2025 (7) TMI 671

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....e company. The assessee filed its return of income for the impugned assessment year declaring NIL income and claiming current year loss of Rs. 4,02,609/-. During the course of assessment proceedings, the Assessing Officer (AO) made following additions: "i. undisclosed source of income addition u/s. 68 of the Act Rs. 4,50,00,000/-; ii. disallowance for not deducting TDS on the remittances made outside India Rs. 2,32,19,000/-; iii. notional interest @12% on the loans and advances given to the different parties Rs. 48,70,326/-; iv. unexplained cash credit Rs. 25,00,000/-; & v. disallowance of depreciation Rs. 2,74,748/-." 3. Aggrieved by the additions made in assessment order dated 21.03.2016 passed u/s. 143(3) of the Income Tax Act....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

.... State Bank of Paitala (Now State Bank of India, Nehru Place, Delhi). These facts were explained to the AO. The AO failed to appreciate the same. The CIT(A) re-examined the issue and came to the conclusion that amount of Rs. 4,50,00,000/- received by the assessee was very well explained and hence, deleted the addition. He further submitted that the amount of Rs. 25,00,000/- was wrongly added by the AO without examining documents on record. The CIT(A) deleted addition after coming to the conclusion that the assessee was able to discharge its onus in proving identity and creditworthiness of the lender. With regard to the last ground of appeal relating to depreciation on computers, he submitted that the CIT(A) after examining the books of the ....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....ppeal by the Revenue is dismissed being devoid of any merit. 7. In ground no. 2 of appeal, the Revenue has assailed deleting of addition of Rs. 25,00,000/- u/s. 68 of the Act on account of unexplained cash credit. The AO has made addition for the reason that the assessee allegedly fail to prove identity and creditworthiness of the lender and genuineness of the transaction. The CIT(A) after considering the issue has given categorical finding that the assessee had taken unsecured loan of Rs. 25,00,000/- from M/s. Malik Solars India P. Ltd. The assessee had furnished a copy of PAN, ITR, Balance Sheet and P&L account of the said lender along with computation of income for AY 2014-15. The CIT(A) further observed that from Balance sheet that the....