2022 (4) TMI 591

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....M/s Melody Enterprises, filed return of income declaring income of Rs. 3,17,230/-. The assessment was completed u/s 143(3) on 30.12.2019 determining the income at Rs. 28,21,043/-. While completing the assessment the Assessing Officer made addition of Rs. 25,03,813/- as unexplained expenditure in respect of the payment made by the assessee towards Custom Duty. In the course of assessment proceedings, the assessee furnished the details in respect of loan obtained by the assessee and also explained to the Assessing Officer that since his father expired on 08.10.2015 the business was taken over by him and the Custom Duty payable was cleared by him. It was stated by the assessee that the Custom Duty was paid through current account of M/s Melody....

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....e period from 04.04.2016 to 08.04.2016. Therefore, the Ld. Counsel submits that the Ld. CIT(Appeals) is factually wrong in assuming that the assessee has paid Customs Duty in cash. 3.1 The Ld. Counsel for the assessee further submits that in the course of assessment proceedings the assessee on 14.12.2019 furnished the information to the Assessing Officer in respect of the loan taken by assessee from Smt. Ruchika Nanda (Sachdeva) Proprietor of M/s Saiyansh Enterprises in the form of Income Tax Return, confirmation issued by her and bank statement of Saiyansh Enterprises reflecting the entry of bank transfer to the assessee. Therefore, the Ld. Counsel submits that since the Customs Duty was paid by way of Demand Draft and the sources for s....