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Facts
The assessee, a proprietor engaged in civil construction, declared income of Rs. 5.32 crore. The Assessing Officer (AO) added Rs. 2,38,50,000/- under Section 68 for unsecured loans, alleging lack of proof of genuineness and creditworthiness, and disallowed Rs. 15,18,128/- as interest paid on these loans under Section 36(1)(iii). The CIT(A) deleted most of the Section 68 addition (Rs. 2,18,50,000/-) but sustained Rs. 20,00,000/-, and also deleted the Section 36(1)(iii) disallowance. Both the assessee and Revenue appealed to the Tribunal.
Held
The Tribunal upheld the CIT(A)'s decision to delete the major portion of the Section 68 addition (Rs. 2,18,50,000/-) and the Section 36(1)(iii) disallowance of interest, thereby dismissing the Revenue's appeal. Regarding the Rs. 20,00,000/- addition sustained by the CIT(A) related to a Rs. 40,00,000/- loan from Mr. Duraisami, the Tribunal reversed the CIT(A)'s "volte-face" on the remaining Rs. 20,00,000/-, effectively accepting the entire Rs. 40,00,000/- loan as genuine. This resulted in the deletion of the entire Section 68 addition and the interest disallowance.
Key Issues
1) Whether the additions made under Section 68 for unsecured loans, due to lack of proof of genuineness and creditworthiness, were correctly deleted. 2) Whether the disallowance of interest paid on unsecured loans under Section 36(1)(iii) was correctly deleted.
Sections Cited
Section 68 of the Income Tax Act, 1961, Section 36(1)(iii) of the Income Tax Act, 1961, Section 260A of the Income Tax Act, 1961
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Income Tax Appellate Tribunal, DELHI BENCH ‘G’, NEW DELHI
Before: Sh. C. N. PrasadDr. B. R. R. Kumar
ORDER
Per Dr. B. R. R. Kumar, Accountant Member:
The present appeals and Cross Objection have been filed by the assessee and the Revenue against the order of ld. CIT(A)-30, New Delhi dated 06.07.2023 “1. Whether on the facts and circumstances of the case, the Ld. CIT(A) has erred in deleting the addition made u/s 68 of the I.T. Act, 1961 of Rs. 2,18,50,000/- on account of unsecured loan? ……..
4. Whether on the facts and circumstances of the case, the Ld. CIT(A) has erred deleting the disallowance of Rs. 15,18,128/- on account of Interest paid on unsecured loan as per provisions of section 36(1)(iii) of the Income-tax Act?”
3. In following tangible grounds have been raised by the assessee:
“1. The ld. CIT(A) has erred in law and facts in sustaining the addition of Rs.20,00,000/- made by the AO u/s 68 of the Income Tax Act, 1961. 4. The assessee, is the proprietor of M/s Ashok Enterprises is engaged primarily in the business of civil construction and having salary income, filed his return of income declaring total Income of Rs. 5,32,11,260/-.
5. The return of the assessee was subsequently selected for scrutiny in CASS on the aforesaid issues of (i) Unsecured Loans, (ii) ICDS Compliance and adjustment and (iii) Details of assets and liabilities.
6. During the year, the assessee received unsecured loan of Rs. Rs. 13,85,15,386/- and paid interest of Rs.21,22,252/- during the SL Name PAM Opening Accepted Repaid Closing Interest Balance during the during the Balance paid year year 1 Concrete AAKFC3000G 0 21000000 0 21000000 0 Solutions 2 PHS infratech AACCF7431K 0 20762443 0 20762443 0 Ltd. 3 Fluid Handling AAAPU6249F 0 17538515 0 17538515 0 Systems 4 Jeganathan & ACGPJ3584L 0 18500000 0 18500000 0 Co. 5 Kalaiselvi & Co BKWPK6092B 0 16000000 0 16000000 0 6 P.K. AADHD7S99E 0 4000000 2000 3998000 0 Duraisamy 7 Margadarsi 0 3114810 0 3114810 0 Chits Pvt. Ltd. 1749616 0 1749618 0 8 Magnum AAQFM2210C 0 1000000 0 1000000 0 Investment 9 Meena K. AAJPM9821C 0 2500000 1015000 1485000 187500 Sakariya 10 Metal Impex AAMFM4856G 2S00000 1015000 1485000 187500 11 Nakoda AAMFN1767F 2500000 1015000 1485000 187500 Traders 12 Nishank AEFPN8248A 0 2500000 1015000 1485000 187500 Sakariya 13 Ramalingam AJNPR1672H 0 3260030 0 3260000 0 Kumarsamy 14 Pushp AAUFP3934G 0 1250000 507500 742500 93750 Enterprises 15 Rudra AACCR2292Q 0 2350000 1201945 1148052 205628 Securities and Capital Ltd 16 Sidharth. S CPQPS7017L o 2500000 1015000 1485000 187500 17 Arulmozhiselvi A4GPA1785P 0 4740000 0 4740000 236124 R 18 Bhanu A. Shah AFSPB9673Q 0 1250000 507500 742500 93750 19 Dhanasekar C AEWPQ6845E 0 2500000 0 2500000 150000 20 Keerthana BZKPR2966N 0 4500000 0 4S0O0O0 219000 Ramalingam 21 Kishone Kumar AAKPK6068J 0 2500000 1015000 1485000 187500 HUF 0 138515386 8 130206438 2122262
4 & 2739/Del/2023 CO No. 140/Del/2023 Subramaniam Ashok Kumar 7. Out of the 21 lenders in above Table, the assessee could not furnish documentary evidences including bank statement, or any document to show the sources of income or the capacity of lenders to lend money and thereby establish genuineness of transaction and. creditworthiness of the following lender.
