2022 (9) TMI 817

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....out of the order passed U/s. 143(3) of the Income Tax Act, 1961 ["the Act"] for the AY 2014-15. 2. Brief facts of the case are that the assessee engaged in the business of running Hotels, filed its return of income for the AY 2014-15 declaring NIL income. The return was summarily processed on 27/11/2014 and subsequently the case was selected for scrutiny under CASS and notice u/s. 143(2) was issued and served on the assessee on 21/09/2015. In response to notices the assessee's Authorized Representative furnished the details called for by the Ld. AO. The Ld. AO after considering the information furnished, completed the assessment by adding Rs. 3,67,88,800/- u/s. 68 r.w.s 115BBE of the Act. Aggrieved by the order of the Ld. AO, the assesse....

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.... from Express Dealers Private Limited and M/s. Charansheela Consultants Private Limited. 6. The Ld. DR argued that investment were made by M/s. Express Dealers Private Limited and M/s. Charansheela Consultants Private Limited which are Kolkata based companies, and submitted that the Ld. AO after making enquiries could not trace the address of the investing company. The Ld. DR therefore submitted that these are paper companies and hence the Ld. AO has rightly disallowed the premium received from these companies and pleaded to uphold the order of the Ld. AO. Per contra, the Ld. Authorized Representative [Ld. AR] pointed out that the investments were received through proper banking channels. The Ld. AR invited our attention to the copy o....

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....the argument of the Ld. AR that these funds were utilized by the investor company in the assessee company in the form of investment as share capital. We also see from the ledger accounts and bank statements submitted by the Ld. AR that the amounts were received through banking channels. The Ld. CIT(A) has rightly observed that an amount of Rs. 1,95,25,000/- being the opening balance in the ledger account of M/s. Express Dealers Private Limited andthe balance amount of Rs. 1,60,27,000/- was received into the bank account of the assesseeduring the current AY, and hence if the AO wished to tax the income u/s. 68 of the Act he should have added onlyon Rs. 1,60,27,000/- being the receipts during the current financial year and not the opening bal....