TMI Blog2022 (11) TMI 7X X X X Extracts X X X X X X X X Extracts X X X X ..... the lender company at the given address. The assessee has duly proved not only the identity, creditworthiness of the lender company but also the genuineness of the transaction by way of demonstrating about the running account of the assessee with the said company and that the total loan liability of the assessee company during the year being decreased. We do not find justification on the part of the lower authorities in making the impugned additions and the same are accordingly ordered to be deleted. Appeal of the assessee stands allowed. - I.T.A. No.214/Kol/2022 - - - Dated:- 13-9-2022 - Shri Sanjay Garg, Judicial Member And Shri Girish Agrawal, Accountant Member Shri Sushil Pranukha, FCA Harsh V. Bhardwaj, FCA, appeared on ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... eal reveals that the assessee is aggrieved by the action of the lower authorities in making addition of Rs.4,73,20,190/- of the unsecured loans received by the assessee treating the same as unexplained credit u/s 68 of the Act. The assessee is also aggrieved from the disallowance of interest amount of Rs.1,30,12,424/- paid by the assessee on the loan amount. 3. At the outset, the ld. counsel for the assessee has invited our attention to the impugned assessment order to submit that the Assessing Officer firstly observed as under: During the year under consideration it was noticed that the assessee had taken unsecured loans from various parties which were de-listed/struck off by the Registrar of Companies of Ministry of Corporate Affai ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ur has no jurisdiction over the assessee company since 1994. Further to verify the creditworthiness of the loan creditor, the Assessing Officer examined the ITRs filed by M/s ABC Financial Services Pvt. Ltd. and noted that there was nil income of the company from 2014-15 to 2017-18. The Assessing Officer observed that despite such a low income, the said M/s ABC Financial Services Pvt. Ltd. had given loans to the assessee which seem entirely implausible. The assessee was show-caused in this respect. In response, the assessee furnished the requisite details. However, the Assessing Officer held that the credibility of the creditor was doubtful and accordingly made the impugned additions of the loan amount as well as disallowed the interest cla ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 1,73,62,023.16 Profit/(Loss) before tax as per books 8,76,308 10,75,056 (29,86,098) (21,65,058) Tax expenses as per books - 1,57,180 (6,75,980) 420 Profit/(Loss) after tax as per 8,76,308 9,17,876 (36,62,078) (21,64,638) Gross Total Income (2,06,949) 2,91,663 (25,14,580) (33,01,547) As per Tax Liability - 55,576 - - ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... balance was at Rs.4.20 crores only as against opening balance of Rs.12.02 crores. The ld. counsel has further invited our attention to the income tax return of M/s ABC Financial Services Pvt. Ltd. placed at paper book pages 190 to 194 to submit that the said lender company for the assessment year 2013-14 had returned a very high total income of Rs.5,53,94,060/- and paid high taxes. The ld. counsel has further submitted that the Assessing Officer not only verified the existence of company by sending inspector there but also the company responded not only to the summons issued u/s 133 of the Act but also director of the said company appeared before the Assessing Officer in response to the summons issued u/s 131 of the Act. That it was also e ..... X X X X Extracts X X X X X X X X Extracts X X X X
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