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2021 (10) TMI 1006 - AT - Income TaxUnexplained credit u/s. 68 - addition has made by the AO owing to non-production of principle officer of the 9 entities who have lend the monies to the assessee - assessee argued for non issue of summons - HELD THAT:- We find that the assessee has given the new addresses and requested the AO to send the summons u/s. 131 to the new address which the AO failed to do. Having failed to issue the summons and making the enquiries at the new address despite having the information provided to the AO by the assessee, Assessing Officer made the addition, holding that the Directors of the companies have failed to attend for recording of the statement. CIT(A) issued summons which have been duly complied by the Principle Officer of the loan parties and duly recorded the statement. The facts of recording of the statement and the compliance made has also been conveyed to the Assessing Officer who has not objected to the proceedings before the ld. CIT(A). Hence, in view of the undisputed facts on the record with regard to proving of the identity, creditworthiness, genuineness of the loan parties, the statement recorded by the ld. CIT(A), the turnover of the companies & the profits earned thereof, the position of the reserves & surplus available with the lenders, we hereby decline to interfere with the well reasoned order of the ld. CIT(A). Accordingly, the interest disallowed by the Assessing Officer on account of interest expenses claimed by the assessee is also directed to be deleted. - Decided against revenue.
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