9911796707
TMI Blog2019 (12) TMI 1158X X X X Extracts X X X X X X X X Extracts X X X X ..... sum received by the assessee as advance as unexplained cash credit under section 68 of the Act was not warranted and therefore the Ld CIT(A) rightly deleted the addition. So, we are inclined to confirm the order of the Ld. CIT(A) and dismiss the ground of appeal raised by the revenue. X X X X Extracts X X X X X X X X Extracts X X X X ..... regard to trade payables of ₹ 16,20,000/- in original assessment proceedings and also in remand proceedings". 8.That on the facts and in circumstances of the case and in law, the Ld. CIT(A) has erred in deleting the addition a sum of ₹ 95,65,382/- u/s 14A read with Rule 8D ignoring the essence of CBDT's Circular No. 5/2014 dated 11.02.2014. 9.That the appellant craves for leave to add, delete, amend or modify any ground before or at the time of appellate proceedings." 3.We first take up the Revenue's appeal for the Assessment Year 2012-13 ground nos. 1 & 2 and for AY 2013-14, ground nos. 1 to 5. Brief facts of the case for AY 2012-13 as noted by the Assessing Officer is that the assessee filed its return of income, declaring loss of ₹ 34,01,458/-. Later the case was selected for scrutiny through CASS. The Assessing Officer notes that during the course of assessment proceedings, the assessee furnished various details as asked for except few books of accounts with supporting bills and vouchers as asked for, on 13/02/2015. The Assessing Officer thereafter notes that, he had issued summons u/s 131 of the Act on 04/03/2015, to the assessee company directi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... have heard rival contentions. On careful consideration of the facts and circumstances of the case, perusal of the papers on record, orders of the authorities below as well as case law cited, we note that the assessee had received Inter-Corporate Deposits (ICDs) from various companies. Summarized position of his borrowings during the year AY 2012-13 is given below in Rupees:- Op. Bal as on 01.04.11 Recd. During the year Repaid during the year Interest for the year TDS Cl. Balance as on 31.03.2012 1,67,45,422 19,80,62,238 11,06,89,479 33,70,549 3,37,055 10,71,81,675 7.When the Assessing Officer asked for the details of these ICDs, the assessee had furnished the following details of the lender companies:- a)Loan confirmation containing name, address and PAN of the lender corporate. b)Copy of Income Tax Return Acknowledgement of the lender for the relevant A.Y. c)Copy of Audited Financial Statement for the F.Y. 2011-12 of the lenders. d)Lender's Source of fund certificate for the amount given as loan to the assessee. e)Lender's Bank statement evidencing payments of the loan to the Assessee. 8.In addition to the above documents, the assessee company ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ook, wherein the remand report filed by the Assessing Officer pursuant to the direction of the ld. CIT(A) is found placed wherein the Assessing Officer in the remand proceedings has stated as follows:- "Accordingly, summons u/s 131 was issued to the Directors of the assessee company on 4-03-2015 and the case was fixed for hearing on 16-03-2015. But there was no compliance on the date of hearing. Under the circumstances, the amount of ₹ 10.65.32.302/- was treated as cash credit u/s. 68 since the assessee failed to discharge the primary onus." 11.Taking into consideration the aforesaid facts which happened during the assessment stage as well as the addition made by AO in respect of the loan taken by the assessee, we note the following important facts which is given in the tabular form to appreciate the facts and figures involved on the issue at hand for both the assessment years before us. Assessment Year 2012-2013 Details of Loans taken and repaid Sl.No. Party Name & PAN Opening Balance Loan taken during the year Interest paid TDS deduct ed Loan repaid during the year Closing balance as on 31/03/12 Closing balance as on 31/03/19 1. Deepak Pens & Plastics Pvt. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 000 3699 -- -- 1503699 Repaid as on 31.3.14 9 Dufflaghur Investments Ltd PAN:AAACD9587C 30781151 -- 3603082 360308 13781151 20242774 NA 10 Midnight Agencies Pvt. Ltd PAN:AABCM6864G 5109726 -- 459875 45987 -- 5523614 NA 11. Motorex Finance Pvt. Ltd PAN:AACCM1042R 3237674 -- 291391 29139 -- 3499926 NA 12 Rudra Goods Pvt. Ltd PAN:AAECR0974R -- 3800000 22932 2293 -- 3820639 Repaid as on 31.3.19 13 Royalpet Traders Pvt. Ltd -- 5000000 4932 -- -- 5004932 Repaid as on 31.3.14 Total: 93901675 23950000 9505037 949146 18210192 108197374 Details of Advances Repaid: 1. Asish Finance Ltd PAN:AAACE57774A 13000000 - 10330 1034 13000000 -- Opening balance repaid. 