2009 (12) TMI 710

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....nvestments towards loan and shares under section 69 of the Act, 1961, which were pledged to raise loan. 2. On the facts and in the circumstances of the case, the learned Commissioner of Income-tax (Appeals) has erred in holding that the assessee has not made any investment in shares and neither is he the beneficiary of the amount of loans." We have heard the learned Departmental representative. None for the assessee was present. In this case, the assessee had obtained a loan of Rs. 3.80 lakhs from HDFC Bank and Rs. 20,00,000 from Standard Chartered Bank against pledge of shares belonging to one Shri Gian Gupta and his wife Smt. Usha Gupta. These shares were ultimately sold directly by the bank during the period from April 1, 2000 t....

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....arding rate of these shares on relevant date. The assessee also filed an affidavit of all the concerned persons to support his contentions. After considering the facts and circumstances of the case, and observation by the Assessing Officer, the learned Commissioner of Income-tax (Appeals) deleted the addition by observing and holding as under : "8. Determination: The submission made by the appellant have been carefully considered in view of the facts and circumstances of the case and the provisions of law. It is observed that the Assessing Officer has treated the amount of Rs. 23.80 lakhs as unexplained investment made by the assessee towards loan and shares under section 69 of the Act, in the absence of complete evidence to sho....

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..... On the basis of these shares, the bank sanctioned loan of Rs. 3.80 lakhs (and Rs. 15 lakhs, which is dealt with later as it has not been considered by the Assessing Officer for addition). In this connection, a copy of the bank account of Hanuman Prasad Shukla has also been enclosed. The loan amount of Rs. 3.80 lakhs was transferred to Smt. Usha Gupta. She is regularly assessed to income-tax vide PAN AAFPG2550G. This loan amount has been duly declared by her in her balance-sheet filed with her return of income. A copy of her balance-sheet and also a copy of the assessment order under section 143(3) have been furnished in support which have been placed on record. The perusal of these documents would prove that the shares belong to Smt. Usha....

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....ccount of Hanuman Prasad Shukla has also been enclosed. The amount of loan including the interest comes to Rs. 20,36,211 as per copy of the account enclosed. This amount of loan was utilised by Smt. Usha Gupta as apparent from her balance-sheet. The balancesheet shows the amount payable to Hanuman Prasad at Rs. 24,16,211. This amount of Rs. 24,16,211 consists of the loan of Rs. 20,36,211 and of Rs. 3.80 lakhs referred to above. 8.5 The appellant has also filed affidavits of all the three persons, namely, Shri Hanuman Prasad Shukla, Smt. Usha Gupta and Shri Gian Gupta to support and corroborate the above submissions. 8.6 In view of the abovesaid facts and circumstances, it is very clear that Shri Hanuman Prasad Shukla is not the owner ....