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TMI Blog2022 (2) TMI 183X X X X Extracts X X X X X X X X Extracts X X X X ..... itting the additional evidences under Rule 46A without appreciating the fact that the case of the assessee did not fall under any of the clause of Rule 46A and the AO has also objected to admission of additional evidences? 2. Whether on the facts and in the circumstances of the case, the decision of Id. CIT(A) is justified in allowing relief with regard to the disallowance made of Rs. 2,21,65,000/- on account of Unsecured loan and Rs. 24,34,461/- on account of interest against the said unsecured loans, overlooking the facts of the case that the assessee had failed to prove the genuineness and credit worthiness of the depositors at the time of assessment, even though assessee was given sufficient opportunity and also while submitting the r ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... c. were furnished in respect of these creditors, and accordingly, the AO made addition under section 68 on account of unsecured loans amounting to Rs. 2,23,65,000/- and disallowed the corresponding interest debited/claimed at Rs. 24,68,471/-. He, added these two amounts to the returned income of the assessee, and thus assessed income at Rs. 13,87,22,335/-. 4. Aggrieved by the order of the AO, the assessee filed an appeal before the ld.CIT(A). During the appellate proceedings before the ld.CIT(A), the assessee filed an application dated 3.11.2017 for admission of additional evidence under Rule 46A of the Income Tax Rules, 1962, comprising of copies of the documents in respect of all the unsecured loans, which could not be submitted before t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... section 142(1) of the Act (copy at page no.38 of paper book) requesting for various details of unsecured loans in tabular form, namely, opening balance, amount received, repaid during the year, interest credited/paid and closing balance along with cogent evidence that prove genuineness of transactions and credit-worthiness of depositors to cumulatively satisfy all the conditions of sections 68 of the Act. He submitted that AO directed the assessee to produce entire details called for in the notice by 22.3.2016. The ld.counsel for the assessee contended that this show cause notice dated 17.3.2016 (day being Thursday) was received by the assessee on 18.3.2016 (Friday) at 5:00pm, and within a short span of three days (including holidays), the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... which loans were given and detail of bank account from which cheques were given. The AO has also mentioned that copies of ITRs were given. From a perusal of the findings of the AO, confirmations and other documents filed by the appellant, and other details sent; by the above fifteen (15) persons to the AO directly as mentioned by the AO in his Remand Report, the identity and creditworthiness of the above creditors and genuineness of the transactions in respect of unsecured loans given by the above persons to the appellant except in case of Bhavnaben N. Vyas are clearly established. It is further seen that in all cases the unsecured loans had been given by cheque and the transactions are duly reflected in the bank statements of the creditor ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... , because of shortage of time given to the assessee for production of details, the assessee was prevented by reasonable cause from producing evidences before the AO. During the appellate proceedings before the ld.CIT(A), the assessee made requisite application for admission of additional evidence under Rule 46A vide letter dated 3.1.2017, and the same was forwarded by the ld.CIT(A) to the AO seeking remand report. Further, the AO in the Remand Report confirmed the details furnished by the assessee in respect of all the 15 creditors, wherein identity, credit-worthiness and genuineness of the transactions were stated to be established on evidence. Based on the report of the AO, the ld.CIT(A) substantially deleted addition i.e. to the extent o ..... X X X X Extracts X X X X X X X X Extracts X X X X
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