2025 (11) TMI 270

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....following grounds of appeal :- "1. Whether the Ld. CIT (A) has erred on facts and in law in deleting the addition amounting to Rs.1,90,00,000/- u/s 69 of the Act. 2. Whether Ld. CIT (A) erred in admitting additional evidence sin contravention of the provision of Rule 46A." 3. Brief facts of the case are, as brought out before us by the ld. AR of the assessee, the assessee is a limited Company formed in 1962 and it was one of the top construction companies in the Country in its hay days. He submitted that the Company executed many prestigious constructions in India and in gulf Countries like Iraq and Libya. He submitted that the assessee Company fell into bad days when the Iran-Iraq war erupted in 1980 which lasted till ....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....me for closure on 29.12.2017 and Rs.1,99,12,379/- was credited to the account and on the same day, an FDR was issued for Rs.1,90,00,000/- and the same was continued. He submitted that it is thus clear that the assessee had not made any fresh investment but it is a reinvestment of an old FD. However, AO made the addition Rs.1,90,00,000/- u/s 69 of the Income-tax Act, 1961 (for short 'the Act') not considering the contention of the assessee that it was renewal and not a fresh deposit. 4. Ld. AR further submitted that being aggrieved with the order of AO, assessee filed an appeal before the ld. CIT (A) and submitted detailed written submissions before him. Ld. CIT (A) after considering the detailed submissions of the assessee deleted the ad....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....0,00,000 u/s 69 of the Act made by the AO is not sustainable and is directed to be deleted. The appeal on Ground Nos.3 to 5 are thus treated as allowed." 5. Aggrieved, Revenue is in appeal before us. 6. With regard to ground no.1, ld. DR of the Revenue relied on the findings of the Assessing Officer. 7. On the other hand, ld. AR of the assessee relied on the findings of the ld. CIT(A). 8. Considered the rival submissions and material placed on record. We observe that assessee made fixed deposits for securing bank guarantees in State Bank of India, UCO Bank and SBI Exim bank and these deposits were renewed from time to time and some were closed as and when required and guarantee was released. We further observe that one such depo....