AI OCR 
TaxTMI 
TaxTMI 
TaxTMI 
2021 (12) TMI 985
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....ct") whereby and wehreunder the addition to the tune of Rs. 4,10,00,000/- made by the Ld. AO under Section 68 of the Act for A.Y. 2012-13 has been deleted. 2. The assessee having different kind of business filed its return of income on 29.09.2012 declaring total income at Rs. 2,17,85,760/- and Book Profit at Rs. 2,01,34,241/- which was subsequently revised on 12.10.2012 declaring total income at Rs. 1,95,80,210/- and Book Profit at Rs. 2,01,34,241/- which was proceeded under Section 143 of the Act followed by issuance of other procedural notices. 3. During the course of assessment proceeding upon verification of the details submitted by the assessee it was noticed that during the year under consideration the assessee has received Share Ap....
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....re held on hand till 31.03.2012 but ultimately were cancelled on 26.06.2012. So far as the creditworthiness of the above two persons are concerned it was submitted by the assessee that Mr. Jimmy Patel Group is in real estate business and the said family has one suitable plot of land near Makarba. Twin negotiations with M/s Patel family were going to construct on their land a proposed Showroom, office and workshop for the assessee as per the designed to be approved by BMW and secondly the said Patel family were potential joint venture partner in BMW business. The said family had, therefore, brought Share Application Money for proposed joint venture. However, since certain legal queries in regard to the clear title of the property cropped up ....
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....idavit by one of the directors of the appellant company. 8. According to the Ld. CIT(A) the appellant thus given adequate information in order to proof the genuineness of the transaction as well as identity of the creditors. As far as, creditworthiness of the creditors is concerned appellant by submitting the bank statement as well as ITR of the creditors has discharged its onus sufficiently to proof the creditworthiness. The First Appellate Authority was of the view that the Ld. AO has not taken into consideration the various submissions made by the assessee and, thus, the impugned addition made by the Ld. AO under Section 68 of the Act is highly unjustified and, therefore, deleted. However, we fail to appreciate as to how the Ld. CIT(A)....
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....ies of Balance Sheet and Profit and loss accounts of the creditors for the AY 2012-13 (FY 2011-12). The argument of the assessee that it is not getting co-operation from the Patel Group is baseless and merely an afterthought. To justify the creditworthiness, the assessee vide submission dated 24.02.2015 furnished Certificate of Valuation from Shri Bakul N. Desai, Registered Valuer in respect of Immovable Properties held by Shri Jimmy Patel wherein the value of all the properties held is shown at Rs. 247,15,59,000/-. The valuer has in the certificate categorically mentioned that : "This certificate of valuation is issued for the specific purpose of assessing networth of Mr. Jimmy Patel as on today depending the information provided by Mr. ....
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....f a person who signs the ledger account in the books of the assessee he should not have any hesitation to confirm the transactions regarding Share Application Money before the Income tax Authority, Further the assessee failed to produce the copies of share applications forms from the applicants. vii) In reply to query that why the proportionate interest u/s.36(l)(iii) should not be disallowed in respect of loan of Rs. 68,61,507/- given to Shri Jimmy Patel, the assessee claims that the advance has been adjusted against the sale of BMW cars to him. However, on perusal of the ledger account of Shri Jimmy Patel in the books of the assessee it is noticed that the sum of Rs. 68,61,507/- has come from the following parties: 1. Janki Jaushil P....
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....neness of the transaction and identity and creditworthiness of the creditors in spite of having negative narration by the Ld. AO, he ought to have asked for a remand report which has also not been carried out. 9. Further that, we find that reliance has been placed by the Ld. AR on the following judgments by the assessee in support of his case: DCIT vs. Rohini Builders 256 ITR 360 (Guj.) CIT vs. Gujarat Heavy Chemicals Ltd. 256ITR 795 (SC) CIT vs. Lovely Exports Pvt. Ltd. 216 CTR 195 (SC) CIT vs. Metachem Industries 160 ITR 245 (MP) We have carefully considered the above judgments and we find that the ratio laid down in those matters are not applicable in view of the peculiar facts and circumstances of the case before us. 10. It f....