2017 (2) TMI 1304

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....oduced hereunder:- "(1) The learned CIT(A) -1, Coimbatore, has grossly erred in holding that the appellant has made investments, as stated by the A.O. and sustaining the addition to the extent of Rs. 25,58,68,579/-, as investment in acquiring assets, without a corresponding liability, as undisclosed investment made by the appellant, in the facts and circumstances of the case and in law. (2) The learned CIT(A) ought to have held that the appellant did not make investments and the mere entries in the books of account did not amount to any investment actually made by the appellant, when no payment was, in fact, received, by the Investee Companies, in the facts and circumstances of the case and in law. (3) The learned....

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....eet reflected substantial non-current investments in excess of Rs. 17,00,00,000/-, such investments never existed. Assessee has also submitted the details of existing non-current investments as under:- Non Current Investments Investments in Equity Sri Padmabalaji Steels P. Ltd. - Unit I : Rs. 1,14,00,000/- Sri Padmabalaji Steels P. Ltd. - Unit II : Rs. 7,13,00,000/- Sri Padmabalaji Steels P. Ltd. - Unit III : Rs. 2,99,50,000/- Sri Suryabalaji Steels P. Ltd. : Rs. 5,48,20,000/- SBSRM : Rs. 55,00,000/-    Rs.17,29,70,000/-   3. Assessee also stated that the loans and advance of Rs. 24,17,62,914/- shown in its balance sheet were also not real amounts. The break-up of these were sub....

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.... that the investments shown as made by the assessee in M/s Sri Padmabalaji Steels Pvt. Ltd. and M/s Suryabalaji Steels Pvt. Ltd. tallied with the amounts reflected in the balance sheets of the said companies. Thus, according to A.O., contention of the assessee that these were only book entries and there was no real investment, could not be accepted. Though the assessee stated that the recipients had no corresponding credits in their bank accounts, it was not accepted by the Assessing Officer. According to the A.O., the balance sheets of all these companies were audited and duly certified by the Chartered Accountant along with a report under Companies (Auditor's Report) Order, 2003. She held that the investments were correctly shown by the a....

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..... According to Ld. A.R., there was no real investment made by the assessee in either M/s Sri Padmabalaji Steels Pvt. Ltd. or M/s Suryabalaji Steels Pvt. Ltd. The cheques issued by the assessee to the said companies were never presented by them for payments nor was it realised from the bank accounts of the assessee. When there was no actual investment, as per the Ld. A.R., the question of source of such investments was irrelevant. Contention of the Ld. A.R. was that lower authorities had simply gone by the balance sheets of the assessee and that of M/s Sri Padmabalaji Steels Pvt. Ltd. and M/s Suryabalaji Steels Pvt. Ltd. ignoring the real situation. Contention of the Ld. A.R. was that only real income could be taxed and not fictitious income....