TaxTMI 
TaxTMI 
2025 (5) TMI 12
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....Hon'ble ITAT directed that the AO may examine the transactions and decide the issue afresh with respect to those of 14 parties and after ascertaining the details of amount involved with respect to 26 parties, delete the same. ii. In this regard, it is pertinent to mentioned here that in the return filed by the assessee for A.Y. 2016-17, the assessee had shown unsecured loan of Rs. 14,33,45,343/-. During the course of assessment proceedings, the assessee vide notice u/s. 142(1) was asked to furnish complete details of unsecured loan as appearing in the return of income. However, the assessee failed to furnish details called for. Further, during the course of appellate proceedings, the assessee had filed additional evidences. The Ld. CIT(A)-48, Mumbai called for the remand report from the AO wherein the Ld. CIT(A) directed the AO to properly verify the deposits made by the alleged members of the credit society. In the additional evidence the assessee submitted that the society had accepted deposits in various forms from its members as the core object of the society is to accept deposits from its members such as Savings Deposits, Current Deposits, Recurring Deposit, Fixed....
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....rties. The Hon'ble ITAT further directed the AO to decide the issue afresh with respect to those 14 parties wherein notices u/s. 133(6) was not served. v. On perusal of the ITAT order, it is seen that the Hon'ble ITAT ignoring the facts that the addition of unsecured loan of Rs. 14,33,45,343/- was made by the AO in respect to the list as mentioned above. The Hon'ble ITAT limited its decision with respect of 40 parties only. Further, the Hon'ble ITAT did not specify the quantum involved. It seems that the Hon'ble ITAT has confirmed the addition in respect of all other parties excluding 40 parties. vi. The Hon'ble ITAT set aside the issue back to the files of the AO with respect to 14 parties only (on whom notice u/s. 133(6) of the Act were issued), thereby limiting the issue of addition to 14 parties only which were selected on sample basis to determine identity, creditworthiness and genuineness of all creditors. 9. PRAYER In view of the above, the Miscellaneous Application may kindly be admitted to clarify the following grounds of appeal Grounds of appeal in Miscellaneous Application 1. "Whether on the fa....
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.... to 26 of the Order. In Paragraph 26 of the Order the Tribunal has recorded as under: "26. At this stage the argument of the learned authorised representative cannot be accepted that in case of a bank no addition under section 68 of the Actcan be made as held by the honourable Gujarat High Court in case of Pragati Credit Co-operative Society Ltd. (2005) 278 ITR 170 (Gujarat) for the reason that in that case names and addresses of all the depositors had been supplied by the assessee as demanded by the assessing officer and the assessing officer has agreed to treat the same as samples of the total number of depositors. This fact was not disputed by the revenue. Further when the assessee has given sufficient indication regarding particulars of the deposits and the depositors and thereafter it was for the assessing Officer to carry out necessary investigation in respect of the depositors, If the learned assessing officer has any doubt about the capacity of the investors. The failure of the assessing officer to make further investigation cannot justify an addition in the hands of the assessee. Further the coordinate bench in that particular case has held that there are cases of....
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....tify those members by their other credentials of savings bank account, current account, agricultural loan accounts etc. Of course, the addition with respect to those 26 parties deserves to be deleted in view of the decision of the honourable Gujarat High Court. However as the amount pertaining to those 26 parties is not available, so we set-aside ground number 2 6 of the appeal back to the file of the learned assessing officer (1) with a direction to the assessee to substantiate the identity of the members of the society. The AO may examine the same and decide the issue afresh with respect to those of 14 parties and after ascertaining the detail of amount involved (2) with respect to 26 parties, delete the same. Accordingly, ground number 2 - 6 of the appeal is allowed with above direction." 5. On perusal of above it becomes clear that the Tribunal has, in the first line of the Paragraph 26 of the Order, rejected the contention of the Assessee that no addition under Section 68 of the Act can be made. Thereafter, after taking into consideration the facts of the case and the submissions made by both the sides the Tribunal had noted that in respect of 26 member-depositors details w....