TMI Blog2011 (11) TMI 665X X X X Extracts X X X X X X X X Extracts X X X X ..... the close of the year viz. H.G. Exim Pvt. Ltd. b. ₹ 20,00,000/- received by crossed payees account cheques from a regular customer as advance to whom supplies have not been made at all viz. Rashi International. 3. In this case, the assessee filed its return of income on 30.11.2006 declaring total income at ₹ 1,95,398/-. The return was selected for scrutiny. Notices u/s 143(2) were issued and served upon the assessee. In response to the notice u/s143(2), assessee s Authorized Representative appeared before the AO on various dates and filed certain details. The books of accounts were produced and test checked. 4. In the course of assessment proceedings, it was noticed by the AO that the assessee had taken unsecured loans of ₹ 39,00,000/- and ₹ 20,00,000/- from M/s H.G. Exim Pvt. Ltd. and M/s Rashi International respectively, during the year under consideration. The assessee was asked to file necessary documents and evidences to prove the existence and credit worthiness of the said parties and also to prove the genuineness of the loan transactions. The assessee vide letter dated 8.12.2008 submitted before the AO that despite best effort, the assessee ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Rashi International in the assessee s books for the period from 1.04.2005 to 31.03.2007; (iv)Confirmation of account of Rashi International. 9. In the remand report, the AO stated that assessee has failed to give any sufficient and reasonable cause for not producing the various details before him so as to allow the assessee to file additional evidences before the ld. CIT(A). The AO further stated that mere giving PAN Number, the identity and credit worthiness of the concerned party cannot be established. He further pointed out that assessee has not been able to prove the genuineness of the transaction. 10. After considering the AO s remand report and assessee s submission and in the absence of any rejoinder of the assessee to the remand report, the ld. CIT(A) uphold the addition of ₹ 59 lakh made by the AO. 11. Hence, the assessee is in further appeal before the Tribunal. 12. The ld. Counsel for the assessee has invited our attention to the various documents and papers placed in the paper book, and submitted that in the light of the papers or evidences filed by the assessee, the assessee has been able to prove and establish the identity and credit worthiness ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... een considered to be the unexplained credit in the hands of the assessee. The credit of ₹ 2,50,000/- received on 14.03.2006 were repaid on 16.03.2006 during the same year itself, and the same has not been doubted by the AO. The closing balance of ₹ 39 lakh as on 31.03.2006 has been carried forward to the next year as opening balance as on 01.04.2006. This aforesaid amount of ₹ 39 lakh carry forward from earlier year has been shown as liquidated in the F.Y. 2006-07 by showing the payments on following dates: - (i) 1.12.2006 by cheque ₹ 9,00,000/- (ii) 23.12.2006 by cheque ₹ 25,00,000/- (iii)Transfer to current account ₹ 2,15,000/- (iv) 26.12.2006 by cheque ₹ 2,85,000/- Total ₹ 39,00,000/- From the said details, it is seen that the assessee has repaid the amount of ₹ 9,00,000/-, ₹ 25,00,000/- ₹ 2,85,000/- by cheque drawn on HDFC Bank on 1.12.2006, 23.12.2006 26.12.2006 respectively and debited the same to the creditors account. The assessee has produced before us the bank statement of the assessee with HDFC Bank showing that the aforesaid amount of ₹ 9,00,000/-, ₹ 25,00,000/- ₹ ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... (01.04.2006 to 31.03.2007) Particulars Credit Amount By Cheque on 17.04.2006 By Cheque on 17.04.2006 By Cheque on 18.04.2006 ₹ 7,20,000/- By Cheque on 19.04.2006 ₹ 6,00,000/- By 23.12.2006 transfer from Loan account ₹ 2,15,000/- Total ₹ 21,85,000/- Particulars Debit Amount To cheque on 07.09.06 ₹ 3,50,000/- To cheque on 07.11.06 ₹ 5,00,000/- To cheque on 11.11.06 ₹ 5,02,000/- To cheque on 17.11.06 ₹ 8,33,000/- Total ₹ 21,85,000/- 17. From the aforesaid ledger ac ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s outstanding as on 31.03.2006. The said amount has been carried forward to the next year showing opening balance as on 1.04.2006 at ₹ 20,00,000/-. In F.Y. 2006-07 the assessee has further shown the deposit of ₹ 2,50,000/- each on 07.04.2006 and 18.04.2006 making the total balance of ₹ 25,00,000/-, which was remaining outstanding as on 31.03.2007. In the course of hearing the ld. Counsel for the assessee was asked to explain as to whether the aforesaid amount of ₹ 25,00,000/- as on 31.03.2007 is still outstanding or has been repaid in subsequent years. But the ld. Counsel for the assessee expressed his inability to furnish the details. The credit has been shown in the name of Rashi International. It is not clear as to whether Rashi International is a company or a partnership firm or a proprietorship firm of some individual. Against the name of Rashi International, no details have been given by the assessee as to whether it is a Private Limited Company or Limited Company or a partnership firm or a proprietorship concern. The name of the creditor in the books of account of the assessee and alleged confirmation letter is mentioned as Rashi International without ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... sessee s regular customer. Moreover, the assessee has failed to explain even the status and identity of Rashi International. In the course of hearing, the ld. Counsel for the assessee was asked to explain as to why the Rashi International had given loan to the assessee without charging an interest, in respect of which he could not able to give any satisfactory explanation except by saying that the amount was received in advance from a regular customer. However, as already stated above, the assesee has not been able to prove and establish that Rashi International is a regular customer of the assessee and has not even able to prove and explain its identity. The assessee has also submitted before us that assessee was not able to procure copies of bank statement and income-tax assessment details of Rashi International. More filing self serving affidavit by assessee s director that the assessee company has taken loan is not sufficient to prove the identity and credit worthiness of the creditor and genuineness of the transaction. It is thus, clear that assessee has not even able to establish the identity of Rashi International. The assessee has also not been able to establish the g ..... X X X X Extracts X X X X X X X X Extracts X X X X
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