2026 (5) TMI 1396

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.... 'FAA') in DIN& Order No.: ITBA/NFAC/S/250/2025- 26/1081483264(1) arising out of the order dated 27.12.2019 u/s. 143(3) of the Income Tax Act, 1961 (hereinafter referred to as 'the Act') passed by the ITO, Ward -58(7), Delhi for AY: 2017-18. 2. Heard and perused the records. The assessee had filed return declaring total income of Rs. 5,53,171/- and the case of the assessee was selected for scrutiny. During the year assessee was engaged in the business of petrol pump operations situated at G.T. Road, Shahdara. It comes up upon the hearing that the case of assessee is that in the present financial year where partner of the firm Shri Ajay Kumar had retired from the firm and his capital balance was Rs. 3,35,90,369.54/- at the time of retirem....

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....S.M.I.L.E. Microfinance Ltd. Vs. ACIT, (2025) 179 taxmann.com 65 (Madras) and the same could not be controverted by Ld. DR, therefore, there is substance in the appeal of department and same is dismissed. 5. As with regard to the appeal of the assessee we find that at page 51-53 of the paper book assessee has provided copy of application for additional evidences under Rule 46A filed by the assessee. At page 51 there is extract of e-proceeding response acknowledgment wherein this application is shown to be filed by the assessee. We find that in the form of additional evidence, assessee filed the copy of ledger account of unsecured loan for Assessment Year 2017-18 as on 31.03.2017 and copies of relevant audited balance sheet as on 31.03.20....

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.... lies upon the assessee, and in the absence of credible proof, the addition must be sustained. Accordingly, the explanation furnished by the appellant in respect of unsecured loans is not satisfactory. The Assessing Officer was justified in treating the same as unexplained cash credit under section 68. The addition of Rs. 3,30,98,589 is therefore confirmed.' 6. After taking into consideration the additional evidence which were before ld. CIT(A) we are of the considered view that as for making an addition u/s. 68 of the Act there should be some credit entries in the books of account and what we find here is that the capital account balance of one of the partner Ajay Gupta was converted into unsecured loan on his retirement. Ld. C....