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Facts
The Ld. CIT(A) confirmed an addition of Rs. 6 crores made by the Assessing Officer under Section 68 of the Income Tax Act, 1961. This addition stemmed from the assessee's failure to prove the genuineness of a transaction and the creditworthiness of the loan creditor, M/s Opus Holding Private Limited, as required information and directors were not produced.
Held
The Tribunal found no error in the lower tax authorities' findings. Despite opportunities, the assessee failed to provide adequate financial details of the lender or produce its directors. Consequently, the appeal filed by the assessee was dismissed.
Key Issues
Whether the assessee discharged its burden to prove the genuineness and creditworthiness of a loan transaction under Section 68 of the Income Tax Act, 1961.
Sections Cited
Section 68 of the Income Tax Act, 1961
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Income Tax Appellate Tribunal, DELHI BENCH ‘H’, NEW DELHI
Before: G.S. PANNU, HON’BLE & SH. ANUBHAV SHARMA
ORDER PER SHRI ANUBHAV SHARMA, JM: Heard and perused the record.
None has appeared for the Appellant – Assessee. Notices have been issued repeatedly and report is received that there is no such person at the address. Notices have also been issued by e-mail.
Further, record shows for 29.11.2022 an adjournment request was also received by e-mail from the office of Shri Satish Aggarwal & Associaties, Chartered Accountants. No more opportunity is justified.
Arguments of Ld. DR were heard who supported the findings of the Ld. Tax Authorities.
On appreciating the matter on record, it comes up that the Ld.CIT(A) has confirmed the addition of Rs.6 crores made by the Assessing Officer u/s 68 of the Income Tax Act, 1961 for failure of the assessee company to prove the genuineness of the transaction and the creditworthiness of the loan creditor M/s Opus Holding Private Limited. On appreciating the orders, it comes up that except for providing the basic details of the lender the financials were not provided to support at credibility and in spite of having an opportunity to produce the directors, the assessee failed to produce there. No other opinion can be formed. There is no error in the findings of the Ld. Tax Authorities.
In the result, appeal of the assessee is dismissed.