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TMI Blog2015 (9) TMI 695X X X X Extracts X X X X X X X X Extracts X X X X ..... s of giving the property on rent and filed its return of income on 29.09.2009 showing the total income at Rs. Nil. The case was selected for scrutiny. During the course of assessment proceedings, the AO noticed that the assessee sold shares of M/s SRFF International Limited (Indian Realtors Limited) to M/s Ani Exims Pvt. Ltd and incurred loss of Rs. 6.75 crore. The AO asked the assessee to provide evidence regarding genuineness of the transaction and also sent a letter to M/s Indian Realtors Limited. The AO observed that the assessee provided the copy of the certificates but in that certificate the name of the company had not been printed. The AO was of the view that the assessee merely claimed loss on assets and that the transaction was no ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s not justified. Now, the Department is in appeal. 6. The ld. DR strongly supported the order of the AO and reiterated the observations made by the AO in the assessment order dated 16.12.2011. In his rival submissions the ld. Counsel for the assessee reiterated the submissions made before the authorities below and further submitted that the loss was never claimed by the assessee in the books of account. It was stated that the expenses were not claimed and for that reason the income declared was 'Nil'. It was further stated that the AO arbitrarily made the addition in spite of the fact that the assessee did not claim any loss on shares. For the aforesaid contention the ld. Counsel for the assessee referred to the computation of the income, ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... served that the assessee failed to prove the genuineness of the loan. He therefore, treated the same as unexplained cash credit and added u/s 68 of the Act. 10. Being aggrieved the assessee carried the matter to the ld. CIT(A) and submitted that the assessee vide letter dated 15th December 2011 furnished the details of all unsecured loans outstanding as on 31.3.2009 and their confirmation, full address of loan providers and PAN of M/s Indian Realtors Pvt. Limited. It was further submitted that the assessee furnished two confirmations, one which was obtained on 3rd June 2009 at the time of cash credit (which was provided by the assessee and counter confirmed by the loan provider,) and other in the form of copy of accounts from 1st April, 20 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 83,334/- was paid to the assessee through cheque of Indian Bank on 9.12.2005 which made the total balance at Rs. 12,50,000/-. The ld. CIT(A) also pointed out that on 1.12.2005 another amount of Rs. 1,00,000/- was paid to the assessee by cheque of Indian Bank which made the total outstanding balance on December 2005 at Rs. 13,50,000/-. As against this the assessee paid Rs. 5 lac on 29.02.2008 by the cheque of ICICI Bank and the balance of Rs. 8,50,000/- remained outstanding as on 1.04.2008 which clearly established that no loan amount was accepted by the assessee during the year, so it could not be added as unexplained cash credit in the assessment year 2009-10. Accordingly the addition made by the AO was deleted. 12. Now the Department is ..... X X X X Extracts X X X X X X X X Extracts X X X X
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