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2023 (9) TMI 1172 - AT - Income TaxAdditions towards unexplained liability as loan taken from Reliance Capital Ltd. - increase in outstanding liability - assessee has failed to produce any concrete and also additional evidences in support of its contention - CIT(A) deleted the addition - HELD THAT:- As observed that before Ld. CIT(A) additional evidences were filed on behalf of assessee in the form of repayment schedules of Reliance Capital Ltd. and the accounts statement. CIT(A) mentions the after considering the remand report that if the source of loan being established, the question of disputing identity and creditworthiness of the same can obviously not be raised. The loan from Reliance Capital was taken against property belonging to the party other than the assessee company but that does not make the transaction tainted. CIT(A) has duly taken into consideration the explanation of the assessee that the alleged addition that the increase in outstanding balance of short term borrowings was merely due to reclassification of part of loan from long term liability to short term liability. The findings of ld. CIT(A) requires no interference. Unexplained current liability - CIT(A) deleted the addition - HELD THAT:- As observed that before Ld. CIT(A) it was duly explained by the assessee as to what were the heads under which other current liability had increased. The increased were due to VAT payable, TDS payable, advance from individual and bank overdraft. As with regard to 1st three there can be no dispute and only with regard to advances from individual 1,20,00,000/- there could have been suspicion which has been taken care of by the assessee by putting explanation by furnishing of sale deeds of property sold to Jasmine Sapra and Sanjeev - In fact in the remand report genuineness of this advances has been accepted, thus, the findings of Ld. CIT(A) require no interference. Enhancement of income by CIT(A) u/s 251(1) - addition u/s 40 (a)(ia) for non-deposit of TDS within the prescribed period - HELD THAT:- As decided in Toffee Agricultural Farms Pvt. Ltd. [2022 (4) TMI 869 - ITAT DELHI] and Hari Mohan Sharma [2019 (2) TMI 113 - ITAT DELHI] in support of the contention that the Ld. CIT(A) cannot change the provisions of law qua the item of which assessment was made. Since in the case in hand , the Appellate Authority has made enhancement in the assessment by discovering a new source of income, not considered by the Assessing Officer in the order appealed against the ground as raised deserves to be allowed.
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