TaxTMI 
TaxTMI 
2021 (10) TMI 1006
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....the AO on account of unexplained credit u/s. 68 of the Income Tax Act, 1961. 2. Ld. Commissioner of Income-tax (Appeals) erred in law on the facts of the case in deleting the addition of Rs. 12,59,870/- made by the AO on account of disallowance of interest expenses." 3. The assessee company was engaged in the business of trading of paintings and other art works. 4. The revenue has raised an appeal regarding the deletion of Rs. 8,48,00,000/- made by the Assessing Officer u/s. 68 of the Act on account of unexplained unsecured loans from 9 parties. The addition has made by the Assessing Officer owing to non-production of principle officer of the 9 entities who have lend the monies to the assessee. 5. Before the Assessing Offi....
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....he assessee has failed to prove creditworthiness of the parties and has failed to produce the Directors so as to identify the real person controlling the legal operations of the legal entities. Placing reliance on various judicial pronouncements namely, M/s. Nova Promoters & Finlease Pvt. Ltd., M/s. Neelkanth Ispat Udhyog (P) Ltd., N.R. Portfolio Pvt. Ltd. and Sanraj Engineering Co. The AO held that the onus is on the assessee to prove undisputably regarding the sources of the credits. 8. During the proceedings before the First Appellate Authority in accordance with the sub-Section (4) of Section 250, the ld. CIT(A) issued summons u/s. 131 to the Principle Officers of the loan parties. The complete details are as under: Name of the Co....
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....EMA HALL, DELHI- 110002 CABIN NO. 5 , PLOT NO. 150 , KILO KRAI BDC COMPLEX, MAHARANI BAGH, NEW DELHI- 110025 In the case of I. M/s. Nimisha Marketing & Services Pvt. Ltd. II. M/s. Shri Entertainment Pvt. Ltd. III. M/s. jeevan Anand Multi Services Pvt. Ltd. Shri. Joginder Pal Gupta attended the proceedings in pursuance to the summons under section 131 of the Act. The director stated that the company at no. 1 has given the loan of Rs. 1 crore to the assessee on 25.03.2014 & 27.03.2014. The company had filed the Return of Income regularly and submitted the copy of order under section 143(3) of the Act. The company had the opening balance of reserves and surplus of Rs. 2,45,06,491/- as on 01....
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....tworthiness were filed before the Assessing Officer through the authorized representative. (5) Sh. Raju Malik director of M/s. NCR Buildtech Pvt. Ltd. attended the proceedings on 14.07.2017. The company is doing the contract jobs for the govt. The company has given the loan of Rs. 1 crore to the assessee and the interest has regularly received on the loan amount. The loan is repaid back in the current financial year. The return of income is filed regularly. The opening balance of the reserves as on 01.04.2013 is Rs. 2,11,26,556/-. Sh. Raju Malik is ex-director in the following companies: 1. M/s. Noida Golden Tourism Pvt. Ltd. 2. M/s. Capital Infratech Pvt. Ltd. The company at no. 1 has given the loan of R....
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....uildwell Pvt. Ltd: The company has extended the loan of Rs. 1 crore in the financial year. The company has received the interest on yearly basis. The company regularly files the return of income. The company has opening balance of the reserves of Rs. 97,90,97,481/- as on 01.04.2013. The company is doing the business of the development/contract work for the private construction. The consultant stated that the company is almost 10 years old and confirmed the transaction to be genuine and extended on the commercial basis. 9. The ld. CIT(A) held that the creditworthiness and the genuineness of transactions has been established from the fact that all the companies are having the opening balance of the reserves and surplus as on 1st April, 201....
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....3 , 662 , 106 23 , 663 , 814 5 Noida Golden Tourism Pvt. Ltd. - do- 34 , 484 , 484 38 , 496 , 308 6 Shri Entertainment Pvt. Ltd. - do- 40 , 202 , 555 40 , 743 , 369 7 Jeevan Anand Multi Services Pvt. Ltd. - do- 19 , 642 , 072 19 , 643 , 720 8 Shilpkar Buildtech Pvt. Ltd. - do- 66 , 233 , 930 . 00 53 , 130 , 035 . 00 9 Nimisha Marketing & Services Pvt. Ltd. - do- 24 , 506 , 491 24 , 509 , 419 12. The facts of the case state that the lenders have the requisite funds with them in the preceding year to the year under consideration, the ld. CIT(A) held that the addition under section 68 of the Act, is not called for. 13. Having heard the arguments of both the par....