2016 (4) TMI 1393

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....d. The facts relating to the impugned addition are stated in brief. The assessee is the Managing Director of a company named M/s Enjayes Spices & Chemical Oil Ltd. The AO received information that the assessee had invested a sum of Rs. 18.00 lakhs in the above said company. Hence the AO reopened the assessment of the year under consideration by issuing notice u/s 148 of the IT Act, 1961 and asked for explanations with regard to the above said investment. 4. The assessee explained that the above said company had engaged a person named Mr. A.L.Prasad for arranging loan from foreign sources. In that connection, M/s Enjayes Spices & Chemical Oil Ltd., paid a sum of Rs. 6.25 Lakhs to Shri A.L. Prasad and further a sum of Rs. 5.75 lakhs was pa....

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....00 lakhs, being the assessee's share of reimbursement of expenses and confirmed the balance addition of Rs. 8.75 lakhs. Aggrieved, the asesssee has filed this appeal before us. 7. At the time of hearing, the ld. AR submitted that the assessee has furnished a confirmation letter obtained from Shri Ruban Thomas in connection with the receipt of loan of Rs. 5.75 lakhs from him. He fairly admitted that the assessee could not produce details relating to criminal proceedings initiated against Shri A.L.Prasad. When a specific question was asked as to how the amount of Rs. 5.75 lakhs was paid by Shri Ruban Thomas, ld. Counsel fairly admitted that the same was paid by way of cash. 8. The ld. DR in his argument pointed out that Shri Ruban Thoma....

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....d to initiate criminal proceedings against Shri Prasad for recovery of amount of Rs. 12.00 lakhs given to him. The Ld A.R submitted that he is not in possession of materials/documents relating to the criminal proceedings. He also submitted that the said documents may help the assessee to substantiate the claim of receipt of Rs. 5.75 lakhs from his son-inlaw. Accordingly he prayed that the assessee be given an opportunity to furnish those documents. 11. The Ld D.R, on the contrary, strongly objected to the said request. He submitted that the assessee has not given any reasons for not submitting documents relating to criminal proceedings before the tax authorities. 12. Having heard rival submissions, I am of the view that, in the intere....