12. We note that the assessment order for AY 2012-13 has been passed on 31/03/2015 and for AY 2013-14 on 03.03.2016. We note that though the assessee had filed the following documents before the Assessing Officer, he has drawn adverse inference against the assessee only on the reason that the Director of the assessee company did not present himself before him. We note that for the Assessment Year 2012-13, the following documents have been filed by the assessee before th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... or the period 01-04-2011 to 3103-2014. (Pg. 110-131 of the Paper Book) xii)Copy of the return filing acknowledgement & audited accounts for AY 2012-13 of loan creditor party namely Hexagon Commerce Pvt. Ltd., along with copy of relevant bank statement reflecting the loan along with confirmation of accounts for AY 2012-13 and copy of the ledger accounts for the period 01-04-2011 to 3103-2019 and letter filed before the AO by the party submitting the details. (Pg.132-157 of the Paper Book) xiii) Copy of the return filing acknowledgement & audited accounts for AY 2012-13 of loan creditor party namely K.B. Switchgear Pvt. Ltd., along with copy of relevant bank statement reflecting the loan along with confirmation of accounts for AY 2012-13 and copy of the ledger accounts for the period 01-04-2011 to 3103-2019 and letter filed before the AO by the party submitting the details.(Pg.158-190 of the Paper Book) xiv)Copy of the return filing acknowledgement & audited accounts for AY 2012-13 of loan creditor party namely Dhoot Industrial & Investment Co. Pvt. Ltd., along with copy of relevant bank statement reflecting the loan along with confirmation of accounts for AY 2012-13 and copy ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he notice dated 02-02-2015 and 30-06-2015 issued by the AO during assessment proceedings. (Pg. 32-33 of the Paper Book) iii)Copy of the reply dated 13-02-2015, Nil, 23-03-2015, 30-07-2015 and 31-072015 filed by the assessee before the Assessing Officer (Pg. 34-43 of the Paper Book) iv)Copy of the summons dated 24-11-2015 & 18-02-2016 issued to the assessee (Pg. 44-45 of the Paper Book) v)Copy of the reply dated 02-03-2016 filed by the assessee complying to the summons issued u/s 131 by the AO. (Pg. 46 of the Paper Book) vi)Details of unsecured loan with the full names and address of the parties along with their PAN No. (Pg. 47 of the Paper Book) vii)Copy of the confirmation of accounts in respect of all the 13 unsecured loan parties for AY 2013-14. (Pg.48-60 of the Paper Book) viii)Copy of the return filing acknowledgement & audited accounts for AY 2013-14 of loan creditor party namely Amrithphal Tradelink Pvt. Ltd., along with copy of relevant bank statement reflecting the loan along with confirmation of accounts for AY 2012-13 and copy of the ledger accounts for the period 01-042012 to 31-03-2019. (Pg. 61-76 of the Paper Book) ix)Copy of the return filing acknowle ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... First Appellate proceedings, had called for remand reports [twice] from the Assessing Officer. The ld. CIT(A) has clearly given a finding that though the remand reports were furnished, the Assessing Officer has not been able to point out any defect in neither the details filed by the assessee in respect of unsecured loan nor has been able to find out any infirmity/falsity in the records furnished by the assessee/lenders in respect of the loan taken from the 12 (twelve) lender companies. The ld. CIT(A) while giving relief to the assessee (for both Assessment Years) has taken note that the assessee had furnished complete details of the loan transactions, including names, addresses, PAN Nos., along with audited accounts, copy of the ITR acknowledgements, bank statements etc before the Assessing Officer as well as before him. The loan confirmation as well as the copy of the audited financial statement for Financial Year 2011-12 of the lenders, lenders' source of funds certificate for the amount lent by them to the assessee, lenders' bank statements evidencing payments of the above sum to the assessee were also filed. The ld. CIT(A) has taken note that the assessee also has submitted i ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s of the opinion that assessee had discharged its onus to prove the identity, creditworthiness and genuineness of the lender companies and had deleted the addition made u/s. 68 of the Act. Before we adjudicate as to whether the Ld. CIT(A)'s action is right or erroneous, let us look at section 68 of the Act and the judicial precedents on the issue at hand. 17.Section 68 under which the addition has been made by the Assessing Officer reads as under: "68. Where any sum is found credited in the books of an assessee maintained for any previous year, and the assessee offers no explanation about the nature and source thereof or the explanation offered by him is not, in the opinion of the Assessing Officer, satisfactory, the sum so credited may be charged to income-tax as the income of the assessee of that previous year. " The phraseology of section 68 is clear. The Legislature has laid down that in the absence of a satisfactory explanation, the unexplained cash credit may be charged to income-tax as the income of the assessee of that