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TMI Blog2020 (12) TMI 588X X X X Extracts X X X X X X X X Extracts X X X X ..... For the Appellant : D. Balaji, AR For thr Respondents : D. K. Sonowal, CIT DR ORDER Per Shri D.S. Sunder Singh. Accountant Member: This appeal is filed by the assessee against the order of the Commissioner of Income Tax (Appeals) [CIT(A)]-1, Visakhapatnam in ITA No. 0059/2015-16/ITO/WD-1,VZM/2016-17 dated 26.07.2018 for the Assessment Year [A.Y.] 2012-13. 2. All the grounds of appeal are related to sustaining the addition made by the Assessing Officer (AO) u/s. 68 of the Income Tax Act, 1961 (in short 'Act'). 3. The assessee filed the return of income declaring total income of ₹ 14,59,785/- which was set off against the loss of earlier years. During the course of assessment proceedings, the AO found th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... addition in the A.Y. 2012-13 against the credit made in the books of accounts in the F.Y. 2008-09 relevant to the A.Y. 2009-10. According to the assessee, the AO is not permitted to make the addition in the A.Y. 2012-13 since the money was received and found credited in the F.Y. 2008-09, relevant to the A.Y. 2009-10. The Ld. CIT(A) was not convinced with the argument of the assessee and confirmed the addition made by the AO since, the investor company found to be having no credit worthiness. The assessee made detailed argument in their written submissions challenging the taxability of the sum in the impugned assessment year instead of 2008-09. The submissions made by the assessee before the Ld. CIT(A) reads as under: The papers before ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ive rise to a question of law, much less a substantial question of law. (Annexure--5) In another case reported in the same 301 ITR at page 404, the Rajasthan High Court had an occasion to examine an instance where the addition of cash credit was made in a subsequent year and not in the year it was generated. Without further going into the collateral details, the Hon'ble court observed that it does not require any elaborate argument that a carried forward amount of the previous year does not become an investment or cash credit generated during the relevant year 1993-1994. This alone is sufficient to sustain the order of the Tribunal in deleting the amount of ₹ 1,55,316/- from the assessment for AY 1993-94. (CIT Vs. Parmeshwa ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... there is no case for making the addition in the hands of the assessee u/s. 68 of the Act. Hence argued that the order of the Ld. CIT(A) be set aside and the addition be deleted. 6. On the other hand, the Ld. DR vehemently supported the orders of the lower authorities and argued that in the instant case, the share application money was received from the company which is having no net worth, hence, submitted that the source of share capital was neither genuine nor the company is having net worth thus, argued that no interference is called for in the orders of the lower authorities and hence requested to uphold the order of the Ld. CIT(A) and dismiss the appeal of the assessee. 7. We have heard both the parties and perused the material ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Hon'ble Rajasthan High Court in 301 ITR 404 and the decision of this Tribunal in 2016 (8) TMI 469 and ITA No. 594/Viz/2014. For the sake of clarity and convenience, we extract relevant part of the order of this Tribunal in ITA No. 594/Viz/2014 which reads as under: 6. We have heard both the parties, perused the materials available on record and gone through the orders of the authorities below. The A.O. made additions u/s. 68 of the Act towards unsecured loans. The A.O. was of the opinion that the assessee has not proved the genuineness of the transactions and creditworthiness of the parties in respect of these 5 creditors out of 9 creditors. The A.O. further observed that the creditors have admitted that they themselves have inve ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ks of accounts is taxable during that financial year. In the present case on hand, on perusal of the facts available on record, we noticed that the assessee has accepted loans from various individuals during the previous financial year 2008-09. During the financial year 2009-10 the assessee has re-grouped the various loan accounts into these 5 creditors' accounts by passing necessary journal entries. We further noticed that there is no fresh credit accepted during the current financial year. All the credits are transferred from the previous financial year. Therefore, we are of the view that the A.O. was not correct in making additions towards brought forward credits during the financial year 2009-10. The CIT(A) after considering the rel ..... X X X X Extracts X X X X X X X X Extracts X X X X
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