TaxTMI 
TaxTMI 
2023 (8) TMI 77
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.... for non providing confirmations - Rs. 3,59,000/- and disallowance of interest as excess interest paid over 12% - Rs. 25,289/- making total addition/disallowance of Rs. 13,34,298/-. 1. The learned A.O. as well as Hon'ble CIT (A) has erred in law and on facts while not considering the various replies of the appellant filed in the assessment as well as appellate proceedings in the right perspective manner. 2. The learned A.O. as well as Hon'ble CIT(A) has erred in law and on facts while not considering the contention of the appellant that in most of the cases the appellant has repaid the amount and after couple of days the same amount has been received and accepted from the same creditor, this is due to the procedure....
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....e terms and conditions with the unsecured loan parties, the appellant pays the interest to the unsecured loan parties at the time of accepting the unsecured loans and such policy is followed from past years by the appellant and accordingly looking cumulatively there would be nil effect on the claim of interest by the appellant and it will have no effect on the interest claimed by the appellant as the same system of interest has been followed by the appellant from long years. Accordingly, there is no difference in the interest paid by the appellant. Under the circumstances the addition/disallowance made by the learned A.O and confirmed by the Hon'ble CIT (A) on account of unexplained cash credits u/s 68, - Rs. 9,50,000/-, disall....
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....ted for scrutiny was received from service reported in Service Tax Return and Return of Income. The Assessing Officer observed that as per service tax return the assessee earned service charges of Rs. 21,51,037/- which was not reflected in the return of income. The Assessing Officer after taking cognizance of the submission of the assessee made additions of interest of Rs. 3,59,000/- and Rs. 25,298/- as well as unsubstantiated expenses and Rs. 9,50,000/- which is considered as unexplained cash credit. 5. Being aggrieved by the assessment order the assessee filed appeal before the CIT(A). The CIT(A) partly allowed the appeal of the assessee. 6. There is a delay of 22 days in filing the present appeal for which the assessee has filed co....
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....m 311 (v) Smt. Madhu Raitani vs. ACIT (2011) 10 taxmann.com 206 (vi) Smt. Shanta Devi vs. CIT (1988) 37 taxmann.com 104 (vii) Punjab & Haryana High Court CIT vs. Bhaichand H. Gandhi (1983) 141 ITR 0067 On merit the Ld. A.R. submitted that the addition of interest expense to the extent of Rs. 3,59,000/- is concern, the Assessing Officer did not consider the said interest expense as genuine since, the assessee could not submit the confirmation from the relevant depositors and in the remand report the Assessing Officer observed that the creditworthiness is not established since the copy of income tax return, Profit & Loss Account and Balance etc. are not furnished. The Ld. A.R. submitted that genuineness of ....
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....mitted that the assessee could not explain the cash credits component and therefore, the Assessing Officer has rightly invoking Section 68 of the Act. On merit the Ld. D.R. relied upon the assessment order and the order of the CIT(A). 9. Heard both the parties and perused all the relevant material available on record. It is pertinent to note that the Hon'ble Punjab & Haryana High Court in case of Smt. Shanta Devi vs. CIT 171 ITR 532 has categorically mentioned that the assessee when does not maintain any books of accounts the same cannot be considered and cannot be taken into account as unexplained cash credits under Section 68. In the present assesee's case the assessee is not maintaining the books of accounts as this is an admitted pos....