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TMI Blog2021 (10) TMI 24X X X X Extracts X X X X X X X X Extracts X X X X ..... n respect of alleged unsecured loans taken by the assessee amounting to Rs. 1,50,00,000/-. 2. Whether on the facts and in the circumstances of the case, the ld CIT(A) is justified in allowing the assessee's claim of having made interest payments on the same unsecured loans amounting to Rs. 14,08,759/-." 3. During the course of assessment proceedings, the Assessing Officer noticed that the assessee has received loan of Rs. 1,05,00,000/- from Achiever Cmmotrade Pvt Ltd., and Rs. 45,00,000/- from Excellent Infrabuild Pvt Ltd in the year under consideration. The assessee has also shown loan of Rs. 1,00,00,000/- from M/s. Cube Infrastructure Pvt Ltd., as opening loan. The Assessing Officer issued notice u/s.133(6) of the Act to the above pa ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... /s.133(6) were sent to all the three creditors at the addresses provided by the assessee and the replied have been received. The assessee has furnished confirmation, bank statement, copy of return and copy of the ledger account. On the basis of above documents, especially the income tax returns of three creditors, the AO doubted the creditworthiness of the creditors to advance the loan to the assessee as the amount shown in the income tax returns are negligible in comparison to the loan advanced to the assessee. The ld CIT(A) thereafter emphasized the key financial position of the creditor companies, as under: Name of the company Loan given Income as per I.T.return available with AO Share capital & reserve surplus as per audited bala ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... loan transaction are bogus and the AO has rightly added the same to the income of the assessee and ld CIT (A) is not justified in deleting the addition. He submitted that the ld CIT(A) is also not correct in deleting the addition made in respect of interest amount of Rs. 14,08,759/-. 7. Replying to above, ld A.R. of the assessee supported the order of the ld CIT(A). Ld A.R. submitted that when the creditors have sufficient reserves and surplus as per the audited balance sheet, doubting creditworthiness of the loan creditors is unjustified. 8. We have heard the rival submissions and perused the relevant materials placed on the record of the Tribunal. We have also perused the impugned order of the ld CIT(A), wherein, he has discussed the i ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... , 26AS statement of the creditor companies. 4.3 In the remand report the Assessing Officer has first emphasized that appellant's application for admission of additional evidence filed under rule 46A should be rejected as sufficient opportunities were allowed during the assessment proceedings. After perusing the facts of the case I am of the view that the appellant, did not have sufficient time during the assessment proceedings. The enquiries were made by the Assessing Officer at the addresses obtained from the MCA-21 site and the appellant was not left with sufficient time to provide the correct addresses. 4.4 During the remand proceedings notices u/s 133(6) were sent to all the three creditors at the addresses provided by the app ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rector of the three companies. 4.7 The various judicial rulings cited by the appellant also support its case. 4.8 In view of the above, it is held that the addition of Rs. 1,50,00,000/- treated as unexplained credit u/s 68 on account of unsecured loan of Rs. 0,000/- from M/s Excellent Infrabuild Pvt. Ltd. and Rs. 1,05,00,000/- from M/s Achiever Commo Trade (P) Ltd. is not sustainable. Ground Nos. and 2.4 are allowed. 5. Ground No. 3 (erroneously written as ground no. 4) This ground of appeal is regarding the interest of Rs. 14,08,759/- paid to following creditors :- (i) M/s Excellent Infrabuild Pvt. Ltd : Rs. 2,55,539 (ii) M/s Acheiver Commodtrade P. Ltd., : Rs. 4,88,096/ (iii) M/s Cube Infrastructure Pvt. Ltd `: Rs. 6,65, ..... X X X X Extracts X X X X X X X X Extracts X X X X
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