9911796707
TMI Blog2010 (5) TMI 853X X X X Extracts X X X X X X X X Extracts X X X X ..... a Company engaged in the business of investment and financing. For the assessment year under appeal, it filed the return of income on 17.12.2004 declaring total income of Rs. Nil. The Assessing Officer framed the assessment under section 143(3) wherein he made the addition of Rs. 10,21,000/- under section 68 of the Income Tax Act, 1961. The assessee had taken short-term loans from the following three persons :- i) Uday Overseas Pvt. Ltd., Kolkata Rs. 10,00,000/- ii) Shree Ramlal Rs. 10,000/- iii) Shree Shyamlal Rs. 11,000/- Rs. 10,21,000/- On appeal, in the impugned order, the Learned Commissioner of Income Tax(Appeals) confirmed the addition of Rs. 10,000/- and Rs. 11,000/- in respect of Shree Ramlal and Shree Shyamlal respectively. Ho ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 68, the Learned Commissioner of Income Tax(Appeals) in the impugned order observed that the assessee-company has given confirmation bearing PAN and the amount of loans was taken by cheque and has been repaid by cheque. These transactions are reflected in the Bank account. The ld. D.R. pointed out that in the impugned order, the Learned Commissioner of Income Tax(Appeals) has not appreciated the fact discussed by the Assessing Officer in connection with the transaction claimed in the name of Uday Overseas Pvt. Ltd. While verifying the Bank account statement of M/s. Uday Overseas Pvt. Ltd., the Assessing Officer noticed that a cheque of Rs. 10,00,000/- was given by it to the assessee-company on 29.04.2003. This transaction is preceded by a c ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ts. The only purpose of keeping huge cash balances in the books of accounts is none else than settling the accommodating entries of cash credits. Therefore, the Assessing Officer clearly proved that the assessee was involved in activity of issuing accommodating entries. On this basis, she contended that the Assessing Officer rightly made the addition and the Learned Commissioner of Income Tax(Appeals) is not justified in deleting the same. 4. On the other hand, Shri R.K. Malpani appearing on behalf of the assessee supported the order of Learned Commissioner of Income Tax(Appeals). He pointed out that the loan was received through account payee cheque and it was also repaid through account payee cheque. The whole addition of Rs. 10,00,000/- ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... bove amount has been credited in its bank account but on the same date similar amounts of cash withdrawal is reflected therein and again the balance in this account becomes meager. (iv) On verification of the cash book of the assessee it is seen that on various dates throughout the year there are huge cash withdrawals from the bank account by way of cheque. Further, after a period of time the cash balances appearing in the books of account have been deposited back into the bank account of the assessee. The cash book of the assessee shows huge cash balances for a considerable period of time. These cash balances have never been utilized for any official expenses of the assessee, however, the amounts are again deposited back in the bank acco ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
