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2020 (11) TMI 941 - AT - Income TaxAddition u/s 68 and 69 - CIT-A deleted addition admitting additional evidence - HELD THAT:- There is no proper averment by the Assessing Officer with regard to the admission of additional evidences particularly when huge additions have been made which included the amount added u/ss. 68 & 69 which are carried forward from the earlier years, and this fact is clearly borne out from the material already on record before Assessing Officer. The additional evidences were in the form of confirmed copy of ledger accounts, confirmations and bank statement, etc. Since, as brought on record by the Ld. CIT(A) there was a clear violation of natural justice by the Assessing Officer, therefore, we hold that Ld. CIT(A) was justified in not only admitting the additional evidence but has also given due opportunity to the Assessing Officer to examine the same. The remissness on the part of the Assessing Officer cannot partake the principles of natural justice. Accordingly, ground no.1 as raised by the Revenue is dismissed. Addition on account of share capital and share premium - CIT(A) has deleted the addition by observing that addition u/s.68 cannot be made, because the amount of ₹ 3 crore are being carried forward from earlier years which is evident from letter filed before the Assessing Officer and there has been no increase in paid up share capital - HELD THAT:- CIT-A fact findings has not been controverted by the Assessing Officer and accordingly, the addition made u/s.68 was deleted. On these facts, we do not find any infirmity either in law or on facts because such an addition cannot be made u/s.68 in the relevant Assessment Year. Accordingly, ground no.2 as raised by the Revenue is dismissed. Unsecured loan addition - HELD THAT:- Most of the unsecured loan where in fact paid back during the year and only amount of ₹ 2,88,000/- was received in this year as fresh loan. Ld. CIT(A) examined the genuineness of fresh loan of ₹ 2,88,000/- and found that identity and creditworthiness of the lender M/s. DMC Education Ltd. and also the genuineness of the transaction has been substantiated by the assessee by way of various documentary evidences. The aforesaid finding of the Ld. CIT (A) based on proper appreciation of facts cannot be tinkered without any contrary material to rebut. Accordingly, the finding of the Ld. CIT (A) is upheld. Undisclosed investment in equity instruments - HELD THAT:- Out of total addition of ₹ 1,31,27,449/-, amount of ₹ 48,27,449/- pertains to the earlier year which is not in dispute and accordingly the Ld. CIT(A) has rightly deleted the said amount from the addition made by the Assessing Officer. With regard to the balance amount, we find that there is a clear cut finding based on material on record that investments have been made by the assessee through proper banking channels and each and every entry have been duly explained from the books of account and bank statement. Once the investments have been made through cheques duly disclosed in the books of account, the same cannot be added as investment made outside the books or from undisclosed sources u/s.69. Therefore, the order of the Ld. CIT(A) is upheld and accordingly the grounds raised by the Revenue is rejected.
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