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TMI Blog2018 (3) TMI 1402X X X X Extracts X X X X X X X X Extracts X X X X ..... 8 by making the additions on the following issues: i) Unexplained credits u/s 68 ii) Excise duty on finished goods iii) Disallowance u/s 40(a)(ia) 3. Aggrieved, the assessee filed an appeal before the CIT (A), who after calling a remand report from the AO, granted partial relief to the assessee, against which the assessee as well as the Department preferred appeals to the ITAT. The ITAT had set aside the assessee's appeal with a direction to reconsider the additions made u/s 68 of the Act. Consequent thereto, the AO issued a notice u/s 143(2) of the Act. In response to the same, the assessee filed confirmation letters along with the copy of the paper book submitted before the Tribunal. After considering the information furnished b ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Nisar Ahmed and 7 others represents the income of the appellant". 4. The learned Counsel for the assessee submitted that the assessee has filed all the relevant material before the AO including the confirmation letters from the relevant parties, but the AO, without considering the same in a proper perspective, has made the same addition as made in the assessment u/s 143(3) of the Act. He submitted that the CIT (A) also has not considered the evidence filed by the assessee and has confirmed the additions made by the AO. He has drawn our attention to the confirmation letters filed by the assessee to explain the identity and creditworthiness of the parties and genuineness of the transactions. He prayed that the additions be deleted. 5. The ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... f confirmation letters, the assessee may have been able to provide identity of the transactions but has failed to prove the creditworthiness of the parties as well as the genuineness of the transactions, particularly when both the parties are not Income Tax Assessees and the payments are made in cash. The CIT (A) has clearly brought out that the assessee did not submit the details of the mode of payment by these two persons and that neither their identity nor the creditworthiness nor the genuineness of the transactions is proved. Therefore, we do not see any reason to interfere with the order of the CIT (A) on this issue and the addition of Rs. 7,68,000 is confirmed. 7. As regards the additions made on account of unsecured loans, the asses ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he is an Income-tax assessee, but since she has not given the mode of payment and the details of the sundry debtors, the creditworthiness and genuineness of the transaction is not proved. As regards the unsecured loans of Rs. 11,88,000, the CIT (A) has observed that the sources mentioned in the confirmation letters of the respective parties are not proved by any evidence and that the mode of payment is not submitted by the assessee and as none of the persons are assessed to tax, their identity, creditworthiness and genuineness of the transaction is not proved. 9. The learned Counsel for the assessee again relied upon the confirmation letters filed by the respective parties. As rightly pointed out by the learned DR, the identity of only two ..... X X X X Extracts X X X X X X X X Extracts X X X X
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