2015 (10) TMI 2750

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....ties and perused the record. The assessee-company is engaged in the business of manufacture and sale of medicines. During the course of assessment proceedings, the AO made various additions which included an addition made under section 68 of the Act in respect of loan amount of Rs. 70.05 lakhs taken from Shri Jafir T Ibrahim. The AO asked the assessee to prove loan in terms of section 68 of the Act. The creditor was a NRI and the assessee furnished copies of bank statement and some other details. Since the assessee did not furnish any evidence to prove the credit worthiness of the creditor, the AO assessed the amount of Rs. 70.05 lakhs as unexplained cash credit under section 68 of the Act. The assessee could not succeed with regard to this....

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....t addition made by the AO has since been confirmed by the Tribunal and hence, the ld.CIT(A) was justified in confirming the penalty levied on that addition. 5. We have heard the rival contentions and carefully perused the record. It is stated that Shri Jafir T Ibrahim is also a shareholder of the assessee company and he is residing in Hongkong. During the course of assessment proceedings, the assessee has furnished the copies of bank account and certain other details. We notice that the identity of the creditor and the genuineness of the transaction have been established by the assessee. However, the bank account copy was not found to be adequate to prove the credit worthiness of the creditor. Hence the assessee has filed a certificate o....