TaxTMI 
TaxTMI 
2017 (6) TMI 441
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....0/- and Rs. 40,06,981/- furnished specifically in the Additional Grounds of Appeal, the copy of which is enclosed should have been deleted. C. For that the confirmation letters and other details furnished explaining their capacity, veracity and the genuineness of the transactions made should not have been discarded without adequate confrontation. Thus the additions made on the flimsy grounds should be quashed and deleted and the erratic orders passed lacked judicial sanctity. D. For that in the orders passed without the principles of law, not relying the observations of the Apex Court and other Hon'ble Courts are totally wrong and mis-played the matters beyond its jurisdiction. Hence the orders should be quashed and vacated. E. For that the Appellant having explained and submitted that in case the additions found to be doubtful or ambiguity there were, the submissions made to add the amounts in the creditors account following the principles of law held. F. For that the determination of the total income without confrontation and without considering the additional grounds of Appeal and other documents, banking documents, etc. Placed for appreciation, caused illegality, et....
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....rmation gathered from the local people, the premises was lying locked for few months and consequently, AO came to the conclusion that M/s. Khoobsurant Ltd. is a non-existent company running on paper only and created by unscrupulous entry operator and consequently, made an addition of Rs. 40,06,198/- and assessed the total income of the assessee at Rs. 1,39,48,700/-. 5. Assessee carried the matter by way of filing an appeal before the ld. CIT (A) who has confirmed the order of the AO. Feeling aggrieved, the assessee has come up before the Tribunal by filing the present appeal. 6. We have heard the ld. Authorized Representatives of the parties to the appeal, gone through the documents relied upon and orders passed by the revenue authorities below in the light of the facts and circumstances of the case. 7. Undisputedly, the assessee is into the business of transportation of ores/minerals etc. and has received unsecured loan of Rs. 47,06,198/- from different persons during the year under assessment. It is also not in dispute that Smt. Usha Agarwal, Ellora Mohanty, Ashutosh Mohapatra & Smt. Urmila Modi, unsecured loan creditors, have furnished all the requisite documents before AO in....
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..... 1,50,000/- is shown to have been lent to M/s. Rashmi Transport owned by the assessee. So, again there is no question of making addition of Rs. 1,50,000/- received as unsecured loan by the assessee from Ellora Mohanty. In case, the income in the hands of creditors goes untaxed, the tax authorities are at liberty to bring them to tax. So, AO as well as CIT (A) have erred in making addition thereof which is ordered to be deleted. 12. Next addition of Rs. 1,00,000/- made by the AO/CIT (A) u/s 68 of the Act on account of loan transaction with Shri Ashutosh Mohapatra. Assessee in order to prove identity and creditworthiness of the aforesaid creditor and genuineness of the transaction brought on record copy of PAN, copy of return of income along with computation of income for AY 2007-08, balance sheet as on 31.03.2007 and 31.03.2008, available at pages 71 to 79 of the paper book. Perusal of the balance sheet apparently goes to prove that as on 31.03.2008, Ashutosh Mohapatra was having balance of Rs. 4,07,596.88 after lending an amount of Rs. 1,00,000/- to M/s. Rashmi Transport owned by the assessee. So when assessee has duly proved the identity, genuineness and creditworthiness of the ....
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.... of return of income for AYs 2007-08, 2008-09, 2009-10, 2010-11, 2011-12, 2012-13, 2013-14 and 2014-15, balance confirmation, bank statement, auditor's report, available at pages 88 to 125 of the paper book, copy of Memorandum and Articles of Association, available at pages 126 to 137 of the paper book, copy of annual return for FY 2015-16, available at pages 138 to 152 of the paper book, copy of financial statement, copy of lower deduction certificate and copy of Company Master Date executed from MCA portal of M/s. Khoobsurant Limited, available at paves 153 to 162 of the paper book. 17. Perusal of the return of income for AY 2007-08 apparently shows that M/s. Khoobsurat Limited was having gross total income of Rs. 1,45,339/- and has paid self assessment tax of Rs. 3,040/-. Similarly, in AY 2008-09, M/s. Khoobsurat Limited filed return of income and total tax paid of Rs. 2,570/-. The ld. AR for the assessee relied upon balance sheet as on 31.03.2008, available at page 108 of the paper book, showing net worth of the company at Rs. 23.16 crores which are merely fixed assets. When the balance sheet is examined in the light of the return of income filed by the assessee, it leads to t....