8. The details of all such lenders form whom the assessee has accepted unsecured loan during the financial year 2017-18, along with the details of repayment of loan and interest paid to such lenders during the relevant financial year, but could not furnish documentary evidence to establish genuineness of transaction and creditworthiness of the lenders, are furnished in the following table:
SL Name PAM Opening Accepted Repaid Closing Interest Balance during the during the Balance paid year year 1 P.K. AADHD7S99E 0 4000000 2000 3998000 0 Duraisamy 2 Meena K. AAJPM9821C 0 2500000 1015000 1485000 187500 Sakariya 3 Metal Impex AAMFM4856G 2S00000 1015000 1485000 187500 4 Nakoda AAMFN1767F 2500000 1015000 1485000 187500 Traders 5 Nishank AEFPN8248A 0 2500000 1015000 1485000 187500 Sakariya 6 Pushp AAUFP3934G 0 1250000 507500 742500 93750 Enterprises 7 Rudra AACCR2292Q 0 2350000 1201945 1148052 205628 Securities and Capital Ltd 8 Sidharth. S CPQPS7017L o 2500000 1015000 1485000 187500 9 Bhanu A. Shah AFSPB9673Q 0 1250000 507500 742500 93750 10 Kishone Kumar AAKPK6068J 0 2500000 1015000 1485000 187500 HUF 0 138515386 8 130206438 2122262
9. The assessee has furnished the PAN & address of the lenders, copy of loan confirmation from lenders and his own bank
5 & 2739/Del/2023 CO No. 140/Del/2023 Subramaniam Ashok Kumar statements in respect of unsecured loans accepted from the lenders before the Assessing Officer. The Assessing Officer held that the assessee did not furnish documentary evidences including the bank statement of lenders to prove genuineness of loan transactions and creditworthiness of the lenders for unsecured loan accepted by him during the financial year 2017- 18 amounting Rs. 2,38,50,000/- in spite of several opportunities offered to him. Hence, the Assessing Officer held that the assessee has failed to discharge his onus to establish by cogent evidence the genuineness of the loan transactions and credit- worthiness of the lenders and thereby to explain the nature and source of the loan amounting Rs.2,38,50,000/- credited in the books of account of the assessee as required under the provisions of Section 68 of the Act and hence treated amount as cash credit u/s 68 of the Income Tax Act, 1961. While making the addition, the AO relied on the following case laws:
In Nanak Chandra Laxman Das vs. CIT, the Hon’ble Allahabad High Court has taken the view that, “Where any sum is found credited in the books of the assessee, the initial onus is on the assessee to offer an explanation of the nature and source of a cash credit. If the explanation is not found satisfactory or reasonable, the Income-tax Officer can treat such money as the assessee's income from undisclosed sources. It is not necessary for the Income-tax Officer to locate the exact source of the credits. The assessee can prove the genuineness of the credits by establishing from some plausible evidence the identity of the creditor and his creditworthiness.”
6 & 2739/Del/2023 CO No. 140/Del/2023 Subramaniam Ashok Kumar Govindarajulu Mudaliar vs. CIT (AIR 1959 SC 248, 1958 34 ITR 807 SC), the Hon'ble Supreme Court came to the conclusion that, “There is ample authority for the position that where an assessee fails to prove satisfactorily the source and nature of certain amount of cash received during the accounting year, the Income- tax Officer is entitled to draw the inference that the receipt are of an assessable nature.” In Kale Khan Mohammad Hanif vs. Commissioner of Income-tax, the Hon’ble Supreme Court, in answering the question whether the burden of proving the source of the cash credit is on the assessee observed that: It is well established that the onus of proving the source of a sum of money found to have been received by the assessee is on him. If he disputes liability for tax it is for him to show either that the receipt was not income or that if it was, it was exempt from taxation under the provisions of the Act. In the absence of such proof the Income-tax Officer is entitled to treat to as taxable income. The language of section 68 shows that it is general in nature and applies to all credit entries in whomsoever name they may stand, that is, whether in the name of the assesses or a third party. This section has, therefore, removed the distinction which was drawn in some decisions between the credits held in the name of the assessee and those held in the name of a third party. Under Section 68 now the assessee has to prove that such third party was in a position to lend such sums and that he did, in fact, so lend to the assessee in order to satisfy the Income-tax Officer that the credits shown in the account books were genuine. This section has laid the onus of proof on the assessee.
7 & 2739/Del/2023 CO No. 140/Del/2023 Subramaniam Ashok Kumar In Siddharth Export Vs. ACIT (Delhi High Court): The issue under consideration is whether AO is correct in treating unsecured loan received by assessee as unexplained credit under section 68? In the present case, the assessee received an unsecured loan of Rs. 26 lacs through three cheques issued by Ms. Jasmine Kochhar Kapoor, a citizen of GBR (United Kingdom). AO treated unsecured loan received by assessee as unexplained credit under section 68. Tribunal in appellate proceedings confirmed addition made by AO on the ground that assessee failed to prove creditworthiness of lenders and genuineness of concerned loan transactions. Assessee challenged this by way of appeal filed under section 260A before High Court pleading that on filing of bank statement and PAN details and confirmation, burden stood discharged and it shifted on to the Revenue. The High Court, states that creditworthiness of lender could not be said to be proved merely on the strength of bank statement. Assessee did not produce income-tax return of the lender or any confirmation. The purported confirmation had been found to be only a copy of unsigned account of creditor. The source of funds had also not been explained. Furthermore, stand of assessee that since alleged transaction was made through normal banking channels, it was sufficient to prove genuineness of the transaction, could not be accepted. Thus, the credit worthiness and the genuineness of the transaction cannot be said to have been proved so as to shift the onus on the revenue. Hence HC do not find any infirmity in the impugned order. Therefore, the present appeal filed by assessee is dismissed. The Hon'ble Supreme Court of India, in the case Principal Commissioner of Income Tax Vs. Nra Iron And Steel Pvt. Ltd. on 5th March, 2019 has discussed and observed as follows:
8 & 2739/Del/2023 CO No. 140/Del/2023 Subramaniam Ashok Kumar "8.1. The issue which arises for determination is whether the Respondent/Assessee had discharged the primary onus to establish the genuineness of the transaction required under Section 68 of the said Act. Section 68 of the I.T. Act (prior to the Finance Act, 2012) read as follows: 68. Cash credits- Where any sum is found credited in the book of an Assessee maintained for any previous year, and the Assessee offers no explanation about the nature and source thereof or the explanation offered by him is not, in the opinion of the Assessing Officer, satisfactory, the sum so credited may be charged to income-tax as the income of the Assessee of that previous year (emphasis supplied) The use of the words any sum found credited in the books in Section 68 of the Act indicates that the section is widely worded, and includes investments made by the introduction of share capital or share premium. 8.2. As per settled law, the initial onus is on the Assessee to establish by cogent evidence the genuineness of the transaction, and credit-worthiness of the investors under Section 68 of the Act. The assessee is expected to establish to the satisfaction of the Assessing Officer: Proof of Identity of the creditors: CIT v. Precision Finance Pvt. Ltd. (1994) 208 ITR 465 (Cat) Capacity of creditors to advance money: and Genuineness of transaction This Court in the land mark case of Kale Khan Mohammad Hanif v. CIT-3 and, Roshan Di Hatti v. CIT-4 laid down that the onus of proving the source of a sum of money found to have been received by an assessee is on the assessee. Once the assessee has submitted the documents relating to identity, genuineness of the transaction, and credit- worthiness, then the AO must conduct an inquiry, and call for more details before invoking Section 68. If the Assessee is not able to provide a satisfactory explanation of the nature and 9 & 2739/Del/2023 CO No. 140/Del/2023 Subramaniam Ashok Kumar source, of the investments made, it is open to the Revenue to hold that it is the income of the assesse, and there would be no further burden on the revenue to show that the income is from any particular source. 8.3. With respect to the issue of genuineness of transaction, it is for the assessee to prove by cogent and credible evidence, that the investments made in share capital are genuine borrowings, since the facts are exclusively within the assesses knowledge. The Hon’ble Delhi High Court in CIT v. Oasis Hospitalities Pvt. Ltd. [1963] 50 ITR 1 (SC) [1977] 107 ITR (SC), held that: The initial onus is upon the assessee to establish three things necessary to obviate the mischief of Section 68. Those are: (i) identity of the investors; (ii) their creditworthiness / investments; and (iii) genuineness of the transaction. Only when, these three ingredients are established prima facie, the department is required to undertake further exercise. It has been held that merely proving the identity of the investors does not discharge the onus of the assessee, if the capacity or credit- worthiness has not been established. In Shankar Ghosh v. ITO 6, the assessee failed to prove the financial capacity of the person from whom he had allegedly taken the loan. The loan amount was rightly held to be the assessees own undisclosed income. "11. The principles which emerge where sums of money are credited as Share Capital/Premium are: i. The assessee is under a legal obligation to prove the genuineness of the-transaction, the identity of the creditors, and credit-worthiness of the investors who, should have the financial capacity to make the investment in question, to the satisfaction of the AO, so as to discharge the primary onus. (2007) 158 Taxman 440 [2008] 307 ITR 334"
10 & 2739/Del/2023 CO No. 140/Del/2023 Subramaniam Ashok Kumar "14. The practice of conversion of un-accounted money through the cloak of Share Capital/Premium must be subjected to careful scrutiny. This would be particularly so in the case of private placement of shares, where a higher onus is required to be placed on the Assessee since the information is within the personal knowledge of the Assessee. The Assessee is under h legal obligation to prove the receipt of share capital/premium to the satisfaction of the AO, failure of which, would justify addition of the said amount to the income of the Assessee.”
