2023 (4) TMI 227

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....mstances of the case, the ld. CIT(A) has erred in deleting the addition of Rs.6,04,70,000/- u/s 68 of the I.T. Act. 3. On the facts and in the circumstances of the case, the ld. CIT(A) has erred in deleting the addition of Rs.1,39,84,900/- holding that there is no legal basis for such an ad-hoc disallowance." 3. The AO made addition of Rs. 6.04 crores owing to non-submission of details of investors. Before the ld. CIT(A), the assessee filed details and the source of capital contribution from M/s. Affy Parenterals. 4. The relevant part of the submission of the assessee before the ld. CIT(A) is as under: "We are humbly submitted that we have duly and truly submitted with Ld. AO during the assessment proceeding u/s 143(3) as under: The....

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....taining with M/s Affy Foodtech LLP and also reflecting the same in the Audited balance sheet of assessee firm M/s Affy Foodtech LLP. c) Bank statement of Assessee firm M/s Affy Foodtech LLP in which narration also revealed that amount received from Mr. Arvind Billa (Partner). iii) Creditworthiness of the Partner This is to bring your kind attention that Arvind Billa (Partner) is also the partner in M/s Affy Parenterals. M/s Affy Parenterals, also filed their income tax return and assessed within the same ward. The fund which was introduced as capital by Mr. Arvind Billa (Partner) in the assessee firm M/s Affy Foodtech LLP, had originally received from his another partnership firm M/s Affy Parenterals, from where sufficient credit bala....

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....m. d) Balance sheet in profit & loss account of Mr. Arvind Billa of his proprietorship firm for the FY 2015-16 relevant to the AY 2016-17. e) M/s Affy Parenterals is also filed their income tax return within time regularly with the respective jurisdictional authority. Copy of the ITR is also enclosed for your kind perusal and records. In this regards we humbly submitted that Mr. Arvind Billa is also Partner having 80% of profit sharing ratio in M/s Affy Parenterals. There is sufficient credit balance in his capital account with M/s Affy Parenterals. Amount has been received from M/s Affy Parenterals and transferred to his another partnership firm as capital in assessee firm M/s Affy Foodtech LLP. M/s Affy Parenterals have also regular....

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....firm by Mr. Arvind Billa as a partner in M/s Affy Foodtech LLP is supported, duly and truly proved by Bank statements, and copy of the Ledger account of M/s Affy Parenterals and M/s Affy Foodtech LLP which are duly submitted herewith. Moreover, each and every transaction have duly and truly been self revealed as narration mentioned in the personal HDFC bank statement that funds transferred by debited capital account of Mr. Arvind Billa from M/s Affy Parenterals and the same was transferred as capital in M/s Affy Foodtech LLP. That has also been duly and truly been verified by your goodself in HDFC bank statement submitted in the name of Mr. Arvind Billa. As far as source of funds deployed for addition in capital by Mr. Arvind Billa from....