TaxTMI 
TaxTMI 
TaxTMI 
2018 (11) TMI 1495
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....ave de novo trial even after having lost before the Assessing Officer, CIT(A) and the Tribunal. Accordingly, the application for additional evidence is declined. 1. This appeal has been filed by the assessee under Section 260A of the Income Tax Act, 1961 (in short "the Act") against the order dated 8.8.2017 (Annexure A-3) passed by the Income Tax Appellate Tribunal, Delhi Bench 'SMC', New Delhi (hereinafter referred to as "the Tribunal") in ITA No. 5818/DEL/2016, for the assessment year 2012-13, claiming the following substantial questions of law:- a) Whether the impugned order passed by ld. Income Tax Appellate Tribunal is bad in law being perverse for lack of fact finding enquiry provided under the statute, devoid of proper appreciation of facts, circumstances and well settled and thus deserves to be set aside in the interest of justice? b) Whether the Income Tax Appellate Tribunal is justified in confirming addition of Rs. 7,20,000/- on account of unsecured loan without appreciating the fact that out of the alleged three loans two are repayment of debt towards the appellant firm, which is a result of non-appreciation of proper facts and thus deserves to be set aside....
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....day when the cheques were issued to the assessee. Since the assessee had failed to explain and establish the creditworthiness of the parties from whom the loans had been taken, the Assessing Officer made the addition of Rs. 6,20,000/- treating the unsecured loan as undisclosed income of the assessee. 6. The CIT(A) upheld the said addition of Rs. 6,20,000/- made by the Assessing Officer by observing as under:- "2.4. After going through the facts and submissions, it is observed that that the AO has made the addition by highlighting that with regard to the three parties, Kanta Chugh, Krishna Wanti Chugh and Renu Chugh, there were cash deposits in the bank account of these parties immediately preceding the cheque issued to the appellant towards unsecured loans. The AO has highlighted that the credit worthiness of the parties had not been established by the assessee. 2.5. On page 3 of the assessment order the AO has pointed out that the poor cash balance in the saving bank accounts of the three parties raises doubt about the credit worthiness of three parties 2.6. Another important aspect detected by the AO highlights that the cash amount deposited in the saving bank accounts w....
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....hiness of these unsecured loans have not been established by the assessee and the initial onus had therefore not been discharged by the assessee. On the other hand the assessee has only emphasized that Income Tax Return, PAN and other details have been filed by the assessee before the AO and therefore the credit worthiness of the parties has been established. However, the AR has not provided the details of returned income of the parties and the explanation for deposit of cash by one person immediately before cheques were issued to the appellant. Establishing the credit worthiness and genuine would imply that the parties would be having sufficient surplus savings and funds backed by capital assets to provide loan to the assessee. Merely by providing the Income Tax Return and PAN number is not enough to establish the creditworthiness and genuineness of the unsecured loans. Accordingly, this addition made by the AO was rightly upheld by the Ld. CIT(A), which does not need any interference on my part, hence, I uphold the order of the Ld. CIT(A) on the issue in dispute and dismiss the issue in dispute raised by the assessee." The findings of fact recorded by the Assessing Officer, CIT....
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....ing 31.03.2012 has been shown at Rs. 53,53,28,987/-. Accordingly, it appears that these purchases from M/s Haryana Trading Company and M/s Vishal Traders have been used for suppressing the profits of the business. 3.6. Even though the books of accounts have not been rejected, since the AO has clearly established that the purchases were bogus, there is no justification for accepting the contentions of the AR that only parts of the purchase should be disallowed. 3.7. In view of the above observations this addition made by the AO is upheld and the ground is dismissed." 10. The Tribunal while affirming the addition of Rs. 21,46,261/- had noticed as under:- "With regard to addition of Rs. 21,46,261/- relating to unverified purchases is concerned, I find that AO has conducted detailed enquiries regarding the details of purchases from M/s Haryana Trading Company and M/s Vishal Traders and had come to logically conclude that these purchases from the parties could not be established. The bills of the parties did not have Sales Tax No., TIN No. or CIN No. Further, on physical verification of the addresses these parties were not found to be existing, which was also supported by cert....