TaxTMI 
TaxTMI 
2025 (6) TMI 158
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....rut, dated 18.01.2018 pertaining to Assessment Year 2013-14. Since, the issues are common and connected, hence, the appeals were heard together and are being consolidated and disposed of by this common order. 2. The assessee has raised following grounds of appeal:- 1. That the ld. CIT(A) has erred in law as well as on the facts of the case by confirming the addition of Rs. 3,00,000/- u/s 68 of the Income Tax Act, 1961 holding the receipt of share application/allotment money from Mr. Pranav Rajeev as unexplained and the findings & observations made by the authorities below are unlawful and the material on record has not been considered in right perspective thereof. 2. That the ld. CIT(A) has erred in law as well as on th....
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.... share application money and unsecured loans without giving opportunity of being heard to the A.O. or without calling for a remand report? 2. Whether in the facts and circumstances of the case, the ld. Commissioner of Income Tax (Appeals) has erred in law and fact in deleting the addition of Rs. 47,00,000/- out of total addition of Rs. 50,00,000/- made on account of unexplained share application money, by relying on the submission of the assessee and by ignoring the findings of the AO that the assessee failed to furnish satisfactory explanation regarding source of share capital before him? 3. Whether in the facts and circumstances of the case, the Id. Commissioner of Income Tax (Appeals) has erred in law and fact in deleti....
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....acturing of vessel pressure tanks, metal crash barriers, steel structures as per drawings and execution of works contracts. The appellant company filed its return showing income of Rs. 25,80,360/ on 30.09.2013. During the year under consideration, the appellant raised share capital of Rs. 50 Lacs from five share applicants. The Appellant also raised unsecured loans of Rs. 60,15,406 from eight unsecured creditors. The case was selected for scrutiny and accordingly notice u/s 143(2) of the Income Tax Act, 1961 ('Act') dated 02.09.2014 was issued. Vide Order dated 31.03.2016 the Assistant Commissioner of Income Tax, Circle 2, Meerut ('Ld. AO') after examining the books and records of the Appellant made the following findings and additions to t....
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....of accounts defective and rejectable. [RE: Page 10-13 of AO's Order] - There was deficiency and incorrectness in the valuation of closing stock of finished goods. [RE: Page 2 of AO's Order] - Books are not correct and have material discrepancies and therefore the profit from the business to be estimated rejecting the books of accounts by invoking the provisions of section 145(3) of the Act. [RE: Page 13 of AO's Order] 4.3. The Ld. AO, after rejection of the books of accounts, calculated the average Net Profit rate for the past three years i.e. AYs 2010-11 to 2012-13 and arrived at an average Net Profit rate of 2.12%. He thereafter applied this rate at the sales of the current year amounting to 20.62 crores and arrived a....
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....406.[RE: Page 20-21 of CIT(A) Order] III. Rejection of Books of Accounts: The Ld. CIT(A) held that the Appellant had not substantiated its submission for producing 2 balance sheets and two different lists of sundry creditors. Therefore, he rejected the books of accounts of the Appellant. [RE: Page 24 of CIT(A) Order]. IV. The Ld. CIT(A) negated the working of the Ld. AO and upheld the use of GP rate analysis and applied an ad hoc GP rate of 11.4% declared by the Appellant during AY 2010-11 on the total sale of Rs. 20.62 crores thereby resulting in gross profit of 2.29 crores and reduced an amount of 1.62 crores (i.e. the GP declared by the Appellant) which resulted in an addition of Rs. 67,54,705 lakhs. [RE: Page 26-27 of ....
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....d. (18.04.2023 ITAT Ahmadabad) 9. Since, the assessee has established the identity, genuineness of the transaction and creditworthiness of the Creditors/share holders, we direct the addition of Rs. 3 lakhs so sustained by the Ld. CIT(A) is required to be deleted. Unsecured loan (iii) Here also, the addition of Rs. 3 lakhs from Manu Rishi HUF has been sustained by the Ld. CIT(A). As already held above, the deposit of cash has not been linked with the company. Moreover, the AO did not make any enquiry whatsoever regarding the source of cash with the lender. Accordingly, the addition of Rs. 3 lakhs is also directed to be deleted. Particularly, in view of the fact that the ld. CIT(A) has given relief of Rs. 9 lakch out of Rs. 12 lakhs ....