TaxTMI 
TaxTMI 
2021 (1) TMI 784
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....7,226/- on account of interest paid on unsecured loan. 3. During the course of scrutiny assessment proceedings, the Assessing Officer noticed that the assessee has debited Rs. 23,83,198/- to his profit and loss account on account of commission paid. The assessee was asked to furnish the list of payees alongwith their addresses. On the given addresses, the Assessing Officer issued letters u/s 133(6) of the Income tax Act, 1961 [hereinafter referred to as 'The Act' for short] and directed the payees to furnish the following information: "1. Copy of account of the above noted person in your books of account for the year ending 31-03-2011, duly confirmed by you. 2. Full details of services provided by you to the above noted person.....
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....) Whether you have provided similar services to other parties, if yes details of the same. 5. On not receiving complete details, the Assessing Officer further issued summons calling for details mentioned elsewhere. The Assessing Officer observed that none of the persons complied with the summons. The Assessing Officer formed a belief that the payment of commission is not proved and, accordingly, allowed expenditure of Rs. 3 lakhs only and made addition of Rs. 18,83,198/-. 6. The assessee carried the matter before the CITA but without any success. 7. Before us, the learned counsel for the assessee stated that the assessee has furnished complete details along with confirmations of the payees. It is the say of the learned counsel that all ....
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.... partly allowed. 11. Ground No. 2 relates to addition on account of unsecured loans received from the following parties: i. Sapebelle Trader Linkers Pvt Ltd ii. Ishwar Das Gupta iii. Shri Binod Choudhary 12. The assessee was asked to explain the genuineness of the loans taken from the aforementioned parties in light of section 68 of the Act. The assessee filed confirmations, copy of ledger account and income tax returns of the aforementioned parties. The Assessing Officer issued summons to the parties calling for confirmations and source. The Assessing Officer observed that the summons were not complied with. The Assessing Officer formed a belief that the loans are not genuine and, accordingly, made addition. 13. The assessee carried ....
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....lso placed in the paper book and have been duly considered by us. 18. The bank statements of this company are also at pages 2 to 23 of the paper book. The bank statement of this company shows transactions in crores. Therefore, it can be safely concluded that this company has sufficient credit worthiness to give the impugned loan. Considering the fact that there was opening balance and part of loan has been repaid during the year and full loan has been repaid in subsequent year, we are of the considered view that the appellant has discharged the initial onus cast upon him by provisions of section 68 of the Act. Therefore, no addition is called for in the case of Sapebelle Traders Linkers Pvt Ltd. The Assessing Officer is directed to delete ....