2023 (10) TMI 373

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....Income Tax Appeal)4, Kanpur erred in confirming the action of the assessing officer to make an addition of Rs 50,00,000/- to the income of the appellant in respect of unsecured loan received from M/s Amsoft Global Private Limited treating the same as not proved. The addition confirmed is unjustified and bad in law. 2. That on the facts of the case, in law and under the circumstances, the Commissioner of Income Tax (Appeal)4, Kanpur erred to confirm the action of the assessing officer to make an addition of Rs. 50,00,000/- by invoking the provisions of section 68 of the Act and by ignoring the plea, genuine loan is received where Identity, Genuineness and Creditworthiness had been proved. The addition confirmed by the Hon'ble Co....

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....red by the assessee in return of income filed in response to notice u/s 153A and not in return filed u/s 139(1) of the 1.T. Act, 1961. 5. During the year, the assessee has received the following loans from various entities. During the course of assessment proceedings vide Notice u/s 142(1) dated 20.10.2020 and 05.01.2021 and show cause notice dated 23.02.2021, the assessee was specifically asked to furnish the evidence of identity and creditworthiness of the entities from whom loans have been received and prove the genuineness of transaction with them. In reply, the assessee furnished the confirmations, ITR, bank statements and financial statements of these entities. Notices u/s 133(6) of IT act, 1961 were also issued to these enti....

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....ial unearthed during the course of search or requisition of documents or undisclosed income or property discovered in the course of search which were not produced or not already disclosed or made known in the course of original assessment" 10. The Hon'ble Delhi High Court in the case of Pr. CIT vs. Meeta Gutgutia (2017) 395 ITR 526 in paras 69 to 72 has held as under: "69. What weighed with the Court in the above decision was the "habitual concealing of income and indulging in clandestine operations" and that a person indulging in such activities "can hardly be accepted to maintain meticulous books or records for long." These factors are absent in the present case. There was no justification at all for the AO to proceed on s....