TaxTMI 
TaxTMI 
2018 (6) TMI 166
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....m Shri Abdul Latheef. The Ld. AR submitted that at the time of assessment, Shri Abudl Latheef filed detailed affidavit, affirming his contribution of Rs. 15,00,000/- made to the assessee for the purpose of investment in Parathode Granites Pvt. Ltd. in which the assessee is the managing director. It was submitted that the affidavit clearly established the essentialities to prove the genuineness of the contributor which included identity of the contributor and genuineness of the transaction. Further, it was submitted that the assessee was an NRI businessman in UAE for the past several years and for the purpose of investment in the said Company, Shri Abdul Latheef had invested the above sum of Rs. 15 lakhs out of his savings from earnings in UAE. It was also submitted that at the time of recording sworn statements, the assessee had clearly deposed contribution from friends and third parties towards investments in the Crusher business undertaken by the assessee According to the Ld. AR, the Assessing Officer merely overlooked the submissions and contentions put forward by the assessee. Hence it was pleaded that the addition of Rs. 15 lakhs as contribution of Shri Abdul Latheef in the C....
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.... Assessing Officer which was sustained by the CIT(A). 8. Against this, the assessee is in appeal before us. The Ld. AR submitted that the Assessing Officer had passed the assessment order without considering the submission made by the assessee genuinely substantiating the receipt of funds as shown in the cash flow statement as investment contribution received from Shri Abdul Gafoor (R.33,84,000), Shri Abdul Latheef (Rs.13,00,000), Shri Abdul Kareem (Rs.8,48,000) and Shri Mohammed Shabeer (4,13,000). It was submitted that at the time of assessment, four of the above mentioned persons filed detailed affidavits affirming their contributions made to the assessee for the purpose of investment in M/s. Parathode Granites Pvt. Ltd. in which the assessee is the managing director. The affidavits filed by the assessee from them clearly establish the essentialities to prove the genuineness of the contributors which included identity of the contributors, credit worthiness of the contributors and genuineness of the transaction. Further, it was submitted that they are NRI businessmen in Gulf countries for the past several years. The amounts contributed by the above four persons are as follows: ....
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.... ATM and paid to Abdul Azeez 15/04/2008 15,000 Cash withdrawn from ATM and paid to Abdul Azeez 16/04/2008 15,000 Cash withdrawn from ATM and paid to Abdul Azeez 21/04/2008 15,000 Cash withdrawn from ATM and paid to Abdul Azeez 23/04/2008 15,000 Cash withdrawn from ATM and paid to Abdul Azeez 24/04/2008 15,000 Cash withdrawn from ATM and paid to Abdul Azeez 25/04/2008 15,000 Cash withdrawn from ATM and paid to Abdul Azeez 26/04/2008 15,000 Cash withdrawn from ATM and paid to Abdul Azeez Mohammed Shabeer: As sworn by Mohammed Shabeer in his affidavit, he is an NRI based in Qatar employed as Mechanical engineer. During the above Assessment Year he has contributed Rs. 4,13,000/- in cash for the purpose of share investment Parathode Granites Private Limited. The copy of NRE bank statement of Mr. Mohammed Shabeer maintained with SBT with account No.20809 was placed on record. The transactions deposed from the said bank statements towards the above investments is as below: Date Amount Nature of Transactions with remarks 22/05/2008 7,000 Cash withdrawn vide cheque no. 0044792 and paid to Abdul Azeez 16/06/2008 10,000 Cash withdrawn vide cheque no.0044794 a....
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.... assessee accepted that no actual written accounts were kept by them. The Ld. DR submitted that the although the credits appeared in the cash flow statement of C.K. Abdul Azeez, the investments were stated to be made with the company M/s. Parathode Granites Pvt. Ltd. in which assessee was the Managing Director. However, in the books of account of the company, the Ld. DR submitted that the name of such creditors does not appear which means that the contents of the affidavit was actually incorrect that the investments were made with M/s. Parathode Granites Pvt. Ltd. The company came into existence on 27/10/2009 and the alleged investments as per the affidavit was made during the period prior to the incorporation of the company. The Ld. DR also disagreed with the view that the funds for allocation of shares was lying with the company subject to pendency of the allotment of shares as it was not supported with any of the accounts of the company or in the sworn statement of the assessee. Thus, the Ld. DR submitted that the contents of the affidavit were not correct and it is only a make believe story that the investments were made towards allotment of shares and were kept pending by the ....
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....ual capacity and the same was entered on behalf of the M/s. Parathode Granites Pvt. Ltd. Hence, it was submitted that the addition of Rs. 95 lakhs in the hands of the assessee is to be deleted. 13. The Ld. DR submitted that since the agreement was signed by the assessee on behalf of the Company as the Managing Director, for the purchase of land, the assessee was not able to explain it in his individual capacity. According to the Ld. DR in the sworn statement, the assessee had accepted of having spent Rs. 95 lakhs in respect of the purchase of 28.75 acres of land for Rs. 5,65,00,000, for which the agreement was during the course of search from the premises of Shri Sainulabdheen which is reflected in the sworn statement recorded on 11/03/2011. The Ld. DR submitted that there was no mention whether the purchase of land was meant for the company and the payments were sourced from the books of account of the company or from the company's bank account. In such a case, it was submitted that the assessee has failed to discharge his obligation to explain the source for such investment. Accordingly, the Ld. DR submitted that the Assessing Officer has rightly made the addition of Rs. 95 lak....