AI OCR 
TaxTMI 
TaxTMI 
TaxTMI 
2018 (4) TMI 1530
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....nufacture of engineering goods which are used in electric and electronic industries. For the year under consideration it declared a loss of Rs. 13,87,476/-; The same was processed u/s 143(1) of the Act on 13.07.2007 but later on selected for scrutiny and a notice u/s 143(2) was issued on 05.10.2007. In response to the notice, assessee's Authorised Representative appeared and filed the information called for. 4. During the course of examination of books, A.O. noticed that the assessee introduced a sum of Rs. 50,44,000/- as unsecured loans. Assessee was asked to file confirmation letters in support of its claim. In response thereto, the assessee submitted that four Directors of the company and five share holders of the company have contribut....
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....or holding of agricultural land and copy of the bank pass book indicating the sale proceeds and also copy of bank account from which the loan was given. In the absence of the above details, the loan taken from Shri V. Nagi Reddy was held to be bogus and accordingly A.O. added the same by treating it as assessee's unexplained income. 7. On account of the addition relatable to the unexplained cash credits to the tune of Rs. 10,48,00/-, the net loss was determined at Rs. 3,39,476/- as against Rs. 13,87,476/-. 8. Aggrieved, assessee contended before the Ld. CIT(A) that the assessee received a loan of Rs. 5 lakhs from Smt. Jyothi through cheques on various dates. She is also a share holder of the assessee-company and assessed to income tax und....
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.... before admitting the additional evidence, to enable him to dispose of the appeal in accordance with law. In fact even if the appellant does not suo moto produce any evidence, in the spirit of justice and fair play, it is incumbent on the first appellate authority, being a quasi-judicial authority, to require the appellant to produce requisite evidence or to make necessary enquiry. From that perspective, the Ld. CIT(A) was of the opinion that the additional evidence deserves to be admitted and accordingly called for the remand report of the A.O. Though the Assessing Officer objected to admission of the evidence, Ld. CIT(A) counters the argument of the Department by observing that the details submitted are crucial to the ground raised in the....
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....sions filed before the Ld. CIT(A) to contend that both the creditors / share holders of the assessee-company have explained their sources and confirmed that they have lent the above said amount to the assessee. It is not the duty of the assessee to prove source of source and origin of origin of the money received from a creditor, whose identity is already proved. The Assessing Officer has not made any enquiry with the debtors and others. It is also not in dispute that the money has gone through banking channels. 15. The claim of the assessee is that the creditor admitted that he has sold his agricultural land and utilised the said amount for giving loans to friends and relatives. He had also obtained letters from the persons to whom he has....
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....e A.Y. 2007-08. The creditor's husband has also explained in his letter that he had lent Rs. 2 lakhs to his wife Smt. Jyothi out of his business income and savings and it was also stated that the he was assessed to income tax and PAN was furnished alongwith the copy of the return of income. It is the duty of the Assessing Officer to make further enquiries and he merely disbelieved the statement of the creditors and explanation with regard to the source of the creditors so as to arbitrarily make an addition in the hands of the assessee-company. 17. On the other hand, Learned Departmental Representative objected to the admission of additional evidence and also contended that the creditworthiness is not established. She thus relied upon the o....