2022 (9) TMI 509

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....ppeal of the Assessee has been allowed. The Assessee was the proprietor of M/s Rhea Distribution Company. 2. In the present appeal, the Revenue is aggrieved by the deletion of the addition of Rs.24,50,91,663/- which as per the Revenue was an unexplained addition made by the Assessee to its capital account. It is stated that the Assessee has failed to discharge the burden regarding the source from which the capital was introduced. 3. It is contended by the Revenue that during the assessment proceedings initiated under Section 143 of the Act, the Assessee was asked to furnish details regarding the net capital addition to the tune of Rs.24,50,91,663/with evidence. The learned counsel for the Revenue relied upon the order of the Assessing Off....

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....Income Surrendered on 17.09.2010 on account of STCG 15,92,00,000/- Less: Amount seized out of Locker and Adjusted in Tax Demand. 70,00,000/- Balance 15,22,00,000/- Less: Amount seized out of Locker and adjusted in Tax demand 55,70,000/- Balance of Cash out of Surrendered Income (Total A) 14,66,30,000/- B. Details of cash consumed/deposited in bank out of above.   During A.Y. 2012-13   Cash Deposited in Bank 13,11,34,500/- Cash utilized in Rhea Distribution Company 38,86,000/- Total Addition in Rhea Distribution Co. (in Capital Account) 13,50,20,500/- During A.Y. 2013-14   Cash received out of surrendered income 1,16,09,500/- Total (B) 14,66,30,000/- As a sequitur, it has been explained that....

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....s as stated by the Assessee. The ITAT therefore concluded that the Assessee has duly explained the credit of Rs.15 crores in its capital account. In the present appeal as well, the said fact has not been disputed by the learned counsel for the Revenue. 10. Further, with respect to the amounts received in the bank account of Rhea Distribution Co. as unsecured loans, the ITAT noted that the Assessee has produced sufficient documentary evidences on record, i.e., confirmation from the creditors, their balance sheets and their bank statements which evidence that the creditors had been assessed to tax and have sources for giving loans and advances to the Assessee. The said loan amounts and advances were credited to the bank account of the Assess....

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....rned counsel also does not dispute the finding of the CIT(A) that there was a surrender of income by the Assessee in the previous AY to the tune of Rs. 15.22 crores and tax was duly paid thereon. There is no challenge to the finding of the ITAT that in case of addition of Rs. 9.02 crores, the amounts were opening balances from the earlier years. The ITAT has after perusing the evidences filed by the Assessee and the remand reports received from the AO, concluded that the addition against the Assessee cannot be sustained. The learned counsel for the Revenue has not been able to point out any error in the findings of fact by the learned ITAT. 14. The learned counsel relied upon the judgment of this Court in Commissioner of Income Tax Vs. Man....