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TMI Blog2023 (10) TMI 463X X X X Extracts X X X X X X X X Extracts X X X X ..... us, the interest also rightly disallowed by the AO. CIT(A) has right to relied on the judgment of Mihir Kanti Hazra [ 2015 (5) TMI 319 - CALCUTTA HIGH COURT] wherein it was held that it is now well settled that the creditworthiness of the alleged creditors and the source of the source are relevant enquiries. We unable to see any valid reason to interfere with the findings recorded by the CIT(A) while confirming both the additions. Decided against assessee. - Sh. G. S. Pannu, President And Shri Chandra Mohan Garg, Judicial Member For the Assessee : None For the Revenue : Ms. Anubhaa Tah, Sr. D.R. ORDER PER CHANDRA MOHAN GARG, JM : The captioned appeal filed by the assessee is directed against the order of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... a) of the Act. But Ld. AO has erred by disallowing it again. 5. It is therefore prayed that the above addition may please be deleted as learned members of the tribunal may deem it proper. 3. When the appeal was called for hearing neither the assessee nor any authorised representative or Counsel appeared nor any adjournment application has been filed despite due service of notice. Therefore, we proceed to decide the appeal ex parte qua assessee after hearing the arguments of Learned Sr. D.R. on behalf of the department. 4. Ground Nos.1 and 2 of Assessee : As per these grounds, the contentions of the assessee that the learned CIT(A) has erred in confirming the action of AO in making addition of Rs. 2,18,66,082/- on account of uns ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... submitted that the learned First Appellate Authority after considering the conclusion drawn by the AO in the assessment order, submissions of assessee filed during first appellate proceedings rightly upheld the additions made by AO. The learned Sr. DR also submitted that since the assessee has failed to discharge the onus of establishing creditworthiness of lenders/creditors and genuineness of transactions of unsecured loan viz-a-viz payment of interest thereon as per mandate of Section 68 of the Act, therefore, grounds of assessee being devoid of merits may kindly be dismissed. 6. On careful consideration of the submissions, first of all, we note that the Assessing Officer after allowing the due opportunity to the assessee made two addi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... g the year an amount of Rs. 1,75,51,113/- was received by the appellant from M/s PR Niryat Pvt. Ltd. The AO also noted that the interest of Rs. 43,14,969/- has been charged. Since, the source of funds is doubtful, the same has been added by the u/s 68 in the hand of the appellant company. Since the loan has been treated as bogus, interest of Rs. 43,14,969/- has been also disallowed. Despite repeated opportunities the appellant company could not prove the credit worthiness of PR Niryat Pvt Ltd. In the case of CIT v Mihir Kanti Hazra [2015] 61 taxmann.com 315 (Calcutta) Hon'ble High Court of Calcutta has held that It is now well settled that the creditworthiness of the alleged creditors and the source of the source are relevant enquiries ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ded by the AO u/s 68 of the Act. The learned CIT(A) while confirming the second part of addition also concluded that since the loans has been treated as bogus, the interest of Rs. 43,19,969/- also rightly disallowed by the AO. The learned CIT(A) has right to relied on the judgment of Hon ble High Court of Calcutta in the case of Mihir Kanti Hazra (supra), wherein it was held that it is now well settled that the creditworthiness of the alleged creditors and the source of the source are relevant enquiries. We unable to see any valid reason to interfere with the findings recorded by the Learned CIT(A) while confirming both the additions. Therefore, ground nos.1 2 of assessee being devoid of merits are dismissed. 8. Ground Nos.3 4 of a ..... X X X X Extracts X X X X X X X X Extracts X X X X
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