TMI Blog2023 (8) TMI 77X X X X Extracts X X X X X X X X Extracts X X X X ..... nd is allowed. Besides this on merit as well the treatment given by the assessee has been clearly set out in respect of loans and the payments of the interest to the depositors. Assessee has given confirmations as well as the genuineness of the transaction. Merely not filing the income tax return cannot debar the genuine transactions of the assessee in respect of this loans which have been repeated and in subsequent year the Revenue has accepted the same. The creditworthiness depends upon the act of both the parties and therefore, on merit as well the addition does not sustain - Appeal of the assessee is allowed. - ITA.No. 1470/Ahd/2019 - - - Dated:- 7-7-2023 - Ms. Suchitra Kamble, Judicial Member For the Assessee : Shri Manish ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... hile not considering that even after long correspondence with the unsecured loan giver parties, the parties have not submitted certain details to the appellant and of such parties the details of their addresses available with the appellant have been submitted to the learned A.O. and requested the learned A.O. that in the interest of justice to kindly issue notices to the said parties calling for the required details as per the provisions of the Income Tax Act, 1961, however, the learned A.O. has not called for the same. 4 The learned AO as well as Hon'ble CIT (A) erred in law and on facts while not considering that since the appellant has already submitted the required details and the appellant has fulfilled the requirements as pe ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... stated hereinabove as the facts and circumstances of case may justify 3. The assessee has also filed additional grounds which are read as under: 1. On the facts and circumstances of the appellant s case as well as in law, the Hon ble CIT(A) has erred in confirming the action ld. AO of making addition to the tune of Rs.13,34,298/- as unexplained cash credit u/s. 68 while invoking the provisions of section 68 although it was within the knowledge of both the lower authorities that the appellant has not maintained the books of account. 2. That the appellant craves leave to add, to amend, modify, rescind, supplement or alter any of the grounds stated herein above, either before or at the time of hearing of this appeal. 4. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... me Tax Act, 1961 is not justifiable. The Ld. A.R. submitted that a bare perusal of Section 68 reveals that an addition under the said statutory provision what only be made where any sum is found credited in the books of an assessee maintained for any previous year. Thus, the very sine qua non for making of an addition under Section 68 presupposes a credit of the aforesaid amount in the books of an assessee maintained for the previous year. A credit in the bank account of the assessee cannot be construed as a credit in the books of the assessee for the very reason that the bank account cannot be held to be the books of the assessee. The Ld. A.R. further submitted that Section 68 cannot be invoked on various deposits / credits found recorded ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... thout prejudice to these statements the Ld. A.R. in alternate submitted that interest paid to depositors is to be disallowed than it should be made for such unsecured loan as are treated as unexplained with respect to deposits of Rs. 19,00,000/- which remain unexplained has to be disallowed and interest expense in respect deposits which to be considered as explained should be allowed. The Ld. A.R. relied upon the decision of Hon ble Delhi High Court in the case of CIT vs. Value Capital Services Pvt. Ltd. 307 ITR 0334. The Ld. A.R. also pointed out that the details of unsecured loans and the documents which were submitted were available before the Assessing Officer as well as CIT(A). In fact, the assessee submitted confirmations, bank statem ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
