TaxTMI 
TaxTMI 
2022 (2) TMI 863
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....o the financing companies, at the back of the appellant and in drawing adverse inference without giving any opportunity to the appellant in respect of the documents collected at the back of the appellant. 4. That the learned CIT erred in law in relying on certain judgments which on the facts and circumstances of the case are different facts in issue in the case under appeal. 5. That the learned CIT erred in law in drawing negative inference from the material referred to in the Appellate Order. 6. That the additions of Rs. 40,29,22,500/- is illegal and deserves to be deleted." 3. The brief facts of the case are that the assessee had filed the Return of Income showing the total loss of Rs. 34,906/-. The assessee company was incorporated with the objective to carry out the business of Software Development. The AO noted that the assessee has shown unsecured loans of Rs. 40,29,22,500/- in the balance sheet as on 31.03.2014. The AO asked for the details of the 14 parties from whom these loans were obtained. The AO also issued enquiry letters u/s. 133(6) of the Act to these parties in order to verify the genuineness of the loan transactions. From the details furnished, the AO notic....
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....s financial statements. The assessee has not received any loan from any recognized financial institution/bank but has taken unsecured loans from third parties amounting to more than Rs. 40 crores. It is also observed by the AO that the assessee company is having zero fixed assets. It is also stated by the AO that none of the parties which have given loans to the assessee have any business transactions with the assessee except granting of Interest free unsecured loans. 6. Further, the bank statements of these parties show that there are deposits through either cash or cheque just before the amount is transferred as unsecured loan to the assessee. From the balance sheet, P&L account, copies of Income Tax Returns and bank statements, the AO has inferred that all these entities have been incorporated for the purpose of providing accommodation entries only. 7. The directors of these companies were neither produced by the assessee before the AO nor did they present themselves for personal deposition in response to the summons issued u/s. 131 of the Act by the AO. 8. Based on the above facts, the AO has arrived at the conclusion that these parties have been established with the sole ob....
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....he assessee has no intention of real time business but act as an instrument for circulation of funds through unsecured loan and share premium/application money as done in the previous years. 11. The position of whatever documents filed is pointed out below. a) Principal Officer/Director of the above company not attended for personal deposition despite repeatedly asked for. b) Complete reply/details as asked for in the above said notice u/s. 133(6)/131 not given. c) All such entities which have NIL or marginal revenue have extended huge loans that too without any interest. None of the entities have a direct interest in the assessee co. Still huge amounts of Unsecured & Interest free loans have been advanced. All this point out that the transaction does not satisfy the criterion of genuineness along with creditworthiness. d) In the Bank statement of almost all the entities there are huge debit and credit entries of huge amount. After every credit entry there is debit entry of almost the same amount on the same date or next date leaving a minimum credit balance In view of the facts stated above the creditworthiness and genuineness of the transaction of alleged unsecured loan....
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....dilya & Co. Chartered Accountants) No business activity during the year under consideration 7 Gnex Projects Pvt. Ltd. ( Formely mown as ASL Projects Pvt. Ltd.) PI- 31 , Second Floor, Room No. - 2 , Madan Park, East Punjabi Bach. New Delhi- Smt. Shakuntla Khemka Sh. Mavank Khemka M/ s Sunil Shandilya & Co. Chartered Accountants) Real Estate business 8 Kashi Promoters Pvt. Ltd ( Name changed to Ruhil Promoters Pvt. Ltd.) DSIWS 38 , 5 t h Floor, DLF Tower, Shivaji Marg, Moti Nagar, New Delhi- 110001 Sh Neeraj Ruhil Sh Sanjeev Ruhil M/ s Devendra Dahiya & Co. ( Chartered Accountants) Real Estate & Housing project Business Company 9 Maa Durga Steel Works Pvt. Ltd F- 31 , F/ F, Madan Park. Ashoka Park Metro, New Delhi- 110026 Sh Prem Parkash Sh Harish M/ s Sunil Shandilya & Co. ( Chartered Accountants) Steel Trading business company 10 Mercury Digital Services Pvt. Ltd 6 IS, Second Floor, Near Ambedkar Chopal, Shahbad, Daulat Pur Delhi- 110042 Sh Rajesh Gupta Sh. Ankit M/ s Sunil Shandilya & Co ( Chartered Accountants) Steel Trading business company 11 Pheasant Stampinq Pvt. Ltd. 55 , G/ F. Shop Gall No- OS, Madan Park, East Punjabi Bagh Near Jai Dev Park, N. ....