TaxTMI 
TaxTMI 
2012 (8) TMI 732
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....g the action of the AO in making addition of Rs.12,80,000/- towards share capital introduced by Sri KBV Janaki Rama Rao (HUF) who is the Managing Director of the appellant company in his individual capacity. The ld. CIT (A) ought to have seen that the said person has the required funds for making investment. 3. The ld. CIT (A) erred in not considering the fact that the person introducing the amount is identifiable and the said person has the required financial capability for the investment made by him." 3. Ground Nos. 1 and 4 are general in nature and they do not require any adjudication. 4. Ground Nos. 2 and 3 relate to one common issue regarding addition of Rs.12,80,000/-. Facts, in brief, are that the assessee is a closely held ....
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....is Rs.25,000/- per acre per annum. It was explained that his mother used to advance monies to different persons and as and when he required money, his mother used to give him. The MD also submitted proof regarding agricultural land holding and also filed detailed investments made on different dates in the share application money. The AO however while completing the assessment did not accept the explanation of the assessee company on the ground that no evidence was produced that the amount actually represents income from agricultural operations. The AO also noted the fact that no bills or vouchers for sale of agricultural produce were submitted before him. The AO finding that the entire investment in share application money has been made ....
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....the status of HUF to Vasamsetti Suryanarayana, s/o V. Ramana resident of Vella village, Ramachandrapuram Mandal, East Godavari District which is at pages 13 and 14 of the paper book filed by the assessee. The learned AR also invited our attention to the receipts towards payment of lease rentals executed by the lessees which are at pages 3 and 15 of the paper book. According to the receipts, the lessee has paid Rs.54,260/- towards lease rental on 30-3- 2001 and Rs.54,580/- on 25-3-2002. Similarly, referring to page-15 to 24 of the paper book, the learned AR submitted that the lessee has paid lease rentals to the HUF as per the terms of the lease agreement. The learned AR submitted that when there is no dispute regarding the identity of th....
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....erused the materials on record. After going through all the materials, the undisputed fact emerging there from is that the identity of the person investing in share application is not in doubt who happens to be the MD of the company. The AO as well as the CIT (A) have also admitted the fact that Janaki Rama Rao , the MD of the company was holding about 10 acres of cultivable land. From the documents submitted by the assessee, it is seen that the assessee had leased out a part of the agricultural land to some cultivator as per the lease agreement which are at pages 1 and 13 of the paper book. It is seen from the lease agreement that they have been endorsed by the village revenue officer of Ramachandrapuram town. As per the receipts which ....