Mayuri Infrastructure (P) Ltd. Vs ITO (ITAT pune)
Mere furnishing of confirmations and PAN are not sufficient to prove the creditworthiness of the creditors. The assessee has to prove financial capacity of the creditors. The assessee was required to furnish evidence that would show financial worth of the creditors, such as bank statements, to remove the shadow of doubt from the mind of assessing officer. Taking into consideration totality of facts, we deem it appropriate to restore this issue back to the file of assessing officer in respect of 11 creditors mentioned in the grounds of appeal. The assessee is directed to furnish all necessary documents before the assessing officer to prove the genuineness and creditworthiness of the creditors. The assessing officer after affording opportunity of hearing to the assessee shall decide this issue, in accordance with law. It is made clear that the assessing officer shall not disturb the relief already granted by the First Appellate Authority in respect of addition under section 68 of the Act.
FULL TEXT OF THE ITAT ORDER IS AS FOLLOWS:-
This appeal by the assessee is directed against the order of Commissioner (Appeals)-I, Nashik dated 17-12-2014 for the assessment year 2010-11.
2. The assessee in appeal has raised solitary issue assailing confirming of various additions under section 68 of the Income Tax Act, 1961 (hereinafter referred to as “the Act”).
3. The brief facts of the case as emanating from records are: The assessee company is engaged in the business of buying and selling non-agriculture plots, development and construction. During scrutiny assessment proceedings for assessment year 2010-11, the assessing officerinter alia observed that the assessee has outstanding unsecured loans to the tune of Rs. 1,31,69,930. The list of persons from whom the assessee has allegedly taken loans are as under :–
