TaxTMI 
TaxTMI 
2022 (1) TMI 295
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....ssee has raised five grounds in its appeal however, the cruxes of the issues are that: (i) The Ld. CIT (A) has erred in upholding the order of the Ld. AO who had made addition towards notional interest charged on interest free advances extended to Directors of the assessee company. (ii) The Ld. CIT (A) has erred in upholding the order of the Ld. AO who had made addition aggregating to Rs. 1,18,10,000/- by treating the share application money received from M/s. Jagadamba Cotton Industries Private Limited for Rs. 1 Cr and from Smt. Suseelabai Rungta for Rs. 18,10,000/-, U/s. 68 of the Act. 3. The Revenue has raised seven grounds in its appeal however, the crux of the issue is that: (i) The Ld. CIT (A) has erred i....
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....enuineness of the investors, the assessee furnished certain information based on which the Ld. AO made certain observations and opined that all the five entities are mere bogus and paper companies for the following reasons: (i) The Registered Offices of the above cited five companies are located in the same premises i.e., Flat No.21, Amartolla Street, Kolkata and the building was abandoned. (ii) All the above companies did not have its own source for making the investment. It was revealed that all the five entities source fund from other companies and invested the same in the assessee company in the preceding day. (iii) From the income tax return filed by these companies it was revealed that either they were makin....
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....l submissions and carefully perused the material on record. From the remand report enclosed in the paper book in page no. 51 to 53 it is evident that the Ld. AO had categorically held that the all the companies are bogus. Further, on perusing the balance sheet and P & L Account of M/s. Tirumala Dealers Private Limited enclosed in paper book at pages 11 to 17 it is apparent that the company is making loss. We further observed from the balance sheet of M/s. Tirumala Dealers Private Limited that the investment of Rs. 7,05,00,000/- was made from the earlier reserves and surplus amounting to Rs. 6,18,75,051/-. Therefore, the exact source of the reserves and surplus of the earlier years resulting in liquidity to the company for making investment ....
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....Jagadamba Cotton Industries Pvt Ltd Rs. 1 Crs and Rs. 18,10,000/- from Smt. Susheelabai Rungta. The Ld. AO asked the assessee to furnish the confirmation letter from both the parties, copy of the bank account of the investors and evidence to prove the identity and creditworthiness of the investors. Since the assessee failed to produce the required explanation and documentary evidence, the ld. AO treated the amount of Rs. 1,18,10,000/- as unexplained cash credit u/s. 68 of the Act. On appeal, the Ld. CIT (A) confirmed the order of the Ld. AO since with respect to these parties, the assessee could not produce any evidence to establish the genuineness of the transaction and creditworthiness of the investors. Before us, the assessee has filed t....