10. Aggrieved, the assessee filed appeal before the ld. CIT(A).
The ld. CIT(A) deleted the addition to the extent of Rs.2,18,50,000/- and confirmed Rs. 20,00,000/- after admitting the additional evidences, getting the remand report and examining the rebuttal of the assessee. Consequently, both the parties filed appeal before us. With regard to the issue of the unsecured loans, the examination of the ld. CIT(A) is being mentioned below:
S l. Na me o f PA N L oan C o mme n ts / Re mar k s Ap pe llant’ s My o bse r vat io ns NO . Len der ac ce pte d g iven b y L d. Re spon se /Re but ta l dur ing the As ses s ing O fficer a s yea r per Re ma nd R ep or t date d 0 3. 01 .2 023 1. PK AC RPD 1 39 2 F 40, 00 ,0 00 / - The a s se sse e It is he reb y be in g It is o b ser ve d D ura isa mi su b mit ted the IT R s , su b mit ted th at , th e that co n fir mat ion an d ca sh cre d it in th e im med iate ly ban k bo o ks o f ac c oun t be fo re the sta te me n t o f th e can be ter me d a s pa ymen t of le nde r. und is c lo se d c as h unse cu re d loan It is o b ser ve d tha t cre dit u / s 68 o f th e o f R s. par t ia l ba n k Act on ly when th e 10, 00 ,0 00 / - sta te me n ts o f ide n t it y cre dit each on ac c ount w ort h ine s s an d 01. 12 .2 017 and no .(91 602 00 42 980 so ur ce of s uc h 10. 01 .2 018 409 ) ha ve bee n cre dit is n o t ca sh of su b mit ted . Th is ex pla ine d b y L lie equ iva len t 11 & 2739/Del/2023 CO No. 140/Del/2023 Subramaniam Ashok Kumar inc lu de s the p er io d as se sse e. H o we ve r , am ou nt w as fr o m 04 .0 4/20 17 t o to sh o w t he so urc e dep o site d by 04 /0 4/ 20 17 , o f s our ce o f s uc h the le nd er and 01 /1 2/ 20 17 t o cre dit is re qu ire d the f und s were 12 /1 2/ 20 17 an d on ly in the c as e o f tran s ferre d in 11 /0 1/ 20 18 t o a c o mp an y in wh ic h the ba nk 11 /0 1/ 20 18 . the pub lic is n o t ac c ount of the On pe r us a l o f su bs tan t ia lly ap pe llant . The ac c ount sta te me n t intere ste d . ap pe llant fa ile d su b mit ted , it is W ith out pre j udic e to s ub m it the seen tha t so ur ce o f to t he a bo ve , th e ev iden ce am ou nt s of R s . ap pe llant here b y pr o vide d a mp le 10, 00 ,0 00 an d R s . enc lo se s the op p ort un ity to 10, 00 ,0 00 unde r ta king g ive n su b mit the tran s ferre d t o M / s b y the len der tha t ev iden ce dur ing Ash o k Ent erp r ise s the sa id de po s it s the re man d/ on 0 1. 12 .2 017 an d ma de in h is ba n k appe llat 11. 01 .2 018 ac c ount s wer e e res pe ct ive ly a r e fr o m the pr oce ed in gs but ca sh de po s it s d on e dec lar ed s ou rce o f the so ur ce of on t he s a me da y. inc o me and w a s ca sh de po sits Hence , the rea l du ly re cor de d in h is co u ld n ot be so ur ce o f t hes e regu lar b oo ks o f ex pla ine d. In loa ns ap pe ar t o be ac c ount and ab sen ce o f a ny ca sh de p os ite d an d the re fore, th e ex pla nat io n, it the n pa s se d as loa n so ur ce of c as h can no t be entr y. T here fore , dep o s ite d in h is pre su me d th at, the ban k a c c ount ma y the ca sh cre dit w or th ine s s o f k in dly be dep o sits o f Rs the len der an d ver ified . F urth er, it 20 la kh s wh ich genu inene s s o f th e is a ls o t o be no te d wa s late r tran sa ct io ns a r e that the len der is a tran s ferre d to du b iou s a nd flo w o f bu s ine s s man the a p pe llant fun ds pr o ve th at it ma int a in in g h is wa s ac coun ted / is t he c as h regu lar b oo ks o f dec lar ed mone y. dep o s ite d ( tha t ac c ount wh ic h h ave Hence it is rem a in s bee n au d ite d by th e co ns id ere d une xp la in e d) wh ic h In de pen dent una ccou nte d is tran s fe rre d. C harte red inc o me o f the Hence , g enu inene s s Ac co unt ant dur in g ap pe llant r ou te d o f t he t ran sa ct io n s the s a id thr oug h h is co u ld n ot be as se ss m ent ye ar . re lat ive a nd the est ab lis he d. E ven in The c o p y of s uc h ad d it io n made the t h ir d ca se , aud ite d ba la nc e b y the AO to whe re a m ou nt s o f she et a lon g w ith th e that e xtent is R s. 2 0, 00 ,00 0 / - h a s deta ile d su sta ine d. be en co mpu tat io n o f Re ma in ing loan tran s ferre d o n inc o me and IT R is o f Rs 20 lakhs 04. 04 .2 017 , so urc e be in g e nc lo se d g iven by Mr.
