TaxTMI 
TaxTMI 
2021 (12) TMI 48
X X X X Extracts X X X X
X X X X Extracts X X X X
....ompany maintaining mercantile system of accounting filed its return of income for A.Y. 2013-14 on 31.01.2014 showing loss of Rs.(-) 1,71,602/-. The case was selected through CASS for scrutiny, notice under Section 143(2) dated 04.09.2014 was issued and served upon the assessee. The assessee is a private limited company engaged in the business of financing. During the year under consideration the company has shown income from rent only. Upon perusal of the audited report and Profit & Loss Account of the company it was noticed that the income from business shown as at Rs. NIL and only source of income of the assessee was rental income. As per 'Note 3' of the balance sheet under the head unsecured loan it transpired that the assessee has shown amount of Rs. 5,44,28,539/- as unsecured loan from body corporate. Such advance was received by the assessee on the following parties: S. No. Name of the parties PAN Amount [in Rs.] 1. M/s. Navyug Vinimay Private Limited AACCN0408N 18,20,000 2. M/s. Vardhan Distributors Private Limited AACCV9659H 12,67,000 3. M/s. Azzasr Trading Private Limited AAKCA3114C 15,00,000 4. M/s. Siddhi Commodeal Pr....
X X X X Extracts X X X X
X X X X Extracts X X X X
.... 5,44,28,539.35 Advance from Others: 1. AAKCA3114C M/s Azzasr Trading Pvt. Ltd 19, Madan Mohan Burman Street Kolkata - 700007 RTGS. dtd. 08.10.12 15,00,000/- Total: 15,00,000/- Nil 15,00,000/- 2. AACCN0408N M/s Navyug Vinimay Pvt. Ltd. 5/4, Clive Row, 4th Floor, Room No. 109, Kolkata- 700001 RTGS dtd 05.09.12 13,13,000/- RTGS dtd. 08.09.12 5,07,000/- Total: 18,20,000/- 18,20,000/- 3. AAMCS5874F M/s. Siddhi Commodeal Pvt. Ltd. 6/A, Rabindra Sarani Ground Floor, Kolkata- 700001 RTGS dtd. 17.11.12 5,00,000/- Total: 5,00,000/- 5,00,000/- 4. AACCV9659H M/s. Vardhan Distributors Pvt. Ltd. Daya Plaza, 1st Floor, 8 T N Mukherjee Road, New Delhi Road, Chowmatha, Dankuni, Kolkata-712311 RTGS dtd. 17.09.12 12,67,000/- Total:- 12,07,000/- 12,67,000/- ....
X X X X Extracts X X X X
X X X X Extracts X X X X
....above party in the book of the assessee company 42 2.2 Confirmation of the party duly signed 43 2.3 Copy of Master Record and Signatory Details as downloaded from the site of the Registrar of companies 44 3 Azzasr Trading P Limited (AAKCA3114C) of Rs. 12,67,000/- 3.1 Copy of account of above party in the book of the assessee company 45 3.2 Confirmation of the party duly signed 46 & 47 3.3 Copy of Master Record and Signatory Details as downloaded from the site of the Registrar of Companies 48 3.4 Certificate of Incorporation as issued by ROC, West Bengal on 21-12-07 49 3.5 Copy of Article of Association 50 to 56 3.6 Notice of change of address in Form No. 18 57 & 58 3.7 Particulars of appointment of Managing Directors/ directors in Form No. 32 59 to 62 3.8 Copy of Memorandum of Association 63 to 68 4 Siddhi Commodeal P Limited (AAMCS5874F) of Rs. 5,00,000/- 4.1 Copy of account of above party in the book of the assessee company 69 4.2 Confirmation of the party duly signed 70 & 71 4.3 Copy of acknowledgement of Income Tax return as filed 72 4.4 Copy....
X X X X Extracts X X X X
X X X X Extracts X X X X
....of those parties were duly placed before the Ld. CIT(A). Thus, the assessee has properly discharged its onus by providing the identity, creditworthiness and genuine of the unsecured loans as received. 8. While confirming the addition made by the Ld. AO relying upon the Remand Report the Ld. CIT(A) observed that the investor companies has not established the source of funds from which the investment was ultimately made. Further that he has relied upon a judgment passed in the matter of NRA Iron & Steel Pvt. Ltd. (Arising out of SLP (Civil) No. 29855 of 2018) and came to the finding that the onus to establish the creditworthiness of the investor companies was not discharged by the assessee; the entire transaction made in that particular matter seemed bogus and lack credibility. The Ld. AO though initiated enquiry but was not been able to proceed further since no one appeared on behalf of the investor companies and, therefore, finally the addition was confirmed. 9. In regard to the contention of Revenue that the assessee has to prove the source of loan, the assessee submitted that it is required to prove the source of loan only and not the source of source. In support of this co....