TaxTMI 
TaxTMI 
2025 (5) TMI 709
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....orders. For the sake of convenience, we proceed to dispose of these appeals by this consolidated order. ITA No.1792/PUN/2019 : 2. From perusal of Form No.36, we notice that the amount disputed in the appeal is mentioned in Column 7(c) raising the following issues : "1. Addition of Rs. 12,50,000.00 made u/s. 68 of the I. T. Act 1961 on account of unproved loans received from M/s. Jay Mahrashtra Consumer Pvt. Ltd. 2. Addition of Rs. 6,70,740.00 made being deemed dividend u/s. 2(2)(e) of the I.T. Act 1961 from M/s. Apeksha Impex Pvt. Ltd. 3. Addition of Rs. 1,00,000.00 on account of household expenses." 2.1 Whereas Column No.10 provides the grounds of appeal raised by the assessee and the same read as under ....
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....nsidered the rival submissions and perused the record placed before us. The only issue for our consideration is whether under the given facts section 68 can be invoked for the unsecured loan of Rs. 12,50,000/- received by the assessee from JMCPL. We notice that the assessee is having regular transactions with the alleged creditor and there is opening balance of Rs. 60,64,394/-. Further, the transaction during the year was duly explained by the assessee giving following details : Date Cheque No. Amount DR Amount CR Source of payment 1-Apr-2019 Op. Balance 6064394 02/05/2009 15181 600000 JMC Pvt. Ltd. paid this amount out sale proceeds of Machinery received from M/s. S.A. Trade....
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....received from Indiabulls Industrial Infrastructure ltd. on 31/08/2009 for Rs. 81148/-. 31/03/2010 Cl. Balance C/B 5464394 7314394 7314394 8. The above details with specific information about the source of funds as well as the sale proceeds for machinery and other transactions clearly indicate that the Identity, creditworthiness of JMCPL is proved and the genuineness of the transaction is also verifiable. It is also noticed that the assessee holds the Equity shares of JMCPL and therefore is well connected with this concern. Considering the overall facts and circumstances of the case, we find that ld.AO erred in invoking section 68 of the Act as the assessee has discharged pr....
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....he course of hearing, when ld. Counsel for the assessee was confronted with this situation about grounds of appeal mentioned in Column No.7(c) and Column No.10, he made a request for not pressing disputed amount mentioned in Sl.No.1, 3 and 4 of Column No.7(c). Accordingly, the said grounds are dismissed as 'not pressed'. 12. The only effective in this appeal is regarding the addition made u/s. 68 of the Act by the ld. AO at Rs. 15,40,000/- with the loan received from Sunil K.Gidwani. 13. In the instant appeal, we notice that assessment of the assessee namely Kailash Kanhaiyalal Gidwani through legal heir of Late Kanhaiyalal Vishindas Gidwani for A.Y. 2010-11 was completed on 20.03.2013 u/s. 143(3) of the Act. Scrutiny proceedings were....
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....wani and which in itself is a source to explain the alleged sum. 17. On the other hand, ld. Departmental Representative supported the orders of the lower authorities. 18. We have considered the rival submissions and perused the record placed before us. Loan of Rs. 15,40,000/- received by the assessee from Sunil K. Gidwani has been added by the AO invoking section 68 of the Act. We notice that the assessee is related to Sunil K. Gidwani and they are part of the same family. Sunil K. Gidwani has offered income of Rs. 13,19,928/- in the income-tax return for A.Y. 2010-11. As far as the balance sheet of Sunil K. Gidwani placed at page 5 of the paper book, we observe that Sunil K. Gidwani had a capital of Rs. 41,99,016.34 and other funds i....