2017 (11) TMI 740

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....ssessee : "(i) Whether on the facts and circumstances of the case the ITAT was right in making the addition of Rs. 3,71,000/- under Section 68 of the Act relating to 22 creditors whose amount was below Rs. 20000/- and who advance money to the appellant for purchasing silver ornaments ? (ii) Whether the appellant having discharge the onus by submitting the confirmatory letters with complete address of the creditors and the amount being below Rs. 20,000/- per creditor the ITAT was right in making addition on ground that no request for summoning any creditor was made by the appellant ? (iii) Whether section 40A (3) of the Act does not require the creditor to make expenditure in respect of the payment made in a day ot....

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....t is further noticed that to establish the genuineness of the aforesaid credit entries the confirmatory letters were brought on record to substantiate the genuineness of the said transactions. The assessing authority has noticed that the alleged confirmatory letters were having no proof with regard to the identification of the alleged creditors. He has further found that all the transactions were in cash. The assessing authority has therefore, doubted the genuineness of the transaction as the same were neither verifiable nor substantiated by the appellant. The assessing authority has further found that the credit worthiness of the alleged creditors was also remained un-established in absence of the genuineness of the persons who have credit....

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....wholly imaginary and was without any substance or evidence as he failed to substantiate the genuineness of the cash credit as such has held to be unexplained and accordingly the aggregate amount which has been found/ noticed in the cash book under the heading of credit entries total sum of Rs. 3,71,000/- has been added to the income of the assessee. Aggrieved by the order of the assessing authority the appellant has preferred an appeal before the CIT (Appeals) who vide its order dated 28.12.2011 has dismissed the appeal filed by the appellant and has confirmed the order passed by the assessing authority. Still aggrieved by the order of CIT (Appeal) the appellant has preferred an appeal before the ITAT which has been dismissed vide imp....

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....ts of share application money, share capital, share premium or any such amount by whatever name called, any explanation offered by such assessee-company shall be deemed to be not satisfactory, unless- (a) the person, being a resident in whose name such credit is recorded in the books of such company also offers an explanation about the nature and source of such sum so credited; and (b) such explanation in the opinion of the Assessing Officer aforesaid has been found to be satisfactory: Provided further that nothing contained in the first proviso shall apply if the person, in whose name the sum referred to therein is recorded, is a venture capital fund or a venture capital company as referred to in clause 23(FB) of....