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TMI Blog2016 (4) TMI 1375X X X X Extracts X X X X X X X X Extracts X X X X ..... ) that first deposits are received through bank transfers from the lenders accounts and thereafter they were given to the assessee company by account payee cheque. CIT(A) that AO has not disputed the above facts nor has brought any material on record to suggest that the said transfers are not genuine transfers and the lenders also confirmed giving funds to the assessee through account payee cheque and shares were also allotted by the assessee company against such funds. CIT(A) concluded that assessee has established not only the credit worthiness and identity of the said creditors but also established the genuineness of the transaction. None of the finding of the CIT(A) has been dislodged by the revenue with evidences. We uphold the order o ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... y to the tune of ₹ 7,38,990/- paid to ICICI Bank 5. BECAUSE, Id. CIT(A) has erred in law and on facts in upholding the disallowance of Municipal Taxes to the tune of ₹ 35,880/- under the head Income from House Property. 6. BECAUSE, Id. CIT(A) has erred in law and on facts in ignoring the fact that during the course of assessment proceedings the AO never raised any query in respect of additions at sl.no. 2 to 5 as mentioned above and thus violated the principal of natural justice. 7. BECAUSE, Id. CIT(A) has erred in law and on facts in upholding the additions mentioned at sl.no. 2 to 5 above on the ground that the appellant had filed additional evidences although all primary material was already on record of the AO." 3 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... er who shall decide the same afresh in accordance with law after providing adequate opportunity to the assessee. 7. In the result, the appeal filed by the assessee is partly allowed for statistical purpose. ITA No. 5060/M/14 - Revenue's appeal 8. The only issue raised by the Revenue is that whether on the facts and circumstances of the case, the Ld. CIT(A) was right in deleting the addition of ₹ 2,66,05,000/- on account of unsecured loans u/s. 68 of the Act. 9. Brief facts of the case are that assessee is a Private Limited Company engaged in the business of trading in real estate & grains. The assessee filed its return of income on 14.10.2010 declaring NIL income. The assessment was completed u/s. 143(3) on 25.3.2013 determini ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ard, return of income were sent through post. The Assessing Officer concluded the assessment by treating these unsecured loan creditors as bogus transactions and made addition of ₹ 2,66,05,000/- u/s. 68 of the Act. 10. On appeal, the Ld. CIT(A) following the decision of the Hon'ble Bombay High Court in the case of CIT Vs Creative World Telefilms Ltd., (15 Taxmann.com 183) deleted the addition made u/s. 68 of the Act against which the Revenue is in appeal before us. 11. The Ld. Departmental Representative submits that in the course of assessment proceedings, the Assessing Officer issued summons to all the creditors. The creditors did not appear but details were submitted through post. The Ld. Departmental Representative submits tha ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... that in this case the Hon'ble High Court held that creditors having received the summons did not present themselves before the Assessing Officer but had sent confirmatory letters. Thus it was held that the assessee could not be blamed. It was further submitted that where lenders are assessed to tax, the assessee can be said to have discharged its onus to prove the genuineness of the transaction by filing confirmation letters and PAN details. The Ld. Counsel also places reliance on the decision of Delhi Bench of the Tribunal in the case of ITO Vs Vartman Securities & Services Pvt. Ltd (2016) (67(2) ITCH 161) (Del). A copy of which is placed on record. Placing reliance on the said decision, the Ld. Counsel submits that the Delhi Tribunal on ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ee in view of the fact that assessee has allotted shares to 9 creditors out of 12 and the remaining 3 creditors, two are sister concerns and the assessee has repaid part of the loans taken from them and they are assessed in the same range where the assessee is also assessed and in respect of the other creditor all the details were furnished and part of the loan was also repaid by the assessee. It is the finding of the Ld. CIT(A) that the assessee has proved identity, genuineness of the transaction and the credit worthiness of the lenders by furnishing requisite details like confirmations, PAN details, return of income, bank statements etc. It is the finding of the Ld. CIT(A) that on perusal of the bank statements, all the lenders have advan ..... X X X X Extracts X X X X X X X X Extracts X X X X
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