9911796707
TMI Blog2023 (11) TMI 26X X X X Extracts X X X X X X X X Extracts X X X X ..... short 'the AO') observed that as per the Balance Sheet of the assessee company, during the year under consideration, unsecured loan of Rs. 16,97,000/- had been taken by the company from Shri Sunny Garg, Director of the company. To verify the genuineness and credit worthiness of the transaction, the assessee was asked to furnish copy of PAN and Income Tax Returns of Shri Sunny Garg for the last three years and in the absence thereof, to show cause as to why it should not be treated as unexplained, as per provisions of the Income Tax Act. 3. In response, the assessee submitted before the AO that the entire transactions of unsecured loans from Shri Sunny Garg had been done through proper banking channels only; that all the relevant transactions were financed by Shri Sunny Garg through various sources; that for brevity and ease of reference, copy of Bank Statement showing the transactions of both debit and credit, was being enclosed; that as per the Bank Statement, the relevant entries of unsecured loan showed that the amounts had been received from the account of Shri Sunny Garg only; that Shri Sunny Garg was the Director of the company; that such practice of receipt of unsecured lo ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ing unsecured loan of Rs. 16,97,000/-; that such onus was not discharged; and that so, the AO was justified in treating the amount as unexplained credit in the books of account u/s 68 of the Act. 6. Before us, the ld. Counsel for the assessee has contended that where, as in the present case, the Director of the company has not filed his return of income, it is impossible for the assessee company to submit his ITR before the AO; that the law does not permit the adjudicating authority to compel an assessee to perform an impossible task; that separate assessment proceedings u/s 147 of the Act had been initiated against Shri Sunny Garg, Director of the assessee company, for the year under consideration; that it was in response to the notice u/s 148 of the Act that Shri Sunny Garg filed his return of income for assessment year 2018-19 on 30.03.2023, that for assessment year 2017-18, on 21.02.2023 and that for assessment year 2016-17, on 20.02.2023. In this regard, the acknowledgement of these ITRs have been filed before us, which have been sought to be admitted as additional evidence. It has been stated that assessment orders in the case of Shri Sunny Garg were passed, for assessment y ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... order. Further, such evidence is in the public domain and available with the Department. Such evidence is in the shape of ITR of Shri Sunny Garg for assessment years 2016-17 to 2018-19 and his assessment orders for these years. The assessment orders were passed after the passing of the order presently under appeal and the ITR was filed only on issuance of notice u/s 148 of the Act. These evidences are essential for a proper adjudication of the matter at hand. Therefore, these additional evidences are admitted. 11. The ld. CIT(A), while confirming the addition, has observed that the assessee did not furnish copies of ITR of Shri Sunny Garg and that no explanation regarding the source of credits in the bank account of Shri Sunny Garg was furnished. We find that the ITR in the case of Shri Sunny Garg was filed on 30.03.2023, i.e., after the passing of the order of the ld. CIT(A), on 18.01.2023, in the case of the assessee. In pursuance of the ITR, assessment order in the case of Shri Sunny Garg stands independently passed on 30.05.2023, where the ITR was filed on 30.03.2023. The amount of Rs. 16,97,000/- stands assessed in the hands of Shri Sunny Garg, Director of the assessee compan ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ehicle Running and Maintenance Expenses, ROC Expenses, Repair and Maintenance Expenses, Miscellaneous Expenses, and Audit Fees payable. 18. The AO observed that the assessee's reply was not tenable, as no satisfactory documentary evidences or details had been furnished by the assessee. It was observed that no details of source of payment of copies of bills/vouchers had been submitted by the assessee; that further, it was also seen from the copies of accounts furnished by the assessee that the payments had been made in cash, however, no supporting documents like Cash Book or Log Book had been furnished to enable the verification of the assessee's claim, if the expenses had been incurred wholly and exclusively for the purpose of business, and the source of the payments; that no details of the nature of the ROC Fees had been furnished; that thus, ROC Fees being capital in nature, could not be allowed; that neither details of source of Audit Payment had been filed, nor had it been shown on the liability side in the Balance Sheet. Thus, the AO disallowed the claim of Rs. 2,99,120/-, in the absence of supporting evidences, and added it back to the assessee's total income for ..... X X X X Extracts X X X X X X X X Extracts X X X X
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