TaxTMI 
TaxTMI 
2017 (7) TMI 200
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....61 (in short 'the Act'). 2. The first issue involved in this appeal of the Revenue is with respect to addition of Rs. 1,00,58,898/- alleged to have been received from Mrs. Mamta Choudhary. The brief facts attending to this issue are that in the course of assessment proceedings, the AO noticed that during the year under consideration, the assessee had shown an increase of Rs. 2,09,70,863/- on account of unsecured loans, out of which a sum of Rs. 1,00,58,898/- was shown to have been received from Mrs. Mamta Chaudhary, who is also the director in the Company. On examination of the details furnished by assessee, the AO noticed that out of the above amount of Rs. 1,00,58,898/-, a sum of Rs. 67,87,390/- was received in cash in respect to which t....
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.... source of the impugned credits. 3. The ld. Assessing Officer did not accept the explanation of the assessee on the reasons, summarized as under : (i). The explanation of the assessee that the said advance was for the purpose of investment in multiplex was an afterthought and the respective agreement was a dumb paper. (ii). Mrs. Mamta Choudhary had declared income of only Rs. 1,17,550/- for the year under consideration. (iii). The surrender of amount on survey was not made exclusively by Mrs. Choudhary, but jointly with her brother-in-law in F.Y. 2004-05 and there are no details as to how much cash was surrendered by her. Moreover, there was no trail off of cash available from F.Y. 2004-05 to F.Y. 2007-08 to justify as to how the sur....
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.... cash flow availability of Mrs. Choudhary from the date of survey u/s. 131A during which the undisclosed cash was surrendered. It was also submitted that since all the conditions envisaged u/s. 68 stood satisfied, the addition so made by the AO was not sustainable. Reliance was placed on several decisions. The ld. CIT(A) accepted the contentions of the assessee as to the creditworthiness of Mrs. Choudhary and also her cash flow statement submitted by the assessee from the date of survey onwards. He accordingly held that all the ingredients of section 68 stood satisfied by assessee and thus, deleted the addition. Aggrieved, the Revenue is in appeal before the Tribunal. 6. The ld. DR relied on the order of Assessing Officer and submitted tha....
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....the cash flow and if considered fit, the books of M/s. Asia Himalaya Overseas may also be examined and such verifications as are need in the case may be made and given your comments on the creditworthiness of Mamta Chadhary and in respect of credit coming from Kishore Kainth, Please verify the authenticity of the documents already submitted to you vide my letter dated 05.12.2001. The report in the matter may be sent by 12.03.2012." 8.1 The AO sent his remand report vide letter dated 12.03.2012, stating that the assessee failed to prove creditworthiness of the creditor. The relevant comments of the AO speak as under : "The assessee was asked to produce the books of a/c of proprietorship concern & also of company as per specific instructi....
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....assessee without considering the remand reports submitted by AO on this account. The ld. CIT(A) has not even referred to any of the above remand reports in the impugned order in spite of the fact the verification of the additional document, i.e., cash flow statement etc. was directed by him to be verified by the AO with reference to the books of accounts. We, therefore, find that the matter requires re-adjudication at the stage of ld. CIT(A). Accordingly, the order of the ld. CIT(A) deserves to be set aside and this issue is restored to his file for deciding the same afresh by way of speaking order as per law after considering all the facts and evidences available on record as well as reported by the AO. Needless to say, both the parties sh....