2023 (12) TMI 1485

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.... from creditors as unexplained cash credits and added to the total income u/s. 68 of the IT Act. The Assessing Officer believed that the assessee has failed to prove the identity, credit worthiness and genuineness of the transaction and could not substantiate the source of source of such transaction. The Assessing Officer treated the same as unexplained cash credits and added to the total income u/s. 68 of IT Act. Your appellant submits the same is not justified and therefore be deleted. 2. The Assessing Officer has further disallowed Rs. 3,14,013/- as proportionate interest on unsecured loan of Rs. 60,00,000/- stating that the assessee has paid interest on unexplained cash credits. Your appellant submits the same....

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.... by the Assessment Order, the assessee filed appeal before the CIT(A). The CIT(A) dismissed the appeal of the assessee. 5. The Ld. AR submitted that during the year under consideration, the assessee had gross turnover of Rs.590.43 lakhs which was higher by more than 25% as compared to turnover of Rs. 464.27 lakhs in earlier year. To meet with the working capital requirement for increased turnover, company received Rs.40,00,000/- from Aheli Projects Limited and Rs. 20,00,000/- from Berhampur Finance & Leasing Pvt. Ltd. These loans were subsequently repaid by the assessee in April 2015 alongwith interest after deducting tax at source. The Ld. AR submitted that as regards to the first ground, the Assessing Officer has not taken into account....

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....the assessee. The Ld. DR relied upon the Assessment Order and the order of the CIT(A). 8. Heard both the parties and perused all the relevant material available on record. It is pertinent to note that the assessee has submitted identity for which name, address and PAN was given before the Assessing Officer as well as before the CIT(A). As regards the genuineness, the assessee has stated that the assessee required the same fund for its deficit of working capital and at that particular time the assessee required the fund. As regards to creditworthiness, from the confirmation of accounts, copy of bank statements, copy of ITR acknowledgement, copy of Leger account of the said Aheli Projects Limited and Berhampur Finance & Leasing Pvt. Ltd, t....