TaxTMI 
TaxTMI 
2021 (4) TMI 989
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.... Commissioner of Income Tax, Central Circle 40, Mumbai (hereinafter referred to as ld. AO). 2. The only issue to be decided in this appeal is as to whether the ld CITA was justified in confirming the addition made on account of unexplained cash credit u/s 68 of the Act in respect of loans received by the assessee in the facts and circumstances of the case. 3. We have heard the rival submissions and perused the materials available on record. We find that the assessee is a public limited company engaged in the business of shares and stock broking, investment and trading in shares and securities. We find that the assessee is a member of National Stock Exchange. The business income derived by the assessee in the sum of Rs. 1,37,38,650/- was d....
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....nfirmations from the parties. But we find that the ld CITA had even in the second round of proceedings had stated that the confirmations were not found to be present in his file. Infact the ld CITA records at page 6 and 7 of his order that the assessee had submitted before him the copy of the submissions made before the tribunal in the first round of proceedings together with the paper book. We find that the ld CITA also records the fact that the paper book filed by the assessee did contain few papers of bank account statement of assessee and ledger extracts in the case of aforesaid 5 parties .We find that the ld CITA once again mentions that the ledger extracts alone have been filed by the assessee and the same would not establish the genu....
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....in view of existing disputes. Hence assessee could not produce those creditors before the lower authorities for proving the genuinity of the loans beyond doubt. Similarly the assessee could not procure the details of their creditworthiness by way of their financial statements and income tax returns and produce the same before the lower authorities. Given this genuine predicament from the side of the assessee, we find that the assessee had requested the ld AO to issue summons u/s 131 of the Act to those loan creditors to find out the truth, which was not acted upon by the ld AO. We find that the assessee had duly disclosed the identity of the creditors and genuineness of the transactions are very much evident from the ledger extracts itself ....
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....n our considered opinion, these documents are not required to be looked into at this stage as we have already held that the assessee had reasonable cause from not proving the creditworthiness of the creditors by producing the necessary documents due to ongoing legal suits and disputes pending with those creditors vis a vis the sister concern of the assessee. Moreover those disputes are money suits and obviously the loan creditors would not come forward to cooperate with the assessee by furnishing their financials. The relevant disputes that are pending in the case of sister concern of the assessee with these loan creditors are enclosed in pages 15 to 18 and 20 to 41 of the paper book filed before us which are already forming part of records....