2023 (2) TMI 1414

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

.... by ACIT, Circle-2(1), Kolkata. 2. The grounds of appeal raised by the assessee read as under:- (1) That the Ld. CIT (A) was wrong in confirming the order of A.O which was passed without properly appreciating the facts of the case and without providing proper opportunity of being heard to the appellant. Therefore, the order confirmed by the CIT (A) is in gross violation of natural justice and needs to be quashed. (2) That the Ld. CIT (A) was wrong in confirming the addition of Rs. 25,00,000/- by treating the same as undisclosed cash credit u/s 68 of the Act. The Ld. CIT (A) as well as Ld. A.O failed to consider the facts that the aforesaid loan was interest bearing, taken through banking channel and was repaid back in the same fi....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....plete scrutiny through CASS followed by serving of notices under section 143(2) and 142(1). Relevant details were called for by the assessee and in response to the notices, assessee-company submitted audited accounts and copies of relevant documents through e-assessment portal. Assessment completed after making disallowance under section 36(1)(va) of the Act on account of delay in deposit employees' contribution towards P.F. and ESI amounting to Rs. 2,86,814/-. The ld. Assessing Officer also made an addition under section 68 of the Act at Rs. 25,00,000/- for unexplained cash credit. Income assessed by the ld. Assessing Officer at Rs. 15,37,56,064/-. 5. Aggrieved, the assessee preferred appeal before the ld. CIT(Appeals), but....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....ken and repaid during the year itself and also considering the income of Rs. 15.10 crores offered by the assessee, we do not find any reason to question the genuineness of the said loan. We, therefore, reverse the finding of the ld. CIT(Appeals) and delete the addition of Rs. 25,00,000/- under section 68 of the Act and allow Ground No. 2 raised by the assessee. 10. Apropos to Ground No. 3 for disallowance under section 36(1)(va) of the Act at Rs. 2,86,814/-, following details has been placed by the assessee to show that in most of the cases there is no delay in the payment of employees' contribution for various funds and the same is reproduced below:- 11. From the perusal of the above sheet, we notice that in most....