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2013 (5) TMI 18

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..... acts and in the circumstances of the case and in law, the Ld CIT(A) has erred in deleting the addition of Rs.11,93,100/- made by Assessing Officer in respect of share capital for want of verification of genuineness ignoring that. 3.1. that the clarification and documents furnished before the CIT(A) remained unverified by the Assessing Officer. 4. On the facts and in the circumstances of the case and in law, the Ld CIT(A) has erred in deleting the addition of Rs.13,98,835/- made by Assessing Officer in respect of unsecured loans for want of verification of genuineness that 4.1. That the clarification and documents furnished before the CIT(A) remained unverified by the Assessing Officer. 5. On the facts and in the circumstances of the cas .....

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..... issued and assessee was given another opportunity for filing its return of income on or before 29.12.2010. However, the assessee filed return of income on 30.12.2010 and declared nil income. In the meantime, the assessee was given a notice dated 29.12.2010 for completion of assessment order u/s 144 of the Income Tax Act, 1961. As the assessment was getting time barred, the Assessing Officer made the additions on account of outstanding balances of share capital, unsecured loan and cash & bank balances and sundry creditors amounting in all to Rs.31,42,114/- as income of the assessee. 3. Dissatisfied with the order, the assessee preferred an appeal before Ld CIT(A) and under Rule 46A(3) filed copy of return along with the acknowledgement alon .....

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..... sued, subscribed and paid up share capital. The unsecured loans of Rs.13,98,835/- are also found to be old unsecured loans. The perusal of the details of sundry creditors reveals that there are also old corresponding entries carried forward from the earlier years. The cash and bank balance of Rs.21,078/- is found to be factually correct on verification of the cash book and the bank statement. In view of the facts stated above, it can be safely concluded that the Assessing Officer was not justified in making addition of Rs.31,42,114/- consisting of (a) Rs.11,93,100/- to the total income of the assessee on account of share capital u/s 68 of the Act and (b) Rs.13,98,835/- on account of unsecured loans, (c ) Rs.5,29,101/- and (d) Rs.21,078/- on .....

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..... aper book it appears that company had no business income. It had only interest income on income tax refund against which certain expenses were claimed. In the earlier year also, there was no business income. The copy of balance sheet placed at page 31 of paper book strengthen the findings of Ld CIT(A) that Assessing Officer had just taken the balances appearing as on the date of balance sheet and computed the income which is totally wrong and unjustified. All balances appearing in the balance sheet are old outstanding balances. The only difference is in the amount of unsecured loan, the amount of which had reduced from Rs.15,63,835/- to Rs.13,,98,835/- and similarly there is a reduction in the amount of sundry creditors due to payment of so .....

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