9911796707
TMI Blog2022 (6) TMI 600X X X X Extracts X X X X X X X X Extracts X X X X ..... e also failed to produce the director of M/s innovative spinning and knitting Private Limited. Even during appellate proceedings, the assessee failed to produce him before the lower authorities. In our opinion, by way of merely stating that said person was absconding and therefore he could not be produced before the AO is not sufficient to discharge onus under section 68 of the Act. It is the onus on the assessee to explain the identity and creditworthiness of the person from whom credit is shown to have been received and also to establish genuineness of the transaction. In the facts and circumstances of the case, the assessee has failed to substantiate with evidences to explain all the three ingredients of section 68 therefore the CIT(A) i ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ny proceedings, the Assessing Officer on verification of the bank statement found this sum as received on 04/05/2011 through RTGS and out of the same, the assessee transferred ₹1,99,75,000/- to M/s Garandiose Jewelry Private Limited on same date. The assessee however submitted that in books of account the credit of ₹1,40,00,000/- was transferred and recorded against to M/s Aqua Glitters marketing Private Limited (i.e. associate concern of M/s Innovative Spinning and Knitting Private Limited), which was further transferred to M/s Mumbai Gems and diamonds Private Limited (i.e. an associate concern of the assessee). For verification of the parties, the Assessing Officer issued notice under section 133(6) of the Income-Tax Act, 1961 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ies (outstanding amount at the year-end). Thus, there is no doubt about this transaction and credit to be given to M/s Mumbai Gems and Diamonds P Ltd as per internal directions and in view of the fact that certain sales were also made by M/s Mumbai Gems and Diamonds P Ltd to M/s Aqua Glitters Marketing P Ltd. With regard to Rs. 60 lakhs the amount was adjusted in the accounts of M/s Baid Electronics Distribution P Ltd as journal entry against payment of Rs. 80 lakhs on 6/6/2011 as seen from the ledger copy of M/s Baid Electronics Distribution P Ltd found in the books of assessee company. Therefore credit for this amount also to be given. Since these transfer of credits have taken place with the directions of M/s Innovative Spinning and Knit ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... record. The assessee in its books of accounts has shown receipt of ₹2.00 crores from M/s Innovative Spinning and Knitting Private Limited. Further the assessee has shown this amount as transferred in the name of another two entities. All these three entities were not found at the addresses provided by the assessee, during verification by the Assessing Officer invoking section 133(6) of the Act. On being asked, the assessee also failed to produce the director of M/s innovative spinning and knitting Private Limited. Even during appellate proceedings, the assessee failed to produce him before the lower authorities. In our opinion, by way of merely stating that said person was absconding and therefore he could not be produced before the ..... X X X X Extracts X X X X X X X X Extracts X X X X
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