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TMI Blog2021 (12) TMI 1070X X X X Extracts X X X X X X X X Extracts X X X X ..... er. Under the circumstances, it seems that the assessee has a fair case on merits. In our view, interest of justice will be well served, if the assessee is given an opportunity to produce the relevant evidences before the Assessing officer.The impugned order of the CIT(A) is set aside and the matter is restored to the file of the Assessing officer for decision afresh. Appeal of the assessee is treated as allowed for statistical purposes. X X X X Extracts X X X X X X X X Extracts X X X X ..... ined unexplained. Since the assessee has not furnished any information regarding the source of this credit to share capital, it is liable to be deemed to be the income of the assessee u/s. 68 of the Income-tax Act, 1961. Accordingly the amount of ₹ 50,00,000/- is deemed to be the income of the assessee and added to its income." 2. Unexplained Unsecured Loans of ₹ 11,50,000/-:- "As per information furnished, during the A.Y. the assessee has raised unsecured loans from the following persons during the year. Sr. No. Name Amount 1. Stuti Gupta 10,00,000/- 2. Kusum Devi Vaid 1,50,000/- Total 11,50,000/- The assessee was asked to intimate the details of the above persons and to furnish the details and evidences of their sources. Only the copies of accounts have been furnished all of which are not even confirmed. No further details have been given. Accordingly there is no information regarding the identity, capacity, creditworthiness and sources of these persons. In this way the above amount of ₹ 11,50,000/- has remained unexplained. Since the assessee has not furnished any information regarding the source of these credits, it is liable t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... itted that the assessee company had received loans of ₹ 10 lakhs and ₹ 1,50,000/- from M/s. Stuti Gupta and Kusum Devi Vaid through Financial brokers, through banking channels, in the course of their day to day business. Interest amount of ₹ 1,59,500/- was paid on regular basis through banking channels, after making TDS. The amounts of loans were raised from Smt. Stuti Gupta and Kusum Devi Vaid for a short period, and were duly returned to the concerned parties, during the year ending 31-03-2011. On interest paid to Smt. Shruti Gupta, TDS was deducted, as per the law. That in the case of Smt. Kusum Devi Vaid, on payment of interest TDS was not applicable. The Ld. Counsel has further submitted that during the period, when the assessment proceedings were pending in the case, the Directors of the Company were under depression due to recovery proceedings initiated by their Bankers viz. Bank of India. The said company had raised loan of ₹ 30 Crores from Bank of India as Cash Credit Limit and equal amount of ₹ 30 Crs., was being availed as Cash Credit against book debts, against stocks, book debts and immovable properties of the directors of the company. Th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... . counsel for the assessee has relied upon the order of the Ld. CIT(A) in Penalty Appeal No. 38/IT/CIT(A)-1/Ldh./2019-20 dated 3.7.2020 and further submitted that considering the evidences furnished by the assessee, the Ld. CIT(A) deleted the penalty levied in respect of the impugned additions. The relevant para of the order of the Ld. CIT(A) in penalty appeal is reproduced as under:- "On an appreciation of the entire factual matrix of the case, it is evident that the claim of receipt of share application money alongwith premium of ₹ 50 lakhs and unsecured loans of ₹ 11,50,000/- was not found to be admissible because the appellant could not produce the necessary documentation for the said claim at the appellate stage. In the assessment proceedings, there was no compliance before the AO and hence the order of assessment was framed ex parte under the provisions of section 144. However, during the penalty proceedings, all the necessary documentation was adduced before the AO, who simply refused to acknowledge them and reiterated the findings of the assessment qua the additions confirmed by the First Appellate Authority. Besides, the AO, while considering imposition ..... X X X X Extracts X X X X X X X X Extracts X X X X
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