TaxTMI 
TaxTMI 
2020 (4) TMI 398
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....11. The assessee was, therefore, directed to explain the sources of the share application money. Since the assessee failed to furnish the relevant information, the AO treated the sum of Rs. 2,78,00,000/- as unexplained cash credit u/s 68 of the Act and brought it to tax. 3. Further, from the P&L A/c drawn as on 31/03/2011 furnished by the assessee, the AO noticed that huge amounts were debited to P&L A/c which appeared to him to be suspicious. The assessee was therefore, asked to furnish the relevant information, but since the assessee failed to submit any information, the AO disallowed the entire expenditure of Rs. 3,00,78,172/- and brought it to tax u/s 69C of the Act. 4. The AO also found from the balance sheet furnished by the assessee, that there were unsecured loans of Rs. 55,46,619/-. The assessee was directed to furnish documentary evidence such as books, confirmation letters and supporting documents in support of unsecured loans taken. Since the assessee failed to furnish any evidence, the AO brought the same to tax u/s 68 of the Act. 5. Thereafter, the AO also found that the assessee has claimed deduction u/s 10AA of the Act but failed to furnish Form 56F in s....
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....less provision of sec. 40A(3) are violated. 11. The Ld. CIT(A) out to have appreciated that the business promotion expenses, transport expenses, salaries & professional charges & factory expenses are incurred in the natural course of business. 12. The Ld. CIT(A) erred in confirming the addition of Rs. 55,46,619/ - made towards unsecured loans. 13. The Ld. CIT(A) ought to have appreciated that that the appellant's duty stands discharged by providing the details of party from whom the loan has been taken along the conformation letter. 14. The Ld. CIT(A) erred in confirming the disallowance of Rs. 1,90,03,801/- u/ s 10 AA of the Act. 15. The Ld. CIT(A) ought to have considered the Form 10 CCB and certificate of registration submitted before him. 16. The Ld. CIT(A) erred in not adjudicating the impugned addition for the want of additional grounds of appeal which is not correct. 17. The appellant may add or alter or modify of substitute or delete and/or rescind all or any of the grounds of appeal at any time before or at the time of hearing of the appeal". 6. In addition to the above grounds, the assessee has filed th....
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....curred towards salary and wages. Therefore, addition on non-deduction of TDS towards such expenses shall not be permissible as per the provisions of the Income Tax Act,1961 28. The Ld. CIT(A) ought to have appreciated that no disallowance shall be made in the hands of appellant when the payee has rightly offered such income in their individual hands. 29. The Ld. CIT(A) ought to have appreciated that no disallowance shall be made in the hands of appellant when the statutory liability towards PF is rightly paid through banking channel on or before the due date of filling of return of income as per the provisions of section 139(1) The appellant may add or alter or amend or modify or substitute or delete or rescind all or any of the grounds of appeal at any time before or at the time of hearing of the appeal". 8. Vide letter dated 8.11.2018, the assessee has raised the following further additional grounds of appeal: "31 As per the ratio laid down by the Hon'ble Supreme Court of India in the case of National Thermal Power Co. Ltd vs. CIT (1998) 229 ITR 383 (SC) the ITAT has jurisdiction to examine any question of law though not raised before the CIT (A) but is r....
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....and the material on record, we find that as regards Grounds 2 to 5 relating to share application money and also unsecured loans which are raised in Grounds 12 & 13, it is the case of the assessee that the assessee has filed confirmation letters from the relevant parties before the CIT (A) to prove the identity of the persons and genuineness of the transaction but without examining the details so furnished, the CIT (A) has held that the creditworthiness of the people is not proved. Further, he submitted that the assessee has subsequently allotted shares in the names of these people and therefore, once the shares have been allotted, the share application money and unsecured loans cannot be treated as bogus. He relied upon certain case law in support of his contention. He has also filed additional evidence to prove that the shares have subsequently been allotted to the persons who have allegedly advanced share application money and unsecured loans. 11. The learned DR submitted that this is nothing but an afterthought as the shares have been allotted subsequent to the order of the CIT (A) and therefore, such evidence has no relevance to the issue on hand. 12. The learned Counsel ....