12 & 2739/Del/2023 CO No. 140/Del/2023 Subramaniam Ashok Kumar o f Rs . 9 9,00 ,00 0 / - here w it h for y ou r D ura isa mi is dep o s ite d ha s to be kin d per us a l an d ac ce pte d as as ce rt a in ed . It ca n ready re fe re n ce. the y wer e pa id be seen th at mor e rega rd in g th e thr oug h ban king tha n 9 5,00 ,00 0 / - so ur ce of c as h cha nne l. The has be en dep o s its . It is ap pe llant h as tran s ferre d on th e fur ther n o ted tha t su b mit ted sa me d a y it h a s the len der is c los e fin an c ia l bee n re ce ive d . re lat ive o f th e sta te me n t and ap pe llant he nc e IT R o f the These t y pe s o f co lle ct io n an d le nde r to pr ove tran sa ct io ns , su b mis s ion o f the fur ther c as t do ub t ev iden ce o f so urc e cre dit w or th ine ss on the g enu inene s s for the c as h o f the o f the tr an sa ct io n dep o s its w as n o t ap pe llant . There and is c o mmon ly d ifficu lt. Th e is n o e v ide nce use d in s uc h ap pe llant w as on recor d to ac c o mmo d at ion su gge st tha t the entr y ca se s . ap pe llant h as Fur ther , it may be ta ken que st ione d th at w h y ac c o mmo d at ion par t ia l ba n k. entr y fr o m the sa id le nde r or the len der is an ac c o mmo d at ion entr y pr o vide r. Ac co rd in gly, loa n o f Rs 20 la kh s rece ive d thr oug h ban king cha nne l is ac ce pte d as genu ine .
Meena K. AAJPM 98 21 25, 00 ,0 00 / The as se s see h a s The L d. A s se ss in g The Saka r iya C - su b mit ted le dge r , Officer ha s c as te d ob ser vat ion s of PA N, Ba n k a d ou bt o n th e the AO an d the Sta te me nt o f th e cre dit w or th ines s o f rejo in der o f the le nde r an d I T R (A Y the len der wh ich is ap pe llant a lo ng 201 7 -18 ) , o f th e pure ly b a se d o n w ith IT R o f A .Y. le nde r. su spic io n. Furt he r , 201 8 -19 h ave IT R - 1 ha s bee n the re is n o bee n peru se d. su b mit ted for AY requ ire men t t o The a p pe llant 201 7 - 18 but sha re the IT R fo r has su b mit te d the c ase o f th e the sa me PA N, IT R, as se sse e pe rta in s t o as se ss m ent yea r co n fir mat ion for AY for wh ic h th e the len de r, 201 8 - 19. as se ss m ent ban ks On peru sa l o f th e pert a in s . H o we ve r , sta te me n ts of ban k sta te me n t the a p pe llan t the le n der to 13 & 2739/Del/2023 CO No. 140/Del/2023 Subramaniam Ashok Kumar su b mit ted , wh ic h is hereb y re su b mit s ex pla in the loan for the p er io d the ITR o f s a id ta ken b y it fro m 01 /0 4/ 20 17 t o le nde r for the A .Y . Ms Mee na 31 /0 3/ 20 18 , it is 20. 18 -1 9 a s we ll. Sakar ia. On seen tha t the re a r e Ho we ve r , th e peru sa l, I find ma n y cre d it / de b it ap pe llant here b y that the entr ie s an d resu b mits t he IT R ap pe llant h as as se sse e is a no n - o f sa id len der fo r sat isfac to r ily filer b y the g ive n the A.Y. 201 8 -19 a s ex pla ine d the yea r. we ll. F r o m th e ide n t it y and There fore , peru sa l o f IT R o f cre dit w or th ine ss su b mis s ion o f IT R o f re le van t o f the len de r. AY 20 17 -1 8 w here as as se ss m ent ye ar , There is no tran sa ct io n is o f A Y your ho no ur ma y ma ter ia l on 201 8 -19 , whe r e fin d tha t the t ota l rec or d t o dou bt as se sse e is a n on - dec lar ed inc o me o f the ge nu ine ne ss filer, c a st a do ub t the a p pe llant is in o f the on the g enu inene s s the tu ne o f R s . tran sa ct io n. o f the le nde r. 99. 68 La c s wh ic h is There fore , the Fur ther , e ve n fo r mu ch m ore tha n ad d it io n made AY 2 01 7- 18 , th e the a mo unt o f loa n u/s 6 8 is n ot returne d in co me is g iven t o th e su sta ina b le . aro un d Rs . 4 0 la kh s ap pe llant w o rth R s . and in FY 201 7 -1 8 25, 00 ,0 00 . (fo r wh ic h a / c h a s 2. Fur ther , th e bee n su bm itte d ) do ubt o f the Id. as se sse e h a s as se ss in g o ffice r tran s ferre d f un ds o f that the a moun t o f more th a n 5 cr ore s inc o me de c lare d b y dur ing the ye ar . the a ppe lla nt fo r the AY 201 7 -1 8 w ort h R s . 40, 00 ,0 00 / - is n o t in line with th e am ou nt o f fun d tran s ferre d in h is ban k a c co unt fo r more tha n 5 cr ore s dur ing t he s a id yea r, is mere a sur mise / su spic is io n w ith ou t havin g an y ba se . It ma y be no te d tha t an in c o me o f a n y per so n c ann ot b e jud ge d ba se d o n on ly turn o ver o r mone y in h is ba n k 14 & 2739/Del/2023 CO No. 140/Del/2023 Subramaniam Ashok Kumar ac c ount fo r ma n y reas on s . T here fore , the sa me ma y n o t be c on s ide re d. It is he reb y be in g su b mit ted th at , th e ca sh cre d it in th e bo o ks o f ac c oun t can be ter me d a s und is c lo se d c as h cre dit u / s 68 o f th e Act on ly when th e ide n t it y cre dit w ort h ine s s an d so ur ce of s uc h cre dit is n o t ex pla ine d b y th e as se sse e. H o we ve r , to sh o w t he so urc e o f s our ce o f s uc h cre dit is re qu ire d on ly in the c as e o f a c o mp an y in wh ic h the pub lic is n o t su bs tan t ia lly intere ste d .
