2022 (2) TMI 320

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....ignoring the fact that as per the books of the assessee the shares allotted to the assessee company by the lender company without any consideration? 2. Whether CIT(A) is justified in not appreciating that allotment of shares without any consideration is merely to circumvent the underlying loan received through book entry by the assesse company from M/s Telecare Network Pvt. Ltd.? 3. Whether CIT(A) is justified in ignoring the loan statement filed by the assessee during the course of assessment proceedings which clearly shown that the assessee has received the laon amounting to Rs. 9.50 crores from M/s Telecare Network Pvt. Ltd during the F.Y. 2013-14?" 2. The facts giving rise to the present appeal are that the return declaring 'NIL" i....

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....n. Therefore, the Assessing Officer was justified to treat the same as deemed dividend. The Ld. Sr. DR took us through the assessment order and raised the contention that the Company namely M/s Telecare Network India (P), had shown the amount of Rs. 9,50,00,000/- as unsecured loan as on 31/3/2014. 5. Per contra, the Ld. Counsel for the assessee opposed these submissions and supported the order of the Ld. CIT (A). He submitted that the amount was given for purchasing the share holding. The Assessing Officer has confused itself between the loan transaction and transaction for purchasing the shares. Therefore, the Ld.CIT(A) was justified and deleting the addition. 6. We have heard the rival contentions and perused all the relevant materials ....

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....nt of Rs. 9,50,00,000/- was made during the year. It was submitted that assessee vide letter dated 08/11/2016 has informed the correct position that Teleecare had freshly issued a total of 15000000 shares out of which assessee subscribed for 4750000 shares @ Rs. 20 per share. It was submitted that AO somehow got confused between share purchase transaction and loans as the list of unsecured loans was submitted by assessee to AO vide letter dated 28/11/2016 and name of Teleecare was not there. Further, AO has obtained annual return of Teleecare wherein shareholding of assessee company has been duly reflected. After careful examination of factual situation and documents, it is evident that the AO proceeded on wrong assumptions. I have examin....

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....14. Vide letter dated 28/11/2016, the appellant filed details regarding unsecured loans raised by it from different parties during FY 2013-14. The name of Teleecare Network India Pvt. Ltd. was nowhere mentioned in that list. The AO misunderstood the facts and treated such amount of Rs. 9,50,00,000/- as fresh loan given by Teleecare Network India Pvt. Ltd to the appellant during FY 2013-14. The AO did not call for information from Teleecare Network India Pvt. Ltd as to whether it had given any fresh loan to the appellant during the FY 2013-14. 6.3 Vide para 20 of the written submissions filed during this proceeding and as reproduced above in this order, the appellant has explained the facts and circumstances relating to the wrong chart fil....