TaxTMI 
TaxTMI 
TaxTMI 
2018 (8) TMI 1039
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.... 24. 03. 2014 for the Assessment Year 2012-13. 2. The only issue to be decided in this appeal is as to whether the ld CITA was justified in deleting the addition made towards loans received by the assessee in the sum of Rs. 64, 04, 20, 000/- in the facts and circumstances of the case. 3. The brief facts of this issue are that the assessee had filed its return of income for the Asst Year 2012-13 on 28. 9. 2012 declaring total loss of Rs. 14, 750/-. During the course of assessment proceedings, the authorized representative of the assessee appeared and produced the books of accounts and other relevant details & documents and the same were test checked by the ld AO. The ld AO observed that in the balance sheet as on 31. 3. 2012, the assessee ....
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....me group to which the assessee belongs to. The Directors of the three companies during the relevant period are as under:- a) Artlink Vintrade Pvt Ltd Shri Sudhir K Kambale Miss Loveleen Braganza Shri Mahendar Khirodwala b) Indigo Edutainment Pvt Ltd Shri Sudhir K Kambale - resigned on 31. 1. 2012 Shri Vilas R Darpe - resigned on 31. 1. 2012 Shri Arun K Dalmia - resigned on 31. 1. 2012 Shri Satyanarayan R Agarwal Smt Radha Karsan Chitroda Shri Hemant Narendra Sampat - resigned on 24. 9. 2012 c) Database Software Technology Pvt Ltd Shri Arjun Lal Saini - resigned on 31. 1. 2012 &....
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.... , that is the assessee, is concerned. The entire details regarding the income tax particulars of the loan creditor companies were indeed filed before the ld AO which was not considered at all by the ld AO. The loan transactions were duly reflected in the books of accounts of loan creditor companies and duly audited. It was also submitted before the ld CITA that the scrutiny assessments for the Asst Year 2012-13 were completed in the case of M/s Database Software Technology Pvt Ltd and M/s Indigo Edutainment Pvt Ltd u/s 143(3) of the Act dated 31. 3. 2015 and 23. 3. 2015 respectively. In these assessment orders, no adverse inference was drawn by the assessing officer of those loan creditor companies with regard to their capacity to advance ....
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.... companies of the appellant and their assessments for the relevant assessment years have been completed u/s 143(3) by their AOs in Mumbai. The AO is directed to delete the addition and inform the AOs of loan creditor companies at Mumbai for necessary action in their hands. " 6. We have heard the rival submissions. We find that the assessee company is engaged in the business of trading in shares and securities. The ld AO observed that the loans received by the assessee company from two corporates viz Database Software Technology Pvt Ltd in the sum of Rs. 13, 27, 20, 000/- and M/s Indigo Edutainment Pvt Ltd to the tune of Rs. 50, 77, 00, 000/- were not genuine and accordingly brought to tax u/s 68 of the Act. He further observed that mere f....
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....essary verification and investigation and submit the report to him in Kolkata. This was admittedly not done in the instant case. Hence no addition could be validly made merely for non-production of directors of loan creditors who are stationed at Mumbai before the ld AO in Kolkata. Hence we agree with the contentions of the ld AR that the directors stationed in Mumbai were pre-occupied with their respective companies (i. e the loan creditor companies) scrutiny assessments for the Asst Year 2012-13 happening in Mumbai at the very same time, which enabled them not to make their presence before the ld AO in Kolkata. 6. 1. We find that the assessee had furnished its bank account and the ledger accounts of the loan creditors as appearing in the....