TaxTMI 
TaxTMI 
TaxTMI 
2022 (5) TMI 1129
X X X X Extracts X X X X
X X X X Extracts X X X X
....u/s.143(3) r.w.s. 144 of the Income Tax Act, 1961 (hereinafter the 'Act') vide orders dated 12.03.2015 & 29.12.2016 for the assessment years 2012-13 & 2014-15 respectively. 2. The first issue in the appeal of assessee in ITA No.1481/Chny/2018 is as regards to the order of CIT(A) confirming the action of AO in upholding the addition of share application money of Rs.69,81,191/- as unexplained credit u/s.68 of the Act. 3. Brief facts are that the assessee received share application money amounting to Rs.69,81,191/-. The AO required the assessee to explain the sources of receipt of share application money from 15 parties. The AO has narrated that confirmations were received from the following six parties (i) K.M. Arunkumar, Pollachi Rs.5,0....
X X X X Extracts X X X X
X X X X Extracts X X X X
.... of AO vide para 5.1 as under:- 5.1 In the course of appellate proceedings, the appellant produced some confirmation letters from some parties. On a scrutiny of the same, it can be seen in these letters that there is no mention of PAN, nature of payment and source from which it is paid. Hence, the appellant has not discharged the onus of proving the credit by establishing the genuineness of the transaction nor the credit worthiness of the creditor. Hence, I find that the order of the Assessing Officer was correct and there is no reason why his conclusion needs to be disturbed. Therefore, the addition of Rs.69,81,191/- made u/s 68 of the Act which are credit of unproven share application advance is confirmed." Aggrieved, now assessee is i....
X X X X Extracts X X X X
X X X X Extracts X X X X
....plicants and also filed other details including confirmations. According to us, these additional evidences filed by assessee will go to the root of the matter and it will help in adjudicating the issue and hence, keeping in mind the principles of natural justice, we admit these evidences and remand the matter back to the file of the AO for fresh adjudication. Accordingly, this issue of assessee's appeal is allowed for statistical purposes. 8. The next common issue in both the appeals of Revenue and assessee is as regards to the order of CIT(A) restricting or upholding the addition of Rs.2,58,80,414/- by invoking the provisions of section 41(1) of the Act, as against addition made by the AO on sundry creditors amounting to Rs.10,67,68,912/-....
X X X X Extracts X X X X
X X X X Extracts X X X X
....as wrong. The CIT(A) after considering additional evidences and even remand report from the AO restricted the addition at Rs.2,58,80,414/- to be assessed u/s.41(1) of the Act as against addition made by AO of Rs.10,67,68,912/- assessed u/s.68 of the Act as cash creditors. The CIT(A) recorded his finding in para 6.4 & 6.5 as under:- 6.4 A detailed analysis was done on the ledger accounts furnished by the appellant during the appellate proceedings. Considering the argument that the subsequent payments are an indication of the life of the accounts, these accounts which remain dormant were separated and tabulated as Annexure-I. There is another set of accounts where some efforts are seen to show that the transactions are squared-up by making....
X X X X Extracts X X X X
X X X X Extracts X X X X
....fore us stated that based on ledger accounts filed by the assessee that subsequent payments are an indication of the life of the accounts, the CIT(A) confirmed the following additions u/s.41(1) of the Act:- (i) Accounts which remain dormant - Rs. 1,71,12,670 (As per Annexure I to CIT(A) order) (ii) Transactions squared up by making a journal Entry "Advance to Supplier" - Rs. 87,67,735 (As per Annexure II to CIT(A) order) The ld.AR for the assessee also requested that the matter can go back to the file of the AO to decide the issue whether the additions are to be made u/s.68 of the Act or u/s.41(1) of the Act after considering the facts of the case, whether the sundry creditors are ar....