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TMI Blog2024 (7) TMI 1417X X X X Extracts X X X X X X X X Extracts X X X X ..... ays that the addition made by the Ld. Assessing Officer may kindly be deleted. Ground No. 2-Addition w.r.t. unsecured loan amounting to Rs. 71, 50,192/- 2.1 On the facts and in the circumstances of the case and in law, the Hon'ble CIT(A) has erred in upholding the action of the Ld. Assessing Officer in making addition u/s. 68 of the Income Tax Act, 1961 amounting to Rs. 71,50, 192/- w.r.t. unsecured loan from certain parties considering the same as unexplained. 2.2 The Appellant prays that addition made by the Ld. Assessing Officer may kindly be deleted. Ground no. 3-Levy of interest under section 234A and 234B of the Act 3.1 on the facts and in the circumstances of the case and in law, the Hon'ble CIT (A) has erred in confirming the interest levied under section 234A and 234B of the Act. 3.2 The Appellant prays that the levy of interest under section 234A and 234B of the Act may kindly be deleted. I reserve my right to add, amend & alter anything as stated here in above or may be stated here in after and all the grounds are alterative and independent to each other. 2. The revenue has raised the following grounds:- 1. "Whether on the facts and in the circum ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... /receipts. Ultimately, case of the assessee was assessed at Rs. 9, 74, 26,749/-. The assessee being aggrieved with this order preferred an appeal before the Ld. CIT (A), NFAC Delhi. The Ld. CIT (A) partly allowed the appeal of the assessee, in consequence of that both the parties i.e. the assessee and the revenue are in appeal before us. 4. We have gone through the order of the AO, order of the Ld. CIT (A) and submissions of the assessee alongwith grounds taken before us by both the parties. For the sake of logical conclusion of the matter, first we are disposing the appeal of the assessee ground wise. 5. Ground no. 1 raised by the assessee pertains to the addition u/s. 68 of the Act on account of increase in proprietor's capital account amounting to Rs. 1,50,12,664/-. It is observed that the assessee had shown capital as on 31.03.2019 at Rs. 3,01,98,397/-, in addition to this, the profit for the year under consideration was at Rs. 1,08,12,818/-. But the closing balance of the capital account as on 31.03.2020 was at Rs. 5,06,41,893/- (after considering the withdrawals of Rs. 53,80,385/-). In nutshell, there was a gap of Rs. 1, 50, 12,664/- which the assessee was asked to explai ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... llerton India Finance of Rs. 1,10,66,916/- and Car Loan from HDFC of Rs. 29,15,437/-, the assessee has filed all related documents as sought for. All the documents were perused and verified. No adverse inference has been drawn in this regard. (iii) However, a perusal of records related to loan from parties shown at Rs. 3,08,08,318/-, it has been found that during the year under consideration the assessee has raised unsecured loan to the tune of Rs. 1,00,30,192/-. In this regard, vide reply dated 29.01.2022, the assessee has submitted that he has received loan amounting to Rs. 1,00,30,192/- from various parties as mentioned below: 1. Abhishek Makad Rs. 40, 00,000/- 2. Kohinoor Enterprises Rs. 25, 00,000/- 3. MH Textile Rs. 10, 00,500/- 4. Mohd Shoaib Rs. 1, 80,000/- 5. Mukhtar Ahmed Rs. 20, 44,147/- 6. Sattar Enterprises Rs. 2, 00,000/- 7. Time T Engg Rs. 1, 05,545/- (iv) In this regard, the assessee was asked vide notice u/s. 142(1) dated 20.01.2022 and 02.02.2022 to provide copy of accounts, bank account statements and copy of ITRs/Audit Reports along with annexure from the persons from whom assessee have raised loans along with copy of their ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s. 41(1) of the Act. Documents pertaining to the above mentioned unsecured loan were submitted before us and there was no challenge on the same by the other side. Based on above, we found that addition of Rs. 71, 50,192/- is not justified and the overall behaviour of the assessee and documents produced before us confirms the ingredients of section 68 of the Act, hence ground no. 2 raised by the assessee is allowed. 10. Ground no. 3 pertains to levy of interest u/s. 234A and 234B of the Act. This issue is consequential in nature and to be decided by the AO while giving effect to our adjudication on above 2 grounds, hence no separate adjudication is required. 11. In the result, appeal of the assessee is partly allowed. 1243/Mum/2024 (A.Y. 2020-21) 12. The appeal of the revenue has 4 grounds and all are interlinked, hence adjudicated together. For sake of clarity on the facts, we are reproducing herein below the observations and findings of the AO as under:- "The Assessing Officer made addition of Rs. 8, 69, 68,909/- on the ground that the Appellant has made bogus purchases from Smt. Vimala Devi Prop. Of M/s. Shubham Steelage (PAN NO.- BIZPV9455N) i.e. purchases of Rs. 5,39,61,24 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... never initiated any recovery against amount of purchases made with Smt. Vimala Devi. Even though the name of Smt. Vimala Devi (Prop. Of M/s. Shubham Steelage) has been identified in the list of high risk billers data the Appellant has never made any bogus purchases transactions with them of which the GST department have also taken note of it. Therefore, no actions have been taken against purchases made from Smt. Vimala Devi (Prop. of M/s. Shubham Steelage) so far, till date from GST department." 13. Before adjudication the findings and observations of the Ld. CIT (A) which he arrived after through verification of relevant documents is as under:- "4.3 As regards, the first ground relating to Disallowance of purchases made from Shubham Steelage amounting to Rs. 5,39,61,241/- and Additional of GST on purchases amounting to Rs. 97,13,024/- made from Shubham Steelage. The appellant did not clarify the discrepancies found by the AO during the assessment proceedings. During the appeal proceedings, the appellant has submitted invoice copies, delivery challan, transport bill, ledger confirmations from shubham steelage, bank statements evidencing payment received from shubham steelage, GS ..... X X X X Extracts X X X X X X X X Extracts X X X X
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