2020 (4) TMI 820

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....d. CIT (A) has erred in upholding the order of the Ld. AO who had made addition of Rs. 5,71,38,687/- invoking the provisions of section 2(22)(e) of the Act. 3. The brief facts of the case are that the assessee is an individual engaged as Director in M/s. Kasani Hotels and Resorts Private Limited. The case was reopened U/s. 147 / 148 of the Act because it was noticed that M/s. Kasani Hotels and Resorts Private Limited having book profit of Rs. 5,53,14,773, accumulated profit including reserves and surplus of Rs. 3,73,14,773/- for the relevant AY 2008-09 wherein the assessee is a Director holding more than 20% equity share had advanced an amount of Rs. 5,71,38,687/- to the assessee. During the course of assessment proceedings the assessee ha....

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....he hands of the assessee invoking the provisions of section 2(22)(e) of the Act. 4. On appeal, the Ld. CIT (A) upheld the order of the Ld. AO because the Ld.CIT(A) was of the view that the assessee had not produced any evidence to establish that the money withdrawn by the assessee from M/s. Kasani Hotels and Resorts Pvt Ltd., was with respect to the amount received by M/s. Kasani group of Companies from Amsri Group of business entities due to the development agreement between the assessee and his family with Amsri Group of business entities. In the opinion of the Ld.CIT(A) since no such evidence was produced, he held that it was only self-serving story and therefore confirmed the addition. 5. Before us, the Ld. AR reiterated the arguments....

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....nt from the paper books(mentioned hereinabove) that the assessee along with family members had business transaction with M/s. Amsri Group of business entities and certain amount was paid by the Amsri Group of business entities to M/s. Kasani Hotels and Resorts Pvt Ltd. , and to M/s. Kasani Constructions Pvt Ltd., [ (P.B page No.68 wherein M/s Amsari Builders is shown under the head current liabilities for Rs. 4,00,00,000/- in the books of M/s.Kasani Hotels and Resorts Pvt Ltd., as on 31/03/2008) (P.B. page No.39 wherein M/s. Amsri Builder is shown under the head Sundry Creditors for Rs. 15,45,00,000/- in the books of M/s. Kasani Constructions Pvt Ltd., as on 31/03/2008)]. Further it is also evident from P.B.page No.39&64 that M/s. Kasani Co....