2026 (5) TMI 1835

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....e u/s 115BBE of the Act in the assessment order passed u/s 143(3) of the Act on 31.03.2021 by AO of Rs. 1,40,00,000/- on account of unexplained investments made by the company in F.Y. 2017-18. 2. The CIT(A), NFAC, New Delhi has erred in deleting the addition made u/s 68 of the Act in the assessment order passed u/s 143(3) of the Act on 31.03.2021 by AO of Rs. 5,92,74,939/- on account of unsecure loans accepted by the company in F.Y. 2017-18." 3. Facts of the case in brief are that the assessee is a private limited company engaged in the business of construction/builder/real estate and has furnished its return of income on 31.10.2018 by declaring income of Rs. Nil. The case was selected for scrutiny through CASS. Statutory notice....

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....nd report dated 22.02.2024, has not only commented to admit the additional evidences under rule 46A of the IT Rules, 1962 but, also i.r.o both the additions made in the assessment order has commented as under: i) Unexplained investment of Rs. 1,40,00,000/- Considering the above factual position, even though after losses, company had own fund of Rs. 12,72,57,783/-, to which investment of Rs 1,40,00,000/- is attributable. And on this basis the explanation was given that, the investment was out of own funds of the company. It is not the case that the company is having negative own fund or eroded capital, hence the same may please be accepted. ii) Unexplained cash credits u/s 68 of the Act of Rs. 5,92,74,939/- In view of asses....

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....under the provisions of Rule 46A of the IT Act. These additional evidences were forwarded to the Assessing Officer by Ld. CIT(A)/NFAC and after considering these evidences the Assessing Officer forwarded a favourable remand report on the basis of which Ld. CIT(A)/NFAC accepted the contentions of the assessee and deleted the additions made by the Assessing Officer and allowed the appeal filed by the assessee. 8. From perusal of case record, we find that the Assessing Officer has made addition of Rs.1,40,00,000/- regarding investment in share capital on the ground that the assessee was continuously showing losses and therefore it was not possible for the assessee to invest in purchase of shares capital of other companies. In this regard, w....

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....f Rs. 5,78,00,000/- to the assessee and party namely DV Exports Private Limited has advanced an amount of Rs. 10,00,000/- to the assessee and party namely Ajanta Facilities Management & Infra LLP has advanced an amount of Rs. 4,58,285/- to the assessee. In this regard, we find that detailed submission and supporting documentary/ evidences were filed before Ld. CIT(A)/NFAC and all these documents were sent to the Assessing Officer for verification and his comments. Since the Assessing Officer gave a favourable remand report, Ld. CIT(A)/NFAC accepted the contentions of the assessee and accordingly deleted the addition of Rs. 5,92,74,939/- made by the Assessing Officer. In this regard, we also find that the assessee has already furnished copy ....