TaxTMI 
TaxTMI 
2022 (11) TMI 971
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....ds of appeal:- Grounds of appeal Tax effect' relating to each ground of appeal 1 The learned CIT(A) has erred in not affording an opportunity of hearing to the appellant and in passing an ex parte order which is in violation of the Principles of Natural Justice. 2. The learned CIT(A) has erred in law and on facts of the case in making an addition of Rs. 90,62,934/- as unexplained cash credits u/s. 68 of the Act. Rs. 27,18,880.20/- 3. The learned CTT(A) has erred both in law and on the facts of the case in confirming the action of the AO of making a disallowance u/s. 40A(2) of the Act of interest of Rs. 9,01,274/- as being excessive and unreasonable. Rs. 2,....
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....year, the assessee received unsecured loan of Rs. 90,62,934/- from Timbor Home Ltd. The Assessing Officer after making necessary inquiries held that the assessee has failed to supply any documents/evidences to prove the genuineness of the transaction, established the identity of the depositor and prove the capacity of the depositor M/s. Timber Home Ltd. and has thus failed to discharge the onus put upon the assessee. The Assessing Officer held that since all three necessary parameters to prove the credit entries remain un-proved by the assessee, he held that the credits as appearing in the books of accounts of the assessee, in the form of unsecured loans amounting to Rs. 90,62,934/- is considered to be non-genuine and unexplained and the As....
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....tworthiness of the creditors and genuineness of the transaction. In a judgment with regard to loan transaction Hon'ble High Court of Delhi in the case of Pr. CIT-7 Vs. Bikram Singh [2017] 85 taxman.com 104 (Delhi) have held that in the case of huge loans to the assessee without any collateral security without interest and without a loan agreement merely establishing identity and the fact that amounts had been transferred through cheques does not means that the transactions are genuine. The Hon'ble Court further held that the authorities are duty bound to investigate the creditworthiness of the creditors, subscribers and the genuineness of the transactions relevant part of the judgments is reproduced as below: xxxxxxxxxxxxxxxxxxxxx....
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.... non-compliance so far as the first two notices are concerned. 6. Further, the counsel for the assessee submitted that so far as the creditor M/s. Timbor Home Ltd., in respect of whom the additions were made by the Assessing Officer is concerned, the said company is very much traceable and has in fact gone into liquidation. The counsel for the assessee placed before us copies of letters from the office of the official liquidator intimating that by order dated 29-06-2015 passed by the Hon'ble High Court of Gujarat in Company Petition No. 293 of 2013, the above named company has been ordered to be wound up. Further, the counsel for the assessee also placed on record copy of orders passed by the Hon'ble High Court of Gujarat in relati....