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TMI Blog2022 (1) TMI 1086X X X X Extracts X X X X X X X X Extracts X X X X ..... . Nothing has been brought on record that whether identity, genuineness and creditworthiness of these cash creditors were ever disputed by revenue authorities in the preceding years as no such material was put forth by the Ld. DR. Remaining amount we find that out of this sum amount of ₹ 40,50,000/- was received and was repaid during the year itself and for the remaining amount of unsecured loan of ₹ 40,50,000/- was repaid in subsequent A.Y. 2006-07. Assessee had filed complete details of confirmation of account, copies of Income Tax Return of the cash creditors along with bank statements to explain the identity, genuineness and creditworthiness of all the alleged unsecured loans. Revenue authorities failed to find any discrepancy in these documents and even before us also Ld. DR could not file any evidence to challenge the evidences filed by the assessee. Under these given facts and circumstances of the case we find merit in the finding of Ld. CIT(A) and the same stands confirmed. Accordingly, ground no.2 3 raised by the revenue stands dismissed. Disallowance of purchase iron scrap - HELD THAT:- We find that the AO made the disallowance for want of verific ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d, Accountant Member For the Revenue : Shri Amit Soni, Sr. DR For the Assessee : Shri C.P. Rawka, Venus Rawka, ARs ORDER PER MANISH BORAD, A.M The above captioned appeal filed at the instance of the Revenue for Assessment Year 2005-06 is directed against the orders of Ld. Commissioner of Income Tax(Appeals)-II(in short Ld. CIT], Indore dated 07.03.2018 which are arising out of the order u/s 143(3) of the Income Tax Act 1961(In short the Act ) dated 24.12.2017 framed by ACIT-3(1), Indore. 2. Brief facts of the case as culled out from the records are that the assessee is an individual engaged in the business of trading in Jute Bags. Return for A.Y. 2005-06 was filed on 25.10.2005 declaring income of ₹ 1,86,900/-. Case selected for scrutiny followed by serving of notices u/s 143(2) 142(1) of the Act. When the case was fixed non attended. Again an opportunity was given and assessee filed written submissions. However, books of accounts were not produced and thereafter there was no appearance on behalf of the assessee. Ld. Assessing Officer proceeded to complete the assessment on the basis of return of income and annexures and documents attached t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ding in detail in the remand report which proves that the creditworthiness, genuineness and identity are not proved to the satisfaction of the assessing officer as per the provisions of Section 68 of the Income Tax Act, 1961. 4.Whether on the facts and in the circumstances of the case, Ld. CIT(A) is justified in deleting the addition of ₹ 9,39,798/- made by the AO in respect of purchase of scrap without appreciating the factual position that the assessee has not submitted any purchase bill and not furnished any TCS certificate to support the purchase? 5.Whether on the facts and in the circumstances of the case, Ld. CIT(A) is justified in deleting the addition made by the AD in respect of disallowance made u/s. 40(a)(ia) of the Income Tax Act, 1961 amounting to ₹ 4,77,446/- ignoring the finding of assessment order. 6.Whether on the facts and in the circumstances of the case, Ld. CIT(A) is justified in deleting the addition made by the AD in respect of capital gains in which the assessee has not furnished the relevant documents to explain the capital gains? 7.The appellant craves leave to add to, deduct from or otherwise amend the above grounds of appe ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of Ld. CIT(A) and also going through the details in the paper book we find that the assessee is carrying on business consistently. Since the tax audit report has been filed, the facts remain undisputed that the books of account are regularly maintained. In the profit and loss account, various expenses incidental to running the business have been claimed. These expenses are duly supported by the Audit Report. Looking to the consistent running of business of the assessee this action of the Ld. Assessing Officer of disallowing all the expenses claimed in the profit and loss account was not justified. Ld. CIT(A) has rightly deleted the addition which calls no interference. Thus ground no.1 raised by the revenue stands dismissed. 9. Apropos to ground no.2 3 which relates to addition made u/s 68 for unsecured loan of ₹ 81 lacs and ₹ 1,18,66,871/- made by the Ld. Assessing Officer we find that Ld. CIT(A) deleted this addition giving following finding of facts:- This ground of appeal is with regard to making additi9on of ₹ 81,00,000/- ₹ 1,18,66,871/- u/s 68 of the IT, Act 1961, addition of ₹ 2,71,500/- as capital gains and addition of ₹ 9,39,79 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... that whether identity, genuineness and creditworthiness of these cash creditors were ever disputed by revenue authorities in the preceding years as no such material was put forth by the Ld. DR. 9.2 As regards remaining amount of ₹ 81 lack is concerned we find that out of this sum amount of ₹ 40,50,000/- was received and was repaid during the year itself and for the remaining amount of unsecured loan of ₹ 40,50,000/- was repaid in subsequent A.Y. 2006-07. 9.3 We also find that the assessee had filed complete details of confirmation of account, copies of Income Tax Return of the cash creditors along with bank statements to explain the identity, genuineness and creditworthiness of all the alleged unsecured loans. Revenue authorities failed to find any discrepancy in these documents and even before us also Ld. DR could not file any evidence to challenge the evidences filed by the assessee. Under these given facts and circumstances of the case we find merit in the finding of Ld. CIT(A) and the same stands confirmed. Accordingly, ground no.2 3 raised by the revenue stands dismissed. 10. Apropos to ground no.4 relating to addition of ₹ 9,39,798/- for the ..... 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