2023 (6) TMI 1126

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.... 27- 12-2017 in the matter of an assessment framed by Ld. Assessing Officer (AO) u/s 143(3) on 27.03.2000. The sole substantive ground that falls for our consideration is addition of Rs. 16.47 Lacs u/s 68 of the Act. The assessee is stated to be a partnership firm. The registry has noted delay of 3 days in both the appeals which stand condoned. 2. The impugned issue stem from the fact that the assessee admitted loan of Rs. 16.47 lacs from Mr. Ramachandran. The assessee filed address of the lender along with confirmation letter dated 27.02.2000 from M/s H.M.C. Fabrics Private Ltd. The loan was stated to be received through Indian Bank DD No.787070 dated 19.03.1997. The sworn statement of the lender was recorded wherein lender assured the au....

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....rts (P.) Ltd. (216 CTR 195) and in other case laws. During appellate proceedings, remand report was sought from Ld. AO wherein Ld. AO stated that the assessee did not discharge the duties to prove the capacity of the creditor and genuineness of the transaction. Considering the same, Ld. CIT(A) upheld the addition against which the assessee is in further appeal before us. 4. From the stated facts, it could be seen that the assessee has admitted loan of Rs. 16.47 lacs from Mr. Ramachandran. In terms of requirement of Sec.68, the assessee was obligated to prove the identity of the lender, their respective creditworthiness and the genuineness of the transaction. During the course of assessment proceedings, the assessee filed address of the len....

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....ned addition could not be sustained in law. The ratio of Hon'ble Supreme Court in the cited case law would support the case of the assessee. Therefore, we direct Ld. AO to delete the impugned addition. The assessee's appeal stand allowed accordingly. Assessment Year 2001-02 5. The sole issue in AY 2001-02 is addition of Rs. 18.17 Lacs. The assessee also assails the validity of reassessment proceedings on the ground of absence of any tangible material. Having heard rival submissions, the appeal is disposed-off as under. 6. The original return of income was scrutinized u/s 143(3) on 27-02- 2004 determining the income at Rs. 4.90 Lacs. Subsequently, it was seen that the assessee derived income from House Property for Rs. 18.17 Lacs which wa....

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....nce of during those proceedings. However, Ld. AO rejected the same on the ground that the Balance Sheet relating to AY 2001-02 did not reflect any profit at all. The reconciliation statement now filed by the assessee on the basis of Balance sheet filed before first appellate authority could not be considered. Accordingly, the impugned addition was made. 8. During appellate proceedings, the assessee filed reconciliation of balance as on 31.03.1993 and 01.04.2001 along with financial statements for various years. The assessee also assailed validity of reassessment proceedings on the ground that there was no escapement of income which was rejected by Ld. CIT(A). On merits, Ld. CIT(A) upheld the action of Ld. AO on the ground that the assessee....