TaxTMI 
TaxTMI 
TaxTMI 
2025 (8) TMI 1666
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....Ground No.2 Whether, on the facts and in the circumstances of the case and in law, the Ld. CIT(A) was justified in deleting the addition of Rs. 30,00,00,000/- made u/s. 68 of the I.T Act without appreciating the fact the assessee has failed to prove the genuineness of transactions and creditworthiness of the parties from whom loans were taken? 3. Ground No.3 Whether, on the facts and in the circumstances of the case and in law, the Ld. CIT(A) was justified in deleting the addition of Rs. 30,00,00,000/- made u/s. 68 of the I.T Act without appreciating the fact that section 68 apply to all types of credits, including loans and not just cash credits, recorded in the books of account, and can such sums be treated as unexplained income if the assessee fails to satisfactorily explain their nature and source?" 3. Fact in brief is that return of income declaring total loss of Rs. 11,86,94,754/- was filed on 30.09.2015. The case was subject to scrutiny assessment and notice u/s 143(2) of the Act was issued on 17.03.2016. The assessment u/s 143(3) of the Act was completed on 20.12.2017 and total income was assessed at Rs. 18,13,05,246/-. During the course of assessment the AO noticed th....
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....niversal Tradelink Pvt. Ltd. as on 31.03.2015. The assessee has also submitted the copies of balance sheet of M/s Balaji Universal Tradelink Pvt. Ltd. as on 31.03.2015. The assessee also submitted that once M/s Balaji Universal Tradelink Pvt. Ltd and M/s Balaji Lifestyle Realtors Pvt. Ltd. resolved their liability of outstanding statutory due of the government against the 10 flats with clear marketable title then the assessee company will reacquire the said 10 flats from them at Rs. 30 crores. In view of the above circumstances the entry was made in the books of account of the assessee which remained only in papers without giving actual effect as the assessee company had neither reacquired those 10 flats from the said buyers nor taken any loan liability for payment of Union Bank of India. However, the AO has not agreed with the submission of the assessee on the ground that assessee has shown credit entries of Rs. 30 crores in the form of bank loan in its books of account for the year under consideration as secured loan under the head short term borrowings, therefore, the amount of Rs. 30 crores was treated as income of the assessee as cash credit u/s 68 of the Act and added to the ....
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....companies and that the Appellant also failed to bring on record any provisions of terms of consent that the same loan was required to be reflected as liability in the books of both the companies and added the amount of Rs. 30,00,00,000/-. It is observed that the Appellant had submitted during the course of assessment proceedings that the loan of Rs. 30,00,00,000/- (Approx) from the Union Bank of India was taken by M/s Balaji Universal Tradelink Pvt. Ltd. Further, a loan of Rs. 28,28,83,039/- appears in the audited financial statement in Note-5-Long-Term borrowing as a secured loan of Rs. 11,31,53,216 and an unsecured loan of Rs. 16,97,29,823/- of M/s Balaji Universal Tradelink Pvt. Ltd. as on 31-03-2015. The Appellant had furnished copy of ITR, Audited Financial Statement, copy of confirmation of amount of loan taken by M/s Balaji Tradelink Pvt. Ltd. From UBI. The said loan of Rs. 28,28,83,039/- appears in the audited balance sheet of M/s Balaji Universal Tradelink Pvt. Ltd. as on 31-03-2015. In respect of the 10 flats sold to the two companies for a sale consideration of Rs. 8,76,90,000/- on 24/10/2007, the Appellant submitted that in the Journal entry, the advance receiv....
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....ar 2021-22. Extract of clause no. 37-44 of the consent terms are hereunder reproduced for your perusal." Wherein for various reasons the said deal did not materialise and the said Journal entry is reversed and appropriate disclosure made in line with Accounting standards, which makes clear that Balaji UBI Loan of Rs. 30,00,00,000/- lying in the Balance sheet of F.Y. 2014-15 was contingent liability which was wrongly considered in Accounts instead of only notes of Accounts of the said Financial Year which has no relevance since there was a conditional offer by the Appellant to M/s Balaji Group of companies which was not materially realized into monetary transaction and hence there was no impact on income statement and therefore question of unexplained income does not arise. Even otherwise, had the Appellant actually availed the Bank Loan from Union Bank of India, there would have been no difficulty on the part of the Appellant to produce details about a Bank Loan shown as a Secured Loan from a Scheduled Bank. That the Appellant was unable to do so, itself supports the Appellant's contention that it was merely a Fictious and Paper entry erroneously and hastily made in its book....
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.... M/s Balaji Lifestyle Realtors Pvt. Ltd. Accordingly, the loan liability of Union Bank of India of Rs. 30 crores was reflected in financial statement under short term borrowing from bank which is actually journal entry taken into books of accounts and cost of ten flats taken as Rs. 30 crores in the books of accounts as under; Advance received from Balaji Against 10 flats Dr. 9,78,88,580/- Reduced from advance against flat other current liabilities Balaji UBI Loan Capitalised Dr. 20,21,11,420/- Included in closing working in progress Balaji UBI Loan Cr. 30,00,00,000/- Included in Short term borrowings from Bank 6. The assessee at point No. 26 of notes to accounts of F.Y. 2021-22 (A.Y. 2022-23) of balance sheet stated that the company has cleared all disputes in the financial year 2014-15 as per consent terms filed in the Hon'ble Supreme Court of India in December 2014 and as per the Supreme Court order in the financial year 2014-15 there was contingent liability as per consent term clause no. 37-44 which was wrongly accounted in books of accounts and the same has been rectified in the financial year 2021-22. Since, the said understanding could not be materialized....