TaxTMI 
TaxTMI 
TaxTMI 
2024 (5) TMI 956
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....anies. ii) Further, as per letter of Acceptance/allotment dt. 05.01.2016 reg. notification of award package no BSHP11/4/SH-90 issued by Bihar State Road Development Corporation Limited, it is revealed that assessee has been awarded only for completion of balance civil work in Karnakudariya-Chapra section of Mohammadpur-Chapra road. In each line of contract work, the word "Contractor" is appearing almost in each line of terms and conditions instead of a developer of infrastructure. Hence assessee was given civil contract work of balance work/part of the work and comes under the category of Works Contract and in this way also not entitled for deduction 80IA of the Income tax Act. iii) Ld. CIT(A) has erred in not appreciating the facts that the creditworthiness of unsecured loans of Rs. 77,00,000/- has not been proved by the assessee in terms of section 68 of the Income Tax Act, 1961 during assessment proceedings. Identity and credit worthiness has not been proved despite summons issued to the unsecured loans through postal mode as well as sent through notice server of the department. iv) Ld. CIT(A) has erred in not appreciating the facts that the assessee has not furnished info....
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....er strengthened by the perusal of the financials of the company which shows a share capital of Rs. 5,67,500/- and a net profit of Rs. 1617/- only and company has no fixed assets or taken any building on rent, which was essential for running business by the company. The Assessing Officer held that M/s Pradik Impex Pvt. Ltd. has also not filed its ITR for A.Y. 2017-18 as copy of same is not furnished so far. The Assessing Officer further held that perusal of the bank account furnished with the reply signed by authorized representative reveals that only one page of copy of bank account without mentioning the name of the bank in which this account has been maintained. This page of the bank account reveals that assessee has received unsecured loan of Rs. 69,70,000/- and Rs. 8,00,000/- on 04.04.2016 and this amount was credited in the account of the creditor on the same day. 8. The Assessing Officer has also observed that the company has also been struck off by Registrar of Companies, Delhi and Haryana and hence, made addition of Rs. 77,00,000/- as unsecured loan received from dummy paper companies. While making the addition, the Assessing Officer has also relied on the judgment of Hon'....
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....td., therein confirming the receipt of Rs. 10,00,000/- on 02.04.2016. * Also, a confirmation of accounts of Venus Impex, showing payment of Rs. 8,00,000/- by Venus Impex to Pradik Impex on 16.04.2016 was provided to the AO. A copy of ITR Acknowledgment for AY 2017-18 of Sh. Gobind Parsad Kedia having PAN AMEPK8133E was also furnished, that discloses his current address. Form MGT-9, Extract of Annual Return as on the financial year ended on 31.03.2015 was also furnished which explains that the Principal Business Activity of M/s Pradik Impex is trading of Guar, Gum and Split. 11. Before the ld. CIT(A), the assessee has relied on the judgment in the case of CIT vs. Oasis Hospitalities (Pvt.) Ltd. wherein the Hon'ble High Court observed that if the creditor is a Company, then to prove identity, details in form of registered address or PAN identity, etc can be furnished and in the instant case, M/s Pradik Impex had filed letter with supporting documents with the Department on 24.12.2019 in response to Notice u/s 133(6) of the Act. The said letter, duly discloses the identity of the Company, namely PAN, and its registered office address. The assessee submitted that further supporting ....
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....otice on the Address of Company indicated in its Bank statement, it is submitted that EG-35, Pushpa Complex was registered office address of Pradik Impex from date of its incorporation to 17.05.2012 and ceased to be the registered office address thereafter. In this regard, reliance is placed on the Filings with MCA, of Form 18, that is efiled. The said Forms duly note that Company has duly intimated the MCA regarding change in its registered office address to 1725, Sector-13, Karnal, Haryana-132001, w.e.f. 17.05.2012. It was argued that based on incorrect enquiries conducted and the issuing of summons on wrong address, the AO has erred in observing that Pradik Impex is a paper company owned by dummy directors and has no Fixed Assets or taking any building on rent and the allegation of the AO that Pradik Impex has been struck off by Registrar of Companies, Delhi and Haryana was not valid. Further, Pradik Impex is a regular assessee and has been filing its income tax returns. 16. Rebutting the revenue's contention relying on the decision of Hon'ble Supreme Court in the case of PCIT vs. NRA Iron and Steel MANU/SC/0325/2019, the assessee submitted that, "9 The judgement cited hold t....
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.... income of the appellant. 5.2.1 The appellant submitted that the A.O. was incorrect to mention that no PAN, Address was mentioned in the confirmation letter and submitted a copy of the letter filed before A.O. duly stamped on 24.12.2019. It was noted that in the impugned letter PAN and address of Pradik Impex was mentioned as 1725, Sector 13, Karnal. The appellant submitted that A.O. has sent the summons to a different residential address of erstwhile director Gobind Prasad Kedia, which was not correct. The appellant further submitted Shri Kedia resigned as Director from 16.02.2017 and that the change in address and director were duly uploaded in the MCA portal. The appellant submitted a copy of these documents from MCA website. The appellant also submitted that Pradik Impex has been regularly filing return of income and submitted a copy of the same. The appellant claimed that the addition on this count was made by the A.O. as a result of improper enquiry for which the appellant cannot be held responsible. 5.2.2 I have considered the arguments of the A.O. as well as the appellant. It is a fact that during the assessment proceedings Pradik Impex vide submission dated 24.12.2019 ....
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....de before the authorities below. 20. Heard the arguments of both the parties and perused the material available on record. Cash credits: 21. The provisions of Section 68 is as under: "S. 68. Where any sum is found credited in the books of an assessee maintained for any previous year, and the assessee offers no explanation about the nature and source thereof or the explanation offered by him is not, in the opinion of the Assessing Officer, satisfactory, the sum so credited may be charged to income-tax as the income of the assessee of that previous year: Provided that where the assessee is a company (not being a company in which the public are substantially interested), and the sum so credited consists of share application money, share capital, share premium or any such amount by whatever name called, any explanation offered by such assessee-company shall be deemed to be not satisfactory, unless- (a) the person, being a resident in whose name such credit is recorded in the books of such company also offers an explanation about the nature and source of such sum so credited; and (b) such explanation in the opinion of the Assessing Officer aforesaid has been found to be satis....
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....he ld. CIT(A), the assessee submitted that, "The AO has made additions of Rs. 10,00,000/- on account of excess expenses debited in P&L account and allegedly in absence of complete information and bills/ vouchers of the expenses, and on inability of AO to verify genuineness of expenses debited in P&L account.The above observations made by the AO are manifestly erroneous and contrary to facts. That it is pertinent to note the factual position. The Appellant furnished the following documents: Sub-contractor a. Confirmation of Account received from M/s Sahdev Kumar Contractor, Hisar (Sub-contractor) b. Ledger account of Advance account of Appellant appearing in books of Sahdev Kumar Contractor c. Ledger Account of Sahdev Kumar Contractor Copy of documents justifying expenditure incurred on account of payment to sub-contractor. Power and fuel d. Ledger account of IOCL, Patna e. Ledger Account of Shiv Bhawani Petroleum, Saran A/c f. Ledger account of Mahavir Enterprises A/c g. Ledger account of Aanjaney Organics, Delhi A/c h. Ledger Account of Maa Samleshwari Filing Station, Saran A/c i. Ledger account of R. S. Petroleum, Saran A/c j. Ledger account of Shiv Du....