2005 (11) TMI 61

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....appeals, the same shall stand disposed of by this common order. The assessee-company is engaged in the business of promoting holiday resorts. For the assessment years 1988-89, 1989-90, 1990-91 and 1991-92, it filed returns in which it declared loans allegedly borrowed from M/s. Pasupati Nath Commercial Pvt. Ltd., a company incorporated in Sikkim. The Assessing Officer called upon the assessee t....

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....rson before the Commissioner of Income-tax to get his statement recorded in which he admitted having advanced the loans shown in different years of assessment to the assessee. The Commissioner of Income-tax, on an evaluation of the said evidence, came to the conclusion that the burden of proving the existence of the lender, its genuineness and the capacity to advance the amounts in question had be....

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....ts for the assessment years 1987-88, 1988-89 and 1989-90 had been placed on record from which it was clear that the lender-company had declared a profit to the tune of Rs. 1,33,66,889 as on March 31, 1987, and a sum of Rs. 2,35,14,343 as on March 31, 1988. A sum of Rs. 1,59,69,553 was declared as the profit earned by the lender-company as on March 31, 1989. The Tribunal further noted that proceedi....

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....3 where this court had an occasion to examine a similar issue in respect of M/s. Antarctica Investments Pvt. Ltd. which too was incorporated in Sikkim. The Tribunal held that there was no material difference in the fact situations of the two cases and that since the order passed by the High Court had been upheld by the apex court in SLP No. 12130 of 2003, the view taken therein was applicable to t....