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| The Tax Publishers2020 TaxPub(DT) 3567 (Hyd-Trib) INCOME TAX ACT, 1961
Section 68
Where some of the subscribes to the share capital as well as unsecured creditors were genuine creditors and their creditworthiness can be established, provided the opportunity was given to assessee and though the entire facts were placed before CIT(A), it seemed that CIT(A) did not consider the evidences placed before him, therefore, matter was remanded back to AO to redo the assessment de novo.
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Income from undisclosed sources - Addition under section 68 - Unsecured loans received by assessee from various companies/persons -
The AO made addition under section 68 read with section 115BBE. As per the assessee, it included the opening balance as on 1-4-2013 amounting to Rs. 6.08 crores. Further, as per assessee all the parties were not shell companies. Some of the subscribes to the share capital as well as unsecured creditors were genuine creditors and their credit worthiness could be established, provided the opportunity was given to the assessee. It was also submitted by the assessee that some of the creditors are assessed in Hyderabad and filing the returns regularly. Though the entire facts were placed before the CIT(A), it seems that the learned CIT(A) did not consider the evidences placed before him. Held: Issue needed to be verified by AO with regard to the genuineness and the creditworthiness of creditors as well as the share applicants/share applications money received by assessee. Hence, matter was remanded back to AO to re-do the assessment de novo taking into consideration of all the evidences placed before him by the assessee.
REFERRED :
FAVOUR : Matter remanded
A.Y. : 2015-16
IN THE ITAT, HYDERABAD BENCH
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