsons out of the total loan from 9 persons on the basis of statements given by these 5 persons. The D.R. further argued that while deposing before the A.O., these 5 creditors have stated that they have invested in the partnership firm from the monies borrowed from their friends and relatives only 6 months back that too in cash. The assessee firm claims that it has borrowed loans from various individuals during the financial year 2008- 09 and re-grouped the individual loans into these 5 persons' accounts by passing journal entries. There is a contradictory statement given by the loan creditors and the partnership firm. Under these circumstances, the A.O. was rightly held that the credits appearing in the name of these 5 persons are bogus. ....
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....sh. The assessee claims that it has accepted loans from various individuals during the financial year 2008-09 and during this financial year it has re-grouped the loans standing in the name of various individuals into these 5 persons' accounts by passing necessary journal entries in the books of accounts of the firm. There is no fresh loan accepted during the current financial year, therefore, the A.O. was not correct in coming to the conclusion that the assessee has accepted fresh loan during the financial year 2009-10. 7. The issue before us is under the facts and circumstances of the case, the A.O. was right in invoking the provisions of Section 68 of the Act, to make addition towards credits brought forward from last year. Sec. 68 pr....