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2023 (2) TMI 843 - AT - Income TaxUnexplained credits u/s 68 - Trade Payables and Other Payables - HELD THAT:- We find that the documents submitted by the assessee provides that the lender M/s Muah Retails Pvt. Ltd. received the unsecured loan from Ms. Neeru Bhargav, one of the Directors of the M/s.Muah Retails Pvt. Ltd. in whose hand, the source of this fund was a personal loan received from J&K Bank. In the given facts and circumstances, there is evidence of identity of the lender, genuiness of the transaction, the creditworthiness is satisfied and therefore, the impugned loan amount can be held to be genuine. The sequence of events reveal that the assessee received loan from M/s. Muah Retails Pvt. Ltd. which is a sister concern who in turn received funds from the Director Ms. Neeru, who was financed the same as personal loan by J&K bank. Hence, the addition made by the AO and confirmed by the Ld.CIT(A) is here by directed to be deleted. Disallowance of 25% of total trade payables owing to non-filing of confirmations with regard to the purchases - HELD THAT:- CIT(A) after examination of the books of accounts, ledger statement, bank statement, bills & vouchers submitted by the assessee has accepted the transactions after duly issuing notices u/s 133(6) to the parties and getting the details verified. Since, the action of the ld. CIT(A) is after due diligence exercised and the examination of the sundry creditor, we decline to interfere with the order of the ld. CIT(A). Notwithstanding that, we hold that the action of the AO disallowing only 25% of the total outstanding amounts without any rhyme and ratio cannot be supported. Disallowance of PF & ESI - delay in payment of employee’s contribution for PF & ESI - HELD THAT:- As per the judgment of the Hon’ble Supreme Court in the case of Checkmate Services P. Ltd. [2022 (10) TMI 617 - SUPREME COURT] the assessee cannot claim the amounts wherein there was delay in payment of employee’s contribution for PF & ESI. The AO may examine the months in which there has been a delay and bring through amount to tax accordingly. Addition u/s 68 - Unsecured Loan - HELD THAT:- Additional evidences filed by the assessee have been forwarded to the AO and the remand report has been called for. Since, no adverse comment has been made by the AO with regard to the transactions with M/s Shelter Advisory Pvt. Ltd. CIT(A) deleted the addition. Since, the order of the CIT(A) is based on the remand report of the AO, we decline to interfere with the order of the ld. CIT(A). Sundry Creditors - parties of fabrication & manufacturing expenses - Owing to non-reply of notices and in the absence of confirmations, AO disallowed the amount on account of sundry creditors and brought the same to tax - HELD THAT:- CIT(A) called for a remand report vide letter dated F.No. /CIT(A)-09/Remand Report/2017-18/1179 dated 12.02.2018. AO submitted that the confirmations/details have been test checked and found satisfactorily. Based on the remand report of the AO, CIT(A) deleted the addition. Since, the action of the ld. CIT(A) is based on the remand report of the AO, we decline to interfere with the order of the ld. CIT(A). In the result, the appeal of the revenue is dismissed.
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