2026 (7) TMI 1239

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.... (hereinafter called 'the Act'). The relevant Assessment Year is 2018-19. 2. The solitary issue that is raised is whether the First Appellate Authority (FAA) is justified in confirming the addition of Rs. 12,00,000/- made by the AO u/s. 68 of the Act. 3. Brief facts of the case are as follows: The assessee is a partnership firm. For the assessment year 2018-19, return of income was filed which was selected for scrutiny and notice u/s. 143(2) of the Act was issued. During the course of assessment proceedings, it was noticed that assessee firm had received unsecured loan of Rs. 12,00,000/- from a company by the name Sri Thirumalai Carbides Pvt. Ltd., Karikal. It was further noticed that the said lender company was struct off the roles b....

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....the lender's name in MCA website, assessee had only provided partial proof as regards the identity of the lender but failed to substantiate the legal requirement to demonstrate the creditworthiness and bonafide nature of the transaction as required u/s. 68 of the Act. 5. Aggrieved, assessee has filed the present appeal before the Tribunal. The Ld. AR submitted that the addition made u/s. 68 of the Act is unsustainable, as the assessee has satisfactorily established the identity, creditworthiness and genuineness of the lender, M/s. Sri Thirumalai Carbides Private Limited. It was submitted that the lender is a manufacturing company engaged in the business of manufacturing calcium carbide. Though the company's name was struck off by the....

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.... the loan received from M/s. Sri Thirumalai Carbides Private Limited as unexplained cash credit is liable to be deleted. 6. The Ld.DR supported the findings of the AO and the FAA. 7. We have heard rival submissions and perused the material on record. The Assessing Officer has made the addition under section 68 of the Act primarily on the ground that the lender company's name had been struck off from the register maintained by the Registrar of Companies. However, it was brought to the notice of the First Appellate Authority that the lender company's name has since been restored pursuant to the order of the National Company Law Tribunal and is presently reflected as an active company on the MCA portal. Nevertheless, the First Ap....