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2024 (1) TMI 1070 - ITAT DELHIRevenue recognition - interest on bank deposits - Business Income OR income from other sources - proof of commencement of business - As per AO assessee has not commenced its business, thus interest earned on bank deposits was liable to be charged to Income tax as income from other sources - HELD THAT:- A perusal of the balance sheet show that the assessee was having inventories of Rs. 37.88 crores as on 31.03.2014 which was increased to Rs. 80.50 crores as on 31.03.2015. The assessee has purchased a land in Gautam Budh Nagar measuring 222.58 sq. yds. for construction of group housing duly approved by the Yamuna Expressway on 12.12.2012, which means that the business of the assessee commenced in F.Y. 2012-13. Therefore, the observation of the Assessing Officer that the assessee has not commenced its business is factually incorrect and on proper appreciation of facts, we decline to interfere with the findings of the ld. CIT(A). Ground No. 1 is dismissed. Addition u/s 68 - failure on part of assessee to submit the confirmation from the lender, proof of source of income outside India, proof of residential status or copy of passport of the lender for proving identity, genuineness and creditworthiness of the lender to pay the huge money - CIT(A) deleted addition - HELD THAT:- We have carefully perused the bank statement of Kotak Mahindra Bank belonging to Shri Owais Usmani and we find that Shri Owais Usmani is having more than sufficient balance in his bank account to make the impugned investment. Since he is 100% share holder in the company, there is no question of doubting his identity. The entire money has been remitted through proper banking channel with the approval of RBI. Therefore, the same can be safely concluded to have established the genuineness of the transaction and bank statements are showing the capacity of Shri Owais Usmani. No error or infirmity in the findings of the ld. CIT(A). Appeal of the Revenue is dismissed.
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