MUFFADLAL DEVELOPERS PVT LTD.,AHMEDABAD vs. ITO, WARD-2(1)(4),, AHMEDABAD

The assessee company has filed its return of income on 26.11.2014, which was ultimately finalized by the Assessing Officer inter alia by making addition of Rs.1,81,87,650/- on account of unsecured loans received from three Assessment Year 2014-15 parties, which was further confirmed in appeal. Hence, the instant appeal before us.

The brief facts leading to this case is this that during the assessment proceeding, it was found from the documents that the assessee company had taken unsecured loan amounting to Rs.1,25,00,000/- from one Shri Murtazabhai. Documents whereof was asked for in order to verify the identity and creditworthiness of that person and the genuineness of the transaction. Certain details, however, were not furnished by the assessee. Since nothing was forthcoming from the assessee to the address reflected in the PAN Number of the said Murtazabhai notice was sent and ultimately in the absence of any response and/or details submitted by the concern party, addition u/s 68 was made treating the same as unexplained cash credit. Similarly unsecured loans to the tune of Rs.46,87,650/- and Rs.10,00,000/- was found to be received by the assessee from one Shri Mohasin Bhai and Shri Hussain Dugurpurwala respectively; details whereof were also called for from the assessee including the Bank statement, copy of ITR along with other documents in order to verify the identity and creditworthiness of the persons in order to ascertain the genuineness of the transaction. Some of the documents since not furnished by the assessee, the unsecured loans received from both Shri Mohasinbhai and Shri Hussain Dugurpurwala have been treated as unexplained cash credits and were added to the total income of the assessee u/s 68 of the Act. In appeal, all the additions were found to be correct by the first appellate authority and the additions were confirmed. Hence, the instant appeal before us.

It appears from the records that during the course of assessment proceeding, the assessee submitted the confirmation and acknowledgment of the Income Tax Return in respect of Murtazabhai. Such documents, however, Assessment Year 2014-15 were not submitted in respect of the other two persons. Notice was also issued to the payer u/s 133(6) of the Act to the address available in the PAN card but the same remained uncomplied. The confirmation from Murtazabhai and copy of acknowledgment of his return were also placed before the appellate authority along with the other documents. In the same manner, in respect of other two persons matter were proceeded with and ultimately addition made.

At the time of hearing of the instant appeal the Learned Advocate appearing for the assessee submitted before us that all the documents including the PAN, ledger account, Bank statement, return of income were submitted before the authorities below which were not taken into consideration by authorities below and hence the matter has been requested to be remitted to the file of the Learned CIT(A) for verification of the identity and creditworthiness of the persons and genuineness of those transactions. On the other hand, Assessment Year 2014-15 assessee may choose to file at the time of hearing of the appeal. In that view of the matter, assessee’s appeal is allowed for statistical purpose.

In the result, assessee’s appeal is allowed for statistical purpose. This Order pronounced in Open Court on 01/07/2019 ( AMARJIT SINGH ) ( Ms. MADHUMITA ROY ) ACCOUNTANT MEMBER JUDICIAL MEMBER Ahmedabad; Dated 01/07/2019 Priti Yadav, Sr.PS

""यथ" / The Respondent. 3. संबं"धत आयकर आयु"त / Concerned CIT 4. आयकर आयु"त(अपील) / The CIT(A)-2, Ahmedabad.

"वभागीय ""त"न"ध, आयकर अपील"य अ"धकरण, अहमदाबाद / DR, ITAT, Ahmedabad 6. गाड" फाईल / Guard file. आदेशानुसार/ BY ORDER, स"या"पत ""त //// उप/सहायक पंजीकार (Dy./Asstt.