previous year. In this case the legislative mandate is not in terms of the words 'shall' be charged to income-tax as the income of the asses ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rthiness and mere non-compliance of summons issued by the Assessing Officer under section 131, by the alleged creditors will not be sufficient to draw and adverse inference against the assessee. in the case of six creditors who appeared before the Assessing Officer and whose statements were recorded by the Assessing Officer, they have admitted having advanced loans to the assessee by account payee cheques and in case the Assessing Officer was not satisfied with the cash amount deposited by those creditors in their bank accounts, the proper course would have been to make assessments in the cases of those creditors by' treating the cash deposits in their bank accounts as unexplained investments of those creditors under section 69 19. In the case of Nemi Chand Kothari 136 Taxman 213, (supra), the Hon'ble Guahati High Court has thrown light on another aspect touching the issue of onus on assessee under section 68, by holding that the same should be decided by taking into consideration the provision of section 106 of the Evidence Act which says that a person can be required to prove only such facts which are in his knowledge. The Hon'ble Court in the said case held that, o ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 106 of the Evidence Act limits the onus of the assessee to the extent of his proving the source from which he has received the cash credit, section 68 gives ample freedom to the Assessing Officer to make inquiry not only into the source(s)of the creditor but also of his (creditor's) sub-creditors and prove, as a result, of such inquiry, that the money received by the assessee, in the form of loan from the creditor, though routed through the sub-creditors, actually belongs to, or was of, the assessee himself. In other words, while section 68 gives the liberty to the Assessing Officer to enquire into the source/source from where the creditor has received the money, section 106 makes the assessee liable to disclose only the source(s) from where he has himself received the credit and IT is not the burden of the assessee to prove the creditworthiness of the source(s) of the sub-creditors. If section 106 and section 68 are to stand together, which they must, then, the interpretation of section 68 are to stand together, which they must, then the interpretation of section 68 has to be in such a way that it does not make section 106 redundant. Hence, the harmonious construction of sect ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ctions which had taken place between the assessee and the creditor and not between the creditor and the sub-creditors, for, it is not even required under the law for the assessee to try to find out as to what sources from where the creditor had received the amount, his special knowledge under section 106 of the Evidence Act may very well remain confined only to the transactions, which he had' with the creditor and he may not know what transaction(s) had taken place between his creditor and the sub-creditor… " ********** "In other words, though under section 68 an Assessing Officer is free to show, with the help of the inquiry conducted by him into the transactions, which have taken place between the creditor and the sub-creditor, that the transaction between the two were not genuine and that the sub-creditor had no creditworthiness, it will not necessarily mean that the loan advanced by the sub-creditor to the creditor was income of the assessee from undisclosed source unless there is evidence, direct or circumstantial, to show that the amount which has been advanced by the sub-creditor to the creditor, had actually been received by the sub-creditor from ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... assessee has discharged the onus which was on him to explain the nature and source of cash credit in question. The assessee discharged the onus by placing (i) confirmation letters of the cash creditors; (ii) their affidavits; (iii) their full addresses and GIR numbers and permanent account numbers. It has found that the assessee's burden stood discharged and so, no addition to his total income on account of cash credit was called for. In view of this finding, we find that the Tribunal was right in reversing the order of the AAC, setting aside the assessment order." 21.We also take note of the decision of the Hon'ble High Court, Calcutta in the case of S.K. Bothra & Sons, HUF v. Income-tax Officer, Ward- 46(3), Kolkata 347 ITR 347 wherein the Court held as follows: "15. It is now a settled law that while considering the question whether the alleged loan taken by the assessee was a genuine transaction, the initial onus is always upon the assessee and if no explanation is given or the explanation given by the appellant is not satisfactory, the Assessing Officer can disbelieve the alleged transaction of loan. But the law is equally settled that if the initial burden is dis ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... n of the judgment of the Commissioner of Income-tax (Appeals) and to ignore the other portion of the same. The judicial propriety and fairness demands that the entire judgment both favourable and unfavourable should have been considered. By not doing so the Tribunal committed grave error in law in upsetting the judgment in the order of the Commissioner of Income-tax (Appeals). 