ROVE ELECTRIC PRIVATE LIMITED,COIMBATORE vs. DEPUTY COMMISSIONER OF INCOME TAX,CORP CIRCLE 1, COIMBATORE, COIMBATORE

आदेश / O R D E R PER AMITABH SHUKLA, A.M :

2.0 Brief facts of the case are that the AO had made an addition of Rs.1.5 Crores on account of unexplained unsecured loan u/s 68. The assesse had informed the impugned amount had come from one Mr.Vancen Varghese, an expatriate, Director of Company. Before the AO and the CIT(A) the assesee’s conduct fell short of satisfactorily explaining the resources of the amount and the genuineness of the transaction etc.

3.0 At the outset, the Ld.DR pointed out that the facts of the case narrated by the Ld.DR in the light of cited evidences qua addition of Rs.1.50 Crores were not produced before the Ld.AO (as evident from the para 3.2 of the assessment order) and before the Ld.CIT(A) (as evident from the last para of the appellate order).

4.0 Per contra, the Ld.AR wants us to give relief to the assesse in the light of submissions made and evidences produced.

5.0 We have heard rival submission in the light of facts of the case and material brought on records. It is an evident fact of the case that the assesse did not submit to the AO evidences satisfactorily establishing the tenets prescribed u/s 68. The assesse also miserably failed in doing the same before the first appellate authority. The assesse therefore cannot make any justified claim for relief against additions made. Before us the submissions made and the corresponding evidences produced have not been examined by the lower authorities. The assesse has in detail explained that Shri Varghese is non-resident Director and the impugned amount of loan moved from his NRE account to NRO account before landing in Federal Bank account of the assesse. The assessing officer possess the first authority to examine any details / evidences before determining taxable income of a tax payer. We therefore hold the view that ends of justice would be met if the assesse is given one last opportunity to present its case and file supporting evidences before the Ld.AO. Accordingly, placing reliance upon the decision in the case of TIN box 249 ITR 216 the matter is restored to the file of the AO for fresh assessment de novo. The assesse is directed to make complete and correct compliance towards the notices issued by the AO. To the extent the order of the lower authorities is set aside and all the grounds of appeals raised by the assesse are partly allowed for statistical purposes.

6.0 In the result, the appeal is allowed for statistical purposes. Order pronounced on 9th August, 2024 at Chennai.