TaxTMI 
TaxTMI 
2025 (7) TMI 598
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....ent year. Therefore, we have heard them together, and are disposed of by this common order. 3. First, we take up quantum appeal in ITA No.139/Mum/2025. The revenue has taken the following grounds:- "Ground(1) "Whether on the facts and circumstances of the case, the Ld CIT(A) has erred in deleting the disallowance of Rs. 5,00,00,000/- made u/s, 68 of the Act, consequent to holding that 1 M/s SM Commodity and Bullion Trading Private Limited, which is having peculiar features of paper/shell companies, is not a paper or bogus entity as it is filing regular ITRs and declaring regular income?" (ii) "Whether on the facts and circumstances of the case, the Ld. CIT(A) has erred in, not considering the physical verification report of Ward Inspector on the nonexistence of M/s. SM Commodity and Bullion Trading Pvt. Ltd. at the given address, and also that the assessee could not provide any supporting documentary evidence and explanation on the identity and creditworthiness of the share application money and genuineness of such transactions?" (iii) "Whether on the facts and circumstances of the case, the Ld. CIT(A) was right in not employing his powers that are ....
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....use the assessee has failed to establish that the 1oan creditors are genuine. The lender companies have been used by the assessee for introduction of capital into Assessee Company by way of loans and the whole transaction is only a colourable device used by assessee to make the transaction appear genuine 12.18 The above bogus entities / shell companies have been used as conduit or layer to route the assessee's unaccounted money in the guise of unsecured loan. Further, field verification done during the post survey / search proceedings revealed that the above shell/papers company were not found at the available addresses. 12.19 Since the assessee failed to discharge its onus to prove the genuineness of the unsecured loans taken and creditworthiness of above bogus/shell company, as such, share application money of Rs. 5,00,00,000/- is not genuine. Accordingly, the share application money of Rs. 5,00,00,000/- is disallowed u/s.68 of the I.T. Act treating the same as unexplained cash credit in the books of the assessee. Penalty proceedings u/s.271(1)(c) of the I.T. Act are separately initiated for furnishing inaccurate particulars of income." 6. The Ld. DR further ....
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....ledger account and bank statements to support its claim. 8.3 It is also brought to my notice that appellant has charged M/s Classic Marble Ltd interest @ 12% over the years with TDS deducted thereupon and this loan was repaid during FY 2015-16. Similarly, appellant has paid interest to M/s SM Commodity and Bullion Trading Pvt Ltd. as soon as the amount was treated as loan. This loan was repaid in FY 2021-22. 8.4 It is also submitted that M/s SM Commodity and Bullion Trading Pvt Ltd. Is regularly filing its return of income. Acknowledgement of such lTRs were also submitted before AO during assessment proceedings. It is noted that the lender company i.e. M/s SM Commodity and Bullion Trading Pvt Ltd. does not appear to be a paper or bogus entity as it is filing regular lTRs and declaring regular income. Moreover, the analysis of balance sheet over the year reflects that it has sufficient funds to advance the loan in question. Therefore, I am unable to concur with AO on the question of creditworthiness of lender. 8.5 Now coming to the question of identity of the lender where AO has relied upon inspectors reports to conclude that the said party does not exist ....
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....arty, M/s S.M. Commodity and Bullion Trading Company Pvt Ltd (formerly known as GBP Industries Ltd) and the relevant bank statement and the confirmations are duly submitted. Further, the party is a company incorporated under Companies Act, 1956 and the registration is duly reflected in the portal of the Ministry of Corporate Affairs (MCA Portal). The list of documents, which were submitted before the revenue authorities were duly annexed in the paper book, which are as follows:- Sr.No. Particulars Page Nos. 1 ITR V, Compu8tation of income and Balance Sheet as on 31.03.2013 along with its Schedules 01-06 2 Ledger confirmation from S.M. Commodity and Bullion Trading Pvt Ltd (Formerly known as GPB Industries Ltd.), Bank statement of SM Commodity and Shree Thirumalai highlighting the above payments by RTGS, ITR-Ack, Computation, Balance Sheet, and Profit & Loss of SM Commodity for AY 13-14 07-15 3 Ledger Confirmation from S.M. Commodity and Bullion Trading Pvt Ltd. Form 01.04.2010 to 31.03.2016 and FY 2021-22 16-19 4 Ledger Confirmation of Classic Marble from 01.04.2012 to 31.03.2016 20 5 ITR Acknowledgement of S.M. Commodity OF 10 YEA....