9.In this connection he has drawn our attention to a decision of the Supreme Court in the case of Udhavdas Kewalram v. CIT [19671 66 ITR 462. In this judgment it is noticed that the Supreme Court as proposition of law held that the Tribunal must In deciding an appeal, consider with due care, all the material facts and record its finding on all the contentions raised by the assessee and the Commissioner in the light of the evidence and the relevant law. 10.We find considerable force of the submissions of the learned counsel for the appellant that the Tribunal has merely noticed that since the summons issued before assessment returned unserved and no one came forward to prove. Therefore, it shall be assumed that the assessee failed to prove the existence of the creditors or for that matter the creditworthi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ved from various persons and supply as against cash credit also made. 13.Hence, the judgment and order of the Tribunal is not sustainable. Accordingly, the same is set aside. We restore the judgment and order of the Commissioner of Income-tax (Appeals). The appeal is allowed. 23.When a question as to the creditworthiness of a creditor is to be adjudicated and if the creditor is an Income Tax assessee, it is now well settled by the decision of the Hon'ble Calcutta High Court that the creditworthiness of the creditor cannot be disputed by the AO of the assessee, but only the AO of the creditor. In this regards our attention was drawn to the decision of the Hon'ble High Court, Calcutta in the COMMISSIONER OF INCOME TAX, KOLKA TA-Ill Versus DATAWARE PRIVATE LIMITED ITAT No. 263 of 2011 Date: 21st September, 2011 wherein the Court held as follows: "In our opinion, in such circumstances, the Assessing officer of the assessee cannot take the burden of assessing the profit and loss account of the creditor when admittedly the creditor himself is an income tax assessee. After getting the PAN number and getting the information that the creditor is assessed under the Act, the Asses ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... at after disclosure of the full particulars indicated above, the initial onus of the assessee was shifted and it was the duty of the Assessing Officer to enquire whether those particulars were correct or not and if the Assessing Officer was of the view that the particulars supplied were insufficient to detect the real share applicants, to ask for further particulars. The Assessing Officer has not adopted either of the aforesaid courses but has simply blamed the assessee for not producing those share applicants. In our view, in the case before us so long the Assessing Officer was unable to arrive at a finding that the particulars given by the assessee were false, there was no scope of adding those money under section 68 of the Income- tax Act and the Tribunal below rightly held that the onus was validly discharged. We, thus, find that both the authorities below, on consideration of the materials on record, rightly applied the correct law which are required to be applied in the facts of the present case and, thus, we do not find any reason to interfere with the concurrent findings of fact based on materials on record. The appeal is, thus, devoid of any substance and is di ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... pellant company paid interest after deducting TDS as per ledger available at pages 78 to 84 of the paper book. (iii)In respect of M/s. Maharaja Vanijya Pvt. Ltd., the Ld. AR drew our attention to pages 87 to 109 of the paper book and the Balance sheet, from where we note that this company gave loan of a sum of ₹ 50,00,000/- to the appellant company. The loan was made by account payee cheque. This company duly filed its return of income before ITO Ward 35(4), Kolkata and was having PAN AAFCM3843B. This company was having a paid up capital with free reserves and surplus of ₹ 84,22,297/- as on 31/03/2012. The copy of the bank statement of the Company is duly available in the paper book. On examination of the bank statement it is taken note that there is no deposit of cash. The details of source of funds from which this company had made the loans are also available from a perusal of the bank statement filed in the paper book. On the loan the appellant company paid interest after deducting TDS and the loan was repaid as on 31.3.2019 as per ledger account available at pages 102 to109 of the paper book. iv)In respect of Kokila Exports Pvt. Ltd., the Ld. AR drew