2020 (1) TMI 447

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....core ground and the remaining Grounds are basically argumentative in nature. Accordingly, Ground No.2 reads as under: "2. The Ld.CIT(A) erred in upholding the addition of Rs. 78,20,000/- towards unexplained income u/s.68 of the Act". 3. Briefly stated relevant facts include that, assessee is the proprietor of M/s.Global Steel Company doing business of trading in Iron and Steel, Fabrication of Steel Structures and Job Works. He filed his return of income for the AY.2012-13 on 30-09-2012, admitting the total income at Rs. 77,35,570/-. During the assessment proceedings, the Assessing Officer (AO) assessed the income at Rs. 1,62,55,570/- against the returned income of Rs. 77,35,570/-. The AO made an addition of Rs. 85,20,000/- u/s.6....

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....ith the said order of the CIT(A), the assessee filed this appeal before the Tribunal with the Ground mentioned above. 6. Ld.Counsel for the assessee submitted that it is the case where the loans are repaid in subsequent period. Based on this fact, Ld.Counsel mentioned that these repayment details were not placed before the lower authorities. Therefore, this additional information if considered, assessee is likely to get relief substantially. Further, Ld.Counsel furnished a Written Submission in this regard. Relevant lines from the Written Submissions are extracted as under: "In this regard, it is humbly submitted that all the creditors have been paid back as on date through cheques. Some of these amounts had already been repaid ....

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....e lenders, except in respect of those mentioned at Sl.nos.6,7& 11 above for the assessment year under consideration have also been supplied to the Assessing Officer and the amounts lent by them to the assessee are also reflected in the statement of affairs filed by the lenders before the Income Tax Department for the assessment year under consideration. However, without considering all these details, the Assessing Officer made the addition. During the appellate proceedings, the Ld. CIT(A) remanded the issue to the Assessing Officer for examination of the creditors. In the remand report dated 15.02.2018, the Assessing Officer after examining the creditors has stated that in the case of the creditors of Sri. U. Vijay Kumar a....

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....of credits in its books of account but not source of source. Hence the creditors to whom the amount is repaid shall not be eligible to be added to the return of income of the assesseess. Without disputing all these facts, upholding the addition made u/s 68 of the Act is not warranted. Both the Assessing Officer and the Ld. CIT(A) failed to unearth any wrong or illegal dealings in the impugned loan transactions. It is to submit that all the decisions relied on by the Assessing Officer are distinguishable on facts. Since the initial burden on the assessee stands discharged, the onus is on the Department to prove otherwise of the facts mentioned by the creditors in their affidavits and sworn statements. There being no further enquiries by the ....

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....le Jurisdictional High Court in the case of A.K.Babu Khan Vs. Commissioner of Wealth Tax (1976) [102 ITR 757] (Andhra Pradesh). Finally, Ld.DR prayed for confirming the order of CIT(A). 8. We heard both the counsels and perused Paper Book placed before us. We have also examined the details of repayments i.e., date of repayment etc., and the case law placed before us. Additional Evidences: The additional evidences were examined and found that they are basically copies of the affidavits, confirmations given by certain creditors and the bank statements of those creditors. In principle, they relate to the issue under consideration and they go to the root of the matter and shall definitely be of some use for adjudication of the issue ju....