2018 (5) TMI 230

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....013 for the Assessment Year (AY) 2010-11. 2. At the outset, it was found that the filing of the appeal is delayed by a period of 22 days. The assessee has furnished an affidavit dated 10.02.2018, duly notarized, by one, Mohammad Ismail Wani, partner of the assessee-firm, explaining the reasons for the delay (copy on record). We, on pursuing the same, find the delay as reasonably explained and, accordingly, the delay was condoned, and hearing in the matter proceeded with. 3. The appeal, in effect, raises two issues per its three grounds. The first two represent the two limbs of the same aspect of the assessment, i.e., unexplained credits in the sum of Rs. 38.85 lacs. The third ground, concerning a disallowance for Rs. 1,14,692 u/s. 40A....

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...., PAN of one of them was found to be incorrect in-as-much as it was of a different person. The assessee had not furnished any explanation for the balance Rs. 22.25 lacs (i.e., Rs. 38.85 lacs minus Rs. 16.60 lacs) deposited cash in its' bank account. The same was accordingly added u/s. 68, and confirmed in first appeal for the same reasons. Aggrieved, the assessee is in second appeal. 5. We have heard the parties, and perused the material on record. We shall take up the addition of Rs. 16.60 lacs first, even as was the case during hearing. The assessee's objection qua non-application of section 68 in-asmuch as the credits are from persons to whom loans had been given, so that it is only the return of a loan by them, is without any meri....

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.... so where, as in the present case, none of the creditors are assessees under the Act, with the PAN of one of them being incorrect. Also, what assumes relevance in this regard is the evidence establishing that the loan was in fact given by the assessee to a particular person, and it is he who has returned the same. Though the assessee's books of account are to be extended primacy in this regard, the ledger accounts of the different loanees have not been furnished. The consolidated account (of all the loans and advances), at page 5 of the assessment order, does not bear the identity of the person/s to whom loan/s was extended, from whom the sum/s have been received during the relevant year. Then, again, how was the amount/s given, and for wha....