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DCIT, 8 (2) , Mumbai Versus M/s Overseas Infrastructure Alliance (I) Pvt. Ltd.

2016 (5) TMI 461 - ITAT MUMBAI

Addition made on account of redeemable preference share capital - CIT(A) deleted the addition - Held that:- CIT(A) recorded a categorical finding to the effect that amount payable and receivable by the assessee was squared off which was in accordance with the provisions of Companies Act. Further finding was recorded to the effect that these companies were assessed with I.T. Department for several years. The identity and genuineness of the transaction was duly accepted. The detailed finding recor .....

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e share application were bogus entry or it is in the shape of accommodation entry. The share application is by the associate concern of the assessee which is also assessed with IT Department. Respectfully following the decision of coordinate bench vis-à-vis finding recorded by CIT(A), we do not find any reason to interfere in the order of CIT(A) resulting into deletion of addition - Decided in favour of assessee

Addition on account of loan taken from M/s Akhil Marketing Pvt. Ltd. - He .....

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established. Since the findings are as per material on record, we do not find any reason to interfere in the findings so recorded by CIT(A).- Decided in favour of assessee - ITA No.1470/Mum/2011 - Dated:- 30-3-2016 - SHRI R.C.SHARMA, AM AND SHRI AMARJIT SINGH, JM For The Revenue : Shri M. Dayasagar For The Assessee : Shri P.C.Yadav & Vinod Rawal ORDER PER R.C.SHARMA (A.M): This is an appeal filed by the revenue against the order of CIT(A), Mumbai, for the assessment year 2007-08, in the matt .....

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ucture sector. During the course of assessment, the AO observed that during the year there was increase in share capital by ₹ 14 crores and the amount had been received from following three parties :- i) All-in-one Finance & investments Pvt. Ltd.- Rs.2,00,00,000/- ii) Yamuna Estate Pvt. Ltd. Rs.6,00,00,000/- iii) Akash Organics Pvt. Ltd. Rs.6,00,00,000/- The AO found that in the case of All-in-One finance & Investments Pvt. Ltd. in I.T. return, the returned income was of ₹ 18 .....

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s transaction of ₹ 30 lakhs only has been carried out through cheque and balance amount of ₹ 570/- lacs has been received through Journal Entries only. In the case of Akash Organics Pvt. Ltd. as per I.T. Return. returned income was of ₹ 2.052/- for the A.Y.2007-08. P&L a/c. receipts were ₹ 22.000/- and expenditure shown was ₹ 1 9.940/-. In the bank a/c balance remained not more than ₹ 50.000/- for three consecutive days. Out of ₹ 6 crores, only ͅ .....

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shown worth however. in effect nothing was there as duly evidenced from the bank statements where balance was not even ₹ 1.00,000/- (iv) All the above three companies appeared simply or, paper. These companies do not have any business whatsoever. (v) All the three parties have shown huge increase in share capital and share premium. however, no party had paid ROC fees and majority amount was received as share premium. (vi) Out of total share capital & share premium taken of ₹ 14 .....

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ated that these three companies subscribed to .redeemable preference shares of the appellant company and simultaneously appellant has also subscribed to preference share capital of these companies. Consequently, the amount payable and receivable was squared off. It is stated that this procedure was in accordance with the provisions of Companies Act. The documents filed along with audited accounts, bank statements, I.T. returns and assessment orders shows that these companies have been assessed f .....

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has received any information that the share applicant was a bogus entity or it is in the shape of accommodation entry. The share applicant is associate concern of the assessee and is also being assessed to income-tax. Copies of income-tax returns have also been filed. The evidence which has been relied by the learned CIT (A) for deleting the addition is copy of confirmation letter, copy of bank ITA Nos.3852, 3853 & 3854/D/2009 statement, return acknowledgement of SOPL, the balance sheet of .....

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hat there was no discrepancy and the learned DR also could not point out any discrepancy in those evidences. In this view of the situation, we are of the opinion that the said amount could not be treated to be an unexplained cash credit under the provisions of Section 68 as the assessee had adduced evidence to show the identity, credit worthiness and genuineness of the creditor (share applicant). Therefore, finding no infirmity in the order of the CIT (A) , we hold that the addition has rightly .....

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p;L a/c. was ₹ 4,19,800/- and profit before tax was ₹ 7,908/The company had filed its return declaring a loss of ₹ 83,078/- and paid tax of ₹ 887/- on Book Profit. All the entries in the books of M/s. Akhill Marketing Pvt. Ltd has been carried out by chques and hence the transaction in question was held to be unsecured loan. On perusal of bank statement of M/s. Akhill Marketing Pvt. Ltd. for the period 01.04.2006 to 31.03.2007, it was observed that effectively balance of .....

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the CIT(A) deleted the addition after having the following observations :- 4.4 The submission has been considered. The A.O. had held that-as the entries are by cheuqes the transaction relates to unsecured loans. Further as bank balance being minimal and business not being carried on it was concluded that creditworthiness and genuineness was not proved. The documents filed by the appellant show that the transactions are reflected in the audited accounts of M/s. Akhil Marketing (P) Ltd. who is as .....

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Court in the case of Peoples General Hospital Ltd., 35 taxmann.com 444. 9. We have considered rival contentions, carefully gone through the orders of authorities below and also deliberated on the judicial pronouncements cited at bar by ld. AR and ld. DR and also discussed by the lower authorities in their respective orders. From the record we found that the CIT(A) dealt with issue all the objections raised by the AO and after considering the documents placed on record, recorded a categorical fin .....

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