2023 (1) TMI 1172

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....the following grounds of appeal:- "1. That the Ld. CIT (A) has erred in law and on facts in deleting the addition of Rs.5,00,00,000/- made on account of income from undisclosed source u/s 68 of the IT Act, when the creditworthiness & genuineness of the transactions remain unproved as the two companies from whom advances have shown to received had meager income not capable to advance such huge amount. 2. (a) The order of the CIT(Appeals) is erroneous and not tenable in law and on facts. (b) The appellant craves leave to add, alter or amend any all of the grounds of appeal before or during the course of the hearing of the appeal." 3. Brief facts of the case are that, search and seizure action u/s 132 of the Incom....

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.... assessee has proved the identity, creditworthiness and genuineness of the two parties i.e. M/s Vedanga Vinimoy Pvt. Ltd. and M/s R P Dealers Pvt. Ltd. Further, the Ld. AR relied on the order of the CIT(A) and prayed for dismissal of the appeal. 7. We have heard the parties perused the material available on record and gave our thoughtful consideration. 8. The Ld. A.O. while making the addition has mentioned that the 'assessee has not furnished the necessary detail for ascertaining identity of the person and genuineness of advance received,' accordingly, made addition u/s 68 of the Act. During the appellate proceedings, the Ld. AR vehemently contended that the necessary details were duly filed during the course of assessment vide lette....

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....letter dated 20/02/2017, filed the following report:- "In this regard, during the assessment proceedings, from the list of sundry creditors submitted by the assessee company it is seen that the following amounts have been received as advances against contracts. Name PAN Address Amount RP Dealers Pvt. Ltd. AABCR122J 7, Ganesh Chandra Avenue, 4th Floor, Kolkata 20,000,000.00 Vedanga Vinimoy AAACV9110B -do-  30,000,000.00 The assessee was issued show cause notice dated 23.03.2016, during assessment proceedings requesting it to explain the nature/purpose for receipt of such advances and also as asked earlier also, furnish the complete details/documents like complete bank statement, ITR ....

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....deposits. ' In continuation with the submissions made earlier vide letter dated 21-10-2016, it is further respectfully submitted as under:- 2. It may be noted for the remand report that the ACIT has not given any adverse findings about the genuineness of the advances of Rs. 5 Crores received from M/s R. P. Dealers Pvt Ltd and M/s Vedanga Vinimoy Pvt. Ltd. The ACIT issued notices u/s 133(6) of the Income Tax Act dated 31.01.2017 to the said two parties. 3. The said two parties have duly acknowledged the notices issued u/s 133(6) and thereafter have sent their Confirmation, Final accounts and ITR for the assessment year 2013-14. Thus these facts prove the identity, credit worthiness and genuineness of the said two partie....