AI Drafter 
TaxTMI 
TaxTMI 
2016 (7) TMI 950
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....005 - 06, acquired the shares of this company. It filed its return of income, declaring total loss of Rs. 31870/- on 26/09/2009. This company along with three other companies of the group is presently involved in the development and construction of housing project and information Technology Park in sector 37 - Gurgaon. 3. During the year, company has received a loan of Rs. 4600000/-from one M/s stalwart realtors private limited. Enquiries conducted by the investigation wing revealed that the company is not doing any real business and this lender company is created to build artificial capital and then providing accommodation entries to the other companies of the groups wherever the capital is needed. During the course of search on Thapar homes Ltd, it was found that one Shri BK Dhingra, who is one of the directors of the group companies and a chartered accountant, had created a web of more than 200 companies to build up artificial capital for use by the group companies. It was also found that shareholders in such companies were dummies and just name lenders and all such persons were of no means. During the course of search statement of some persons were recorded and they stated t....
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....ts realtors private limited 5. In view of these documents, it was submitted that that appellant has discharged its initial onus cast under section 68 of the Income Tax Act of proving identity, genuineness of transaction and creditworthiness of the lender. It was further submitted that that this company has huge accumulated surplus in reserve and surplus of the company of Rs. 3.59 crores. Therefore, the creditworthiness of the party is not in doubt. He stated that the revenue has not taken any action against Stalwart Realtors arbitrators private Ltd, despite having observed that this company has allegedly having generated fictitious capital. Further lender company is assessed to income tax and filing its return of income year to year. He submitted that the bank account of stalwart realtors private limited with Corp bank account shows that the amount of Rs. 46 lakhs were advanced on 13/12/2008 to the assessee. There was an identical credit on 11/12/2008 received by that that company by cheque of syndicate bank. He submitted that even before the receipt of Cheque of Rs. 46 lakhs, there was a balance of Rs. 25,67,000/- in the bank account of the lender i.e. Stalwart realtors private....
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....09, along with copy of the bank account of stalwarts realtors private limited with Corp bank from 1st December 2008 to 31st December 2008. As per the bank account opening balances in the hands of the lender was Rs. 25,67,771/-and subsequently there is an inward credit in the bank account of the lender 13.12.2008 of Rs. 46 lakhs through banking channels from syndicate bank, therefore, before the issuance of cheque to the appellant company, available balance in the hands of the lender was Rs. 7167771/-and out of this balances an amount of Rs. 46 lakhs was issued by account payee cheque No. 795738 on 10/12/2008, which was cleared into the bank account of the lender on 13/12/2008 . Even after the issue of this cheque, there was an outstanding balance in the bank account of the lender of Rs. 2567771/-. Assessee has also submitted the copy of the balance sheet of the lender for the year ended 31st of March 2009 wherein though company has „ issued share capital‟ of Rs. 1 lakh, however, reserve and surplus of the company were Rs. 33311037/-and in the immediately preceding year such reserve and surplus was Rs. 35924446/-. The company has sundry debtors of Rs. 1399993/- , as well....
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.... controverted that profits of Stalwarts Realtors from the bogus sales have been assessed and despite having evidences against that company , no actions have been initiated against that lender. It was not also denied that stalwart realtors private Ltd is a company which is regularly filing its return of income and has an accumulated reserve and surplus of Rs. 3.59 crores which is been accumulated from year-on-year. It is also apparent from the balance sheet filed by the assessee of stalwart realtors private limited that it has substantial amount of bank balances, sundry debtors and loans and advances. Therefore, it cannot be said that that identity and creditworthiness of the lender is at all doubtful. Further, the amount of loan has been taken by the assessee from this lender through account payee cheques and has submitted the bank account of the lender, wherein substantial sum of bank balances were available before issue of cheque to the appellant. As the assessee has received this loan and also proved the source of such loan and further the documents submitted by the assessee were not at all proved to be false or fabricated, we are of the view that assessee has discharged its onu....