TaxTMI 
TaxTMI 
TaxTMI 
2020 (4) TMI 392
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....evant documentary evidences brought on record in the form of paper book considered in the light of Rule 18(6) of the ITAT Rules. 4. The assessee is in the business of construction. A search was conducted at the business and residential premises of the assessee on 14.09.2010 and accordingly proceedings u/s 153A were initiated. 5. During the course of scrutiny assessment proceedings, the AO noticed that the assessee has taken unsecured loans from the following parties: 1. Haguru Engineering Pvt. Ltd. Rs. 2,10,00,000/- 2. World Broadbank Communication Ltd. Rs. 20,00,000/- 3. Victory Portfolio Ltd. Rs. 60,00,000/- 6. The assessee was asked to furnish details in the light of the provisions of Section 68 of the Act. Simultaneously, notices u/s 133(6) were sent to all the parties at the addresses supplied by the assessee. Reply to the notice was received only from Haguru Engineering Pvt. Ltd. whereas in respect of other two parties no reply were received. The assessee only filed copy of ledger and copy of the bank statement. On perusal of the same the AO found that on the date of issuance of cheque similar amount was deposited in the bank account and was of the opinion that t....
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....shows that during under consideration same amount was credited & same amount was debited on the same date from account of M/s Haguru Engineering Pvt. Ltd. Its bank statements further show that on different dates same amount have been deposited and withdrawn during same day or next day. Giving indication that M/s. Haguru Engineering Pvt. Ltd. is not doing any business except providing accommodation entries. 3.2 Unsecured loan from M/s World Broadband Communication Ltd. The assessee claimed that during the year under consideration the assessee has taken a loan amounting to Rs. 20,00,000/- from M/s. World Broadband Communication Ltd. Now, the assessee has submitted a chart showing name, address and PAN no. of the loaner company as additional evidences only. Therefore, in absence of any confirmation and other details genuineness, creditworthiness and capacity of the loaner cannot be established. 3.3 Unsecured loan from M/s Victory Portfolio Ltd. The assesses Claimed that during the year under consideration the assessee has taken a loan amounting to Rs. 20,00,000/- from M/s. World Broadband Communication Ltd. Now, the assessee has submitted a chart showing name, address and PA....
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.... is apparently clear that even now the assessee has failed to explain the nature of such receipts and cause for its omission from contract receipts shown in P/L accounts. No additional evidence was filed on this issue. " 11. After considering the submissions, the additional evidences and the remand report of the assessee, the CIT(A) was convinced with the genuineness of the cash creditors and deleted the addition of Rs. 2.90 crore. 12. In respect of Director's remuneration, the AO in his remand report observed that the assessee has submitted financial statements, important operational documents, labour muster role, bank guarantee papers duly singed by Shri Suraj Mal Dabas and accepted the work done by Suraj Mal Dabas. On the basis of the remand report the CIT(A) deleted the addition of Rs. 12 lakh. 13. In so far as the addition u/s 14A is concerned. The CIT(A) deleted the addition on finding that there is no exempt income. 14. The addition on account of difference in contract receipts in P&L account and as per Form 26AS was restricted to 5% of the difference and addition of Rs. 5,42,550/- was confirmed. 15. Aggrieved by this the Revenue is before us. The DR vehemently stated t....
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....iles of the AO. The assessee is directed to furnish relevant satisfactory demonstrative evidences to discharge its onus under section 68 of the Act. 20. Ground No.1, 2 & 3 are treated as allowed for statistical purposes. 21. Addition on account of Director's remuneration has been deleted on the acceptance of the transaction by the AO in his remand report, therefore, no interference is call for. 22. Addition u/s 14A r.w.r 8D has been deleted on finding that there is no exempt income. As there is no exempt income no addition is to be made u/s 14A of the Act and the CIT(A) has rightly deleted the same, therefore, no interference is called for. 23. In so far as the difference in the contract receipts shown in the P&L account and Form 26AS, before us the counsel for the assessee stated that the amount stand reconciled and furnished a reconciliation statement which is as under: Reconciliation of Receipts as per TDS (26AS) and Books:- Receipts as per TDS claimed and allowed in return of income:- 1. Mera Baba Reality Associates Pvt. Ltd. : 16,19,64,513=00 2. Delhi State New Spare Employees Federation : 4,91,10,281=00 3. Interest received from banks : 16,68,306=00 ....