TMI Blog2016 (4) TMI 862X X X X Extracts X X X X X X X X Extracts X X X X ..... In these circumstances, we deem it fit and appropriate, in the interest of justice and fair play, to set aside this issue to the file of the ld.AO to verify the register of the shareholders of the lending company and other relevant documents in order to ascertain the true shareholding pattern of the said company during the financial years 2007-08 and 2008-09 and to give a definite finding with regard to availability of accumulated profits of the lending company and decide the issue in accordance with law.- Decided in favour of assessee for statistical purpose. Addition on account of alleged director’s remuneration - Held that:- As find from the relevant page of the paper book that the assessee had borrowed loan and also repaid the same by cheques to said M/s. G.S Fertilisers Pvt. Ltd to the tune of ₹ 1,45,000/-. We find that this aspect has also not been examined by the ld.AO. Accordingly, we deem it fit and appropriate, in the interest of justice and fair play, to set aside this issue to the file of the ld.AO to verify the same. - Decided in favour of assessee for statistical purpose. Addition on reimbursement of taxes - Held that:- The assessee indeed had received t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... unt maintained with State Bank of Hyderabad, Park Street Branch, Kolkata vide account no.62003442810, which is a disclosed bank account in the return of income of the assessee. The ld. AO observed that the assessee has also maintained another saving bank account ( no. 003401024457 ) with ICICI Bank 1/1 Ashutosh Choudhury Avenue, Ballygunge Branch, Kolkata, which is undisclosed bank account in the return of income of the assessee. In the said undisclosed bank account, there were cash deposits of ₹ 18,94,400/- and cheque deposits of ₹ 9,58,713/-. The ld.AO treated the entire credits of the said bank accounts as unexplained cash credit u/s. 68 of the Act by disbelieving the contentions of the assessee. On 1st appeal, before the ld. CIT(A) it was pleaded by the assessee that the said bank account belongs to the assessee in his HUF capacity, which was operated by mentioning the PAN of the assessee. The assessee tried to explain the sources of cash deposit as gifts received from his grand mother, Smt. Gita Devi Sanei and also stated that the cheque deposits represent the sale proceeds of shares and other receipts. However, the ld. CIT(A) found that the assessee had not given ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... to the file of the ld.AO, to frame this addition based on the workings of peak credit as would be given by the assessee and of course, after verification by the ld.AO. Therefore, the ground nos. 1 to 3 of assessee s appeal are allowed for statistical purpose. 7. The second issue to be decided in this appeal of the assessee is as to whether an addition of ₹ 2,20,000/- could be made towards deemed dividend u/s. 2(22)(e) of the Act in the facts and circumstances of the case. 8. The brief facts of this issue are that the assessee is a director in M/s.G.S Laminators Pvt. Ltd and had received a sum of ₹ 2,20,000/- as unsecured loan from the said company during the assessment year under appeal. The ld. AO observed that M/s. Gopal Sons (HUF) held 8000 shares of this company, which was close to 80% shareholding of the said company. The ld. AO found that the assessee is one of the members of the said HUF. When this issue was confronted by the ld.AO as to why the provisions of section 2(22)(e) of the Act should not be invoked in the case of assessee, the assessee submitted that he is not a shareholder of the said company. Accordingly, he submitted that the provisions of se ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... lability of accumulated profits of the lending company and decide the issue in accordance with law. Ground nos. 4 raised by the assessee is allowed for statistical purpose. 10. The third issue to be decided in this appeal of the assessee is as to whether an addition of ₹ 1,35,000/- on account of alleged director s remuneration could be brought to tax in the facts and circumstances of the case. 11. The brief facts of this issue are that there are certain credits in the same bank account maintained with State Bank of Hyderabad, which the assessee explained to be salary received from M/s.G.S Fertilisers Pvt. Ltd. Accordingly, the ld.AO added the same. But on 1st appeal before the ld.CIT(A), the assessee stated that he had not received the sum of ₹ 1,35,000/- but instead of it, he received a sum of ₹ 1,45,000/- from the said company as loan. The assessee had also repaid the same to the company. Thus, the assessee pleaded before us for deletion of addition of ₹ 1,35,000/- as made by the ld.AO on account of alleged director s remuneration. The ld. CIT(A) held that this is precisely a complete change of stand by the assessee, which was not accepted by the ld. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ially in order to enable him to seek reimbursement from the said companies. Hence, such credits were brought to tax as unexplained cash credit u/s. 68 by the ld.AO. On 1st appeal before the ld.CIT(A) the assessee produced bank statement, which clearly depicted the fact that the amounts were received from these companies and immediately the same were utilized for payment of taxes on behalf of those companies. Accordingly, he pleaded before us for deletion of addition made by the AO. However, the ld. CIT(A) did not admit the bank statement being fresh evidence and confirmed the order of the ld.AO in making the impugned addition. Aggrieved, the assessee is in appeal before us on the following ground:- 6. For that on the facts and in the circumstances of the case, the Ld. CIT(A) was not justified in confirming the addition of ₹ 51,368/- made by the A.O. on account of reimbursement of tax. 16. We have heard the ld.AR and perused the material available on record including the paper book filed by the assessee containing the relevant pages of bank statement/bank account maintained with the State Bank of Hyderabad and copy of tax remittance challan vide pages 30-36 of the pap ..... X X X X Extracts X X X X X X X X Extracts X X X X
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