TMI Blog2019 (3) TMI 1733X X X X Extracts X X X X X X X X Extracts X X X X ..... edit transaction in its books of account in the light of provisions of section 68 of the Act. However, this burden of proof is not permanent but keeps oscillating, meaning thereby, that once the initial burden has been discharged by the assessee, the burden shifts upon the revenue to make further enquiry. The letter written by the CIT(A) to the Assessing Officer, which is exhibited elsewhere, clearly shows that the CIT(A) has directed the Assessing Officer to make necessary enquiry from the two creditors. The remand report of the Assessing Officer clearly reveals that he did make enquiry from M/s Rangoli Buildtech Pvt Ltd and came to the conclusion that M/s Rangoli Buildtech vpt Ltd is, in fact, a debtor of the assessee and not a creditor. In so far as M/s Epic Developers Pvt Ltd is concerned, the bank statements clearly show that there was no cash found to be deposited before issuing cheque to the assessee company. Moreover, the balance sheet of M/s Epic Developers Pvt Ltd clearly shows that they have received ₹ 17.35 crores from Benda Amtek Ltd and Amtek Auto Ltd and from this, ₹ 17.35 crores, have lended ₹ 14.50 crores to the assessee. If the CIT(A) has e ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ng to ₹ 1,46,55,94,222/-. The three loose impounded papers are as under: First page a.k. khattar (huf) '29,571,56 alfa associates 154,135,0 alfa associates-2 80,945,10 aman mehra 14,301,24 amarieet sinqh qiani 27,682,35 amarieet sinqh qiani 27,682,35 arun khera 12,788,36 ascent properties 15,008,25 ascent properties-ii 7,218,375 ashwani iain vikash jain 2,952,965 atul traders/covishvanath estates 18,709,29 bankey bihari estates 23,244,72 bhatia associates 37,648,41 bhatia associates 17,321,21 capital property 10,741,00 dnt 17,200,25 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... an associates pvt. ltd. 76,724,70 vijay kurdat co. 17,400,00 Total 1,465,594 Page 2 a.k. khattar (huf) 29,571,567 alfa associates 154.135,07 alfa associates-2 3 80,945,103 aman mehra 14.301,245 amarjeet sinqh qiani 27.682,357 amaiieet sinqh qiani 27,682,357 arnn khera 12,788,366 ascent properties 15.008,256 ascent properties-ii 7,218,375 ashwani tain vlkash jain 2.952,965 ashwani tain vlkash jain 2.952,965 atul traders/covishvanath estates 18,709.29 bankey bihari estates 23.244,72 bhatia associates 3 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... co. p. ltd. 15.784,131 tirupati marketinq 13.087,600 uttam property 13.295,250 vardhman assc. -2 27,623,654 vardhman associates pvt. 76,724,703 vijay kumar co. 17,400,000 Total 1,465,594,222 vardhman assc.-2 27,623,654 vardhman associates pvt. 76,724,703 vijay kumar {k co. 17,400,000 Total 1,465,594,222 5. The assessee was asked to explain the entries in the loose sheets with its books of account. 6. In its reply, the assessee admitted that the loose papers contained details of tentative dues on 12.01.2005 of the amounts recovered from the allottees/proposed allottees and were sorted out broker wise through whom the allotment of plots/flats were being made. 7. However, the assessee pointed out that the loose sheets were impounded fro ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nfrastructure Pvt. Ltd.) in the Assessment Year 2006-07. This issue would be looked into separately at the time of submitting the report for M/s Intime Promoters Pvt. Ltd. (now known as M/s. TDI Infrastructure pvt. Ltd. ) in the assessment year 2006-07. This issue would be looked into separately at the time of submitting the report for M./s. Intime Promoters Pvt. Ltd. (now known as M/s. TDI Infrastructure Pvt. Ltd.) for A.Y. 2005-06. 11. After considering the report of the Assessing Officer, the CIT(A) was convinced that the seized documents, on the basis of which the addition has been made, belong to the sister concern of the assessee i.e. M/s Intime Promoters Pvt Ltd. and, accordingly, deleted the addition in the hands of M/s Taneja Developers and Infrastructure Ltd. 12. Since the substantive addition was deleted, the protective addition made in the hands of the M/s Intime Promoters Pvt Ltd became substantive. 13. In the appellate proceedings of M/s Intime Promoters Pvt Ltd, once again the CIT(A) called for remand report from the Assessing Officer. The Assessing Officer submitted his remand report and the same is as under: So far as report in this case i.e. M/s ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Rasoi 14 2.518 Acres 16.12.2004 Rasoi 15 0.262 Acres 16.12.2004 Rasoi 16 5.148 Acres 16.12.2004 Nangal Kalan While going through the information received u/s 133(6) of the I.T. Act, 1961 during the proceedings of remand report for A.Y 2005-06 in the case of m/s Taneja developers Infrastructure Ltd., it is seen that the assessee company (Intime Promoters Pvt. Ltd.) received an amount of ₹ 17,99,90,999/- during F.Y 2004-05 i.e. up to 31.3.2005. This clearly proves that the paper pertained to 12.1.2005 i.e. for A. Y 2005-06. During remand report proceedings the assessee submitted that the actual