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TMI Blog2021 (10) TMI 24X X X X Extracts X X X X X X X X Extracts X X X X ..... e creditors to the assessee - in the absence of any specific defect being pointed out in the order of the CIT(A), we find no good reason to interfere with the order of the CIT(A), which is hereby confirmed and the grounds of appeal of the revenue are dismissed. - ITA No. 479/Ind/2017 - - - Dated:- 29-9-2021 - S/SHRI C.M. GARG, JUDICIAL MEMBER AND MANISH BORAD, ACCOUNTANT MEMBER Assessee by : Shri P. K.Singh, SR DR Revenue by : Shri Prakash Jain Ms Shreya Jain, CAs ORDER Per Bench This is an appeal filed by the assessee against the order of the CIT(A)-III, Indore dated 25.4.2017 for the assessment year 2013-14. 2. The revenue has taken the following grounds: 1. Whether on the facts and in the circumst ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ss and genuineness of the transactions cannot be established. Hence, the AO treated the loan as unexplained cash credit and added the same to the income of the assessee u/s.68 of the Act in respect of loan of ₹ 1,50,000/-. However, in respect of loan of ₹ 1,00,00,000/- from Cube Infrastructure Pvt Ltd., as opening balance, he treated the same as unexplained in the relevant assessment year. The AO found that the assessee has paid interest of ₹ 2,55,539/- to Excellent Infrabuild Pvt Ltd., ₹ 4,88,096/- to Achiever Commotrade Pvt Ltd., and ₹ 6,65,124/- to Cube Infrastructure Pvt Ltd., totaling to ₹ 14,08,759/-. As the loans were treated as unexplained, therefore, the interest paid of ₹ 14,08,759/- on th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Infrabuild Pvt Ltd. 45,00,000 16,55,268 5,00,43,444 5,08,99,654 5. From the above financial details of above three creditors, the ld CIT(A) observed that the identity, creditworthiness and genuineness of transactions are not doubted. He also noted that from the significant income returns, and reserves and surplus, it is ample clear that all creditors have sufficient funds to advance the loan. Hence, he deleted the addition of ₹ 1,50,00,000/- made by the AO. Aggrieved by the deletion of addition, the revenue is in appeal before the Tribunal. 6. Ld Sr DR supporting the order of the Assessing Officer submitted that when the Assessing Officer iss ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the A.O. are as under:- Name of the Party Amt of Loan received during the vear Interest Paid Achiever Commotrade (P) Ltd 1,05,00,000 4,88,096 Excellent Infrabuild (P) Ltd 45,00,000 2,83,932 Cube Infrastructure (P) Ltd Nil 6,65,124 Total 1,50,00,000 j 14,08,759 4.2 The Assessing Officer issued notice u/s 133(6) to the above mentioned parties at the addresses as given on MCA-21 site. After the notices were returned back ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ) were sent to all the three creditors at the addresses provided by the appellant and the replies have been received. The confirmation of account, bank statement, copy of return and copy of the ledger account of the appellant have been submitted. 4.5 The Assessing Officer has emphasized that the three credit: companies had filed returns of income which are negligible in comparison ..o the quantum of the loan and has therefore submitted that these companies do not have sufficient creditworthiness to lend such huge amounts. The key financials of the creditor companies are as under:- Name of the company Loan given Income as per income tax return available with AO ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Infrabuild Pvt. Ltd. and ₹ 1,05,00,000/- from M/s Achiever Commo Trade (P) Ltd. is not sustainable. Ground Nos. and 2.4 are allowed. 5. Ground No. 3 (erroneously written as ground no. 4) This ground of appeal is regarding the interest of ₹ 14,08,759/- paid to following creditors :- (i) M/s Excellent Infrabuild Pvt. Ltd : ₹ 2,55,539 (ii) M/s Acheiver Commodtrade P. Ltd., : ₹ 4,88,096/ (iii) M/s Cube Infrastructure Pvt. Ltd `: ₹ 6,65,124/- 5.1 The addition of ₹ 1,50,00,000/- on account of loan unsecured loan of ₹ 45,00,000/- from M/s Excellent Infrabuild Pvt. Ltd. and ₹ 1,05,00,000/- from M/s Achiever Commo Trade (P) Ltd. has been deleted as discussed above and ther ..... X X X X Extracts X X X X X X X X Extracts X X X X
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