2022 (9) TMI 509

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....ssessment Year ('AY') 201213 whereby the appeal 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 Reve....

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....ollows:- A. Details of Cash Surrendered   Total 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 surrend....

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.... ITAT has noted that no adverse inference has been drawn by the AO in the remand reports with respect to the aforesaid facts 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 ....

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....rence drawn by the AO with respect to the documentary evidence furnished by the assessee in respect of the unsecured loans. The learned 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....