TaxTMI 
TaxTMI 
2023 (7) TMI 1278
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....', 'Share Capital', Share Premium etc.? ii. WHETHER, as per provisions of Section 68 of the Income Tax Act, 1961, the Assessee has not discharged its initial onus to prove: (1) Identity of the Creditor Lenders; (2) Credit-worthiness of the Creditor Lender; and (3) Genuineness of the Transaction. By submitting following set of documentation: (i) Confirmation of Accounts; (ii) Copy of PAN Card; (iii) Acknowledgement of ITRs; (iv) Financial Statement and Audit Report of the Year of Lending; (v) Copy of Bank Statement; (vi) Incorporation details of the Creditor Lenders. iii. WHETHER, sole criteria for assessment of 'Credit Worthiness' of the creditor lenders are their declared Income, ignoring 'Net Worth' of the Creditor Lenders? iv. WHETHER, examination of 'Source of sources' comes under the purview of Ld.AO of the assessee, even in case, Creditor Lenders are Income Tax Assesses and Assessment Details of such Creditor Lender has been submitted at the time of Assessment? vi. WHETHER, payment of Interest on the Lent money and deduction of TDS and followup of other provisions as per provisions of Income Tax Act, 1961 and claim....
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....k spread over 259 pages and submitted that the assessee has also placed copies of all documentary evidences in the form of paper book which were submitted before the authorities below he also pointed out that the relevant documentary evidence pertaining to M/s. Pooja Equity Advisors P. Ltd. has been placed at pages 203 to 224 and documentary evidence pertaining to second lender M/s KRAC Securities P. Ltd. have been filed at pages 225 to 244. The ld. AR also pointed out that the assessee has submitted copies of replies of lender companies directly to the Assessing Officer incompliance with notice u/s. 133(6) of the Act which also supports the explanation of assessee. The ld. AR submitted that the lender M/s. Pooja Equity Advisors name was changed to M/s. Holean Traders Pvt. Ltd. subsequently on 08.07.2016 and there were owned capital fund of Rs. 25.50 crore during FY 2011-12 relevant to AY 2012-13 and the unsecured loan amount of Rs. 30 lac was given to the assessee out of owned fund of company and financial statement of lender clearly reveals the fact of providing loan to assessee company during relevant period. It was also contended by the ld. AR in the said confirmation the lende....
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....laced before the ld. CIT(A) by the assessee the ld. First Appellate Authority in his order incorrectly mentioned that the request of cross examination was not made to the Assessing Officer. The ld. AR further drawing our attention towards paper books pages 206, 209, 228 and 229 submitted that the share holder fund including paid up share capital and reserves and surplus in the case of KRAC Securities (Now M/s. Highrise Metal Pvt. Ltd.), was Rs. 49.90 crores and in the case of Pooja Equity Advisors (Now M/s. Holean Traders P. Ltd.), was Rs. 26.78 crores which are much higher than the amount of Rs. 10 lac and 30 lac respectively from the said two lenders and in absence of any controverting findings to the financial capacity of lenders the creditworthiness and capacity cannot be doubted or disturb merely on the basis of whims and fancies of tax authorities. The ld. AR submitted that since the assessee has discharged onus lay on it therefore entire addition may kindly be ordered to be deleted. 9. On careful consideration of above submissions, we note that the assessee obtained impugned loan from said two lenders namely M/s. Pooja Equity Advisors and KRAC Securities P. Ltd. amounting t....
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....n, balance sheet, profit & loss account reveals that the second lender M/s. Pooja Equity Advisors Pvt. Ltd. holds share holder fund including paid up share capital and reserves and surplus amounting to Rs. 26,78,47,110/- and has shown long term loans and advances of Rs. 9,97,53,764/- which included amount of loan of Rs. 30 lac given to the assessee during AY 2012-13. Copies of confirmations issued by said two lenders available at pages 243 to 247 supports the said factual position and also reveals that the assessee has paid due interest on the credits after deducting TDS and entire amount of loan has been repaid during subsequent financial period 2013-14 to both the said lenders companies. From the orders of the authorities below we note that these factual positions have not been doubted or destroyed by way of any positive adverse material against the assessee. 12. In view of foregoing discussion we note that the ld. CIT(A) confirmed the addition without proper appreciation of facts and relevant law and the same is based on the incorrect and wrong factual findings. The ld. CIT(A) at page 19 top para wrongly noted that the assessee did not requested to provide cross examination and....