Home Case Index All Cases Income Tax Income Tax + AT Income Tax - 2022 (10) TMI AT This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2022 (10) TMI 680 - AT - Income TaxRemission of liability u/s. 41(1) - identity of the creditors - Whether transaction between two share holders cannot in anyway affect the capital base of a company nor it can give rise to a remission of liability by a shareholder with regard to the assessee company - whether aggregate value of the liability did not change only the value of the liability got regrouped under some other heads? - CIT-A deleted the addition - HELD THAT:- The Canara Bank as creditor of M/s. DAIL filed recovery suit before the Hon'ble Delhi High Court and the Hon'ble Court vide their order dated 23.11.2004 passed an order restraining from dealing with amount received from Data Access America in bank account maintained by the assessee company with ABN Amro bank, Chennai. Canara Bank has filed Civil Appeal before the Hon'ble Delhi High Court and the Hon'ble High Court has passed order on 18.11.2005 and directed all parties, including income-tax department to remit amount received from M/s. Data Access India Ltd. to Canara Bank account. From the above, it is very clear that amount received by the assessee from M/s. Cheran Holdings Pvt. Ltd. does not belong to the assessee, in view of the specific order of the Hon'ble Delhi High Court and thus, it cannot be said that it is unexplained income of the assessee - source of money has been explained by the assessee, including identity of the creditors and further said amount has been transferred through proper banking channel only. CIT(A), after considering relevant facts held that the assessee has identified creditors and hence, deleted additions made by the Assessing Officer towards amount received from M/s. Cheran Holdings Pvt. Ltd. as unexplained income of the assessee. Hence, we are inclined to uphold findings of the learned CIT(A) and reject ground taken by the Revenue.
|