TMI Blog2019 (1) TMI 105X X X X Extracts X X X X X X X X Extracts X X X X ..... mber For The Assessee : Sh. Akshit Goel, CA For The Revenue : Sh. Amit Katoch, Sr. DR ORDER Per N. K. Saini, Vice President: This is an appeal by the assessee against the order dated 27.04.2015 of ld. CIT(A), Ghaziabad. 2. The only grievance of the assessee in this appeal relates to the sustenance of the addition of ₹ 10,00,000/- made by the AO on account of unsecured loan received from M/s Shashank Financial Services (P) Ltd. 3. Facts of the case in brief are that the assessee filed its return of income on 26.09.2010 declaring an income of ₹ 2,30,05,088/-. Later on, the case was selected for scrutiny. During the course of assessment proceedings, the AO noticed that the assessee had received unsecured loan of ₹ 10,00,000/- from M/s Shashank Financial Services Pvt. Ltd. The AO required the assessee to verify the identity, capacity, creditworthiness of the person and genuineness of the transaction. In response, the assessee filed the copy of ledger account and bank statement of the lender. The AO noticed that there was a deposit entry on the same date just prior to issuance of the cheque. He also observed that the assessee did ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e bank account of the assessee company. In response to the same, we have submitted following details/ documents on various dates: S. No. Date Details/ documents submitted 1. 13/12/2012 Loan account statement duly confirmed by SFSPL relating to AY 2010-11. 2. 13/12/2012 Bank statement of SFSPL relating to this sum of ₹ 10,00,000/-. 3. 13/12/2012 Copy of Income Tax Return of SFSPL for the AY 2010-11. 4. 13/12/2012 PAN of the SFSPL . 5. 21/03/2013 Copy of Income Tax Returns of SFSPL for the AY 2009-10 and 2008-09. 6. 25/03/2013 Balance sheet of' SFSPL as on 31.03.2010. 7. 25/03/2013 Balance sheet of SFSPL as on 31.03.2009. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... revious year. From the above it is very much clear that the provision of section 68 can be applied only when assessee offers no explanation about the nature and source of the transaction or explanation offered by the assessee is not satisfactorily in the opinion of the AO. In the captioned case, as already mentioned supra, assessee company has submitted ITR, balance confirmation, Balance sheet and bank statement of SFSPL . Ld. AO did not doubt about the genuineness of the said transaction of ₹ 10,00,000/-. Assessee company has provided all the details as asked by the Ld. A.O. from time to time, except personal attendance of the director of the SFSPL , due to his accident. At page no. 3 of the assessment order, Ld. AO has mentioned that: The assessee has filed copy of ledger ITR a/c and copy of bank statement of the lender. The copy of ITR has not been filed by the assessee, First of all we are unable to understand the term ledger ITR a/c. used by the Ld. AO. Secondly, Ld. AO has alleged that the copy of ITR of lender has not been filed by us, which fact is totally incorrect. Copy of ITR of the SFSPL has al ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... was placed on the following case laws: CIT Vs Ganeshwari Metal (P) Ltd. 30 taxmann.com 328 (Del.) CIT-I Vs Hitesh Somani (2014) 41 taxmann.com 152 (Guj.) 6. The ld. CIT(A) after considering the submissions of the assessee confirmed the disallowance by observing in paras 5.1 5.2 of the impugned order as under: 5.1 From the facts, I find that despite opportunity by the A.O., the assessee failed to produce the Director for examination. The assessee s plea is that the Director had met an accident. However, at appellate stage also the appellant expressed his unwillingness to produce the Director. Though the amount has been transferred by way of RTGS and it has been returned back one month later, that does not mean that creditworthiness of creditor is proved. Even if identity is assumed to be proved, creditworthiness still remains to be proved. I find that the bank A/c of creditor shows a negative balance and the income too is merely ₹ 187675/-. The appellant is already a creditor of ₹ 5785186/- on 01.04.09. Despite that the creditor has advanced this amount to the assessee. It defies the business prudence. The claim that transfer of funds wa ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rmation received from the creditor (copy of which is placed at page no. 14 of the assessee s paper book) and that the assessee furnished copy of balance sheet of the said party. It was pointed out that the amount received as a loan was repaid within 7 days. Therefore, there was no occasion to doubt the creditworthiness of the lender and genuineness of the transaction. 8. In his rival submissions, the ld. Sr. DR strongly supported the orders of the authorities below and further submitted that the assessee did not produce the creditor and that the deposit of ₹ 10,00,000/- was made by the creditor on the same date before giving loan to the assessee. Therefore, the genuineness was in doubt. 9. We have considered the submissions of both the parties and perused the material available on the record. In the present case, it is not in dispute that the creditor was regularly filing the return of income which is evident from page nos. 1 to 3 of the assessee s compilation which are the copies of acknowledgment of Income Tax Return filed by the creditor. It is also noticed from the copy of the confirmation of account placed at page no. 4 of the paper book that the creditor was havin ..... X X X X Extracts X X X X X X X X Extracts X X X X
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