TaxTMI 
TaxTMI 
2018 (4) TMI 410
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....unsecured loans" and held that each and every detail of four companies was given by the assessee and these companies were Group Companies of the assessee and assessee has taken loan from five companies and discharged its onus lay upon its shoulder to prove the identity, creditworthiness of the creditors and genuineness of the transactions. 2. Relevant paragraphs No.16 to 23 of order dated 26.05.2017 passed by the learned Appellate Tribunal read, as under: - "16. In the light of the above allegations of the Assessing Officer when we analyze the facts of the case in view of the contentions and submissions of the assessee vis-à-vis the findings recorded by the authorities below then we hold that there is no dispute regarding existence and identity of the five companies as the assessee submitted their names, addresses and PAN along with all relevant documents in the shape of returns, financial results and accounts of these companies. Since undisputedly the amounts were received from all the five companies through cheques and genuineness of the loan transactions cannot be disputed. However, we may point out that as per the ratio of the decision of the Hon'ble Calcutta High Cou....
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....cs as on 31.03.2007 and it has earned interest of Rs. 56.05 lacs. From the documents available at pages 92-96 of the assessee's paper book-I we observe that in the assessment order u/s 143 (3) of the Act for the assessment year 2007-08 income has been worked out at Rs. 6,86,682/- and refund of Rs. 4,49,400/- has been issued after setting off of losses of these companies. In regard to Siddhachal Developers Pvt. Ltd., undisputedly the opening credit balance of this company was Rs. 5 lacs and the assessee received Rs. 15 lacs during the period under consideration. From the copies of documents available at page 85 to 92 of the assessee's paper book-II filed along with written submissions dated 01.08.2012 we note that for the assessment year 2007-08 vide order dated 28.04.2009 passed u/s 154 of the Act refund voucher has been issued to this company and from the master details provided by the Registrar of Companies, this company is having active status with authorized capital of Rs. 20 lacs, paid up capital of Rs. 14.5 lacs and reserves of Rs. 80.50 lacs as on 31.03.2007. In reply to the notice u/s 133 (6) of the Act, this company informed its latest address to the Assessing Officer alon....
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....opies of share application forms that too in few cases and when the assessee was required to produce the subscribers to the share applications, despite several opportunities neither the confirmations were given nor the subscribers were produced for examination. In para 11, the Hon'ble High Court held that in the case of Palasia Leasing & Finance Company, entry was not accepted on the ground that by merely filing the confirmation letter, the burden could not be discharged when the inquiries reveal that the company was not in existence nor any books of accounts or directors were traceable. We respectfully point out that the present case is pertaining to unsecured loan and not to share capital. The said company has been assessed u/s 143 (3) for the assessment years 2004-05 and 2006- 07 by the Department and also filed appeal before CIT (A) who deleted the addition. From pages 118 to 136 we observe that the assessee filed confirmations, copy of account of this company, copy of relevant extract of bank account, copy of account in the books of the assessee from 01.04.2005 to 31.03.2008, copy of master data from ROC, Gwalior, copy of annual report along with balance sheet, P&L account and....
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....sment order the Assessing Officer also made allegation of cash deposits which was controverted by him in the remand report. From a reading of the assessment order we observe that the Assessing Officer himself was confused to the transaction inasmuch as at page 2 he writes "unsecured loans from various companies" whereas in the subsequent part of page 3 para 2 he asked the assessee to produce share applicants. In the last para at page 3 of the assessment order the Assessing Officer also takes legs from the assessment order of M/s. BCC Cargo Pvt. Ltd. for the assessment year 2007-08 and as we have noted that in this assessment order there is no such allegation against these companies, therefore, we hold that the Assessing Officer was initially confused and proceeded to make addition u/s 68 of the Act on the basis of incorrect and irrelevant facts which was rightly dismissed by the Commissioner of Income Tax (Appeals) while granting relief to the assessee. 23. Accordingly, we have no hesitation to hold that we are unable to see any ambiguity, perversity or any other reason to interfere with the first appellate order which granted relief to the assessee. Hence, we uphold the same. A....