2025 (9) TMI 228

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.... the confirmation of addition of Rs.5,53,500/- by the ld. CIT (A) as made by the ld. AO on account of bogus loan liability from two creditors i.e. Shri Sushil Kumar Sharma and Sushil Kumar Sharma (HUF), by treating the same as unexplained cash credit. 3.1. The facts in brief are that the assessee filed the return of income on 30.09.2015, declaring total income at Rs.6,50,510/- which was processed u/s 143(1) of the Income-tax Act, 1961 (the Act). Thereafter, the case of the assessee was selected for scrutiny under CASS as limited scrutiny and statutory notices u/s 143(2) and 142(1) of the Act along with questionnaire were duly issued and served upon the assessee. During the course of assessment proceedings, the ld. AO observed that the as....

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.... these loans as bogus liability. We have failed to understand as to how the authorities below have arrived at finding that these were bogus liability when these were duly shown in the balance sheet of the assessee. Consequently, we reverse the order of the ld. CIT (A) and direct the ld. AO to delete the addition. The ground no. 4 is allowed. 4. The second issue raised in ground no.5 and 6 is against the confirmation of addition is of Rs.38,27,076/- by the ld. CIT (A) as added by the ld. AO on account of outstanding lability in respect of M/s Maheswary Spat Limited in respect of transactions undertaken in the earlier years as unexplained cash credit. 4.1. The facts in brief are that during the course of assessment proceedings the AO no....