Meta l AAM FM 48 56 25, 00 ,0 00 / The a s se sse e It is he reb y be in g The I mpe x G - su b mit ted th e su b mit ted th at , th e ob ser vat ion s of co n fir mat ion an d ca sh cre d it in th e the AO an d the par t ia l ba n k bo o ks o f ac c oun t rejo in der o f the sta te me n t can be ter me d a s ap pe llant a lo ng (0 1. 11 .20 17 t o und is c lo se d c as h w ith IT R o f A .Y. 23. 11 .2 017 ) of th e cre dit u / s 68 o f th e 201 8 -19 h ave le nde r. Act on ly when th e bee n peru se d. The a s se sse e d id ide n t it y cre dit The a p pe llant not s ub mit the I T R w ort h ine s s an d has su b mit te d for AY 2 01 8 -19 file d so ur ce of s uc h PA N, IT R, b y the len de r , cre dit is n o t co n fir mat ion , whe rea s a s pe r th e ex pla ine d b y th e ban ks ban k sta te ment o f as se sse e. H o we ve r , sta te me n ts to the le n de r , it is to sh o w t he so urc e ex pla in the loan seen tha t o f s our ce o f s uc h ta ken b y it fro m tran sa ct io n o f mor e cre dit is re qu ire d Ms Me ta l Impex tha n R s on ly in the c as e o f On peru sa l, I 19, 04 ,1 1, 679 /- h a s a c o mp an y in wh ic h fin d th at the bee n don e on ly in the pub lic is n o t ap pe llant h as 23 d a ys o f su bs tan t ia lly sat isfac to r ily N o ve mb er. intere ste d . ex pla ine d the It is re it era t ed tha t ide n t it y and 15 & 2739/Del/2023 CO No. 140/Del/2023 Subramaniam Ashok Kumar su ch a c co unt s a r e The L d. A s se ss in g cre dit w or th ine ss w ide ly u sed t o Officer ha s c as te d o f the len de r. pr o vide a d ou bt o n th e There is no ac c o mmo d at ion cre dit w or th ines s o f ma ter ia l on entr ie s w here de b it the len der wh ich is rec or d t o dou bt / c red it tr an sa ct io n pure ly b a se d o n the ge nu ine ne ss oc cu r su spic io n. Furt he r , o f the s imu lta ne ous ly an d the re is n o tran sa ct io n. The IT R re ma in s un file d requ ire men t t o rem ar ks o f the even . sha re the IT R fo r Ld AO tha t the There fore , th e the sa me ac c ount of the genu inene s s an d as se ss m ent yea r le nde r ha d h uge cre dit w or th ine s s o f for wh ic h th e tran sa ct io n in the len der M /s M e ta l as se ss m ent sh ort s pa n of I mpe x co u ld n ot be pert a in s . H o we ve r , t ime ther efore est ab lis he d. the a p pe llan t co u ld ha ve be en hereb y re su b mit s use d fo r the the ITR o f s a id pur p ose s of le nde r for the A .Y . ac c o mmo d at ion , 201 8 -19 a s we ll. is n ot ba se d on Fr o m the pe r us a l o f any f ac ts or IT R o f re le van t inve st igat io n as se ss m ent ye ar , but su r m ises your ho no ur ma y and fin d tha t the t ota l co nje ct ure s, dec lar ed inc o me o f wh ic h cann o t be the a p pe llant is in ac ce pte d for the tu ne o f R s . su sta in ing the 1.4 0 C ro res wh ic h ad d it io n. is mu ch mo re tha n There fore , the the a mo unt o f loa n ad d it io n made g iven t o th e u/s 6 8 is n ot ap pe llant w o rth R s . su sta ina b le . 25, 00 ,0 00 .
Na k o da AAM F N1 767 25, 00 ,0 00 / The a s se sse e The L d. A s se ss in g The Tra der s F - su b mit ted th e Officer ha s c as te d ob ser vat ion s of co n fir mat ion of th e a d ou bt o n th e the AO an d the le nde r. cre dit w or th ines s o f rejo in der o f the On peru sa l o f th e the len der wh ich is ap pe llant a lo ng deta ils , it is pure ly b a se d o n w ith IT R o f A .Y. ob ser ve d th a t th e su spic io n. Furt he r , 201 8 -19 h ave as se sse e d id n o t the re is n o bee n peru se d. su b mit the IT R an d requ ire men t t o The a p pe llant ban k st ate me nt s o f sha re the IT R fo r has su b mit te d the re le va nt year s . the sa me PA N, IT R, Fur ther , it is see n as se ss m ent yea r co n fir mat ion for tha t a le dge r h a s for wh ic h th e the len de r, bee n su b mit te d as se ss m ent ban k sta te ment whe re it ha s bee n pert a in s . H o we ve r , o f the le n der to 16 & 2739/Del/2023 CO No. 140/Del/2023 Subramaniam Ashok Kumar sh o wn t hat inte r e s t the a p pe llan t ex pla in the loan has bee n re ce ive d hereb y re su b mit s ta ken by it . I but no s upp ort in g the ITR o f s a id fin d th at the do cu me nt lin k ba n k le nde r for the A .Y . ap pe llant h as sta te me n ts h a s bee n 201 8 -19 as we ll. sat isfac to r ily sh o wn . An d as n o It is he reb y be in g ex pla ine d the IT R su b mitte d, su b mit ted th at , th e ide n t it y and hence su ch le d ger s ca sh cre d it in th e cre dit w or th ine ss ap pea r to h a ve le s s bo o ks o f ac c oun t o f the len de r. re le va n ce a s th e can be ter me d a s There is no intere st in c o me in und is c lo se d c as h ma ter ia l on su ch ca se s a r e cre dit u / s 68 o f th e rec or d t o dou bt neve r ta xe d. Act ide nt it y the ge nu ine ne ss In the a bse nc e o f cre d it o f the su pp or t in g w ort h ine s s and tran sa ct io n. do cu me nt s, th e so ur ce of s uc h There fore , the genu inene s s an d cre dit is n o t ad d it io n made cre dit w or th ine s s o f ex pla ine d b y th e u/s 6 8 is n ot the len der M / s as se sse e. su sta ina b le . Na ko da - Tr a der s Ho we ve r , to s ho w co u ld n ot be the so ur ce o f est ab lis he d. so ur ce of s uc h cre dit is re qu ire d on ly in the c as e o f a c o mp an y in wh ic h the pub lic is n o t su bs tan t ia lly intere ste d . Ho we ve r , the ba n k sta te me n t o f th is le nde r is be in g atta che d her e w it h for you r kin d peru sa l an d rea d y refer en ce.
