Validity of addition done on account of credit worthiness by CIT after giving an opportunity to the AO to rebut the submissions




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Validity of addition done on account of credit worthiness by CIT after giving an opportunity to the AO to rebut the submissions

ITAT DELHI
DCIT, CIRCLE-25 (1) NEW DELHI VERSUS TECHNICO INDUSTRIES PVT. LTD.
ITA No. 5204/Del/2015

Short Overview : 

Addition u/s 68
 AO doubted the credit worthiness of the above companies and asked the assessee to substantiate source of source of the funds
  Assessee submitted that it has already submitted the bank statements and income-tax return copies and argued that the entire amount was received through banking channels

On admission of additional evidence by CIT-A in deleting the addition, ITAT observed as under: 

 In the instant case, the assessee has filed the bank statement before the CIT(A) with a request to admit the same as an additional evidence giving reasons for non-submission of the same before the AO and since the ld. CIT(A) has called for a remand report from the AO before deleting the addition, therefore, in our opinion, the order of the CIT(A) deleting the addition in the instant case does not call for any interference.
It is not a case where the ld. CIT(A) has not given an opportunity to the AO to rebut the submissions made before him.
In this view of the matter and in view of the detailed discussion made by the ld. CIT(A) while deleting the addition on account of share application money and unsecured loan in respect of different investors as mentioned earlier, the same, in our opinion, does not call for any interference and, accordingly, the same is upheld.
The grounds raised by the Revenue are accordingly dismissed.

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