Home Case Index All Cases Income Tax Income Tax + AT Income Tax - 2021 (2) TMI AT This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2021 (2) TMI 444 - AT - Income TaxUnexplained cash credit u/s 68 - assessee has failed to prove the creditworthiness of the transaction - assessee challenged the findings of the AO on the ground that the AO has made the additions without conducting any enquiry to ascertain the genuineness of the transaction - HELD THAT:- CIT(A) has not addressed this grievance of the assessee in its order. We further notice that the Ld. CIT (A) has endorsed the findings of the AO holding that the newly introduced proviso to section 68 by Finance Act lays down a more stringent test for the companies where public are not substantially interested. CIT (A) has nowhere discussed the plea of the assessee and the reasons for rejecting the same. CIT (A) has confirmed the addition as deemed income merely stating that the assessee could not explain the source of the cash credit in question even during the appellate proceedings. CIT(A) has not discussed the reasons for not accepting the explanation regarding source of cash credit in question. CIT (A) has not even discussed the plea of the assessee and the reasons for rejecting the same. During assessment proceedings not even a single notice was issued to the party, from whom the assessee had taken loan - CIT (A) has also ignored this aspect while passing the impugned order. Thus issues involved in the present appeal require fresh adjudication by the Ld. CIT (A) on merits - Appeal of assessee allowed for statistical purposes.
|