AI OCR 
TaxTMI 
TaxTMI 
TaxTMI 
2026 (4) TMI 903
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....erred in sustaining the addition of 281,50,000/- u/s 68, despite the appellant having fully explained that the said sum represented sale proceeds of shares reinvested in other companies through proper banking channels. 4. For that the identity, genuineness, and creditworthiness of the parties were adequately established through documentary evidence whatever available with the appellant, and the addition was made merely on presumptions and surmises. 5. For that all the transactions were duly recorded in the audited books of accounts, routed through banks, and supported by documentary evidence; therefore, the addition made is unjustified and liable to be deleted. 6. For that the appellant prays that the impugned order be quashed or, alternatively, the matter be restored to the file of the Assessing Officer for fresh adjudication after granting due opportunity to the appellant. 7. For the appellant craves leave to add, alter, modify, or delete any of the above grounds at the time of hearing." 3. Brief facts of the case are that the assessee company, M/s Narayan Barter Pvt. Ltd. filed its return of income for the AY 2011-12 on 27.09.2011 showing t....
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....its; the responsibility of examining the genuineness and creditworthiness rested with the AO, which was carried out appropriately. The addition in the assessment order was supported by verifiable information from the Investigation Wing, and minor discrepancies in amounts mentioned in the reasons, assessment order, and computation sheet do not invalidate the addition. The case law relied upon by the assessee is not applicable to the facts of the present case, as it pertains to situations where adequate explanation is not disputed and verification is possible, whereas here the assessee failed to provide PAN and current addresses of the parties for independent verification under section 133(6). The transactions claimed by the assessee could not be independently verified, and no cogent evidence was provided to rebut the AO's conclusion. In view of the above, the contentions of the assessee in Grounds 1, 3, 7, and 8 are dismissed." 3.1 The Ld. CIT(A) thus confirmed the reopening of the assessment. As regards the addition u/s 68 of the Act, the assessee had contended that this was not a case of fresh credits and the addition made on account of unexplained cash credit was erroneous....
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....e and documentation is sufficient, whereas here, due to the assessee's failure to provide critical details, verification could not be carried out. The contention that the addition pertains to mere conversion of current assets is not sustainable, as the legal requirement under section 68 is to satisfactorily establish identity and genuineness, which was not done. In view of the above, the contentions of the assessee in Grounds 4 and 6 are dismissed. 10. Ground no.5:- In Ground 5 of the appeal, the assessee contended that the AO had wrongly concluded that there was no creditworthiness of the creditors and questioned the genuineness of the transactions without conducting any enquiry or seeking confirmation from the parties involved. The assessee argued that all receipts represented legitimate sale of investments, fully documented, and transmitted through banking channels. It further submitted that the AO had acted arbitrarily and without considering the documents submitted to substantiate the transactions. During appellate proceedings, the assessee submitted copies of sale bills, bank statements showing receipt of funds, and detailed information regarding the cos....
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..... Under the provisions of the Income Tax Act, 1961, the assessee is entitled to request rectification of such errors under Section 154 of the Act, which allows for the correction of any mistake apparent from the record in the assessment order. It is clarified that this procedure is intended to address mathematical or clerical discrepancies without affecting the substantive findings of the assessment. The assessee may submit a written application to the AO providing the relevant details and supporting documents seeking rectification of the numerical inconsistencies so that the records and computation are consistent and accurate. The AO is obliged to consider such rectification requests in accordance with the law and issue a corrected order if the mistake is found to be apparent from the record. Accordingly this ground is allowed. 12. In the result, the appellant's appeal is Partly allowed." 4. Aggrieved with the order of the Ld. CIT(A), the assessee has filed the appeal before the Tribunal. 5. None appeared on behalf of the assessee and the case was heard with the assistance of the Ld. DR. The Ld. DR stated that the assessee could not justify the creditwo....
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....t proper appreciation of facts and evidence. 8. Thus being aggrieved with the order of Ld. CIT(A) the appellant preferred Second Appeal at this Forum amongst the following:" 7. The assessee has contended that it was holding shares, securities and financial instruments either as capital assets or stock-in-trade and to realize or dispose of the same in the ordinary course of business and during the year under appeal, the assessee had sold certain investments in shares of some companies and re-invested the proceeds in shares of other companies. It is also stated that the assessee explained before the Ld. AO as well as before the Ld. CIT(A) that the amount represented the sale proceeds of investments re-invested in other companies duly supported by banking records and reflected in audited accounts. However, due to lapse of time (more than 8 years of time had lapsed between the date of transaction of sale and the date of enquiring by the Ld. AO) and closure of purchasers/customers offices, the further details could not be furnished. The assessee has also questioned the service of the notice u/s 148 of the Act which was allegedly issued on 26.03.2018 but the same was never re....