N ish ant AEFP N8 248 25, 00 ,0 00 / The a s se sse e The L d. A s se ss in g The Saka r iya A - su b mit ted the I T R Officer ha s c as te d ob ser vat ion s of (AY 2 01 7- 18 ), a d ou bt o n th e the AO an d the co n fir mat ion an d cre dit w or th ines s o f rejo in der o f the ban k st ate me nt s the len der wh ich is ap pe llant a lo ng (fo r 1 da y on ly) o f pure ly b a se d o n w ith IT R o f A .Y. the len der . su spic io n. 201 8 -19 h ave bee n peru se d. IT R o f AY 201 8 -1 9 Fur ther , t here is n o The a p pe llant is n ot su b mitte d, requ ire men t t o has su b mit te d hence it ap pe ar s sha re the IT R fo r PA N, IT R, tha t a s se ss e e is a the sa me co n fir mat ion for non - filer f or th e as se ss m ent yea r the len de r, re le va n t ye a r. for wh ic h' th e ban ks 17 & 2739/Del/2023 CO No. 140/Del/2023 Subramaniam Ashok Kumar as se ss m ent ert a in s . sta te me n ts of Fur ther , ba n k Ho we ve r , th e the le n der to sta te me n t o f th e ap pe llant here b y ex pla in the loan le nde r for th e resu b mits t he IT R ta ken by it. On co mp lete yea r F Y o f sa id len der fo r peru sa l, I fin d 201 8 -19 is n o t the A.Y. 201 8 -19 a s that the av a ila ble on re c or d we ll. ap pe llant ha s and su bm itte d par t sat isfac to r ily, is n ot e ven le gib le. Fr o m the pe r us a l o f ex pla ine d the IT R of re le va nt ide n t it y and As per IT R s o f as se ss m ent year , cre dit w or th ine ss pre viou s ye a r , your h on our m a y o f the len de r. le nde r ma y be fin d t hat t he t ota l There is no co ns id ere d to h ave dec lar ed inc o me o f ma ter ia l on cre dit w or th ine s s bu t the a p pe llant is in rec or d t o dou bt in th e a b sen ce o f the tu ne o f R s . the ge nu ine ne ss su pp or t in g 4.9 2 cr or es wh ic h o f the do cu me nt s th e is mu ch mo re tha n tran sa ct io n. genu inene s s o f th e the a mo unt o f loa n le nde r g iven t o th e There fore , the - M /s N isha n k ap pe llant w o rth R s . ad d it io n made Saka r iya c ou ld n o t 25, 00 ,0 00 . u/s 6 8 is n ot be e s ta blish e d. su sta ina b le . It is he reb y be in g su b mit ted th at , th e ca sh cre d it in th e bo o ks o f ac c oun t can be ter me d a s und is c lo se d c as h cre dit u / s 68 o f th e Act on ly when th e ide n t it y cre dit w ort h ine s s an d so ur ce of s uc h cre dit is n o t ex pla ine d b y th e as se sse e.
Ho we ve r , to s ho w the so ur ce o f so ur ce of s uc h cre dit is re qu ire d on ly in the c as e o f a c o mp an y in wh ic h the pub lic is n o t su bs tan t ia lly intere ste d . Ho we ve r , the ba n k sta te me n t o f th is 18 & 2739/Del/2023 CO No. 140/Del/2023 Subramaniam Ashok Kumar le nde r is be in g atta che d her e w it h for you r kin d peru sa l an d rea d y refer en ce.
Pus hp AAUFP3 93 4 12, 50 ,0 00 / The a s se sse e The L d. A s se ss in g The Enter pr ise G - su b mit ted a Officer h as ca ster ! ob ser vat ion s of s co n fir mat ion , wh ic h a d ou bt o n th e the AO an d the it ap pe ar s to h ave cre dit w or th ines s o f rejo in der o f the bee n c la ime d t o be the len der wh ich is ap pe llant a lo ng o f le nde r. IT R o f A Y pure ly b a se d o n w ith IT R o f A .Y. 201 8 -19 is n o t su spic io n. Furt he r , 201 8 -19 h ave su b mit ted , he n ce it the re is n o bee n peru se d. ap pea r s tha t requ ire men t The a p pe llant as se sse e is a no n - pert a in s . H o we ve r , has su b mit te d filer fo r the re le va n t the a p pe llan t PA N, IT R, yea r. hereb y re su b mit s co n fir mat ion for the ITR o f s a id the len de r, Fur ther , it is see n le nde r for the A .Y . ban ks tha t a le dge r h a s 201 8 -19 a s we ll. sta te me n ts of bee n su b mit te d Fr o m the pe r us a l o f the le n der to whe re it ha s bee n IT R be ing att a che d ex pla in the loan sh o wn t hat inte r e s t here w it h ta xa b le ta ken by it. On has bee n re ce ive d inc o me o f the s a id peru sa l, 1 find but no s upp ort in g le nde r wa s in th e that the do cu me nt lik e ba n k tune o f R s .2 ,1 la c s ap pe llant h as sta te me n t ha s bee n dur ing t he s a id sat isfac to r ily sh o wn . An d as n o as se ss m ent ye ar . ex pla ine d the IT R su b mitte d, There fore , th e ide n t it y and hence , su ch le d ger s do ubt o n the cre dit cre dit w or th ine ss ap pea r to h a ve le s s w ort h ine s s of s a id o f the len de r. re le va n ce a s th e le nde r is There is no intere st in c o me in un warr ante d an d ma ter ia l on su ch ca se s a r e ma y kin d ly b e rec or d t o dou bt neve r ta xe d. ac ce pte d. the ge nu ine ne ss o f the The a s se sse e d id tran sa ct io n. not s ub mit the I T R There fore , the and b an k sta te me n t ad d it io n made o f the re le va n t u/s 6 8 is n ot yea rs . su sta ina b le .
There fore , th e genu inene s s o f th e tran sa ct io n a s we ll as cre d it w orth ine s s o f the le nde r M / s Pus hp Ent erp r ise s co u ld n ot be 19 & 2739/Del/2023 CO No. 140/Del/2023 Subramaniam Ashok Kumar est ab lis he d.
