GST Helpdesk   Subscription   Demo   New User   Login      
Tax Management India .com
TMI - Tax Management India. Com
What's New Case Laws Highlights Articles News Forum Short Notes Statutory TMI SMS More ...
Extracts
Home List
← Previous Next →

2016 (8) TMI 469 - ITAT VISAKHAPATNAM

2016 (8) TMI 469 - ITAT VISAKHAPATNAM - TMI - Addition u/s 68 - addition towards credits brought forward from last year - Held that:- A plain reading of section 68 of the Act makes it clear that any sum found credited in the books of accounts of the assessee, assessee offers no explanations about nature and source of the credits, then the sums found credited in the books of accounts is taxable during that financial year. In the present case on hand, on perusal of the facts available on record, w .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

ing additions towards brought forward credits during the financial year 2009-10. The CIT(A) after considering the relevant details deleted the additions made by the A.O. We do not see any error or infirmity in the order passed by the CIT(A). - Decided against revenue - I.T.A.No.594/Vizag/2014, C.O. No.11/Vizag/2015 - Dated:- 17-6-2016 - SHRI V. DURGA RAO, JUDICIAL MEMBER AND SHRI G. MANJUNATHA, ACCOUNTANT MEMBER For The Appellant : Smt. D. Komali Krishna,DR For The Respondent : Shri G.V.N. Hari, .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

return of income for the assessment year 2010-11 on 16.12.2010 declaring total income of ₹ 1,08,158/-. The case was selected for scrutiny and accordingly, notice u/s 143(2) of the Income Tax Act, 1961 (hereinafter called as 'the Act') was issued. In response to notice, the authorized representative of the assessee appeared from time to time and furnished books of accounts and other information called for. During the course of assessment proceedings, the assessing officer noted fro .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

ded statement from the above said 9 creditors. Out of the 9 loan creditors, 4 creditors have been accepted by the A.O., stating that the creditors have discharged their burden cast upon by filing the necessary proof. However, in respect of remaining 5 creditors, the A.O. observed that in the statement recorded, the creditors have stated that they have advanced loan to the firm and the sources for the said loan was borrowed from their friends. The A.O. further observed that from the books of acco .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

in the name of these 5 persons are bogus and therefore made additions of ₹ 55,63,980/-. 3. Aggrieved by the assessment order, the assessee preferred an appeal before the CIT(A). Before the CIT(A), the assessee has filed written submissions along with confirmation letters, statement of unsecured loans for the year 2008-09 and 2009-10 and copies of relevant ledger accounts of loan creditors. The assessee further submitted that loans in the name of 5 persons are accepted during the financial .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

considering the explanations furnished by the assessee held that the amount represents unsecured loans are borrowed in the financial year 2008-09, but not in the financial year 2009-10. The assessee has re-grouped the individual loans accounts into these 5 person s accounts by passing journal entries in the books of accounts during the financial year 2009-10 without any fresh credits. As the impugned loan borrowings have taken place in the year 2008-09 and there was no fresh borrowings in the s .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

in many names to 9 persons and these 9 persons also have no creditworthiness, except stating that they have mobilized the sums from their friends. The D.R. further argued that the CIT(A) ought to have appreciated the fact that the A.O. after thorough examination of facts has disallowed the amounts grouped to 5 persons out of the total loan from 9 persons on the basis of statements given by these 5 persons. The D.R. further argued that while deposing before the A.O., these 5 creditors have stated .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

credits appearing in the name of these 5 persons are bogus. 5. On the other hand, the Ld. A.R. for the assessee strongly supported the order of CIT(A). The A.R. further submitted that the assessing officer should have considered the fact that the creditors having enough sources to advance monies to the partnership firm. The creditors have filed confirmation letters and also proved the sources for loans given to partnership firms. The A.R. further argued that the assessing officer failed to appr .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

d the materials available on record and gone through the orders of the authorities below. The A.O. made additions u/s 68 of the Act towards unsecured loans. The A.O. was of the opinion that the assessee has not proved the genuineness of the transactions and creditworthiness of the parties in respect of these 5 creditors out of 9 creditors. The A.O. further observed that the creditors have admitted that they themselves have invested the money in the partnership firm out of the borrowings from the .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

sion that the assessee has accepted fresh loan during the financial year 2009-10. 7. The issue before us is under the facts and circumstances of the case, the A.O. was right in invoking the provisions of Section 68 of the Act, to make addition towards credits brought forward from last year. Sec. 68 provides for addition, where any sum is found credited in the books of assessee maintained for the previous year and the assessee offers no explanations about the nature and source thereof, or explana .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

 

 

 

 

 

Advanced Search


Latest Notifications:

    Dated      Category

20-7-2017 Cus (NT)

20-7-2017 GST CESS Rate

19-7-2017 IT

19-7-2017 IT

18-7-2017 IT

18-7-2017 CE (NT)

18-7-2017 CE

18-7-2017 GST CESS Rate

15-7-2017 Kerala SGST

14-7-2017 Andhra Pradesh SGST

14-7-2017 Cus (NT)

14-7-2017 Cus

13-7-2017 Co. Law

13-7-2017 Co. Law

13-7-2017 ADD

13-7-2017 ADD

12-7-2017 Jammu & Kashmir SGST

12-7-2017 Gujarat SGST

12-7-2017 Gujarat SGST

12-7-2017 CGST Rate

More Notifications


Latest Circulars:

21-7-2017 Goods and Services Tax

20-7-2017 Goods and Services Tax

20-7-2017 Goods and Services Tax

19-7-2017 Goods and Services Tax

19-7-2017 Income Tax

18-7-2017 Customs

17-7-2017 Customs

14-7-2017 Income Tax

13-7-2017 Central Excise

13-7-2017 Customs

More Circulars



|| Home || Acts and Rules || Notifications || Circulars || Schedules || Tariff || Forms || Case Laws || Manuals ||

|| About us || Contact us || Disclaimer || Terms of Use || Privacy Policy || TMI Database || Members || Site Map ||

© Taxmanagementindia.com [A unit of MS Knowledge Processing Pvt. Ltd.] All rights reserved.

Go to Mobile Version