TMI Blog2018 (5) TMI 806X X X X Extracts X X X X X X X X Extracts X X X X ..... s serious doubts on the genuineness of these transactions. On due consideration of the aforesaid and findings recorded by the learned Appellate Authority which is based on appreciation of evidence on record and documents filed by the appellant, no case is made out to interfere with the well reasoned order passed by the ITAT. No substantial question of law - Income Tax Appeal No. 223 of 2017 - - - Dated:- 7-5-2018 - Hon'ble Shri Pankaj Kumar Jaiswal And Hon'ble Shri Sunil Kumar Awasthi, JJ. Shri Manoj Munshi, Advocate for the appellant ORDER Per P.K. Jaiswal, J. Heard on the question of admission. 2. This appeal under Section 260-A of the Income Tax Act, 1961 (for short, the Act of 1961 ) has been filed by the assessee against the order dated 21.11.2016 passed by the Income Tax Appellate Tribunal by which the order passed by the CIT with respect to addition of share capital of ₹ 28 lakhs and unsecured loan of ₹ 16,39,960/- has been affirmed. 3. The appellant is a Private Limited Company engaged in the trading and consignment business of plastic granules and PP woven fabrics. The appellant had filed its return of income and had disclo ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... oceeds or from the collection against the book debt. As per section 68 of the Act sum should be credited in the books but the assessee has credited the sale proceeds in its books of accounts which has been accepted by the Assessing Officer. 7. The learned ITAT considered the aforesaid in paras 4 and 5 of the impugned order, which reads as under:- 4. On appeal, the assessee carried the matter in appeal and the learned CIT(A) has deleted the addition of ₹ 35.05 lacs which was added in the hands of the assessee u/s 68 of the Act by observing as under :- 7. The first ground of appeal is against addition of ₹ 35.05 lacs, which was added by A.O. in hands of appellant u/s 68 of the Income Tax Act, for the amount of cash deposits seen by A.O. in Citi Bank account of the appellant. The appellant explained that such cash deposits of ₹ 35.05 lacs in the bank are out of cash sales of ₹ 44,93 lacs which are duly reflected as a part of total sales of ₹ 85,11,415/-. Since the amount is already reflected in sales account by appellant in the profit and loss account, the same cannot be added once again u/s 68 of the Income Tax Act. Hence, the addition of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s treated as unexplained and confirmed the addition of such amount under Section 68 of the Act of 1961. 10. In respect of grounds relate to confirmation of addition of ₹ 16,39,960/- made by the Assessing Officer under Section 68 of the Act of 1961, the learned Tribunal gave the following findings in paras 14 to 16 which reads as under:- 14. The Assessing Officer added the amount of ₹ 16,39,960/- u/s 68 of the Act for the unsecured loan taken by the appellant from M/s Shree Shyam Polyers. The Assessing Officer has added this amount because this depositor has shown meagre income in his return, no interest is provided and appellant has failed to prove identity and creditworthiness of this depositor. 15. Felt aggrieved, the assessee went in appeal before the and the learned CIT(A) observed as under :- 12. Ground no. 4 of appeal is against addition of ₹ 16,39,960/- u/s 68 of the Income Tax Act for the unsecured loan taken by appellant from M/s Shree Shyam Polymers. The Assessing Officer has added this amount because this depositor has shown meagre income in his return, no interest is provided and appellant has failed to prove identity and creditwor ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ty to establish the genuineness of the transactions. He had also filed all the documents and evidences before the ITAT on 4.11.2016. His contention is that the appellant had submitted documents before the Appellate Authority as well as before the ITAT for establishing the genuineness of share application money of ₹ 4 lakhs each received from 7 applicants and for establishing the genuineness of unsecured loan of ₹ 16.40 lakhs received from M/s. Shree Shyam Polymers. But these documents were not considered by the learned Appellate Authority while passing the impugned order. 12. He further submitted that the assessee is not liable to establish source of the source or the credit worthiness of the source of the source and prayed that the appeal be admitted on the substantial questions of law as framed in para 4 of the appeal. 13. We have gone through the records of the case and findings recorded by the learned ITAT as well as Commissioner of Income Tax (Appeals). 14. Paras 7 and 8 of the order passed by the Appellate Authority on 21.11.2016 are relevant, which reads as under:- 7. The short facts of the case are that the assessee has received the amount of share ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... n respect of unsecured loan taken by the assessee from Shree Shyam Polymers, this depositor has shown meagre income in his return, no interest is provided and appellant has failed to prove identity and creditworthiness of this depositor. This depositor, who is a director in appellant company has shown income of only ₹ 1,49,301/- in its return and capital is only ₹ 9,27,309/- and in these circumstances creditworthiness of depositor is not proved for giving a credit of ₹ 16,39,960/-. The learned Authorities also found that huge cash deposits were seen in bank account of M/s. Shree Shyam Polyers in Citi Bank account No.0- 000449-547 before making cheque payments to appellant - assessee which raises serious doubts on the genuineness of these transactions. 17. On due consideration of the aforesaid and findings recorded by the learned Appellate Authority which is based on appreciation of evidence on record and documents filed by the appellant, no case is made out to interfere with the well reasoned order passed by the ITAT. 18. No substantial question of law is arising in this appeal. The appeal filed by the appellant-assessee has no merit and is, accordingly, dis ..... X X X X Extracts X X X X X X X X Extracts X X X X
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