Ru dra AACC R 22 92 25, 00 ,0 00 / The a s se sse e The L d. A s se ss in g The Secu r it ie s Q - su b mit ted a Officer ha s c as te d ob ser vat ion s of co n fir mat ion a d ou bt o n th e the AO an d the whe rea s no IT R, cre dit w or th ines s o f rejo in der o f the ban k st ate me nt h a s the ap pe llant a lo ng bee n su b mitte d. I T R le nde r wh ich is w ith IT R o f A .Y. o f AY 20 18 -1 9 is n o t pure ly ba se d on 201 8 -19 h ave su b mit ted , he n ce it su spic io n. Furt he r , bee n peru se d. ap pea r s tha t the re is n o as se sse e is a n on - requ ire men t t o The a p pe llant filer fo r the re le va n t sha re the IT R fo r has su b mit te d yea r. the sa me PA N, IT R, as se ss m ent yea r co n fir mat ion for Fur ther , it is see n for wh ich the the len de r, tha t a le dge r h a s as se ss m ent ban ks bee n su b mit te d pert a in s . H o we ve r , sta te me n ts of whe re it ha s bee n the the le n der to sh o wn t hat inte r e s t ap pe llant here b y ex pla in the loan has bee n re ce ive d resu b mits t he IT R ta ken by it. On but no o f sa id len der fo r peru sa l, I find Supp ort ing the A.Y. 201 8 -19 a s that the do cu me nt lik e ba n k we ll. O n per us a l o f ap pe llant ha s sta te me n t ha s bee n sa id IT R , y ou r sat isfac to r ily sh o wn . hon our ma y fin d ex pla ine d the that th e sa id le nde r ide n t it y and And a s n o I T R co mp an y ha d cre dit w or th ine ss su b mit ted , he nc e dec lar ed ta xa b le o f the len de r. su ch led ger s a ppe a r inc o me in the s a id There is no to h a ve le s s as se ss m ent yea r ma ter ia l on re le va n ce a s th e wa s in t he tune o f rec or d t o dou bt intere st in c o me in R s. 48 lac s . the ge nu ine ne ss su ch ca se s a r e There fore , d oub t o n o f the neve r ta xe d. the tran sa ct io n. cre dit w or th ine s s o f There fore , the The a s se sse e d id sa id le nde r is ad d it io n made not s ub mit the I T R ab s o lut e ly u/s 68 is n ot and b an k sta te me n t un warr ante d in th is su sta ina b le . o f the re le va n t ca se . yea rs . T here fore , It is he reb y be in g the gen u ine nes s o f su b mit ted th at , th e the tr an sa ct ion a s ca sh cre d it in th e we ll a s bo o ks o f ac c oun t cre dit w or th ine s s o f can be ter me d a s the len der M / s und is c lo se d c as h Ru dra S e c ur it ie s cre dit u / s 68 o f th e and C ap ita l L t d Act on ly when th e co u ld n ot be ide n t it y cre dit est ab lis he d. W ort h ine s s an d 20 & 2739/Del/2023 CO No. 140/Del/2023 Subramaniam Ashok Kumar so ur ce of s uc h cre dit is n o t ex pla ine d b y th e as se sse e. H o we ve r , to sh o w t he so urc e o f s our ce o f s uc h cre dit is re qu ire d on ly in the c as e o f a c o mp an y in wh ic h the pub lic is n o t su bs tan t ia lly intere ste d . Ho we ve r , the ba n k sta te me n t o f th is le nde r is be in g atta che d her e w it h for you r kin d peru sa l an d rea d y refer en ce.
S idh art h S CPQ P S70 17 25, 00 ,0 00 / The a s se sse e The L d. A s se ss in g The L - su b mit ted the I T R Officer ha s c as te d ob ser vat ion s of (AY 20 17 -18 , a d ou bt o n th e the AO an d the co n fir mat ion an d cre dit w or th ines s o f rejo in der o f the ban k st ate me nt (o f the len der wh ich is ap pe llant a lo ng 1 d a y on ly) o f th e pure ly ba se d. o n w ith IT R o f A .Y. le nde r. su spic io n. Furt he r , 201 8 -19 h ave The a s se sse e d id the re is n o bee n peru se d. not s ub mit the I T R requ ire men t t o The a p pe llant for t he AY 20 18 -19 . sha re the IT R fo r has su b mit te d In t he wa ke o f loa n the sa me PA N, IT R, o f R s.25 la kh s an d as se ss m ent yea r co n fir mat ion for one ret urne d in co me for wh ic h th e the len de r, o f t ota l GT I o f 1 4 as se ss m ent ban ks la kh s, pert a in s . H o we ve r , sta te me n ts of cre dit w or th ine s s the a p pe llan t the le n der to lo o ks du b iou s. hereb y re su b mit s ex pla in the loan Fur ther , ba n k the ITR o f s a id ta ken by it. On sta te me n t o f th e le nde r for the A .Y . peru sa l, I find le nde r for th e 201 8 -19 sh o win g that the co mp lete yea r is n o t the de c lare d ap pe llant h as av a ila ble o n rec or d. ta xa b le in co me sat isfac to r ily A ls o , the c lo s in g dur ing t he s a id ex pla ine d the ba la n ce as pe r as se ss m ent year in ide n t it y and le dge r sub mit ted b y the tu ne o f R s . cre dit w or th ine ss the a s se s see an d 26, 29 L ac s . o f the len de r. c lo s in g ba la nc e There fore , th e There is no dec lar ed b y th e do ubt on cre dit ma ter ia l on le nde r S idha r th . S w ort h ine s s on th e rec or d t o dou bt do es n ot ma t ch . sa id le nde r is the ge nu ine ne ss 21 & 2739/Del/2023 CO No. 140/Del/2023 Subramaniam Ashok Kumar A ls o , the s our ce o f ab s o lut e ly o f the R s. 2 5,00 ,00 0 / - un warr ante d . tran sa ct io n. loa n a ppe ar s t o be It is he reb y be in g There fore , the ma in ly fro m su b mit ted th at , th e ad d it io n ma de u R s. 20 ,00 ,0 00 / - ca sh cre d it in th e / s 68 is n ot rece ive d a d a y bo o ks o f ac c oun t su sta ina b le . ba c k. It is can be ter me d a s re ite r a te d t hat s uc h und is c lo se d c as h ac c ount s are wide ly cre dit u / s 68 o f th e use d to pr ovide Act on ly when th e ac c o mmo d at ion ide n t it y cre dit entr ie s w here de b it w ort h ine s s an d / c red it tr an sa ct io n so ur ce of s uc h oc cu r cre dit is n o t s imu lta ne ous ly an d ex pla ine d b y th e IT R re ma in s un file d as se sse e. H o we ve r , even . to sh o w t he so urc e There fore , th e o f s our ce o f s uc h genu inene s s o f th e cre dit is re qu ire d tran sa ct io n a s we ll on ly in the c as e o f as cre d it w orth ine s s a c o mp an y in wh ic h o f the le nde r M / s the pub lic is n o t S idh art h. S co u ld su bs tan t ia lly not be e sta b lis hed . intere ste d . Ho we ve r , the ba n k sta te me n t o f th is le nde r is be in g atta che d her e w it h for you r kin d peru sa l an d rea d y refer en ce.
