TMI Blog2017 (2) TMI 1304X X X X Extracts X X X X X X X X Extracts X X X X ..... sheet which were audited by a Chartered Accountant appointed under the Companies Act as true and fair, and where the amounts reflected in the balance sheet are also shown in the balance sheets of the companies where assessee had placed the investment, we cannot disregard such balance sheets. It may be true that the banker of the assessee denied giving any loans to the assessee. However, if the source of investment was not out of loan, the question of bank giving any confirmation does not arise. The addition was made, in our opinion, due to failure of the assessee to give proper source for investment made by the assessee in M/s Sri Padmabalaji Steels Pvt. Ltd. and M/s Suryabalaji Steels Pvt. Ltd. Assessee’s claim that it was only book ent ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... n fact, received, by the Investee Companies, in the facts and circumstances of the case and in law. (3) The learned CIT(A) ought to have held that in the absence of actual investment having been made by the appellant, mere book entries did not constitute unexplained income having accrued to the appellant, in the facts and circumstances of the case and in law. (4) The learned CIT(A) ought to have held that no real investment was made by the appellant, as alleged by the A.O., in the absence of proof of actual investment of the appellant and receipt of such amount of money from the appellant by the Investee Companies, in the facts and circumstances of the case and in law. 2. Facts apropos are that the assessee, an investment company, ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... yabalaji Steels P. Ltd. : ₹ 5,48,20,000/- SBSRM : ₹ 55,00,000/- Rs.17,29,70,000/- 3. Assessee also stated that the loans and advance of ₹ 24,17,62,914/- shown in its balance sheet were also not real amounts. The break-up of these were submitted as under:- Loans and advances to related parties Unsecured, Considered Good Sri Padmabalaji Steels P. Ltd. Unit II : ₹ 55,00,000/- Sri Padmabalaji Steels P. Ltd. Unit I : ₹ 10,00,000/- ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 1.3.2012 Share capital advance as on 31.3.2012 Total as on 31.3.2012 SURYABALAJI INVESTMENTS PVT. LTD. 5,83,20,000 2,25,50,000 8.08.70,000 The A.O. found that the investments shown as made by the assessee in M/s Sri Padmabalaji Steels Pvt. Ltd. and M/s Suryabalaji Steels Pvt. Ltd. tallied with the amounts reflected in the balance sheets of the said companies. Thus, according to A.O., contention of the assessee that these were only book entries and there was no real investment, could not be accepted. Though the assessee stated that the recipients had no corresponding credits in their bank accounts, it was not accepted by th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ording to the CIT(Appeals), the addition was rightly made. He confirmed the addition. 6. Now before us, the Ld. A.R. strongly assailing the orders of the lower authorities, submitted that the banker of the assessee clearly mentioned that the assessee had not raised any loan. According to Ld. A.R., there was no real investment made by the assessee in either M/s Sri Padmabalaji Steels Pvt. Ltd. or M/s Suryabalaji Steels Pvt. Ltd. The cheques issued by the assessee to the said companies were never presented by them for payments nor was it realised from the bank accounts of the assessee. When there was no actual investment, as per the Ld. A.R., the question of source of such investments was irrelevant. Contention of the Ld. A.R. was that low ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... alance sheet was not correct. The assessee cannot be allowed to approbate and reprobate. Once assessee prepared its books of account and balance sheet which were audited by a Chartered Accountant appointed under the Companies Act as true and fair, and where the amounts reflected in the balance sheet are also shown in the balance sheets of the companies where assessee had placed the investment, we cannot disregard such balance sheets. It may be true that the banker of the assessee denied giving any loans to the assessee. However, if the source of investment was not out of loan, the question of bank giving any confirmation does not arise. The addition was made, in our opinion, due to failure of the assessee to give proper source for invest ..... X X X X Extracts X X X X X X X X Extracts X X X X
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