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TMI Blog2018 (9) TMI 789X X X X Extracts X X X X X X X X Extracts X X X X ..... Rs. 14,84,52,240/-. 3. The learned CIT (A) failed to appreciate that the nature of evidence furnished by assessee does not satisfy the conditions laid down u/s 68 of the I.T. Act, 1961. 4. The learned CIT (A) did not give proper findings for allowing relief. 5. Any other ground(s) that may be urged at the time of hearing". 2. Brief facts of the case are that the assessee company engaged in the business of manufacturing of cotton yarn, filed its return of income for the A.Y 2012-13 on 27.09.2012 declaring total income of Rs. 85,43,403/- under the normal provisions of the Act and a book profit of Rs. 70,31,811 u/s 115JB of the I.T. Act. During the assessment proceedings u/s 143(3) of the Act, the AO observed that there is an increa ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e from the local Revenue authorities confirming the yield generated out of such agricultural lands and have also not specified the mode of payment i.e. whether by cheque/cash/D.D and the date of investments. The AO also observed that the proof of identity of these persons were also not filed. He also found certain discrepancies in the signatures of the parties. In view of the same, the AO was of the opinion that the identity and creditworthiness of the parties is not proved. Therefore, he treated the credits of Rs. 14,84,52,240 as income from undisclosed sources of investments and brought it to tax. Aggrieved, the assessee preferred an appeal before the CIT (A) and submitted that he could not produce adequate evidence to the AO as the Manag ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... by the AO, the signatures of most of the parties were similar and their identity and creditworthiness has not been proved even during the remand proceedings. 5. The learned Counsel for the assessee, on the other hand, supported the orders of the CIT (A). 6. Having regard to the rival contentions and the material on record, we find that the assessee has filed confirmation letters of all the 413 persons and during the remand proceedings also, the AO was directed to verify the identity, creditworthiness and genuineness of the transactions. It was the decision of the AO to pick up only 10 persons out of 413 persons and the assessee produced not only these 10 persons but also produced 7 more shareholders. As seen from the remand report reprod ..... X X X X Extracts X X X X X X X X Extracts X X X X
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