amount is ₹ 142,48,36,949/- and not ₹ 146.55.94.222/-. On perusal of the impounded documents, it is clearly seen that the following entries have been made twice. S. Name of the brokers Amount 1. Amarjeet Singh Giani 27682357/- ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Promoters Pvt Ltd, the CIT(A) has rightly considered the same in the hands of the right person. Therefore, there is no occasion to make addition in the hands of M/s Taneja Developers Infrastructure Ltd. 18. In the hands of M/s Intime Promoters Pvt Ltd., the Assessing Officer himself has verified the entries in the books of account and since the entries were found recorded in the regular books of account there is no reason why the addition could be made. The addition has been rightly deleted by the CIT(A) and, therefore, no interference is called for. Accordingly, the common grievance raised in both the appeals is dismissed. 19. Coming to the second grievance in ITA No. 3952/DEL/2014 which pertains to the deletion of addition of ₹ 20 crores made by the Assessing Officer on account of unexplained credits u/s 68 of the Act, the facts on record reveal that on the basis of some investigation made in respect of accommodation entry provider, the Assessing Officer asked the assessee to explain the credit entries in the names of M/s Rangoli Buildtech Pvt. Ltd and M/s Epic Developers Pvt Ltd, totalling to ₹ 20 crores. 20. On receiving no plausible reply and after di ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... P. Ltd. The report may please be sent by 25.10.2013 positively. 23. In response to the above, the Assessing Officer replied as under: The Commissioner of Income-tax, (Appeals) -III, Aayakar Bhawan, Room No. 606, 6th Floor, Distt. Centre, Lax mi Nagar, Delhi. (Through Add I. CIT, Central Range -5, New Delhi) Sub:- Appeal Nos. 100/2013-14 in the case of Taneja Developers and Infrastructure Ltd. for the Assessment year 2005-06- Reg.- Kindly refer to your letter F.No. CIT (A) -lll/Misc./ 2013-14/278 dated 10.10.2013 on the above mentioned subject. In this connection, following two issues have been directed: - 1. To find the creditworthiness and genuineness of transaction with M/s Epic Developers Pvt. Ltd. 2. Whether M/s Rangoli Buildtech Pvt. Ltd. was creditor or debtor during the year under consideration. So far as transaction with M/s Epic Developers Pvt. Ltd. is concerned, it is seen from record that the assessee has received advance of ₹ 14.50 cr. through account payee cheques on the following dates: S. No. Date Amount 1. 22.01.2005 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... mpany is creditors of ₹ 3.76 cr. and there is debit account of M/s Rangoli Buildtech. A letter to M/s Rangoli Buildtech was issued on 8.11.2013 for verification which has been received on 6.12.2013. The information received from M/s Rangoli Buildtech Pvt. Ltd. reveal that an amount of ₹ 3.76 cr. is debit account of M/s Rangoli Buildtech Pvt. Ltd. during the year under consideration. 23. On a perusal of the remand report, the CIT(A) was convinced that M/s Rangoli Buildtech Pvt Ltd was, in fact, a debtor of the assessee and, therefore, no addition could be made as unexplained cash credit u/s 68 of the Act. Accordingly, addition of ₹ 5.50 was deleted. 24. In so far as the loan from M/s Epic Developers Pvt Ltd amounting to ₹ 14.50 crores is concerned, the CIT(A) observed that the credit worthiness and genuineness of the transaction is not solely dependent on the return of income filed even if it is for Rs. NIL as profit making apparatus is not the only consideration. The CIT(A) found from the balance sheet of M/s Epic Developers Pvt Ltd that it has borrowed a sum of ₹ 17.35 crores being ₹ 11.85 crores from M/s Benda Amtek Ltd and ₹ 5.5 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... n fact, a debtor of the assessee and not a creditor. In so far as M/s Epic Developers Pvt Ltd is concerned, the bank statements clearly show that there was no cash found to be deposited before issuing cheque to the assessee company. Moreover, the balance sheet of M/s Epic Developers Pvt Ltd clearly shows that they have received ₹ 17.35 crores from Benda Amtek Ltd and Amtek Auto Ltd and from this, ₹ 17.35 crores, have lended ₹ 14.50 crores to the assessee. 30. If the CIT(A) has exercised his power vested upon him by provisions of section 250(4) of the Act, the same cannot be faulted with. The CIT(A) has gone one step further in examining the availability of funds with M/s Epic Developers Pvt Ltd and subsequently found that M/s Epic Developers Pvt Ltd had sufficient available funds to lend money to the assessee. No adverse inference can be drawn from such findings of the CIT(A). The contention of the ld. DR that the first appellate authority has admitted some additional evidences is without any basis. 31. Considering the facts of the case in totality, we are of the view that the assessee has successfully explained the transaction with M/s Epic Developers Pvt ..... X X X X Extracts X X X X X X X X Extracts X X X X
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