TMI Blog2015 (5) TMI 717X X X X Extracts X X X X X X X X Extracts X X X X ..... detail like Balance Sheet, regular source of income or the reason why such huge amount of loan was given, in some cases, interest free also. Thus find considerable force in the finding of the Ld. CIT(A) that assessee has not discharged the onus of establishing the creditworthiness of the parties. Accordingly, Ld. CIT(A), has rightly dismissed this ground of the assesse - Decided against assesse. - I.T.A. No. 2268/Del/2013 - - - Dated:- 7-5-2015 - Shri H. S. Sidhu And Shri J. S. Reddy,JJ. For the Petitioner : Sh. Ashwani Kumar, CA For the Respondent : Sh. BRR Kumar, Sr. DR ORDER Per H. S. Sidhu : JM The Assessee has filed the present appeal against the impugned order dated 17/1/2013 passed by the Ld. Commissioner of Income Tax (Appeals)-X, New Delhi on the following grounds:- (1) That the order dated 17.01.2013 passed u/s 2'50 of the Income Tax Act, 1961 by the Learned Commissioner of Income -Tax (Appeals) - X, New Delhi is against law and facts on the file in as much as he was not justified to uphold the action of the Learned Income Tax Officer, Ward 7(3), New Delhi in making an addition of ₹ 2,40,00,000/-, which had been taken by the App ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... lthough the details as furnished lead to the conclusion that these people do exist. However, neither the assessee nor any of the persons giving loan have been able to justify their creditworthiness. Accordingly, the AO completed the assessment and made the various additions vide his order dated 29.12.2008 passed u/s. 143(3) of the I.T. Act. Aggrieved with the above, assessee appealed before the Ld. CIT(A), who vide impugned order deleted the additions. Aggrieved with the impugned order the Revenue appealed before the ITAT and ITAT vide its order dated 14.5.2010 passed in ITA 05/Del/2010 (A.Y. 2006-07) has set aside the order on two grounds to the file of the Ld. CIT(A). In pursuance to the ITAT order dated 14.5.2010, Ld. CIT(A) vide his order dated 17.1.2013 has dismissed the appeal of the assessee and aggrieved with the aforesaid order dated 17.1.2013, assessee is in appeal before the Tribunal. 3. Ld. Counsel of the assessee has filed the Paper Book containing pages 1 to 113 having copy of ITAT order dated 14.5.2010 passed in ITA No. 05/Del/2010; copy of assessment order dated 19.12.2008; Copy of annual accounts of the assessee company; copy of letter dated 25.11.08 filed befor ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... unsel of the assessee has stated that the assessee has elaborately argued the case before the Ld. CIT(A) and also submitted written submission before him which has not been considered and the Ld. CIT(A) has decided the issue against the assessee which is contrary to the provisions of law. 6.1 On the contrary, Ld. DR relied upon the orders of the revenue authorities and requested that the same may be upheld. 6.2 After considering the arguments of both the parties and the provisions of law, we are of the view that to adjudicate this issue, it is very much necessary to reproduce the provisions of section 2(22)(e) hereunder:- any payment by a company, not being a company in which the public are substantially interested, of any sum, whether as representing a part of the assets of the company or otherwise made after the 31st day of May, 1987, by way of advance or loan to a shareholder, being a person who is the beneficial owner of shares not being shares entitled to a fixed rate of dividend whether with or without a right to participate in profit holding not less than ten per cent of the voting power, or to any concern in which such shareholder is a member or a partner in which ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Assessing Officer has made an addition of ₹ 2,40,OO,OOO/- in the hands of the 6 parties as elaborated on page 3 of the assessment order. The Assessing Officer had highlighted that despite various opportunities, the assessee could not established the credit worthiness of the parties and at the same time, the assessee was also given opportunities to provide supporting information or produced the party to establish the Creditworthiness and genuineness of the transactions. The AO has emphasized that issue of the creditworthiness of the parties which could not be fulfilled by the assessee. 7.1. During the earlier proceedings before the CIT(A), the CIT(A) had deleted this addition by observing that these creditors had been identified that they had lent money to the company. However, the ITAT had specifically given directions that the creditworthiness of these parties needs to be established. In this regard, observations were made by the ITAT on page 8 (para-8) of its Order dated 14-05-2010. 7.2. After going through the specific directions of the ITAT where in it has been directed that the credit worthiness of these loan creditors should be considered before finalizing the is ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Navneet Gupta, HUF 1824-25, Bhagirath Place, Chandni Chowk, New Delhi AACHN3752L 575,000 131,000 2,20,634 Indian Bank, Chandni chowk, New Delhi, SB/4528 Fully paid 4 Cactus Manesa r Fashion Pvt. Ltd. 191, Udani Layout, Cambridg e Road, Near Frank Atony AABCC1576 D 2,000,000 9,25,880 491 Fully paid School, Bangalore 5 Nirvana India Pvt. Ltd. B-10, Okhla Industrial Estates, New Delhi AABCN0782 C 14,000,000 15,84,540 Jammu Kashmir Bank Ltd., Okhla, New Delhi 38701010000044 0 Fully paid 6 Parul Gupta 1824-25, Bhagirath Place, Chandni Chowk, New Delhi AAJPG0540N 1,200,000 5,81,714 Indian Bank, Chandni chowk, New Delhi, 41249251-8 Fully paid (b) On going through the information given above, Ld. CIT(A) observed that the returned income in 4 cases is below Rs.I0,OO,000/- even though the loans given range from 5.75 lakh to 1.40 crores, There does not appear to be enough justification for the huge amount of loan given by these parties, several times their annual income. (c) On going through the Bank Alc of Sonali Gupta with the Indian Bank, Chandn ..... X X X X Extracts X X X X X X X X Extracts X X X X
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