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TMI Blog2012 (10) TMI 20X X X X Extracts X X X X X X X X Extracts X X X X ..... s and Maint. Exp. 53,800 1,34,600 4. As opportunity was not provided by the Assessing Officer to submit the required details in respect of credits appearing in its books of account, an application under rule 46A was filed before the CIT(A). The CIT(A) sent all the documents filed before him to the Assessing Officer for making necessary investigation and to file his remand report. Vide letter dated 11.8.2011, the Assessing Officer submitted his remand report and after considering the same, the CIT(A) deleted the addition made on account of credits u/s 68, after having the following observations :- "(i) Hitakshi Media Solutions Pvt. Ltd - Rs.34,21,000/- : The Assessing Officer has made addition of Rs.34,21,000/- on account of unexplained unsecured loan from Hitakshi Media Solutions Pvt. Ltd. The appellant has filed confirmation of M/s. Hitakshi Media Solutions Pvt. Ltd. On perusal of confirmation, it is noticed that M/s. Hitakshi Media Solutions Pvt. Ltd is having PAN : AABCH0785K and as per the confirmation letter an amount of Rs. 84,013/- has been shown as receivable from the appellant as on 31.03.2007. M/s. Hitakshi Media Solutions Pvt. Ltd has also enclosed a ledger a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... uent appellate proceedings. It was noticed that in the ledger account of the appellant in the book of accounts of M/s. Hitakshi Media Solutions Pvt. Ltd., as on 3110312007 journal entries in respect of salary payable and space charges are shown. It is noticed that such journal entries may not have any bearing on the amount advanced by M/s. Hitakshi Media Solutions Pvt. Ltd. The fact is that M/s. Hitakshi Media Solutions Pvt. Ltd. is regularly assessed to tax, confirmed having advance Rs. 34,21,000/-- during assessment and all such transaction are through regular banking channels. The appellant has complied with the essential requirement of provisions of section 68 and therefore, the addition of Rs.34,21,000/- can not be sustained. The addition is accordingly deleted. (ii) Kishorilal Asera - Rs.5,OO,OOO/- : The Assessing Officer has made addition of Rs.5,00,000/- on account of unsecured loan from Mr. Kishorilal Asera. During the assessment proceedings, the appellant filed confirmation of Shri Kishorilal Asera and as per the confirmation of the creditor, Shri Kishorilal Asera is having PAN : AASPS4996D, the amount of Rs.5,00,000/- was given to the appellant vide cheque no.613765 da ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s also filed tax audit report of M/s. Lake City Motors Pvt. Ltd. and as per the auditor's report an amount of Rs.23,08,814/- is being shown in the head other advances is receivable from appellant company. The document submitted by the appellant in respect of MIs Lake City Motors Pvt. Ltd. were made available to the Assessing Officer . In his remand report the Assessing Officer has not disputed the identity credit worthiness and genuineness of the creditor. It is also noticed that the appellant has having regular running account with MIs Lake City Motors Pvt. Ltd. and amount of Rs. 9842301/- is the total credit accepted by the appellant during the whole year. The confirmation of the Creditor, PAN, IT Return, Bank statement and a copy of the audited balance sheet of the creditor show that the identity, Credit worthiness and genuineness of such creditors can not be disputed or doubted. The appellant has complied with the essential requirement of provisions of section 68 and therefore, the addition of Rs. 98,42,301/- can not be sustained. The addition is accordingly deleted. (iv) Sanjeev Maheshwari - Rs. 45,OO,OOO/- : The Assessing Officer has made addition of Rs. 45,00,000/-. Durin ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nd, the identity, Credit worthiness and genuineness of such creditor can not be disputed or doubted. The appellant has complied with the essential requirement of provisions of section 68 and therefore, the addition of Rs.45 lacs can not be sustained. The addition is accordingly deleted. (v) Umadevi Maheshwari - Rs.3,95,OOO/- : During the appellate proceedings, the appellant has filed confirmation of Smt. Uma Maheshwari. The appellant has also filed copy of bank account of the cash creditor. It is noticed that Smt. Uma Maheshwari is having PAN: ACBPM0237G and she is assessed to tax with ITO-3(2), Bhopal. The document filed by the appellant in respect of long transaction of Rs. 395000/- for Smt Umadevi Maheshwari were made available to the Assessing Officer and Assessing Officer in his remand report has not disputed the identity, credit worthiness and genuineness of the creditor. On perusal of copy of ledger account from 01.04.2006 to 31.03.2007 it is noticed that she has given an amount of Rs.50,000/- by way of cheque bearing no.004105 dated 17.03.2007. Further, an amount of Rs.2,45,000/- was credited in her account on account of entry made for director's remuneration from appell ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of Rs. 1,86,58,301/- is properly explained when the creditworthiness of the lender and the genuineness of the transaction has not been established by establishing specific details. 2. Deleting the addition of Rs. 1,34,600/- made on account of disallowance of the expenses, when the said total expenses of Rs. 1,34,600/- was not supported by bills and respective vouchers. 7. Shri Keshave Saxena, CIT Dr, appeared on behalf of the Revenue and contended that sufficient opportunity was given to the assessee to produce confirmation and to satisfy the requirement of genuineness of transaction and creditworthiness of loan creditors, but the assessee failed to do the same, therefore, the Assessing Officer has correctly added the same u/s 658 of the Income-tax Act, 1961. He also supported the disallowance of expenses made by the Assessing Officer. On the other hand, Shri H. P. Verma, and Ms.Sakshi Verma, Advocates, appeared on behalf of the assessee and contended that all the documentary evidence to satisfy the conditions of identity, genuineness and creditworthiness of laon creditors were filed before the CIT(A) alongwith application under Rule 46A, which was duly accepted both by CIT(A) a ..... X X X X Extracts X X X X X X X X Extracts X X X X
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