TaxTMI 
TaxTMI 
TaxTMI 
2024 (5) TMI 445
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....Year 2014-15. 2 The following substantial questions of law arises for consideration of this Court: "(a) Whether in the facts and circumstances of the case and in law, the learned ITAT has erred in deleting the addition of Rs. 1,16,93,637/- u/s. 68 of the IT Act without properly appreciating the facts of the case and material brought on record? (b) Whether in the facts and circumstances of the case and in law, the learned ITAT has erred in deleting the net profit addition of Rs. 68,25,25,056/- without properly appreciating the facts of the case and material brought on record?" 3 The brief facts of the case are as under: 3.1 The assessee - respondent is engaged in the business of trading of all types of Chemicals, Casting and Casting P....
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....AO made the addition for the reason that the appellant has not produced depositors alongwith evidences of their identity and books of accounts. The appellant did not submit the confirmation and bank statement depicting the loan and advances alongwith 3CD report, return of income of the depositors. Thus AO held that the appellant has not discharged its onus in establishing the identity and creditworthiness of the lenders and also the genuineness of the transactions. 2.5 On the other side, the appellant has contended that it has submitted all the details called for by the AO to establish identity, creditworthiness and genuineness of the transactions vide its letter dated 05.07.2016, 5.12.2016 and others. With regard to Globex Finance, it wa....
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....he submission letter dtd. 5.12.2016 to the AO which are the details of the such as confirmation, bank statement, ITR acknowledgement, copy of audited accounts etc. in respect of both the parties. On going through the same it is noticed that in the case of M/s. Globex Finance, there was opening balance of Rs. 1,01,11,954/- as on 1.4.2013 and the same was repaid on different dates such as Rs. 25 lakhs on 28.12.2013, Rs. 34.95 lakhs on 18.3.2014 which is verifiable from its ledgeer account and confirmation / contra account of the aforesaid party. Further the appellant has credited the interest of Rs. 397396/- in parties ledger account by deducting the TDS of Rs. 39740/-. Even the AO has not taken any adverse view about the claim of interest ex....
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.... party. Moreover on verification of the bank account of the aforesaid party in Rajkot Nagrik Sahakari Bank, Ahmedabad Account no. 048003800003474, it has been noticed that no immediate cash deposits before granting the loans to the appellant are found credited and therefore there is no suspicion about the sources of the deposits / loans given to the appellant. Since the aforesaid party had the PAN and therefore its identity is established. Further the bank statement of the aforesaid party has also been established highlighting the cash credit transactions with the party during the year under consideration which amply establishes the genuineness of the cash credits. Further the aforesaid party has also filed the return of income and regularl....
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....ent etc. From the perusal of the record it can be seen that no loans has been taken by the assessee during the year under consideration but it was the opening balance as on 01.04.2013 at Rs. 1,01,11,954/- which was carried forward and thus, the genuineness of cash credits were established by the assessee. The CIT(A) has given a detail finding and there is no need to interfere with the same. Ground No.1 of Revenue's appeal is dismissed. As regards Ground No.2 the assessee has duly furnished all the details to establish the correctness of the books of accounts and also furnished ITR, Audit Report, balance sheet and Profit & Loss Account. The detail of G.P.ratio and N.P.ratio for last three years also was shown to the Assessing Officer. It is ....