TaxTMI 
TaxTMI 
2017 (2) TMI 737
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....der of ld CIT(A) is not correct in law and on facts. 2. On the facts and in the circumstances of the case, the ld CIT(A) has erred in law as well as facts in deleting the addition of Rs. 14200000/- made by the assessing officer u/s 68 of Act 1961 in respect of unsecured loans and advances as the assessee failed to prove the credit worthiness of the lender and genuineness of transaction. 3. On the facts and in the circumstances of the case, the ld CIT(A) has erred in law as well as facts in deleting the disallowance of interest of Rs. 1372277/- made by the Assessing Officer as the advances given by the assessee was utilized for non business purpose. 4. The order of ld CIT(A) is perverse in law and facts. 3. The assessee has raise....
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....n filed in compliance with that notice. Based on that an assessment was framed on 29.12.2010 determining total taxable income of Rs. 16041427/- against the return income of Rs. 469150/-. The two additions were made in the assessment (i) Rs. 1.42 cores on account of unsecured loan and (ii) Rs. 1372277/- on account of disallowance of interest. The assessee being aggrieved by the order preferred an appeal before the ld CIT(A), who deleted the addition. 7. The ld AR submitted that the assessee has submitted the confirmation of sums received from M/s. Manikaran Buildcon Pvt. Ltd of Rs. 1.15 crores and a sum of Rs. 20 lakhs and Rs. 7 lakhs from M/s. Tonami Trading Co. and Mr. Amarjit Singh. The complete confirmation letters, copy of the ....
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....the basis that no information was filed by the appellant during the course of the assessment proceedings, whereas the appellant has categorically mentioned that the details were provided at the time of the assessment proceedings The examination of the assessment records reveals that the confirmation of M/s Manikaran Buildwell (P) Ltd is available on record. A substantial addition was made u/s 68 of the Act, 1961, by brushing aside the confirmations filed during the course of assessment proceedings. Before me vide letter dated 06-01-2012, the appellant filed copy of confirmations stated to be already filed during course of assessment proceeding and prayed for admission of additional evidence under rule 46A of the I. Tax Rules, 1962. The conf....
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....iness of the transaction nor he has any observation or negative finding that the, documents adduced by the appellant are incorrect or contrary to the facts of the case . I have gone through the documents filed by the appellant and the submissions of the appellant. The addition made by the AO on the basis of non production of documents, whereas the confirmations were filed, identity proved and all the transactions were through the banking channel. I have found that one of the confirmations as mentioned above is also available on assessment record of the AO. The creditworthiness and genuineness of the transaction with the lenders were not doubted. I am of the considered opinion that the appellant has discharged his onus and proved with docume....
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.... without proving any nexus between advances given without interest and further the total advance received during the year without interest of Rs. 40323252/- was ignored by him. The first appellate authority has considered the above arugment and has dealt with this issue as under:- 5.2 Disallowance of Claim of Interest -: 5.2.1. I have considered the submissions and the argument of the counsel of the appellant. The view taken by the A.O. is that the borrowed funds were of Rs. 19397329/- whereas the advance were amounting to Rs. 40022398/-, so a significant amount was utilized for the non business purpose and on that basis the A.O. disallowed 50% of the claim of the interest. This is not a sufficient material to make the disallowance wi....
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....laim in the light of the fresh advance received from the customers and the fresh unsecured loans. The total advance received and unsecured loans of Rs. 40323252/- in itself is sufficient evidence to established that the complete advance given of Rs. 40022398/- was financed through such advance and unsecured loan Accordingly the contentions and the submission of the counsel of appellant has strong a acceptance If the borrowed funds are used by the appellant for giving advances then how it be possible to maintain the current ratio of stock and debtors In that case there would be no stock or debtors but as apparent from the auditar balance sheet the stock and debtor are there for Rs. 35790346/-. The A.O. has not considered the advance from cus....