our attenti ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... f the bank statement filed in the paper book. On the loan the appellant company paid interest after deducting TDS and the loan was repaid as on 31.3.2019 as per ledger available at pages 182 to 189 of the paper book. The company had also submitted reply to the AO of the appellant company and copy of the reply is available at page 190 of the paper book. vi) In respect of M/s. Dhoot Industrial & Investment Co. Pvt. Ltd., the Ld. AR drew our attention to pages 191 to 225 of the paper book and the Balance sheet, from where we note that this company gave loan of a sum of ₹ 75,00,000/- to the appellant company. The loan was made by account payee cheque. This company duly filed its return of income before DCIT, Circle-6, Kolkata, and was having PAN AABCD1808R. This company was having a paid up capital with free reserves and surplus of ₹ 34,61,96,015/- as on 31/03/2012. The copy of the bank statement of the Company is duly available in the paper book. On examination of the bank statement it is taken note that there is no deposit of cash. The details of source of funds from which this company had made the loans are also available from a perusal of the bank statement filed in th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the Ld. AR drew our attention to pages 265 to 286 of the paper book and the Balance sheet, from where we note that this company gave loan of a sum of ₹ 3,00,00,000/- to the appellant company. The loan was made by account payee cheque. This company duly filed its return of income and was having PAN AAACD9587C. This company was having a paid up capital with free reserves and surplus of ₹ 5,54,24,202/- as on 31/03/2012. The copy of the bank statement of the Company is duly available in the paper book. On examination of the bank statement it is taken note that there is no deposit of cash. The details of source of funds from which this company had made the loans are also available from a perusal of the bank statement filed in the paper book. On the loan the appellant company paid interest after deducting TDS and the loan was repaid as on 31.3.2014 as per ledger available at pages 284 to 286 of the paper book xi)In respect of M/s. Midnight Agencies (P) Ltd., the Ld. AR drew our attention to pages 287 to 304 of the paper book and the Balance sheet, from where we note that this company gave loan of a sum of ₹ 50,00,000/- to the appellant company. The loan was made by ac ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... apital with free reserves and surplus of ₹ 2,21,59,012/- as on 31/03/2013. The copy of the bank statement of the Company is duly available in the paper book. On examination of the bank statement it is taken note that there is no deposit of cash. The details of source of funds from which this company had made the loans are also available from a perusal of the bank statement filed in the paper book. On the loan the appellant company paid interest after deducting TDS and the loan was repaid as on 19-07-2019 as per ledger available at pages 69 to 75 of the paper book. ii)In respect of M/s. Dhoot Industrial & Investment Co. Pvt. Ltd., the Ld. AR drew our attention to pages 77 to 126 of the paper book and the Balance sheet, from where we note that this company gave loan of a sum of ₹ 1,00,00,000/- to the appellant company. The loan was made by account payee cheque. This company duly filed its return of income before DCIT, Circle-6, Kolkata, and was having PAN AABCD1808R. This company was having a paid up capital with free reserves and surplus of ₹ 35,47,13,529/- as on 31/03/2013. The copy of the bank statement of the Company is duly available in the paper book. On exa ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ages 150 to 153 of the paper book. v)In respect of M/s. Rudra Goods Pvt. Ltd., the Ld. AR drew our attention to pages 155 to 170 of the paper book and the Balance sheet, from where we note that this company gave loan of a sum of ₹ 38,00,000/- to the appellant company. The loan was made by account payee cheque. This company duly filed its return of income before ITO, Ward 4(3), Kolkata and was having PAN AAECR0974R. This company was having a paid up capital with free reserves and surplus of ₹ 87,95,6591/- as on 31/03/2013. The copy of the bank statement of the Company is duly available in the paper book. On examination of the bank statement it is taken note that there is no deposit of cash. The details of source of funds from which this company had made the loans are also available from a perusal of the bank statement filed in the paper book. On the loan the appellant company paid interest after deducting TDS and the loan was repaid as on 31.3.2019 as per ledger available at pages 164 to 170 of the paper book. vi)In respect of M/s. Royalpet Traders Pvt. Ltd., the Ld. AR drew our attention to pages 171 194 of the paper book and the Balance sheet, from where we note th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... sactions the AO found deposit in cash before issuing cheques to the assessee , (vii) the lenders are having substantial creditworthiness which is represented by a capital and reserve as noted above. 