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TMI Blog2012 (12) TMI 185X X X X Extracts X X X X X X X X Extracts X X X X ..... evidence before the CIT(A) are of 26.3.10. This shows that it was after the filing of the application for additional evidence before the CIT(A), that the evidence was filed before and considered by the AO three months thereafter. Thus, the Department cannot have any grievance against the CIT(A) having entertained additional evidence at the back of the AO, particularly when the AO was duly supplied with the confirmations and all connected material and the AO, having considered the same, did not furnish any remand report before the CIT(A) inspite of reminders. The CIT(A) never entertained any additional evidence at all and deleted the addition on the basis of the aforesaid material filed with the AO in the remand proceedings. On merits also it is seen that the assessee had duly discharged its onus u/s 68. In the result, the appeal filed by the Department is dismissed. - ITA No. 37/Del/2011 - - - Dated:- 20-7-2012 - SHRI A.D. JAIN, SHRI T.S. KAPOOR, JJ. Appellant by : Dr. B.R.R. Kumar, Sr. DR Respondent by : Sh. Pradeep Denodia, CA ORDER PER A.D. JAIN, J.M. This is Department s appeal for A.Y. 2006-07 against the order dated 07.10.2010 passed by the ld. CIT(A) ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... essee Company, even though the assessee Company had miserably failed to discharge its onus to prove the identity, capacity and genuineness of the loan creditors during the assessment proceedings, despite ample opportunity having been granted to the assessee for the purpose; and that the ld. CIT(A) has erred in taking into cognizance fresh evidence in violation of the provisions of Rule 46A of the I.T. Rules. 6. The ld. Counsel for the assessee, on the other hand, has placed strong reliance on the impugned order. It has been submitted that the ld. CIT(A) has not committed any error in deleting the addition which was wrongly made by the AO; that the creditor Companies had submitted their confirmations dated 20.02.2010 and 02.05.2009, respectively (copies at APB 65 66), which the assessee had filed before the CIT alongwith its written submission, on 26.03.2010; since the AO, in the assessment proceedings, had not required the assessee to file such confirmations and as such, there had been no occasion to file such confirmations before the AO in the assessment proceedings, that the CIT(A) had remanded the matter to the AO; that in the remand proceedings, the creditor companies had f ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... incipal Officer of the company in connection with queries with respect of directors of the company and one firm. It is stated that had anything was not to the satisfaction of AO then he could have confronted the assessee company to enable it (assess-company) to file the details and information to his satisfaction. He did not ask for, to the best of our knowledge and belief, hence, could not be filed earlier. The tenor of the AO s letter dated 04.11.2008 would reveal that after submission of information the matter ended. Had the AO needed any further information he could have informed the assessee about the same. He could have also summoned the creditors to verify these loans. Nothing was heard from the AO except though the impugned assessment order. So far as the bank statement is concerned. It was filed before the AO as early as 04.11.2008. Now the confirmation letters, copy of their bank statement(s)/their bank ledger(s) are also contained in the paper book from page 65-127 as detailed and referred to in the paper book. Be that as it may, as we have filed the confirmations from the parties concerned and their bank statements/bank ledger(s) in their books which were obtain ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... assessment order. Ground Nos. 3 6: - This ground relates to addition of Rs. 75,25,000/- being loans received during the previous year relevant to the assessment year 2006-07 under reference, from the following two parties: - (i) M/s Ashoka Mercantile Ltd. Delhi 64,25,000/- (ii) Sunrise Soya Products Ltd., Delhi 11,00,000/- 75,25,000/- Vide questionnaire dated 28.07.2008 (appearing at pages 1-5 of the paper book) the following query was raised by the AO: - 7 complete details along with supporting evidences of the utilization of unsecured loans and secured loans raised during the year . The assessee company furnished, vide its letter dated 10.10.2008 (appearing at pages 6-15 of the paper book), the complete details of utilization of unsecured loans taken by the company, as under: - 7. Complete details of utilization of unsecured loans taken by the company are as under: Name of party Address of party Amount of Loan Utilization of unsecured loan Ashoka Mercantile Ltd. CR-234, Ground Floor, Laxmi Nagar, Delhi-110092 60,00,000/- Use for business purpose Sunrise Soya Products Ltd. CR-23 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... also unsecured loans have been shown at Rs. 71,00,000/- which comprise of Rs. 60,00,000/- pertaining to M/s Ashoka Mercantile Ltd. and Rs. 11,00,000/- pertaining to M/s Soya Products Ltd. (for Balance Sheet etc. refer to pages 35-43 of the paper book). It is worthwhile mentioning here that the interest paid amounting to Rs. 2,31,336/- (refer to page 44 of the paper book) on such loans from the two parties concerned has duly been allowed by the AO while computing the assessment as the net loss as returned by the assessee amounting to Rs. 1,70,200/- has been accepted as such. The details of interest paid of Rs. 2,31,336/- along with E-TDS return are appearing at pages 53 and 54-64 respectively of the paper book. In the view of the above facts and in the circumstances, of the case the additions made of Rs. 64,25,000/- and Rs. 11,00,000/- may kindly be directed to be deleted (the remaining relevant portion of the written submissions of the assessee, as filed before the ld. CIT(A) already stands reproduced hereinabove) 13. On receipt of the said written submissions of the assessee, the ld. CIT(A) remanded the matter to the AO. However, despite reminders, no remand report was fur ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... led before the AO u/s 133(6) of the Act is available from the confirmations themselves, wherein, the addressee has been given as: The Deputy Commissioner of Income Tax Circle-1, Room No. 201, C.G.O. Complex, Ghaziabad. (APB 128 and 151, respectively). Then, the Subject in the confirmations states as follows: Information u/s 133(6) of the Income Tax Act,1961 in the case of M/s Daisy Investment Pvt. Ltd. for F.Y. 2005-06 (APB 128 and 151, respectively) Alongwith their confirmations, the creditors also filed before the AO: ASHOKA MERCANTILE LTD: i. Copy of PAN card on M/s Ashoka Mercantile Ltd. ii. Copy of assessment order for A.Y. 2006-07 iii. Copy of acknowledgement receipt of e-return iv. Copy of annual accounts for the year ended on 31.03.2006 v. Confirmation of amount paid and receipt to Daisy (the assessee) vi. Copy of bank statements vii. Details of amount received from Daisy against loan paid viii. Details of interest received on ICD as on 31.03.2006 SUNRISE SOYA PRODUCTS : i. Copy of PAN card of Sunrise Soya Products Ltd. ii. Copy of acknowledgement receipt of e-return iii. Copy of annual accounts for the year ended on 31.03.2006 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e and considered by the AO three months thereafter. Thus, the Department cannot have any grievance against the CIT(A) having entertained additional evidence at the back of the AO, particularly when the AO was duly supplied with the confirmations and all connected material and the AO, having considered the same, did not furnish any remand report before the CIT(A) inspite of reminders. In fact, by remaining thus tacit, the AO conveyed his satisfaction qua the evidence filed before him in the remand proceedings. The CIT(A) never entertained any additional evidence at all and deleted the addition on the basis of the aforesaid material filed with the AO in the remand proceedings. 21. As for the merits of the action of the ld. CIT(A), it is seen that the assessee had duly discharged its onus u/s 68 of the Act by filing complete details of the unsecured loans taken, the utilization thereof, the copies of account of the two creditor Companies in the books of account of the assessee Company, the acknowledgement receipts of their e-returns, providing their respective PANs, copy of the assessee s bank account with State Bank of Bikaner and Jaipur, New Delhi, wherein the receipts of the loan ..... X X X X Extracts X X X X X X X X Extracts X X X X
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