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2015 (10) TMI 1271 - ITAT MUMBAI

2015 (10) TMI 1271 - ITAT MUMBAI - TMI - Addition u/s. 68 - CIT(A) deleted the addition - Held that:- From the details filed it is clear that in most of the cases loans/liabilities are of not current year and the balances were appearing in the balance sheets of earlier AY.s.It was admitted by the AO that in the cases of Dilip Chopra, Pranav Enterprises and Gautam Petrochem Industries Pvt. Ltd.the outstanding liabilities pertained to earlier years.Therefore,in our opinion the FAA was justified in .....

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filed before the AO but he did not comment about the authenticity of the documents.

It is a fact that the PAN of all the creditores were made available to the AO.Copies of the returns of the lenders were also filed in most of the cases.The AO could have very well cross verified the genuineness of the transactions.But,he did not make any investigation in that regard. So,we agree with the observation of the FAA that the assessee had sufficiently discharged the burden which lay upon her .....

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- Sh. Rajendra,Accountant Member & Parthasarathy Choudhury,Judicial Member For The Assessee : Shri K. Shivaram For The Revenue : Shri S.P. Walimbe Challenging the order dt.10.8.2011of CIT(A)-32, Mumbai,the Assessing Officer(AO)has raised following Grounds of Appeal: 1. On the facts and in the circumstances of the case and in law, the CIT(A) erred in deleting addition u/s. 68 amounting to ₹ 50,37,000/- out of other liabilities. 2. On the facts and in the circumstances of the case and in .....

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r any ground or add a new ground, which may be necessary. Assessee,an individual,filed her return of income on 31.10.2007,declaring total income at ₹ 44,342/-.The AO completed assessment on 29.12.2009,u/s.153(3)of the Act,determining the income of the assessee at ₹ 75,76,880/-. 2.Effective Ground of Appeal is about deleting the additions made by the AO u/s.68 of the Act, amounting to ₹ 50.37 lacs,15.24 lakhs and ₹ 4.90 lakhs under the heads other liabilities , unsecured l .....

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s was treated as unexplained cash credit. u/s. 68 of the Act and was added to the total income of the assessee for the year under consideration.Similarly,the AO held that unsecured loans in personal balance sheet as well as in the business balance sheet were not proved by the her.He added ₹ 15.24 lakhs and ₹ 4.90 lakhs to the income of the assessee u/s. 68 of the Act. 2.1.Aggrieved by the order of the AO,the assessee preferred an appeal before the First Appellate Authority (FAA).Befo .....

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ted that assessee had produced the parties consent before him, that he had examined the evidences furnished by the assessee. The FAA gave the comments of the AO to the assessee who submitted her re-joinder. It was stated by her that due to dispute among family members the requisite confirmations could not be submitted earlier,that all of creditors had confirmed the transactions before the AO. The assessee submitted a chart showing opening balance amounts received during the year and the closing .....

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and brother-in-law,that all those parties were personally produced before AO in remand proceedings,that they had confirmed the balances for the loans given to her,that only ₹ 3, 95, 500/-were received during the year by her,that the remaining amount was out of the balances of the earlier AY.s,that she had discharged the initial burden of proving the credit by producing the parties concerned, that the PAN were supplied to the AO,that the transactions of the earlier years were also through b .....

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business balance sheet and ₹ 1.01 lacs in personal balance sheet,that other outstanding balances were from K-Sarc Polymers(Rs.11.78lac),Pyramid Energy Creations Co.(Rs.4.23 lacs),BPC Polymers(Rs.11. 21 lacs),Chakreshwari Plastics (India) Ltd.(Rs.1.38lacs),that Rajendra Chopra was proprietor of K-Sarc Polymers and Pyramid Energy Creations Co.,that he was partner in BPC Polymers and one of the directors of Chakreshwari Plastics (India) Ltd., that he had appeared before the AO and had filed d .....

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itted that the loan from K-Sarc Polymers was old loan, that the credit worthiness of the amount of ₹ 2.23 lacs received during the year was doubtful, that some part of the loan from Pyramid Energy Creations Co. was received during the year, that the balance amounting to ₹ 4.23 lacs in the name of Pyramid Energy Creations Co. was not proved, that balance amount appearing in the name of Chakreshwari Plastics (India) Ltd. remained unexplained. After considering the submission of the ass .....

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ear under appeal, that in case of K-Sarc Polymers ₹ 9.67 lacs was old balance,that the assessee had received ₹ 2.23 lacs during the year,that the AO had doubted the credit worthiness of the lender without giving any reason or evidence, that Rajendra Chopra had confirmed the balance and given the copy of PAN, and balance sheet of K-Sarc Polymers, that the transactions with the K-Sarc Polymers were through banking channels only, that there was no justification to hold the credit worthi .....

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ons, that all the parties had PAN, the transaction in the earlier years and current year were through banking channel only,that it could not be said that transactions were not genuine.Accordingly, additions made by the AO in respect of Rajendra Chopra (Rs.8.07 lacs + ₹ 1.01 lacs)K-Sarc Polymers (Rs.11.78 lacs),Pyramid Energy Creations Co. (Rs.4.23 lacs),BPC Polymers (Rs.11.21 lacs)and Chakreshwari Plastics (India) Ltd. (1.38 lacs) were deleted. With regard to Rakesh Chopra,the FAA mentione .....

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5 lacs to ₹ 50,000/-, that no fresh money was received, that the addition of ₹ 55,468/- in the name of Suvidhi Impex and ₹ 50,000/- in the name of Saroj Chopra had to be deleted. The FAA also held that one of the creditors.J.K. Jain,had appeared before the AO and had furnished the returns/balance sheets to prove the liability/loan of ₹ 4.00 lacs and ₹ 3.17 lacs, that the AO had found the same to be genuine. The FAA deleted the addition appearing in the name of J.K. .....

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ts and confirmations which could not be filed before the AO due to unavoidable circumstances,that most of the loans or liabilities pertained to the earlier yeas,that in one case the balance had reduced.He referred to the pages no.58-68 and 116,119,122 of the paper book(PB). 4.We have heard the rival submissions and perused the material on record.We find that during the assessment proceedings the assessee had not filed certain information under three heads namely outstanding liabilities,differenc .....

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