TaxTMI 
TaxTMI 
2020 (11) TMI 271
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....ainst the deletion of addition of Rs. 1,80,00,000/- by Ld. CIT(A) as made by the AO under section 68 of the Act. 3. The facts in brief are that the assessee filed the return of income on 30.09.2008 declaring total income of Rs. 44,46,582/- which was processed under section 143(1) of the Act. Thereafter, the case of the assessee was reopened under section 147 by issuing notice under section 148 of the Act dated 09.03.2015 which was complied with by the assessee by filing return of income on 10.10.2015 declaring the same income as was declared in the original return of income. Thereafter, the statutory notices were issued and duly served upon the assessee. The assessee is engaged in the business of trading in shares and equities. In thi....
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....as unexplained cash credit by framing assessment under section 143(3) read with section 147 of the Act vide order dated 07.03.2016. 4. The Ld. CIT(A) deleted the addition by holding that assessee has furnished all the documents and details proving conclusively the three ingredients of identity, creditworthiness of the lenders and the genuineness of the transactions. The Ld. CIT(A) noted that the amounts were paid from the running accounts and duly accounted in the books of accounts of the assessee as well as the investors as is evident from the financial statements filed. The Ld. CIT(A) observed that all the lenders have confirmed the transactions and thus held the loan transactions by all companies as genuine and thus directed the AO to....
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....under section 133(6) of the Act either remained unserved or unanswered by these parties and therefore Ld. CIT(A) findings that assessee has proved all the three ingredients need to be reversed. 7. The Ld. A.R. in the rebuttal, submitted that assessee has filed all the necessary evidences which are required to prove the genuineness of the transactions, identity and creditworthiness of the parties and accordingly the Ld. CIT(A) has allowed relief to the assessee directing the AO to delete the said addition. The ld AR submitted that loans taken from these parties were repaid during the year itself and nothing was outstanding at the year end. Moreover, in the earlier year under the same facts the issue was decided in favour of the assessee t....
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....he veracity of these documents, to probe the matter further. However, to discredit the documents produced by the assessee on the aforesaid aspects, there has to be some cogent reasons and materials with the and Assessing Officer cannot not go into the realm of suspicion. Thus, the element of creditworthiness and satisfaction of A.O thereafter is subjective and requires more efforts/inquiry on the part of the A.O to give a finding in the order that lender is not creditworthy. The assessee can be discharged his onus by proving three things (i) identity of the creditor, ii) capacity of the creditor and (iii) the genuineness of the transaction. Once the assessee has proved all these three things, then onus of the assessee stands discharged. The....
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....id Saimira Theatre Ltd. and found that one, Shri Nirmal Kotecha was using large number of front companies to manipulate the scurrilities market and to route the funds through several layers in order to hide the source. Whereas on the contrary the assessee placed on record the final order passed by the SEBI vide No. WTM/SR/EFD-DRA 2/72/03/2015 dt. 31-03-2015, wherein SEBI relieved all the charges against all the alleged entities (230 entities). The details of said order SEBI dt. 31-03-2015 is contained in pages 13-14 in the CIT(A)'s order, and the same has also already been extracted hereinabove in earlier paras of this order. On perusal of the said order of SEBI dt. 31-03-2015, it is clear 217 out of 230 entities were found to ....