2024 (12) TMI 501

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....ion 143(3) of the Income Tax Act, 1961 (hereinafter referred to as 'the Act') relating to the Assessment Year 2017-18. 2. The brief facts of the case is that the assessee is a firm and dealer of Hindustan Petroleum for sale of petrol, diesel and CNG, etc. For the Asst. Year 2017-18, assessee filed its Return of Income on 29-09-2017 declaring total income of Rs. 24,43,860/-. The return was taken for scrutiny assessment. The assessee has shown unsecured loans from Shri Pravinbhai Mavani of Rs. 15,50,000/-, Shri Sagar Mavani of Rs. 1,50,000/- and Smt. Vandanaben Mavani of Rs. 6,50,000/-. The assessee was required to show the identity, genuineness and creditworthiness of the above loan transactions. 2.1. In response, the assessee filed confir....

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....ssessee thereby ld. CIT(A) confirmed the additions made by the Assessing Officer. 4. Aggrieved against the same, assessee is in appeal before us raising the following Grounds of Appeal: 1) THE LEARNED CIT HAS ERRRED IN UPHELDING THE ADDITION OF UNEXPLAINED CASH CREDIT OF Rs. 23,50,000/- U/S 68 OF INCOME TAX ACT MADE BY LEARNED A.O. WHICH WERE RECEIVED FROM THREE DEPOSITORS WITH SUBSTANTIAL EVIDENCES. THIS ADDITION NEEDS TO BE DELETED. 2) THE LEARNED A.O. TAXED THE ABOVE AMOUNT U/S 115BBE OF THE INCOME TAX ACT AND LEVIED TAX AT 60 PERCENTAGE OF THE AMOUNT ADDED. THIS BEING GENUINE TRANSACTION THE APPLICATION OF THIS SECTION BE CANCELLED. 3) THE LEARNED A.O. HAS LEVIED INTEREST U/S 234B OF Rs. 6,20,796/- ND U/S 234C OF Rs. 12,759/- AND....

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....s repaid through cheque payments on 15-12-2017. 5.2. Similarly in the case of Shri Sagar Mavani wherein the unsecured loan of Rs. 1.50 lakhs received on 01-02-2017 through cheque payments and the loans was repaid on 15-12-2016 with interest of Rs. 2860/-. Thus the additions made by the Lower Authorities are not sustainable in law and the same is liable to be deleted. In support of the same, Ld.Counsel relied upon Jurisdictional High Court Judgment in the case of PCIT Vs. Ambe Tradecorp (P.) Ltd. reported in [2023] 147 taxmann.com 375 (Guj.) 6. Per contra, Ld. Sr. D.R. appearing for the Revenue supported the order passed by the Lower Authorities and requested to confirm the same. 7. We have perused the materials available on record as wel....