9911796707
Advanced Search 
TMI Blog2018 (8) TMI 1248X X X X Extracts X X X X X X X X Extracts X X X X ..... firm files all income tax returns in time and also for the assessment year 2008-09. The firm maintains books of accounts in true and correct produced before the assessing authority with supportive evidences. The assessee and authorized person produced and talk about the matters before the CIT Appeals, Cochin, wherever they does not give any relief. Aggrieved by this order dated 03/03/2014 we prefer appeal before ITAT, Cochin. 3.1 The crux of the above ground is that the CIT(A) erred in confirming the addition of Rs. 60 lakhs made by the AO. 4. The facts of the case are that the addition in this case was made on account of cash credits of Rs. 20,00,518/- in the current account of partners. The AO found that although the assessee had tried to explain the source of these credits but explanation was not found satisfactory by the AO. According to the AO, there were also loans from various parties aggregating to Rs. 33,34,500/- from different parties at Rs. 19,500/- in cash from each of them, for which also the assessee had no explanation to offer. It was noticed that the assessee had also claimed an interest of Rs. 2,66,760/- on these loans and the assessee was not able to explain wi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... IT(A) is barred if the impugned order mentioned that they had been passed on the admission of the assessee. The circumstances appearing on the file have to be judged in the light of the material available and if there are sufficient circumstances on the file to come to the conclusion that the admission made by the assessee was not binding on it, in that case, it will be entitled to relief in the appeal. Justice should not be denied on account of lapses in procedural compliances. Sec. 246 does not lay down that an appeal against the addition of a surrendered amount per se would be disentitled. Even if there is an agreed addition, the admission or surrender of that income cannot operate as a estoppels and the Income Tax authorities are bound to consider and allow whatever relief is permissible under law. Section 246 states that an appeal lies against the order of the Assessing Officer when the assessee is aggrieved by such an order. When an order is passed on a concession given by the assessee before the Assessing Officer, it cannot act as restriction on the right of the assessee to file an appeal. Consequent to changes of circumstances or getting of evidence in support of the assess ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... cided in accordance with law. This ground of appeal in ITA No. 303/Coch/2014 is partly allowed for statistical purposes. ITA No. 128/Coch/2016 9. The assessee has raised the following grounds: i) Disallowance of interest paid to loan credits coming to the tune of Rs. 2,44,920/- ii) Cash credits coming to the tune of Rs. 58,33,000/- 9.1 Regarding the first issue, the facts of the case are that in the scrutiny assessment during AY 2008-09, the loan creditors shown in the books of accounts were examined and many of them were found non-existing. The assessee admitted these loan credits as its own during the course of assessment and the same was taxed as assessee's income. The AO found that during the current year also 67 of such loan creditors were still shown in its books of account and interest shown as paid to them. In all Rs. 2,44,920/- was debited into the P&L account of the current year as interest paid to such non-existing loaners which was treated by the AO as fictitious and added to the total income. 9.2 On appeal, the CIT(A) observed that the ledger account filed showed interest paid by cash and the details of the amounts of loan, confirmation letters from the parties ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e 20/04/2009 19,000/- Cash gift from Gracy Tony to Golfy Jose 30/04/2009 19,000/- Cash gift from Jose Jacob to Golfy Jose 11/05/2009 19,000/- Cash gift from Lily Varghese to Golfy Jose 15/05/2009 19,000/- Cash gift from Rosily Mani to Golfy Jose 30/05/2009 19,000/- Cash gift from Varkey PT to Golfy Jose 01/10/2009 3,00,000/- AA Antony 01/10/2009 3,00,000/- KJ Antony 01/10/2009 3,00,000/- Anthony Vezhaparambil 01/10/2009 3,00,000/- OK Thomas 01/10/2009 3,00,000/- KJ Devassy 01/10/2009 3,00,000/- Hormis Steephen 04/11/2009 3,00,000/- PC Ouseph 04/11/2009 3,00,000/- Thressiamma Antony 04/11/2009 3,00,000/- Anish Anthony 04/11/2009 3,00,000/- Golfy Jose 04/11/2009 3,00,000/- Jibi Siju Total 58,33,000/- 10.1 The assessee was requested to furnish the source of these cash credits and also they were told that if it were borrowing from individuals, then they have to be substantiated by meeting all the following criteria, a) The person exists b) The transaction is genuine c) The person who had given money has credit worthiness to give loan. However, in spite of several opportunities, the assessee could not substantiate ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ed by the partners who were assessed to income tax with the same AO and all the partners confirmed the introduction of capital by them. Moreover, the assessee has placed on record the confirmation letters from various persons as mentioned above. Being so, the addition cannot be made in the hands of the assessee which is a firm. 10.3 On the other hand, the Ld. DR submitted that even the firm is liable to explain the source of funds from where the partners secured the same. 10.4 We have heard the rival contentions and perused the record. The main contention of the Ld. AR is that the all the partners are assessed to income tax with the same Assessing Officer and the identity of the partners were proved and they have also confirmed the transaction by filing the confirmation letters from the following persons: i) AA Antony ii) Ambish Antony iii) Antony Vezhaparambil iv) Bennyson Thomas v) Golfy Jose vi) Hormis Stephen vii) Joseph Stephen vii) KA Johny viii) KJ Devassy ix) Mary Poulose x) OK Thomas xi) PC Ouseph xii) P.O. Jose xiii) Threisiamma Antony 10.5 On the other hand, the Ld. DR submitted that even it is considered that the assessee has discharged it ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
