TMI Blog2023 (7) TMI 554X X X X Extracts X X X X X X X X Extracts X X X X ..... ITA No. 2356/Del/2019 - - - Dated:- 9-6-2023 - SHRI C.M. GARG, JUDICIAL MEMBER For the Appellant : Shri Ankit Gupta, Adv For the Respondent : Shri Om Prakash, Sr. DR ORDER 1. This is an appeal filed by the assessee against the order of the ld CIT(A)-29, New Delhi dated 04.02.2019 for Assessment Year 2012-13. 2. At the very outset the ld Counsel of the assessee submitted that the assessee does not to press Ground Nos. 1 to 8, hence same are dismissed as not pressed. 3. The sole issue in the remaining ground of assessee on merits is concerned of effective ground No. 9 of assessee which reads as under:- 9. That the Assessing Officer has, in view of the facts and circumstances of the case, erred on facts and in law, in making addition/ disallowance of Rs. 85,00,000.00 on account of Unsecured Loans treating as share application money an accommodation entry on the basis of information from ADIT (Investigation). The addition/disallowance made is illegal, unjust and without any basis. The CIT (A) erred in upholding the same. 4. Ld. Counsel of the assessee submitted that the AO as well as the ld CIT(A) has grossly erred in making addition of disallowance ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... uring the earlier or subsequent year nor during the relevant financial period i.e. AY 2011-12. Therefore, the entire baseless addition may kindly be deleted. Ld counsel has also placed reliance on the following decisions:- 1. M/s Key Components P Ltd VS. ITO, W-5(2), New Delhi, ITA No-366/Del/2016 2. Neeta Agarwal Vs. ITO. W-1(1). Muzaffarnagar, ITA No-2488/Del/2017 3. Sampatraj Dharmichand Jain Vs. ITO. SCA No-4646 of 2016 High Court of Gujarat at Ahmedabad 4. P.R. Construction Vs. ACIT, C-2. Muzaffarnagar, ITA No-985/Del/2021 5. Hindon Forge P Ltd Vs. DCIT. C-1. Ghaziabad, ITA No-3800/Del/2017 9. On careful perusal of the above submission and written submissions filed by the assessee on 13.12.2022 along with PB spread over 204 pages, first of all, I note that the ld CIT(A) has upheld the addition of Rs. 85 lakhs treating the same as share capital and share premium. From the copies of the documents submitted by the assessee in his paper book dated 03.11.2022, I note that the assessee has filed copies of documents related to unsecured loan from three entities at pages 92 to 191 of assessee s paper book. From page 92 to 122 I further note that the asses ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... de payment of interest of Rs. 4 lakhs after deducting TDS of Rs. 80,000/- @10%. Page 125 and other documents available at subsequent pages clearly reveals with a creditor company in response to notice u/s 133(6) of the Act submitted reply vide dated 15.03.2017 along with other relevant documentary evidence such PAN, ITR-V, statement of accounts and copy of bank accounts for the relevant period confirming the factum unsecured loan of Rs. 50 lakhs given to the assessee and receipt of interest @8% PA i.e. Rs. 4 lakhs after deduction of TDS thereon. Page 126 clearly reveals that at the time of issuing of cheque there was balance of Rs. 61 lakhs in the bank account of the lender and earlier to that there was no cash deposit to the bank account of the lender from which the assessee received unsecured loan through banking channel. Other documents i.e. copy ITR, auditor s report and balance sheet filed at page 133 clearly reveals that this company has share capital of Rs. 4,03,47,600/- and reserve and surplus of Rs. 32,42,54,550/- as on 31.03.2012 which shows capacity and creditworthiness of the lender. 12. In view of above, I am inclined to hold that the assessee submitted all possible ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of the transaction which was rooted through banking channel cannot be doubted in any manner. From page 162 of assessee paper book I clearly observe that during subsequent AY 2012-13 the assessee squared up the account by repaying entire loan amount of Rs. 10 Lakh along with interest thereon amounting to Rs. 80,000/- after deducting TDS @20% and this fact again fortify the contention of assessee that the unsecured loan transaction was a genuine transaction. 14. It is pertinent to mention that the copies of applications of the lenders clearly reveals that amount of unsecured loan was converted submitted by the lender to the assessee share application money, share premium during the FY 2013-14 relevant to AY 2014-15 as the application were vide at the fag end of FY 2012-13 pertaining to AY 2013-14, I have to adjudicate the issue of addition made by the AO and upheld by the ld CIT(A) for AY 2012-13 u/s 68 of the Act. Therefore, no further deliberations are required on the issue of conversion of unsecured loan into share application money during the subsequent assessment year. 15. On the basis of foregoing discussion I have no hesitation to hold that the assessee during the procee ..... X X X X Extracts X X X X X X X X Extracts X X X X
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