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TMI Blog2022 (11) TMI 986X X X X Extracts X X X X X X X X Extracts X X X X ..... ee. According to the assessee, all the transactions relating to the creditworthiness of the creditors of HICSPL could be deciphered from the income tax returns and other financial statements furnished now. It is necessary to admit the additional evidence which has a bearing on the issue before us. Since a factual verification is necessary in this matter, which could conveniently be done by AO we set aside the impugned orders and restore the issue to the file to verify the evidence now produced and decide the issue afresh -Grounds are accordingly treated as allowed for statistical purposes. - ITA No. 374/Hyd/2018 - - - Dated:- 3-11-2022 - SHRI RAMA KANTA PANDA , ACCOUNTANT MEMBER And SHRI K. NARASIMHA CHARY , JUDICIAL MEMBER Asse ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e are no bank loans and no other liabilities like sanitary creditors, and in short the entire sources of funds of HICSPL is unsecured loans only; iii. on the asset side out of the Balance Sheet total of Rs. 13,15,90,670/-, Rs. 12,98,85,659/- is on account of short term loans and advances to others , it is evident that HICSPL has almost given the entire unsecured loans received by it as unsecured loan to others, it shows that HICSPL neither paid the interest on the unsecured loans received by it not charged interest on the unsecured loans given by it, they fixed assets of the company or only Rs. 43,670/- and accepted depreciation, no other expenditure has been claimed, the details of shareholders and nature of business have also not be ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... charged initial burden by furnishing confirmation letters from the creditor and other details, and if for any reason the learned Assessing Officer entertain any doubt regarding the identity, genuineness and the creditworthiness of the crater, the learned Assessing Officer could have conducted necessary enquiries before coming to any adverse conclusion. Apart from this the assessee had taken the alternative plea that the learned Assessing Officer misdirected herself and wrongly took the closing balance as on 31/3/2013 at Rs. 7,24,37,481/- whereas it was actually the total credits for the year under consideration. 6. Ld. CIT(A) having considered the material before him reached the same conclusion as that of the learned Assessing Officer, i ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... source, made the disallowance. 9. In this context, assessee filed the details of the creditors of HICSPL with the returns of income of the creditors of HICSPL and all other relevant material like their financials alongwith a petition to admit the additional evidence, stating that before the authorities below, the assessee, to justify the genuineness of the credit, relied on the claim that the amounts were received by it from a corporate entity assessed to tax separately and the transactions were duly recorded in the books of the lending company. Since the authorities, however, now questioned the source of the source the assessee is furnishing all the details in supports of the creditworthiness of HICSPL and the genuineness of the transac ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... lance of HICSPL, the worth of the fixed assets possessed by HICSPL and the details of shareholders and the nature of business not being discussed in the annual report. In a way the authorities doubted the creditworthiness of the source of HICSPL. 13. In these circumstances, we are of the considered opinion that the non-production of the details of the source of source cannot be dubbed as negligence on the part of the assessee. Further according to the assessee, all the transactions relating to the creditworthiness of the creditors of HICSPL could be deciphered from the income tax returns and other financial statements furnished now. We are, therefore, of the considered opinion that it is necessary to admit the additional evidence which h ..... X X X X Extracts X X X X X X X X Extracts X X X X
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