AI Drafter 
TaxTMI 
TaxTMI 
TaxTMI 
2025 (12) TMI 176
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....track of the same. We note that the issue was set aside by the ld. CIT(A) to the ld. AO and thereafter notice u/s 142(1) of the Act dated 29.07.2025, was received through e-portal. It is only it was realized that the said notice might have been sent for assessment proceedings against which the appellate order from ld. CIT(A) was yet to be received. On accessing the portal, the assessee came to know that appellate order was already passed on 23.01.2025 by ld CIT(A) by allowing the appeal for statistical purposes. Thereafter, the assessee immediately took steps to file the appeal and it was ultimately filed on 08.08.2025 with a delay of 209 days. In our opinion, the reasons cited by the assessee before us appears to be genuine and bonafide. We are of the opinion that the assessee should not be denied justice on the technical reasons. The case of the assessee find support from the decision of Hon'ble Apex Court in the case of COLLECTOR, LAND ACQUISITION v. Mst. KATIJI (1987) 167 ITR 471 (SC) and Senior Bhosale Estate (HUF) vs. ACIT [2019] 419 ITR 732 (SC) dated 07-11-2019. Considering the facts of the case in the light of the aforesaid decisions, we are inclined to condone the del....
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....ained cash credit. The case of the assessee find support from the decision of Rajasthan High Court in the case of CIT v. Prameshwar Bohra (2008) 301 ITR 404 (Raj), wherein Hon'ble Court held as under:- "4. On the merit of the additions made in the income of the assessee, there is a clear finding and above which there is no dispute that the amount added in the income of the assessee as unexplained investment or cash credit in the assessment year 1993-94 was the same amount which was credited in the books of account of the assessee for the previous year ending on March 31. 1992. The Tribunal has categorically come to a finding, and that finding is not under challenge, that this is not a case of cash credit entered in the books of account of the assessee during the year but it is a case in which the assessee has invested the capital in the business and this amount was shown as a closing capital as on March 31. 1992, and on April 1. 1992, it was an opening balance. Considering this aspect, the Tribunal has come to the conclusion that what was already credited in the books of account ending on March 31. 1992. for the financial year 1991-92 relevant to the assessment year 19....
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.... Sri Agro Hinghar Ltd. Rs. 25,00,000/- iv. Sri Siromani Dealers Pvt. Ltd. Rs. 3,70,000/- v. Tirumati Merchandise Pvt. Ltd. Rs. 2,00,000/- vi Varahi Commercial Pvt. Ltd. Rs. 5,00,000/- Rs. 37,70,000/-" 011. We note from the above details that the assessee has received Rs. 37,70,000/- from six parties which are group companies of the assessee. The assessee made detailed submissions before us along with all evidences in respect of said subscriber companies which are extracted as under:- i. Raghu Management Ltd: The company had invested a sum of Rs. 1,00,000/- during the year under appeal. The copy of balance sheet, assessment orders for A.Y. 2012-13 and bank statement highlighting the transaction is enclosed at page 7-29 of the paper book. The assessment order passed in the case of the company itself proves the identity of the company. Further search was conducted in the premise of the company and proceedings were initiated u/s 153A. The assessment order was passed and section 14A disallowance has been made. This very clearly shows that the jurisdictional AO of the said company had duly examined the investments....
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....ing the year is enclosed at page 3 of the paper Book. The share application of Rs. 25,00,000/- was paid from cold storage rent received during the year. Bank statement of Sri Agro Himghar Ltd is enclosed at page 131-134 of the paper Book. It is evident from the financial statement of Sri Agro Himghar Ltd that the company had own fund of Rs. 24.79 crores. The revenue from operation amounts to Rs. 1,31,88,755/- The company also had fixed assets worth Rs. 1,44 crores, fixed deposit with Central Bank of India of Rs. 15.94 lakhs, cash in hand of Rs. 27.43 lakhs. The company also did not have borrowed fund outstanding in the books during the year. Hence, the credit worthiness of the company cannot be doubted. iv. Sri Siromani Dealers Pvt Ltd The company during the year had paid share application money amounting to Rs. 3,70,000/- to the assessee company. The copy of Balance sheet, assessment order and bank statement highlighting the transaction is enclosed at page 135-155 of the Paper Book. Hence, the identity of the company can be evident from the assessment order. The Source of the share application money received during the year is enclosed in page 3....
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....lication money received during the year is enclosed at page 3 of the paper Book. The share application of Rs. 5,00,000/- was paid from refund of share application money received from Sreenath House Pvt Ltd.. Bank statement of Varahi Commercial Pvt Ltd is enclosed at page 216-219 of the paper Book. Further source of source is also established (Refer page 3). Copy of documents enclosed at page 220-234 of the paper Books. It is evident from the financial statement of Varahi Commercial Pvt Ltd that the company had own fund of Rs. 49.54 crores. The company also did not have borrowed fund outstanding in the books during the year. This very clearly shows that the company had utilized its own fund for making investment. Hence, the credit worthiness of the company is duly established. Further, the aforementioned investor companies are duly registered under companies Act, 1956. Hence, the identity of the investor company is undisputed and cannot be questioned since it is an existing company duly registered with Registrar of Companies, having valid permanent account number and submitting their financial statements regularly and are assessed to tax. It is ev....