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2018 (1) TMI 456 - HC - Income TaxAddition u/s 69 - addition based on book entries as unexplained investments - Tribunal sustaining the addition based on notional/ artificial book entries on the mis-construction of Section 69 - Held that:- Before the Tribunal, the assessee took the very same stand as was taken before the Assessing Officer as well as the Commissioner of Income Tax (Appeals) by stating that the recipients had no corresponding credits in their bank accounts. This issue was examined by the Tribunal and on facts, it was ultimately found that the balance sheet of the assessee reflected investments made by the assessee in two companies, which were group companies of the assessee, namely M/s.Sri Padmabalaji Steels Private Limited and M/s.Suryabalalji Steels Private Limited and that these two companies were again private limited companies. The assessee did not dispute that the said two companies were subjected to statutory audit under the Companies Act and that in the auditor's report of the assessee company, it was certified by the Chartered Accountant that the balance sheet and profit and loss account were prepared as per the books of accounts and reflected true and correct working of the assessee company. Thus, the Tribunal held that when both the balance sheets of the assessee company and the balance sheets of the companies, in which, the assessee had invested, reflected the amounts of investments and are correctly tallied, neither the accounts nor the auditor's report could be brushed aside. - Decided against assessee
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