9911796707
TMI Blog2012 (7) TMI 345X X X X Extracts X X X X X X X X Extracts X X X X ..... interest component, is correct, having regard to the facts and circumstances of the case. 2. The brief facts of the case are that the assessee's premises were searched on 13.12.2005, pursuant to which, a notice was issued under Section-153A on 09.07.2007 for the assessment years, 2000-01 to 2006-07. A detailed questionnaire was issued under Section-142 (1)/143 (2) on 29.10.2007. The assessee filed returns thereafter. The firm claimed to have earned NIL income. One of the claims made by the assessee was in respect of unsecured loans obtained from individuals and firms. The assessee was required to file the details of such loans obtained along with complete particulars. After consideration of these, the assessing officer passed separate ord ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... that this is the precise mode in which unaccounted money is being rotated by the assessee into his business. Each year assessee obtain loan and squares up next year. In the next to next year again loans are claimed to be obtained. It is also interesting that some person, his wife, father, brother and HUF is giving loans to assessee as is seen from the addresses of the lenders. As stated above, assessee has failed to establish the credit worthiness of the lenders, hence all these loans obtained in each year will be treated as non-genuine and assessee's own money generated through under-invoicing etc. which is being pulled in and pulled out at the will of the assessee. On this account addition is made as under: Assessment Year Amount (Rs.) ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... terest paid, necessary details for which have been filed. The appellant also contended that the loans have been added because the people did not respond to summons sent by the A.O. because the matter was old one. The appellant had repeatedly requested A.O. to enforce the attendance of creditors if they are not responding but no action on this was taken by A.O. The appellant had even offered to the A.O. that if he deputes his Inspector, he can get fresh supporting confirmations from majority of these parties. The Learned A.O. did not accede to this request. It was also pleaded that majority of the loan creditors even sent confirmation second time directly to the ITO and about this the lenders even informed the appellant, who has filed the s ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of the partners of the appellant. Considering the history of the case and legal position, this addition is uncalled for and is deleted along with interest for all the above years." 5. The learned counsel for the Revenue contends that the CIT (Appeals)' order is bereft of any reasoning. Apart from reciting the submissions of the assessee's appeal, the CIT (A) did not furnish any independent reasons to displace the inference and reasoning given by the Assessing Officer. This plainly amounted to perverse and unreasonable approach which called for interference by the ITAT. Learned counsel also relied upon two remand reports said to have been called by the CIT (Appeals) during the pendency of the assessee's appeals before him. They are dated 2 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... thout explaining the history of the case or the legal position. Whereas creditors did not respond to the summons issued by the Assessing Officer during the course of the assessment proceedings. (b) The CIT (A) has erred in law in accepting loans as genuine even though the credit worthiness of the creditors and the genuineness of the transactions was doubted by the Assessing Officer." 8. Now bare reading of the above grounds would undoubtedly leave the reader with the impression that they are generic and did not specify the precise error which the Tribunal fell into. More particularly, the Revenue undeniably did not mention the remand reports which the Revenue urges now before this Court. The question which arises, therefore, is whether th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... lines the authority recorded its satisfaction that they are sufficient to set aside the Assessing Officer's order. These can be hardly called the reasons, much less reasons that can be endorsed by the Tribunal (which is required to go into the records) while considering the appeals whether they are by Revenue or by the Assessee. 9. In view of the above discussion, we are of the opinion that the Appeals require to be allowed. We accordingly remit the matter for reconsideration on the question of adding back of the cash loans and interest thereon for the concerned assessment years to the Tribunal which shall independently consider the records and hear the submissions of the parties. All contentions of the parties are left open. Observations ..... X X X X Extracts X X X X X X X X Extracts X X X X
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