2025 (6) TMI 1077

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.... Tax Act, 1961 (the Act, in short). 2. Brief facts of the case are that assessee is a private limited company engaged in the business of manufacturing of special purpose machinery. The return of income was e-filed on 17.10.2016 declaring total income of Rs. 65,43,040/-. The case of the assessee was selected for scrutiny under CASS. During the course of assessment proceedings, the AO provided various opportunities to the assessee however, assessee has failed to submit requisite details therefore the assessment was completed by making additions of Rs. 4,99,49,080/- u/s 68 on account of unsecured loan taken by holding the same as unexplained credits and further addition of Rs. 24,65,000/- was made after invoking the provisions of section 50....

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....me are taken together for consideration. 5. Before us, the ld. AR of the assessee submitted that during the course of assessment proceedings, various documents were submitted before the Assessing Officer in order to establish the identity and creditworthiness of the creditors however the same were not considered by the AO. It is further submitted by ld. AR that most of the amounts were repaid during the year itself as is evident from the tax audit report. Ld. AR further submitted that amongst the total addition of Rs. 4,99,49,080/- made u/s 68 of the Act, an addition of Rs. 2 crores was made on account of loan taken from M/s Fucon Technologies Ltd. which amount was though credited in the bank account of the assessee and however on the ve....

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....officer and he prayed accordingly. 6. On the other hand, ld. Senior DR vehemently supported the orders of the lower authorities and submitted that despite of providing ample opportunities, the assessee company was not able to establish the creditworthiness of the loan creditors. He further submitted that even during the course of remand proceedings, the notices issued to the loan creditors were returned unserved which further proved that the parties are not existent and therefore, he prayed for the confirmation of the addition made. 7. We have heard the rival submissions and perused the material available on record. At the outset, it is seen that the assessee has failed to discharge the burden casted upon it of proving the identity an....