TaxTMI 
TaxTMI 
2021 (2) TMI 71
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.... This case was centralized with this Circle of the A.O. by CIT-IV, New Delhi. As the assessee failed to comply with the statutory notices, an ex-parte assessment order was passed under section 144 of the Income-Tax Act, 1961, on the basis of material available on record and the A.O. made the following additions (1) Unexplained Share Application Money - Rs. 9,50,000/- (2) Unexplained Loan - Rs. 1,50,00,000/- (3) Administrative and Financial Expenses unverifiable - Rs. 29,063/-. 3.1. The assessee preferred an appeal before the Ld. CIT(A) which was dismissed. 3.2. The assessee preferred an appeal before the ITAT challenging the validity of the assessment order passed under section 153 of the Income-Tax Act, 1961 and the additions of Rs. 9,50,000/- and Rs. 1.50 crores, which has decided the appeal of assessee for the assessment year under appeal i.e., 2009-2010 as well as A.Y. 2010-2011 through combined Order dated 27.03.2017 and observed that primary evidences would go to the root of the matter, therefore, matter was remanded to the file of A.O. for examining the confirmation of creditors and to decide the matter afresh after making thorough enquiries as may thinks fit. 3.3. ....
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.... for 24.05.2018. In response to summons, none of the above seven parties appeared before A.O. on the given date. Reply from Star Technosoft Pvt. Ltd., was received on 25.05.2018 wherein it enclosed copy of the ITR for A.Ys. 2009-2010 and 2010-2011 and copy of the bank book and ledger account of Assessee [M/s. Garima Polymers Private Limited]. No copy of their bank account has been filed. The A.O, therefore, made addition of Rs. 9,50,000/- on account of unexplained share capital and since the unsecured loans received from 5 parties have also not appeared before A.O. in response to the summons under section 131 of the I.T. Act, therefore, same were also treated as unexplained unsecured loans and addition of Rs. 1.50 crores was made. 3.5. The assessee filed an appeal before the Ld. CIT(A) and also raised additional ground of appeal that assessment completed is time barred and that additions on merit are wholly unjustified. The Ld. CIT(A), however, decided both the issues against the assessee. The Ld. CIT(A) also observed that since there was non-compliance to the summons issued by the A.O, therefore, onus upon assessee to prove genuine credits have not been discharged. The Ld. CIT(....
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.... of the Tribunal Dated 27.03.2017 and since parties did not appear before A.O, therefore, additions were rightly made against the assessee. 6. We have considered the rival submissions and perused the material available on record. The issue of share application money received and unsecured loans are decided as under. SHARE APPLICATION MONEY : 7. The assessee has received Rs. 3,50,000/- from Smt. Renu Rekhan and Rs. 6 lacs from Smt. Nisha Rekhan on account of share application money. The assessee has filed their confirmation and copy of the ITR, but, in the confirmation it is not mentioned whether share application money have been given in cash or through Bank account. No evidence of their creditworthiness have been filed. Thus, assessee failed to prove the genuineness of the share application money received from these two ladies. In the absence of adequate evidence, the authorities below were justified in making the addition. We, therefore, confirm the addition of Rs. 9,50,000/- and dismiss this ground of appeal. UNSECURED LOANS : 8. The assessee has received unsecured loans from 05 parties. The assessee in respect of the 05 creditors has filed their confirmations whi....
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....ed by the assessee, the departmental appeal was dismissed by the Hon'ble High Court." 8.1. In the case of creditor Kshitiz Infratech Pvt. Ltd., the A.O. from the balance sheet found that amount of Rs. 50 lakh have been shown as advance against the property, but, it is a fact that this creditor has given an amount of Rs. 50 lakhs to the assessee, therefore, no further adverse inference could be taken against the assessee. The authorities below have also rejected the explanation of assessee because the creditors did not appear in response to the summons issued by the A.O. Dated 17.05.2018 for the date fix for 24.05.2018. It may be noted that the A.O. issued summons under section 131 of the Income-Tax Act, 1961 to enforce the attendance of the creditors at the fag end of the assessment. The first date was fixed for 24.05.2018 only and assessment have been framed on 31.05.2018. Thus, the Learned Counsel for the Assessee rightly contended that no sufficient time was given to the creditors to appear before A.O. in response to the summons under section 131 of the Income Tax Act, 1961. Further no time have been given to the assessee to enforce the attendance of these creditors before A.....