TaxTMI 
TaxTMI 
2023 (2) TMI 843
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....9, following grounds have been raised by the 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 associat....
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.... 5. That, the credit worthiness cannot be measured only by means of self 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/De....
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.... that in case of Sundry Creditors for purchases Section 68 is not applicable unless purchases are rejected without 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 payme....
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....llowance of Rs. 3,06,67,422/- made by the AO on account of failure to file confirmations by 14 creditors by allowing entirely on the ground 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 t....
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....h Retails Pvt. Ltd. which is a sister concern who in turn received funds from the Director Ms. Neeru, who was financed the same as personal loan 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 cre....
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....2,00,000/- received as loan from M/s Shelter Advisory Pvt. Ltd. u/s 68 of the Income Tax Act, 1961. 13. Before the ld. CIT(A), the assessee submitted that 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 a....