M.A.CASTLE INFRASTRUCTURE CO.,MUMBAI vs. INCOME TAX OFFICER 31(2)(3) ERSTWHILE INCOME TAX OFFICER 24(3)(2), MUMBAI

Briefly stated the facts are that, while completing the assessment u/s. 143(3) of the Act, the Assessing Officer noticed that during the year under consideration assessee firm received unsecured loans of (A.Y: 2011-12) M.A. Castel Infrastructure Co. ₹.1,10,21,700/- and required the assessee to submit the confirmations and prove the identity, creditworthiness and genuineness of the lenders. Assessee has provided confirmations and details in respect of M/s.Winsway Infrastructure Pvt. Ltd., for an amount of ₹.1,91,300/-. The assessee could not provide any confirmations and the details in respect of the balance unsecured loans amounting to ₹.1,08,30,400/- and since the assessee failed to submit the loan confirmations and related documents to prove the identify, credit worthiness and genuineness of the unsecured loans the Assessing Officer treated ₹.1,08,30,400/- as unexplained cash credits u/s. 68 of the Act and accordingly made addition.

Before the Ld.CIT(A) the assessee could not provide any confirmations nor any details in respect of the unsecured loans. The assessee did not appear before the Ld.CIT(A) in spite of several notices issued by the Ld.CIT(A) as brought out in the order. In the absence of any evidences produced by the assessee the addition made by the Assessing Officer was sustained by the Ld.CIT(A).

In spite of issue of notice none appeared on behalf of assessee nor any adjournment was sought. In fact, the notice issued by the Tribunal fixing the date of hearing on 22.01.2019 returned unserved with the remark of the postal authorities that the assessee has “left”. Thus, we proceed to dispose off this appeal on hearing the Ld.DR.

Heard Ld. DR and perused the orders of the authorities below. We find that the assessee could not prove the identify, creditworthiness and the genuineness of the unsecured loan creditors with evidences. Even before us assessee could not produce any evidences to prove the identify, creditworthiness and the genuineness of the creditors. In these circumstances, we do not find any infirmity in the orders passed by the lower authorities in treating the unsecured loans as unexplained cash credits u/s. 68 of the Act. Grounds raised by the assessee are dismissed.

In the result, appeal of the assessee is dismissed.