M/S SEVENSEAS GLOBAL EXPRESS LOGISTICS PRIVATE LIMITED,BANGALORE vs. THE ASSISTANT COMMISSIONER OF INCOME TAX CIRCLE-6(1)(1), BANGALORE

We heard the parties and perused the record. The assessee is engaged in the freight forwarding business. The A.O. disallowed a sum of Rs.15.25 lakhs u/s 68 of the Act, which consisted of loan of M/s. Sevenseas Global Express Logistics Pvt. Ltd., Bangalore

The Ld. A.R. submitted that the assessee had taken loan from M/s. Jayesh Enterprises and also another person named Jayesh Kothari. At the time of filing documents, Form No.16A belonging to Jayesh Kothari has been filed inadvertently. He submitted that the assessee has furnished balance confirmation letter as well as Form No.16A issued to M/s. Jayesh Enterprises in the paper book. As such, there is no confusion as presumed by Ld. CIT(A). Accordingly, the Ld. A.R. submitted that the assessee may be provided with an opportunity to give necessary clarifications to the A.O. in this regard.

The Ld. D.R. also did not oppose to the plea of the Ld. A.R.

We heard the parties and perused the record. We notice that the Ld. CIT(A) has confirmed the addition of Rs.9.00 lakhs availed for the reason that the PAN number mentioned in the confirmation letter and in Form No.16A are different. The assessee now clarifies that Form No.16A filed before Ld. CIT(A) actually belongs to some other party. The Ld. A.R. also submits that the assessee would be in a position to clarify this factual aspect before the A.O. if an opportunity is given. In the interest of natural justice, we find merit in the prayer put forth by Ld. A.R., since the addition has been confirmed by Ld. CIT(A) only for the reason that there is difference

In the result, the appeal filed by the assessee is treated as allowed for statistical purposes.