9911796707
TMI Blog2022 (11) TMI 986X X X X Extracts X X X X X X X X Extracts X X X X ..... at the assessee company is engaged in the business of Manufacturing of Chemical Mixture Fertilizers. They have filed their return of income for the assessment year 2013-14 on 26/09/2013 declaring an income of Rs. 1,87,58,230/-. 3. During the course of assessment proceedings, learned Assessing Officer noticed that certain amounts were credited to the balance sheet as on 31/03/2013 as 'un-secured credits' and one out of such amounts is Rs. 6,23,21,076/- from M/s. Haritha Infra Capital Solutions Pvt. Ltd., (HICSPL). In respect of this particular creditor, learned Assessing Officer observed that i. this entity returned loss of Rs. 4,500/- and it has neither shown any tax payable nor claimed any TDS credit and thus the creditworthiness of the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... t is, therefore, evident that the source of unsecured loans of Rs. 6,23,21,074/- credited in the books of assessee has not been explained to the satisfaction of the learned Assessing Officer and the assessee has not discharge the onus under section 68 of the Income Tax Act, 1961 (for short "the Act"). 4. Apart from this the learned Assessing Officer also added a sum of Rs. 3,73,600/- in respect of the unsecured credit from one Naga Gangadhar Reddy On this premise the learned Assessing Officer added the sum of Rs. 6,23,21,074/- to the income of the assessee and by order dated 14/3/2016 passed under section 143(3) of the Act determined the income of the assessee at Rs. 8,14,52,904/-. 5. Aggrieved by such an action of the learned Assessing O ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... uthority. 7. Ld. CIT(A) further confirmed the addition of Rs. 3,73,600/- under section 68 of the Act in respect of the unsecured loan from one Shri Naga Gangadhar Reddy. 8. Assessee challenged this findings of the Ld. CIT(A) before us by way of this appeal. It is the submission on behalf of the assessee that the authorities below doubted the source of source of the assessee and without calling upon the assessee, to clarify the doubts if any, about the creditworthiness of the source of the assessee and the genuineness of transaction of the creditor of the assessee, in all fairness they should have sought information or details to support the creditworthiness and genuineness of the transactions in respect of the source of the assessee. Acco ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... . CWT (1976) 102 ITR 757 (AP) to submit that a party guilty of remissness and gross negligence is not entitled to indulgence being shown to adduce additional evidence. 11. In reply, learned AR submitted that in this case, there is no gross negligence nor remissness on the part of the assessee, because in this case, the additional evidence is not in respect of the creditworthiness of assessee's creditor but the authorities doubted the creditworthiness of the creditors of the assessee's creditor, which the assessee could not foresee reasonably and, therefore, it is only the attempt of the assessee to dispel the cloud that cast on the genuineness of this transaction all through, the assessee is producing the additional evidence now and, there ..... X X X X Extracts X X X X X X X X Extracts X X X X
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