TaxTMI 
TaxTMI 
TaxTMI 
2023 (2) TMI 843
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....assessee: "1. That on the facts & circumstances of the case, the Ld. CIT has erred in making addition of Rs. 27,25,000/- as unexplained credits u/s 68 of the Income Tax Act and made addition of Rs 27,25,000/in the income of the assessee. The Ld. CIT has not applied his independent mind on the tangible material which forms the basis of reason to believe. Indeed it is a borrowed transaction from a well defined and credit strengthened source. 2. That loan from M/s Muah Retails Pvt. Ltd. (Sister Concern) for Rs 27, 25,000/- was received from identified sources and legal / proper transaction were made. The company had the proper sources which were given to assessee which was associate company. These loans were taken totally for business nee....
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....earned funds but it can be assessed from the sources & channels of the corpus from where it has been obtained. If they are all genuine & legal transactions the same cannot be doubted. Moreso, when the source of the source of the source is also genuine there was no IOTA of doubt left in the matter. 6. That section 68 of the income tax act, 1961 is not applicable in the present case and addition on this ground is itself illegal. 7. That the ld. CIT(A) neither considered to the facts of the case nor rely on the reply given during the proceedings u/s 250 of the Income Tax Act, 1961 on the above point in true and proper manner." 3. In ITA No. 3026/Del/2019, following grounds have been raised by the assessee: "1. On the facts and circum....
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....ithout appreciating the decision given by the Hon'ble jurisdictional High court in the case of PR. Commissioner of Income Tax, Delhi-17 v. M/s Wadhawan Designs ITA No. 66/2018 wherein it has been held that the burden in the first instance to prove that the amounts were duly paid to the suppliers, in the course of regular commercial transaction, by establishing the identity of the recipients, genuineness of the transaction and the creditworthiness of the party concerned lies with the assessee. 4. On the facts and circumstances of the case, the ld. CIT(A) erred in allowing relief of Rs.8,90,170/- by holding that these payments (employees' contributions to EPF & ESIC) were made by the assessee before tiling of return and he relied o....
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....round that the AO has verified the above transactions (14 creditors) in the Remand Proceeding whereas the AO has not given any such finding in the Remand Report and has clearly mentioned that the assessee has filed confirmations only in respect of 7 creditors, making the order perverse." 5. The assessee is 30 years old company in the business of manufacturing & export of ladies garments. A.Y. 2013-14 (Assessee Appeal) Unsecured loan 6. During the assessment, the AO treated an amount of Rs.27,25,00/- received as loan from M/s Muah Retails Pvt. Ltd. u/s 68 of the Income Tax Act, 1961. 7. Before the ld. CIT(A), the assessee submitted that the loan was taken from a related entity and the additional details have been submitted. The addit....
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....n by J&K bank. Hence, the addition made by the AO and confirmed by the Ld.CIT(A) is here by directed to be deleted. A.Y. 2013-14 (Revenue Appeal) Trade Payables: 9. The AO made addition on account of disallowance of 25% of total trade payables owing to non-filing of confirmations with regard to the purchases. 10. Before the ld. CIT(A), it was submitted that due to insolvency of some main buyers, the company was compelled to file before BIFR which resulted in payment of sundry creditors in the year. The assessee has submitted evidences before the ld. CIT(A) in the form of list of creditors and trade payables having brought forward balance. Out of the sundry creditors worth Rs.8.08 crores, an amount of Rs.5.63 crores pertains to o....
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.... the loan was taken from a NBFC, the net worth of which was Rs.4 crores and also given confirmation of the loan. The additional evidences filed by the assessee have been forwarded to the Assessing Officer and the remand report has been called for. Since, no adverse comment has been made by the AO with regard to the transactions with M/s Shelter Advisory Pvt. Ltd. The ld. CIT(A) deleted the addition. Since, the order of the ld. CIT(A) is based on the remand report of the AO, we decline to interfere with the order of the ld. CIT(A). A.Y. 2014-15 Sundry Creditors: 14. During the assessment proceedings, the AO issued notices u/s 133(6) to various parties of fabrication & manufacturing expenses. Owing to non-reply of notices and in th....