9911796707
TMI Blog2014 (7) TMI 128X X X X Extracts X X X X X X X X Extracts X X X X ..... nd for A.Y. 2006-07 filed return of income through e-filing System declaring income of Rs. 821/-. A.O. in the course of scrutiny proceedings noticed that assessee's share application money has increased by an amount of Rs. 10,58,892/- and assessee has unsecured loan at the end of the year of an amount of Rs. 2,61,550/-. A.O. after giving seven opportunities to the assessee and obtaining information considered that confirmation letters filed with reference to share application money were monotonous in nature and were not supported by proper documents with proof of their addresses, bills and bank statements, mode of payments etc., In view of that, the difference between the closing balance and opening balance of share application money amount ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... P. Jain is no more and referred to all the documents placed before the A.O. in the course of assessment proceedings. With reference to the balance amount of Rs. 5,33,233/- from Mr. Rajiv Chilakalapudi, Ld. Counsel submitted that A.O. gave credit to the amount introduced in the name of Telemedia Interactive India Pvt. Ltd., at Rs. 1,01,500/- and from Mr. Samir Jain at Rs. 1,75,000/- and M/s. S B Organics Ltd., at Rs. 1,61,765/-. The balance amount was treated from Mr. Rajiv Chilakalapudi who was the Director of the company and who has his own source and referred to the confirmation letters/ replies given to AO. 5. With reference to the unsecured loan, he referred to the loan obtained from ICICI Bank on 16.03.2006 and transfer of the same am ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the Director Mr. Rajiv Chilakalapudi was to the tune of Rs. 3 lakhs out of which, outstanding amount was Rs. 2,61,550/-, which was added by the A.O. as unexplained income of the assessee. This indicates that A.O. is very casual in his assessment proceedings and also in bringing the amounts to tax. We have also perused the remand report submitted by the A.O. and the corrigendum issued by the Ld. CIT(A. We would not co-relate to the amounts confirmed and Ld Counsel also expressed his inability to co-relate the amounts which got confirmed and which got excluded. Therefore, on this account also, we are unable to understand the logic in confirming the partial amount by excluding the partial amount from the total addition. 8. Be that as it may, ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... as the amount outstanding as on 31.03.2005 was to the tune of Rs. 14,91,114/- and at the end of the year was Rs. 25,50,006/-. The last digits in 4 and 6 do indicate that this is not share application money, as the equity share of Rs. 10/- each can only result in 'zero' being the last digit (in multiples of Rs. 10). It indicates that this share application money account is being used as current account for use of funds instead of routing through loan accounts. Even though, Ld. Counsel relied on various case law with reference to examination of share capital, we are of the opinion that this case law does not apply to the facts of the case as this amount cannot be considered as either share amount or share application amount. This cannot be a ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
