TaxTMI 
TaxTMI 
2017 (2) TMI 214
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....nst debenture value. 4. On the facts and in the circumstances of the case and in law, the Ld. CIT(A) erred in deleting the addition made on account of unexplained cash credit u/s. 68. 5. On the facts and in the circumstances of the case and in law, the Ld. CIT(A) erred in deleting the addition made on account of direct expenses u/s. 37(1). 6. On the facts and in the circumstances of the case, the impugned order of the Ld. CIT(A) is contrary to law and consequently merits to be set aside and that of the Assessing Officer be restored. 7. The appellant craves leave to amend or alter any ground or add a new ground which may be necessary." 3. In spite of issue of notice none appeared on behalf of the assessee nor any adjournment petition is moved. Therefore we heard the Ld. D.R. and dispose off this appeal on merits. 4. The first issue in the appeal of the Revenue is that the Ld. CIT(A) erred in deleting the addition made on account of unexplained cash credit under section 68 of the Act. The Ld. D.R. submits that the Assessing Officer while completing the assessment made addition of Rs. 29,39,40,000/- under section 68 of the Act being the increase in share capital/shar....
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....d the remand report after examining the copy of agreement between the assessee and TEMPPL which was taken over by the assessee and he has not disputed the genuineness of the transaction entered into by the assessee. There was no adverse comments by the Assessing Officer regarding these transactions. Thus, the Ld. CIT(A) deleted the addition taking into account the remand report observing as under: "2.2 During the course of appellate proceedings, the AR of the appellant submitted detailed submissions and evidences etc. in support of its claim that amount received in respect of increase in share capital/share premium is genuine. The details /submissions of the appellant were forwarded to the AO for his comments vide this office letter dated 13.12.2012. The AO after verifying the submissions and details filed by the appellant submitted his comments vide letter dated 15.02.2013. The comments of the AO on this issue are reproduced as under:- "Assessee co. increased share capital by Rs. 14,69,70,000/- by allotting 1,46,97,000 equity shares of Rs. 10 by charging premium of Rs. 10/-. Assessee collected share premium of Rs. 14,69,70,000/-. The shares were issued to the holders o....
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....rly stated that the assessee had filed the copy of agreement dtd. 26.09.2008 between the assessee and M/s. Trauma & Emergency Medical Products Pvt. Ltd. The AO has also stated that the assessee had also filed necessary balance sheets and confirmations of 6 parties to whom the shares of more than 10 Ines have been issued alongwith their PAN. The AO has also stated that the letter of Pane and Ahmedabad Stock Exchange were also filed. The AO has also specifically stated that the assessee being a public limited company, the books of accounts are not called. In view of the above, it is clear that the AO has examined the issue in detail and all the necessary evidences have been submitted. The AO has neither denied anything nor has put any adverse remark. Also, he has not objected for any additional evidences, if any, filed before him on the issue in his remand report and as such the addition made u/s. 68 needs to be deleted." 2.4 I have considered the report of the AO, comments of the appellant carefully. It is seen from the report submitted by the AO that necessary verification has been carried out by him during the course of remand report proceedings and the AO was satisfie....
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....0,69,23,945/- was disallowed as assessee failed to furnish the details / nature of the direct expenses incurred. Assessee filed the details direct expenses as follows:- Software division purchase Rs.31,45,01,000/- Finance division Purchases Rs.27,71,17,379/- Interest on loan Rs. 39,75,165/- Other charges Rs. 9,853/- Opening stock Rs.14,71,71,975/- Less: Closing stock Rs.21,06,55,649/- Rs.21,76,18,723/- Total Rs.53,21,19,723/- In support of above claim, the assessee filed p/co to copies of purchase bills of Software division and finance division. Opening and closing stock are as per balance sheet. As regards claim of interest on loan of Rs. 39,75,165/-, assessee has submitted only names of 37 parties and amount paid to each of them. Vide order sheet noting dtd. 27.12.2012, it was asked to file TDS details or 15G form. But no such details were filed by the assessee and during the hearing, assessee also confirmed that TDS is not deducted on interest payment. The auditor in its 3CD repor t has ment ioned 'Not appl icable' agains t the column of "Amount inadmissible u/s....