The dispute is regarding addition of Rs.14,60,052/- made by AO on account of unsecured loans from Shri Balwantbhai Grewal. There is no dispute that the said amount had been shown as loan in books of account of the assessee. Assessee could not produce any evidence to prove the identity and creditworthiness of Shri Balwantbhai Grewal who lived in UK and genuineness of transaction. Subsequently before CIT(A), assessee submitted that the amount had been wrongly entered in books and the same related to transaction of Shri Balwantbhai Grewal with the sister concern M/s. Kaypan Vanijya Pvt. Ltd.
However, assessee could not produce any material before CIT(A) to substantiate the said claim. Assessee filed confirmation from Shri Balwantbhai Grewal before CIT(A) in which only details of payment had been mentioned and no detail was given regarding the nature of transactions. Shri Balwantbhai Grewal had also not confirmed that the transaction related to sister concern. The bank account details of Shri Balwantbhai Grewal were also not given to verify the claim. There was no evidence to prove the identity and creditworthiness of Shri Balwantbhai Grewal. Under these circumstances we do not see any infirmity in the order of the CIT(A), confirming the addition made by the AO under section 68 of the Act. Accordingly we confirm the order of CIT(A).
INCOME TAX APPELLATE TRIBUNAL, MUMBAI
ITA No. : 2944/M/2011 – Assessment Year: 2006-07
Kaypan Exports Pvt. Ltd.
Vs.
Income tax Officer
Date of Pronouncement: 10.5.2012
O R D E R
