2023 (4) TMI 1282

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

.... by the assessee against the order dated 05.08.2022 by the learned Commissioner of Income-Tax (Appeals) - 24, Delhi pertaining to assessment year 2018-19. 2. The dispute in the present appeal is confined to addition made of Rs. 14,00,000 under Section 68 of the Income-Tax Act, 1961. 3. Briefly, the facts are, the assessee is a resident corporate entity. For the assessment year under dis....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....ufacturing of their finished goods. For this purpose, the assessee had also executed a loan agreement with M/s. Gee Wire Pvt. Ltd. However, the assessee submitted, since, the name of M/s. Gee Wire Pvt. Ltd. was struck off from the record of Registrar of Companies (ROC), the assessee could not furnish the ITR and other evidences to substantiate the creditworthiness of the lender. The Assessing Offi....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

.... not be furnished before the Assessing Officer as the company's name was struck from the record of ROC. 7. Alternatively, he submitted, in case, the assessee has not repaid the loan to the extent of such non-repayment the amount can be treated as cessation of liability under Section 41(1) and since it is a capital receipt, it cannot be brought to tax. 8. Learned Departmental Representative s....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....tworthiness of the lender coupled with genuineness of the transaction. That being the case, the unsecured loan availed of Rs. 14,00,000 remains unexplained. Therefore, the addition made under Section 68 of the Act, in my view, is justified. 12. As regards, the alternative contention of the assessee that nonrepayment of loan will amount to cessation of liability, I find the said submission ....