Bhanu A . AFS PB 957 3 12, 50 ,0 00 / The a s se sse e The L d. A s se ss in g The Shah Q - su b mit ted a Officer ha s c as te d ob ser vat ion s of co n fir mat ion a d ou bt o n th e the AO an d the whe rea s no IT R, cre dit w or th ines s o f rejo in der o f the ban k sta te me n ts h a s the len der wh ich is ap pe llant a lo ng bee n su b mit ted . pure ly b a se d o n w ith IT R o f A .Y. IT R o f AY 201 8 -1 9 su spic io n. Furt he r , 201 8 -19 h ave is n ot su b mitte d, the re is n o bee n peru se d. hence it ap pe ar s requ ire men t t o The a p pe llant tha t a s ses se e is a sha re the IT R fo r has su b mit te d non - filer f or th e the sa me PA N, IT R, re le va n t ye a r. as se ss m ent yea r co n fir mat ion for Fur ther , it is see n for wh ic h th e the len de r, tha t a le dge r h a s as se ss m ent ban ks bee n su b mit te d pert a in s . H o we ve r , sta te me n ts of whe re it ha s bee n the a p pe llan t the le n der to sh o wn t hat inte r e s t hereb y re su b mit s ex pla in the loan has bee n re ce ive d the ITR o f s a id ta ken by it. On 22 & 2739/Del/2023 CO No. 140/Del/2023 Subramaniam Ashok Kumar but no s upp ort in g le nde r for the A .Y . peru sa l, I find do cu me nt s like ba n k 201 8 -19 a s we ll that the sta te me n t ha s bee n sh o w in g th e ap pe llant h as sh o wn . An d as n o dec lar ed ta xa b le sat isfac to r ily IT R su b mitte d, inc o me du r in g th e ex pla ine d the hence su ch le d ger s sa id a sse s s men t ide n t it y and ap pea r to h a ve le s s yea r in the tune o f cre dit w or th ine ss re le va n ce a s th e R s. 47 .72 la c s o f the len de r. intere st in c o me in wh ic h is m uc h mor e There is no su ch ca se s a r e than R s. 12 ,5 0,00 0 ma ter ia l on neve r ta xe d. ta ken a s lo an . rec or d t o dou bt The a s se sse e d id There fore , cre dit the ge nu ine ne ss not s ub mit the I T R w ort h ine s s o f th e o f the and b an k sta te me n t sa id len der cann o t tran sa ct io n. o f the re le va n t be d ou bte d . There fore , the yea r. The re fo re, th e It is he reb y be in g ad d it io n made genu inene s s o f th e su b mit ted th at , th e u/s 6 8 is n ot tran sa ct io n a s we ll ca sh cre d it in th e su sta ina b le . as cre d it w orth ine s s bo o ks o f ac c oun t o f the len de r B han u can be ter me d a s A Sha h co u ld n ot be und is c lo se d c as h est ab lis he d. cre dit u / s 68 o f th e Act on ly when th e ide n t it y cre dit w ort h ine s s an d so ur ce of s uc h cre dit is n o t ex pla ine d b y th e as se sse e. H o we ve r , to sh o w t he so urc e o f s our ce o f s uc h cre dit is re qu ire d on ly in the c as e o f a c o mp an y in wh ic h the pub lic is n o t su bs tan t ia lly intere ste d .
K ish ore AAKPK60 68 25, 00 ,0 00 / The a s se sse e The L d. A s se ss in g The Ku ma r J - su b mit ted a Officer ha s c as te d ob ser vat ion s of HUF co n fir mat ion a d ou bt o n th e the AO an d the whe rea s no IT R, cre dit w or th ine s s o f rejo in der o f the ban k st ate me nt h a s the len der wh ich is ap pe llant a lo ng bee n su b mit ted . pure ly b a se d o n w ith IT R o f A .Y. IT R o f AY 201 8 -1 9 su spic io n. Furt he r , 201 8 -19 h ave is n ot su b mitte d, the re is n o bee n peru se d. hence it ap pe ar s requ ire men t t o The a p pe llant tha t a s ses se e is a sha re the IT R fo r has su b mit te d non - filer f or th e the sa me PA N, IT R, re le va n t ye a r. as se ss m ent yea r co n fir mat ion for 23 & 2739/Del/2023 CO No. 140/Del/2023 Subramaniam Ashok Kumar Fur ther , it is see n for wh ic h th e the len de r, tha t a le dge r h a s as se ss m ent ban ks bee n su b mit te d pert a in s . H o we ve r , sta te me n ts of whe re it ha s bee n the a p pe llan t the le n der to sh o wn tha t : hereb y re su b mit s ex pla in the loan intere st h a s the ITR o f s a id ta ken by it. On bee n le nde r for the A .Y . peru sa l, I find rece ive d b ut n o 201 8 -19 a s we ll that the su pp or t in g sh o w in g th e ap pe llant h as do cu me nt s like ba n k dec lar ed ta xa b le sat isfac to r ily sta te me n t ha s bee n inc o me in the tun e ex pla ine d the sh o wn . An d as n o o f Rs . 2 5. 48 la c s ide n t it y and IT R su b mitte d, dur ing t he s a id cre dit w or th ine ss hence su ch le d ger s as se ss m ent ye ar . o f the len de r. ap pea r to h a ve le s s There fore , There is no re le va n ce a s th e cre dit w or th ine s s o f ma ter ia l on intere st in c o me in sa id len der ma y n o t rec or d t o dou bt su ch ca se s a r e be q ue st ione d in the ge nu ine ne ss neve r ta xe d. Th e th is c ase . o f the as se sse e d id n o t It is he reb y be in g tran sa ct io n. su b mit the IT R an d su b mit ted th at , th e There fore , the ban k sta te ment o f ca sh cre d it in th e ad d it io n made the re le va nt year . bo o ks o f ac c oun t u/s 6 8 is n ot There fore , the can be ter me d a s su sta ina b le . genu inene s s o f th e und is c lo se d c as h tran sa ct io n a s we ll cre dit u / s 68 o f th e as cre d it w orth ine s s Act on ly when th e o f th e le nde r ide n t it y K ish ore Ku m ar H UF cre dit w or th ine s s co u ld n ot be and so ur ce o f s uc h est ab lis he d. cre dit is n o t ex pla ine d b y th e as se sse e. H o we ve r , to sh o w t he so urc e o f s our ce o f s uc h cre dit is re qu ire d on ly in the c as e o f a c o mp an y in wh ic h the pub lic is n o t su bs tan t ia lly intere ste d . Ho we ve r , the ba n k sta te me n t o f th is le nde r is be in g atta che d her e w it h for you r kin d peru sa l an d rea d y refer en ce.
24 & 2739/Del/2023 CO No. 140/Del/2023 Subramaniam Ashok Kumar 12. Having heard the arguments of both the parties, examined the amounts of the loan, remarks given by the AO in the original Assessment Order as well as in the Remand Report, rebuttal of the assessee on the Remand Order and the observations of the ld. CIT(A), we hold that no reason arises to interfere with the order of the ld. CIT(A). With regard to the loan of Rs.40,00,000/- received, we find that the said amount has been received from Mr. Duraisami and the ld. CIT(A) has accepted the loan of Rs.20,00,000/-. The ld. CIT(A), however, volte-faced on the issue of remaining Rs.20,00,000/- which we hereby reverse.
Interest Payment:
Interest payment being consequential to the loans received, the same is liable to be deleted owing to the adjudication on the issue of the unsecured loans.
In the result, the appeal of the Revenue is dismissed and the appeal & the Cross objection of the assessee is dismissed as infructuous. Order Pronounced in the Open Court on 15/03/2024.