TaxTMI 
TaxTMI 
TaxTMI 
2025 (10) TMI 81
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....of the National e-Assessment Centre, Delhi (for brevity the "Ld.AO"), passed under section 143(3) read with section 144B of the Act, date of order 13/05/2021. 2. The revenue has taken the following grounds: (i) Whether on the facts and circumstances of the case and in law the id. CIT(A) is justified in holding that the AO had ignored the details submitted by the lenders, namely Solari Home Textile Pvt Ltd and Spring Fab and Tex Pvt Ltd, as well as assessee without appreciating that the assessee has taken loan from such entities which have been struck off from the Registrar of Companies for being shell companies not complying with the regulatory requirements? (ii) Whether on the facts and circumstances of the case and in....
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....urce of fund for interest payment to the lender?" 3. The assessee has regularly filed its return of income. For the impugned assessment year, the case was selected for complete scrutiny under the CASS for - (i) unsecured loans; (ii) transactions with company whose registration has been cancelled by the MCA (iii) Investments in Unlisted Equities. The notice was issued and finally, the assessment was framed with the addition under section 68 and 69C of the Act. The addition under section 68 related to the companies whose registration was cancelled by MCA, M/s Solari Home Textile Pvt Ltd and M/s Spring Fab & Tex Pvt Ltd from where the assessee has taken loan during the financial year 2017-18 amount to Rs. 50 lakhs each. The assessee has als....
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....at during assessment / appellant proceedings assessee has filled following documents to establish identity, creditworthiness, and genuineness of the transaction: - a. Master data of the company from MCA website b. Confirmation of accounts from loan-creditors. c. Annual audited accounts along with notes to accounts of loan-creditors. d. Trial balance of loan-creditors e. Computation of income and income tax return f. Bank statement of loan-creditors and appellant showing details of transaction. g. Replies to summons issued u/s 133(6) of the act along with acknowledgement of online submissions. 7. The Ld.AR, related to creditworthiness of the parties, placed that related to loa....
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....llate proceedings, it was submitted that both the companies had responded to the AO in response to the notices u/s.133(6) of the Act and date of submission being 15.04.2021 with acknowledgement no. 100000402243184 & (the no. is not clear from the submission but the fact remains that the details were filed as per the acknowledgement filed) with all the details sought by the AO. The appellant vide letter dated 07.05.2021 has resubmitted the same details again in response to the draft assessment order. However, the AO has not made any verification and made the addition. 9.3 The appellant had made the repayment of the amounts borrowed in the month of September 2020. Further, both the parties had responded to the notices u/s 133(6) of t....
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.... have filed the required details in response to the notice u/s. 133(6) of the Act, the identity and creditworthiness of the loan creditors is proved before the AO. Under these circumstances, the addition of Rs. 20,00,000/- & Rs. 2,90,00,000/- cannot be sustained u/s.68 of the Act and the same are deleted. Ground no.4 & 5 are allowed." 8. We heard the rival submission and considered the documents available in the record. Related to loan creditors M/s. AK Macro Lumbers Pvt. Ltd. Rs. 20,00,000/- & M/s. Chandrana Intermediaries Brokers Pvt. Ltd. Rs. 2,90,00,000/- the addition was made u/s.68 of the Act as unexplained cash credits. The assessee had made the repayment of the amounts borrowed in the month of September 2020. Further, both the pa....