M/S. RAMJILAL CONSTRUCTION PVT. LTD.,NEW DELHI vs. ITO, NEW DELHI

We have heard rival submission of the parties and perused the relevant material on record. The learned CIT(A) sustained the sum of Rs.13,30,000/- observing as under: “4.4.1 During the year under consideration only there is fresh addition of M/s. Delhi Textiles from which appellant has obtained unsecured loan of Rs.13.30 lacs. During the appellate proceedings, Ld. AR has filed copy of ledger accounts, bank statements and affidavit duly sworn in by Sh. Ramji Lai in the capacity as President affirming that the loan has been advanced by the above cooperative society by way of cheques issued from State Bank of Bikaner and Jaipur, New Delhi. The then CIT(A) - XVIII vide letter no. 417 dated 30.07.2014 called for a report on the admissibility of additional evidences as well as on their merits. In response to the same. Assessing Officer Vide letter No. 85 dated 03.09.2014 has submitted as under: “...3(iv) Delhi Textiles Cooperative Group Housing Rs.13,30,000/- The assessee has shown that this amount has been taken from this society. No copy of sanctioned amount of the loan and the repayment plan and rate of interest has been filed.” From the above, it is evident that though Ld. AR has filed confirmation along with copy of ledger, bank statement and affidavit but has further failed to substantiate the exact nature of claim of loan taken by the appellant from the above society, as mentioned in the remand report by the AO. Therefore, in the above backdrop of the facts, I am of the considered view that Ld. AR has failed to substantiate his claim, with requisite documentary evidence that it has obtained loan from the above concern, as in the absence of documentary evidences, cited by the AO in his remand report (relevant portion of which is reproduced above), it is not established that appellant has obtained a loan from the above concern, therefore, it is held that Ld. AR has failed to substantiate his claim in respect of amount of Rs. 13,30,000/- as unsecured loan. Therefore, I am of the considered view that no interference is called for to the addition made by the AO of section 68 of the Act in respect of amount of Rs.13,30,000/- obtained from M/s. Delhi Textiles during the year under consideration. Accordingly, out of the total addition of Rs.32,57,000/- only addition of Rs. 13,30,000/- survives and appellant gets relief in respect of remaining amount of Rs.19,27,000/-.”

In view of the undertaking given by the Ld. counsel of the assessee to produce the party M/s Delhi Textiles Cooperative Group Housing, in whose name credit entry of ₹ 13,30,000/- is appearing in the books of accounts of the assessee and submit all that necessary documentary evidences for discharging its onus under section 68 of the Act, and in view of the facts and circumstances of the case, we feel it appropriate to restore this matter to Ld. Assessing Officer for deciding the issue of addition of ₹ 13,30,000/- amount received from M/s. Delhi Textile Cooperative Group Housing afresh, in accordance with law. The onus is on the assessee to produce the said party before the Ld. Assessing Officer along with all documentary evidences to discharge its onus under section 68 of the Act. Adequate opportunity of being heard shall be provided to the assessee. The ground of the appeal is accordingly allowed for statistical purposes.

In the result, the appeal of the assessee allowed for statistical purposes. Order is pronounced in the open court on 15th November, 2019.