TMI Blog2023 (4) TMI 676X X X X Extracts X X X X X X X X Extracts X X X X ..... d to hold that the ld.CIT(A) has confirmed the addition without any justified reason and basis and, thus, the same is not found to be sustainable. Respectfully following the judgement of Hon ble Supreme Court in the case of Orissa Corporation Pvt. Ltd. [ 1986 (3) TMI 3 - SUPREME COURT] , judgement of Hon ble jurisdictional High Court of Delhi in the case of Mod Creations Pvt. Ltd. [ 2011 (8) TMI 476 - DELHI HIGH COURT] as relied by the ld. Counsel of the assessee the grievance of the assessee is allowed. - ITA No.2670/Del/2019 - - - Dated:- 21-2-2023 - Shri Shamim Yahya, Accountant Member And Shri C.M. Garg, Judicial Member For the Assessee : Ms Ayushi Gupta, CA And Shri Ajay Wadhwa, Advocate For the Revenue : Shri Abhishek Kumar, Sr. DR ORDER PER C.M. GARG, JM: This appeal filed by the assessee is directed against the order dated 01.02.2019 of the CIT(A)-8, New Delhi, relating to Assessment Year 2014-15. 2. The grounds of appeal taken by the assessee read as under:- That the Order of Ld. CIT(A) - 8, dated 01/02/2019 is bad in law and on facts. That the Ld. CIT(A) has erred on facts and in law in sustaining the addition of Rs. 2,86 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... eby incorrectly alleged at para 1 at page 3 of the first appellate order that no application u/r 46A of the rules has been filed by the assessee. The ld. Sr. DR supported the observations of the ld.CIT(A) in para 8 of the first appellate order. However, he did not controvert the fact that the assessee duly filed application under Rule 46A of the Rules dated 15.01.2019 along with the submissions and other evidences wherein the assessee specifically stated that the documents could not be submitted due to non-cooperation of loan creditors during the course of assessment proceedings as the loans were repaid before commencement of the said assessment proceedings. From a careful reading of the first appellate order, we observe that the ld. CIT(A) did not comment upon the said reasonable cause shown by the assessee for non-furnishing of relevant evidences before the AO submitted by the assessee and the said application filed under Rule 46A of the Rules and rejected the submission of the assessee simply in a slip shot manner which is not a justified and reasonable approach of a tax authority. Therefore, we also observe that the reasons given for rejection of additional evidences were very ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... and the assessee was unable to collect all documents due to lapse of time, but, no efforts was made by the AO to verify the creditors; (v) It was also contended by the ld. AR that the bank statement of the assessee has also been filed before the AO to establish that the loans were taken and repaid through banking channels and she referred to pages 116 to 113 of the assessee s paper book; (vi) It has also been contended that when the names, addresses, copies of PAN, bank statements, balance sheets, in respect of each lender was furnished before the AO and the ld.CIT(A), then, the identity of the lender cannot be disputed and capacity and credit worthiness of the creditor and the genuineness of the transaction which was routed through banking channels cannot be doubted in any manner and, in such a situation, no addition can be made in the hands of the assessee; and (vii) The initial onus has been discharged by the assessee as per the requirement of section 68 of the Act and it was shifted on to the shoulders of the AO and the AO as well as the ld.CIT(A), without dislodging and controverting the said documentary evidences filed by the assessee, proceeded to make addition in t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he satisfaction of the AO and the ld.CIT(A) and, therefore, the assessee had failed completely to discharge the onus as per the requirement of section 68 of the Act. Therefore, the appeal of the assessee may kindly be dismissed upholding the findings arrived at by the ld.CIT(A). 9. On careful consideration of the above rival submissions, we are of the considered view that in response to the notices u/s 142(1) of the Act dated 14.06.2016, 25.05.2016 and 18.11.2016, the assessee filed replies on 28.11.2016, 05.12.2016, 16.12.2016 and 19.12.2016 and submitted documentary evidences placed at pages 49-60 of the assessee s paper book along with a chart showing names, addresses, PANs, opening balance, amount of loan taken during the year and amount of repayment, and, closing balance at the end of the year placed at pages 61- 62 of the assessee s paper book, but, the AO proceeded to make addition in the hands of the assessee without any inquiry from the alleged loan creditors and without verifying the documentary evidences and details submitted by the assessee. From the documentary evidences available at pages 49-133 of the assessee s paper book, it is clearly discernible that the asses ..... X X X X Extracts X X X X X X X X Extracts X X X X
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