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TMI Blog2023 (11) TMI 1144X X X X Extracts X X X X X X X X Extracts X X X X ..... fied, unlawful and unwarranted addition of Rs. 8,51,90,000/- on account of Share Application Money u/s 68 of the Income Tax Act 1961; 2. That on the facts and circumstances of the case, the learned CIT(Appeals) has erred in law while upholding the unjustified, unlawful and unwarranted addition of Rs. 85,35,082/- which is of the nature of capital expenses being investment in to Fixed Assets of the appellant Company during the year ended on 31.03.2012; 3. That on the facts and circumstances of the case, the learned CIT(Appeals) has erred in law while upholding the unjustified, unlawful and unwarranted addition of Rs. 89,17,078/-on account of sundry creditors and 4. That on the facts and circumstances of the case, the learned CIT(Appe ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... sessee. During the appellate proceedings, the assessee produced various copies of the documents, therefore, the CIT(A) sought for Remand Report from the A.O. and after considering the Remand Report, the Ld. CIT(A) has rightly dismissed the appeal as the assessee was not able to prove the creditworthiness of the creditors and genuineness of the transaction, therefore, submitted that the order of the lower authorities requires no interference. 6. We have heard the Ld. DR and perused the materials available on record. The assessment order came to be passed u/s 144 of the Act as the assessee made non-compliance. The assessee during the appellate proceedings produced various copies of the documents, therefore, the Ld. CIT(A) called for Remand R ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ssessment proceedings The assessment proceeding has been completed u/s 144 of IT Act, 1961 on 27/02/2015 of the income of Rs.9,67,80,973/-. The following additions had been made by the AO on account of unexplained cash credits in the books of account:- 1. Addition on account of disallowance of addition in fixed assets amounting to Rs. 85,35.082/-. 2. Addition on at count of sundry creditors amounting to Rs 89,17,078/-. 3. Addition of account of sundry creditors amounting to Rs. 89,17,078/-. 4. Addition on account of expenses claimed in P&L account amounting to Rs. 2,64,41,830/-. However, on merits quo the requisite report in the matter is submitted as under:- 1. Addition of Rs. 8.51.90,00P/ u/s 68 on account of unexplained ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... et and P&L account of the shore applicant has been filed to reflect the bona fides of the transaction. It would be absolutely fair to observe that the share applicant have been used as a conduit for inducing funds in the assessee company and as the applicant does not appear to have any worthwhile activity to command such funds from other person, it is proper to observe that it the assesses own funds which have been routed through the layering of transactions. The assessee has not furnished a copy of confirmation, ITR and balance sheet of the applicant company, which shows their creditworthiness and genuineness of transaction. On examination of bank statement of M/s Habitat Alliance Ltd, it is reveals that the credits in this company is r ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... uments amounting to Rs 43.0507. The assessee has though submitted all the bills of assets purchased during the year except IBM Server purchased amounting to Rs 32,21,2107/- but the assessee has not submitted its Audit Report and Balance Sheet before your goodself as well as in the office of undersigned, hence, I am unable to ascertain depreciation claimed in the books of accounts are Correct. In absence of cove, and the proof of bonafide business activity, the deprecation should be disallowed in full. 3. Addition on accounts of Sundry Creditors amounting to Rs. 89,17,078/- During the assessment proceedings the 40 has made addition amounting to Rs. 88,17,078/- on account of unconfirmed sundry creditors. On perusal of additional evidenc ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... inion, the Ld. CIT(A) has rightly confirmed the addition of Rs. 8,51,90,000/- on the basis of remand report.
8. Further, in so far as disallowance of addition of Rs. 85,35,082/- in the fixed asset, addition of Rs. 89,17,078/- on account of sundry creditors and the disallowance expenses of Rs. 2,64,41,830/- were also remained unexplained by the Assessee before the AO or before the Ld. CIT(A). Therefore, we find no reason to interfere with the above disallowances made by the A.O. which has been confirmed by the CIT(A). Accordingly, we find no merit in the grounds of appeal of the assessee.
9. In the result, the appeal filed by the assessee is dismissed.
Order pronounced in open Court on 17th October, 2023. X X X X Extracts X X X X X X X X Extracts X X X X
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