TaxTMI 
TaxTMI 
2023 (4) TMI 1349
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....tion of the CIT(A) in deleting the additions made by the Assessing Officer in respect of receipt of Rs. 17,61,40,800/- by the assessee company which was treated by the Assessing Officer as unexplained income of the assessee u/s 68 of the Act on the ground that the assessee had failed to establish the identity, genuineness and creditworthiness of the share subscribers. 3. At the outset, the ld. Counsel for the assessee has submitted that there were only two shareholders of the assessee company, out of which, one shareholder has subscribed to the shares in the Financial Year 2010-11 relevant to assessment year 2011-12 and had made payment in 2010-11, itself, and the said payment was not relevant for the assessment year under consideration. T....
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....mpany would develop the project in phases and currently Phase-l was in progress. In the Phase-L, the assessee-company plans to develop Villas/Bungalows and residential apartments. The estimated cost of the project as ascertained till date was approximately Rs. 300 crore. That the assessee-company has also registered its project with Real Estate Development Authority (RERA), Uttar Pradesh. Phase-I was also commercially launched and started receiving bookings from customers. Its Registered Office was situated at Plot A3, Block- GP, Saltlake, Sector-V, Kolkata - 700091. The site office of the company was situated at Chhatikara Road, Vrindavan - 281121, Uttar Pradesh. The assessee company employed more than 50 employees for execution of the pro....
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....f the above said facts, it is submitted that the transactions were wholly and exclusively between the holding and the subsidiary companies. The funds were only provided by the parent company out of its own resources / borrowed funds from Banks. The subsidiary companies were promoted by the parent company only for the purpose of expanding its business and the deals were purely commercial in nature. The main purpose or object of carrying business through subsidiaries was to mitigate the risk associated with a specific project and to create a distinct identity of the project. It also results in operational efficiency and control. Since different projects were in partnership with different persons and the existing projects were matured and oper....