2025 (12) TMI 422

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....o be quashed. 2. That, on the facts and law, Ld. CIT (A) erred in not appreciating the facts and confirming the addition of Rs. 10,00,000.00 made by Ld. AO, and therefore the impugned addition is liable to be deleted. 3. That, the appellant reserves the right to add, alter or delete any ground." 2. At the time of hearing, none appeared for the assessee. However, an adjournment petition has been filed which is rejected. The matter was heard after recording the submissions of the Ld. Sr. DR and on a careful perusal of the material available on record. 3. Brief facts in this case are that during the course of assessment proceedings, it was noticed that the assessee has procured fresh loan from different parties. The ass....

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....was required to explain as to why the amount of Rs. 10,00,000/- received from Smt. Kamlabai Bhusunai in the form of unsecured loan be not added back to the income returned under section 68 of the Income tax Act, 1961. The assessee firm was required to offer its explanation in this regard for which compliance was required to be made on or before 23/12/18. The assessee firm had not made any compliance to the said notice and hence it was presumed that the assessee firm has got nothing to say in this regard and has got no objection for the proposed addition. Onus was on the assessee firm to establish the genuineness of transaction and creditworthiness of Smt. Kamlabai Bhusunai, which it miserably failed to do so. Accordingly, the loan of Rs. 10....

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....an creditor just before lending of the money to the assessee firm and the said lender viz. Smt Kamla Bai Bhushnia had not furnished the balance sheet and the capital account and since the amount of Rs. 10 lacs was deposited in her bank account just before lending of the money to the assessee, the said amount was added u/s. 68 of the Act in the hands of the assessee. 7. Now there are two parts with regard to the adjudication of correctness of the said addition. Firstly, the addition has been made since the lender of the money i.e. Smt Kamla Bai Bhushnia in her bank account had deposited an amount of Rs. 10 lacs just before giving money to the assessee. The addition if at all was to be made since the nature and source of such deposits rema....

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....the Act in the hands of the assessee. In such circumstances, as per above examination the said addition is misplaced, arbitrary and bad in law. There is no nexus of the ingredients enshrined in the said provision of Section 68 to trigger in the case of the assessee. 8. As examined in any case as has been brought out by the A.O with regard to non-availability of the explanation of such cash deposits in the account of the lender viz. Smt Kamla Bai Bhushnia, but that cannot trigger the addition u/s. 68 of the Act in the hands of the assessee per se without other corroborative evidence as discussed in the foregoing para. It is seen that the A.O had summarily accepted the version of the lenders who had filed the relevant documents before the ....