27.As noted from the judicial precedents cited above, where any sum is found credited in the books of an assessee then there is a duty casted upon the assessee to explain the nature and source of credit found in his books. In the instant case, the credit is in the form of receipt of loan from lending companies. The nature of receipt towards loan is seen from the entries passed in the respective balance sheets of the companies as loan to assessee firm. In respect of source of credit, the assessee has to prove the three necessary ingredients i.e. identity of lenders, genuineness of transactions and creditworthiness of lenders. For proving the identity of lenders, the assessee furnished the name, address, PAN of lender companies together with the copies of balance sheets and Income Tax Returns. With regard to the creditworthiness of the lenders, as we noted supra, these Companies are having capital in several crores of rupees and the investment made in the assessee company is only a smal ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... after discussing the issue of section 68 at length and considering a plethora of judgments. For the sake of brevity the same are not discussed. The case laws relied by the Tribunal will apply mutatis mutandis to this case also and we rely upon them. To sum up section 68 of the Act provides that if any sum found credited in the year in respect of which the assessee fails to explain the nature and source shall be assessed as its undisclosed income. In the facts of the present case, both the nature & source of the loan received was fully explained by the assessee. The assessee had discharged its onus to prove the identity, creditworthiness and genuineness of the lender companies. The PAN details, bank account statements, audited financial statements and Income Tax acknowledgments were placed on AO's record. Accordingly all the three conditions as required u/s. 68 of the Act i.e. the identity, creditworthiness and genuineness of the transaction were placed before the AO and the onus shifted to AO to disprove the materials placed before him. Without doing so, the addition made by the AO is based on conjectures and surmises cannot be justified. In the facts and circumstances of the c ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... me. Tower, M.G.Road, Sector-28, Gurgoan, Haryana.(PAN AACCD2118H) towards sale of shares to them. Copies of purchase and sale invoices were also furnished by the assessee. The nature of such Trade Payable was also explained to the AO. The assessee furnished the complete details including name, address, PAN, Bank statement highlighting the transaction before the AO. The AO has conveniently ignored such details filed by the assessee and made a swiping remark that the assessee failed to produce any documentary evidence with respect to the advance received. The AO has not found any fault in the documents filed by the assessee in this regard. No discrepancy has been pointed out by the AO. The matter was also referred to the AO for remand report on merit after examination of the reply on merit. The AR of the appellate submitted that in Remand Report dated 13.09.2017, the AO has admitted to considering the relevant records & written submissions filed by the appellant before Ld. CIT(A), But the A.O. has not commented anything upon the merits of the case in such report. The AO has only objected that adequate opportunity was provided to the assessee in course of assessment proceedings ther ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... report in the matter. The AO instead of issuing' the summon u/s 131 to the lender for verification of identity, financial capacity and genuineness of the transaction, issued summon to the directors of the company who has already filed all the relevant details like list of the party, conformation and source of the fund."And thereafter, the Ld CIT(A) deleted the addition 33.Having heard both parties, we note that AO has made the addition of sum Rs .16,20,000/- received by the assessee as 'advance under section 68 of the Act as unexplained cash credit'. It is noted that pursuant to notice issued by AO u/s 142(1) of the Act, the assessee explained that it had received sum of ₹ 16,20,000/- from M/s Dhoot Infrastructure Projects Limited, 904-907, TimeTower, M.G.Road, Sector-28, Gurgoan, Haryana.(PAN AACCD2118H) towards sale of shares to them. Copies of purchase and sale invoices were also furnished by the assessee. Copy of the invoice dated 15-03-2013 of ₹ 16,20,000/- against trade payable in the name of Dhoot Infrastructure Projects Ltd. against sale of equity shares along with copy of the ledger accounts for the period 01-04-2012 to 31-03-2013. (Pg. 221-222 of th ..... X X X X Extracts X X X X X X X X Extracts X X X X
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