TaxTMI 
TaxTMI 
2025 (2) TMI 1653
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..... The assessee has filed the following grounds of appeal: "1. The order of the Learned Commissioner of Income Tax (Appeals) is contrary to law, weight of evidence, and the circumstances of the case. 2. The Learned Commissioner of Income Tax (Appeals) upheld the order of the Assessing officer without any independent evaluation of the facts thus rendering the order unsustainable. 337 CTR 978 Madras High Court. 3. The Learned Commissioner of Income Tax (Appeals) failed to appreciate that the lender has confirmed the transactions and the transactions have been routed through the banking channels. 4. The Learned Commissioner of Income Tax (Appeals) failed to appreciate that the appellant had demonstrated befor....
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....n the year does not exceeded the maximum amount chargeable to income tax. However, the AO was not convinced with the details furnished by the assessee and made an addition of Rs. 15,74,850/- u/s.68 of the Income-tax Act, 1961 (hereinafter referred to as "the Act") and passed an order u/s.143(3) of the Act dated 12.12.2022 by holding as under: 4. Conclusion Drawn: The submission of the assessee is perused and considered however found not tenable due to the reasons as below: (i). The source of cash deposit in her bank account is not explained. (ii). Mostly, the source of loan is cash, deposit in her bank account. (ii). She has opening capital of Rs. 2,54,000/- only and getting salary of Rs. 1,32,00....
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....s of dyes and chemicals also does not hold good in the absence of any ITR by the alleged lender. The appellant has itself confirmed that the income of the alleged lender is below taxable limits. Hence, the appellant has failed to establish the credentials of the lender in advancing a loan of more than 15 lacs. Mere filing of confirmation and bank statement of the alleged lender does not prove the creditworthiness or the genuineness of the loan transaction. The nature and source of cash deposits in the bank account of the lender remained to be proved. No documents are filed in support of the business claims. In the circumstances, the action of the AO stands confirmed holding that the appellant has failed to discharge its onus of proving the ....
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.... details for the paper book consisting of 164 pages as detailed below: Sl. No Particulars Page No. 1 Response filed before the Assessing Officer on 16.09.2022 1 2 Computation of Taxable Total Income of the Appellant 08 Bank Statement of the Appellant Firm 09 Confirmation obtained from the lender 60 Tax Audit Report of the Appellant and Revised Tax Audit Report 61 3 Ledger account of Manibala in the books of the Appellant 103 4 Bank statements of Manibala 105 5 Reply to the Show Cause Notice dated 30.11.2022 before the Assessing Officer 118 6 Financial Statements of Manibala for the vear ending 31.03.2021 124 7 Computation of ....
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....d and gone through orders of the authorities below. The assessee is a firm and has filed its return of income for the A.Y. 2021-22. During the assessment proceedings the assessee had duly submitted the details called for including the identity, PAN and address of the lender shown in the financials. In respect of the loan amount of Rs. 15,74,850/- from Smt.Mani Bala, the assessee had also furnished the confirmation letter obtained from the lender along with bank statement highlighting the amounts received and paid from that lender before the AO. 7.1 We note that in response to the show cause notice issued by the AO, the assessee had also furnished the Financial statements as on 31.03.2021, Computation of income and extract of ledger state....