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TMI Blog2023 (10) TMI 463X X X X Extracts X X X X X X X X Extracts X X X X ..... ner of the Income Tax (Appeals) has erred in confirming the action of the assessing officer in making addition of Rs. 2,18,66,082/- on account of unsecured loan of Rs. 1,75,51,113/- plus interest of Rs. 43,14,969/- is disallowed and added u/s. 68 of the income Tax Act, 1961. 2. On the facts and in the circumstances of the case as well as law on the subject, the learned Commissioner of the Income Tax (Appeal) has erred in confirming the action of the assessing officer in ignoring facts that the loan was paid through normal banking channels and no cash deposits were noticed before loan payments which clearly reveal genuineness and creditworthiness of the lender. 3. On the facts and in the circumstances of the case as well as law on the su ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ction of the AO ignoring the facts that the loan was received through normal banking channels and no cash deposits were noticed before transmission of amount as unsecured loan to the assessee, which established the creditworthiness of lenders and genuineness of transactions. 5. Replying to the said contentions of assessee raised by way of ground nos.1 and 2, the learned CIT-DR supporting the action of the AO submitted that the assessee has failed to discharge the onus of establishing creditworthiness of lender and genuineness of transactions. He thus submitted that after detailed verification and examination of documentary evidence filed by the assessee the AO rightly made addition on account of unsecured loans amounting to Rs. 1,75,51,113 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ellate order, we note that the learned CIT(A) has upheld the addition with following observations and findings: "In response to the above show cause notice dated 03/12/2018, the appellant uploaded its reply dated blank Dec. 2018, uploaded on 06/12/2018. From the financials, the AO found that the appellant has taken unsecured loans of Rs. 1,75,51,113/- from P.R. Niryat Pvt Ltd. In response to the notice u/s 133(6). P.R Niryat Pvt Ltd has submitted ITR, Ledger account of M/s Acumen Infrastructure (P) Ltd, Bank statements and source of funds. On perusal of these documents, the AO noted that the source of funds in majority of cases has been from either "Internal Transfer', 'unsecured Loans secured from party', 'Cash Deposit ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... cutta in the case of CIT v Mihir Kanti Hazra(supra) is squarely applicable to the facts of the present case. Accordingly, the addition of Rs. 1,75,51,113/- u/s 68 on account of unsecured loan from P.R. Niryat Pvt. Ltd is upheld. Since loan has been held as bogus, the interest of Rs. 43,14,969/- cannot be allowed in the instant case. Accordingly, the addition of Rs. 1,75,51,113/- u/s 68 on account of unsecured loan from P.R. Niryat Pvt. Ltd and the disallowance of the interest of Rs. 43,14,969/- are upheld in the instant case. Ground. No. 1(a), 1(b) & 1(c) are decided against the appellant." 7. On careful consideration of the above submissions, contentions of the assessee raised before the authorities below as well as in the ground nos.1 & ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... , but the AO had again made addition on this count which amounts to double addition and therefore, the addition may kindly be deleted. 9. Replying to the above, the learned Sr. D.R. supported the orders of the authorities below and submitted that neither the AO nor the learned CIT(A) has made any disallowance or addition u/s 40(a)(ia) of the Act, therefore, the ground nos.3 & 4 of assessee may kindly be dismissed being baseless and misconceived. 10. On careful consideration of submissions from careful reading of assessment and first appellate order, we note that authorities below has not made any disallowance/addition u/s 40(a)(ia) of the Act, therefore, ground nos.3 & 4 of assessee are dismissed. 11. Ground nos.5 & 6 of the assessee are ..... X X X X Extracts X X X X X X X X Extracts X X X X
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