SWIPE TELECOM LLP,PUNE vs. DCIT CIRCLE - 5, PUNE

Registry has informed that the instant appeal is time barred by 291 days. Application with affidavit for condonation of delay stands filed. Main reason for delay is due to closure of the business of assessee LLP and no employees to look after the income tax matters. Disputes also going amongst

We therefore taking a liberal approach and also placing reliance on the judgement of the Hon’ble Apex 4. Assessee has raised following grounds of appeal:-

1] The Ld. NFAC/CIT(A) erred in dismissing the contention of the appellant only on the ground that no submission was made without appreciating the facts explained in statement of facts and also the submission made before the then CIT(A). The matter may therefore please be set aside at appropriate level as it involves verification of evidences etc.

At the outset Ld. Counsel for the assessee submitted that impugned addition u/s 68 of the Act has been made for unexplained unsecured loans of Rs. 46,00,000/- He submitted that most of the details were filed before Ld. Assessing Officer (AO) but due to time constraint few details remained to be filed. Now these details are with assessee and if an opportunity is granted then these details can be placed before Ld. Juri ictional Assessing Officer (JAO) for necessary examination. He also made reference to the Paper Book running into 66 pages.

On the other hand Ld. DR supported the order of the lower authorities but did not raise strong objection against the contentions of Ld. Counsel for the assessee for remitting the issue to the file of Ld. JAO.

We have heard rival contentions and perused the record placed before us. The only issue for our consideration is regarding addition of Rs. 46,00,000/- made u/s 68 of the Act for unexplained unsecured loan received by the assessee from following five parties.

We observe that the assessee LLP E-filed its return of income for A.Y. 2013-14 on 30.09.2013 declaring total income of Rs. 52,13,999/- after the case being selected for scrutiny through CASS, valid notice u/s 143(2) & 142(1) of the Act was served upon the assessee, various details called for by Ld. Assessing Officer (AO) were mostly submitted. Ld AO examined the unsecured loan totaling to Rs. 4,67,22,764/- The assessee made compliance to satisfy Ld. AO for the unsecured loan totaling to Rs. 4,21,22,764/- However for the unsecured loan received from alleged five parties referred above amounting to Rs. 46,00,000/- Ld. AO was not satisfied as certain details remained to be submitted by assessee. The observation of the AO on the alleged issue reads as under:-

Garg venturs - Return of income is not submitted. Therefore it is not proved that money given as unsecured loan is tax paid or not.

Goyal Agro Food- Return of income is not submitted for this party also. Therefore it is not proved that money given as unsecured loan is tax paid or not. Creditworthiness is not established by the assessee.

Jodh Subh Traders Pvt Ltd- Return of income, Balance sheet is not 5 submitted. Therefore it is not proved that money given as unsecured loan is tax paid or not. Creditworthiness is not established by the assessee.

Mantra Business LLP- Retuned income for AY 2013-14 is Rs

Nitesh Agarwal- Return of income for AY 2013-14 is Rs 8,70,617/-

Suren Agarwal- Return of income, Balance sheet is not submitted.

Vasudev Khecharmal- Return of income, Balance sheet is not submitted. Therefore it is not proved that money given as unsecured loan is tax paid or not. Creditworthiness is not established by the assessee.

We further observe that impugned order by Ld. CIT(A) is ex-parte. Before us Ld. Counsel for the assessee has filed certain details stating that due to time constraint assessee could not furnish these details before Ld. AO in order to explain the nature and source of alleged cash credit of Rs. 46,00,000/- The only prayer made by Ld. Counsel for the assessee

We therefore under the given facts and circumstances of the case restore the issue of unexplained cash credit u/s 68 of the Act at Rs. 46,00,000/- to the file of Ld. JAO for necessary examination in light of the details to be furnished by the assessee in the set aside proceedings. We direct the Ld. JAO to carry out the set aside proceedings for the limited purpose of adjudicating the issue of unexplained cash credit of Rs. 46,00,000/- received by the assessee from alleged five cash creditors referenced above. Needless to mention that proper opportunity of hearing shall be granted to the assessee. Assessee is also directed to remain vigilant and not to take adjournment unless otherwise required for reasonable cause. Effective grounds of appeal raised by the assessee are allowed for statistical purposes.

In the result, appeal of the assessee is allowed for statistical purposes.