TMI Blog2018 (8) TMI 1039X X X X Extracts X X X X X X X X Extracts X X X X ..... shing, CIT For The Respondent : Shri Manoj Kataruka, Advocate ORDER Per M . Balaganesh, AM 1. This appeal by the Revenue arises out of the order of the Learned Commissioner of Income Tax(Appeals)-9, Kolkata [in short the ld CIT(A)] in Appeal No. 235/CIT(A)- 9/Wd-1(4)/2016-17/Kol dated 26. 12. 2016 against the order passed by the ITO, ward- 1(1), Kolkata [ in short the ld AO] under section 143(3) of the Income Tax Act, 1961 (in short the Act ) dated 24. 03. 2014 for the Assessment Year 2012-13. 2. The only issue to be decided in this appeal is as to whether the ld CITA was justified in deleting the addition made towards loans received by the assessee in the sum of ₹ 64, 04, 20, 000/- in the facts and circumstances of the case. 3. The brief facts of this issue are that the assessee had filed its return of income for the Asst Year 2012-13 on 28. 9. 2012 declaring total loss of ₹ 14, 750/-. During the course of assessment proceedings, the authorized representative of the assessee appeared and produced the books of accounts and other relevant details documents and the same were test checked by the ld AO. The ld AO observed tha ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 012 Shri Satyanarayan R Agarwal Smt Radha Karsan Chitroda Shri Hemant Narendra Sampat - resigned on 24. 9. 2012 c) Database Software Technology Pvt Ltd Shri Arjun Lal Saini - resigned on 31. 1. 2012 Shri Mahendar Khirodwala - resigned on 31. 1. 2012 Shri Krishna Shripati Desai - Appointed on 27. 10. 2011 Shri Pandurang Ramchandra Navkhane - Appointed on 27. 10. 2011 4. 1. It was submitted that all these directors are residents of Mumbai. The assessee stated that it had discharged its onus by furnishing its bank account and the ledger account of the creditors in its books of accounts together with letter of confirmation from the creditors confirming the loan transactions. The loan creditors have sufficient sources in their kit ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... , neither did he spell out that any additional documents are needed to be produced to establish the creditworthiness in addition to what was already produced before him. It was finally argued that if the ld AO had considered that the production and consequential examination of the directors are absolutely compelling, then he ought to have issued commission to his counterparts in Mumbai to do the needful, which was not done in the instant case. 5. The ld CITA granted relief to the assessee by observing as under:- 4 . Conclusion : It is seen that the addition of Rs . 64, 04, 20, 000/- made u/s 68 is because the directors of loan creditor companies did not attend before the AO . However, the PAN and other details were filed . The loan creditor companies are group companies of the appellant and their assessments for the relevant assessment years have been completed u/s 143(3) by their AOs in Mumbai . The AO is directed to delete the addition and inform the AOs of loan creditor companies at Mumbai for necessary action in their hands . 6. We have heard the rival submissions. We find that the assessee company is engaged in the business of t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the very same time, which enabled them not to make their presence before the ld AO in Kolkata. 6. 1. We find that the assessee had furnished its bank account and the ledger accounts of the loan creditors as appearing in the books of accounts together with the letter of confirmation from the creditors having details of the transaction. We find that both the loan creditors companies are income tax assesssees, had got their accounts audited and had filed its return of income before their jurisdictional AOs. The ld AR pointed out that the scrutiny assessments were indeed framed by the department on the loan creditors companies for the Asst Year 2012-13 u/s 143(3) of the Act dated 31. 3. 2015 in the case of Database Software Technology Pvt Ltd and 23. 3. 2015 in the case of Indigo Edutainment Pvt Ltd. There is no adverse remarks made by the AO of the concerned loan creditors in their assessment orders respectively with regard to the capacity of the lenders to advance monies to the assessee company herein. In other words, no additions were made in the hands of loan creditors towards unexplained investment in loans made in the assessee company in the scrutiny assessments of the loan c ..... X X X X Extracts X X X X X X X X Extracts X X X X
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