9911796707
TMI Blog2020 (4) TMI 398X X X X Extracts X X X X X X X X Extracts X X X X ..... explain the sources of the share application money. Since the assessee failed to furnish the relevant information, the AO treated the sum of Rs. 2,78,00,000/- as unexplained cash credit u/s 68 of the Act and brought it to tax. 3. Further, from the P&L A/c drawn as on 31/03/2011 furnished by the assessee, the AO noticed that huge amounts were debited to P&L A/c which appeared to him to be suspicious. The assessee was therefore, asked to furnish the relevant information, but since the assessee failed to submit any information, the AO disallowed the entire expenditure of Rs. 3,00,78,172/- and brought it to tax u/s 69C of the Act. 4. The AO also found from the balance sheet furnished by the assessee, that there were unsecured loans of Rs. 55,46,619/-. The assessee was directed to furnish documentary evidence such as books, confirmation letters and supporting documents in support of unsecured loans taken. Since the assessee failed to furnish any evidence, the AO brought the same to tax u/s 68 of the Act. 5. Thereafter, the AO also found that the assessee has claimed deduction u/s 10AA of the Act but failed to furnish Form 56F in support of the same. For failure to submit the prescr ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... sport expenses, salaries & professional charges & factory expenses are incurred in the natural course of business. 12. The Ld. CIT(A) erred in confirming the addition of Rs. 55,46,619/ - made towards unsecured loans. 13. The Ld. CIT(A) ought to have appreciated that that the appellant's duty stands discharged by providing the details of party from whom the loan has been taken along the conformation letter. 14. The Ld. CIT(A) erred in confirming the disallowance of Rs. 1,90,03,801/- u/ s 10 AA of the Act. 15. The Ld. CIT(A) ought to have considered the Form 10 CCB and certificate of registration submitted before him. 16. The Ld. CIT(A) erred in not adjudicating the impugned addition for the want of additional grounds of appeal which is not correct. 17. The appellant may add or alter or modify of substitute or delete and/or rescind all or any of the grounds of appeal at any time before or at the time of hearing of the appeal". 6. In addition to the above grounds, the assessee has filed the additional grounds vide letter dated 25.03.2018 which are as under: "18. As per the ratio laid down by the Hon'ble Supreme Court of India in the case of National Thermal Powe ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... made in the hands of appellant when the payee has rightly offered such income in their individual hands. 29. The Ld. CIT(A) ought to have appreciated that no disallowance shall be made in the hands of appellant when the statutory liability towards PF is rightly paid through banking channel on or before the due date of filling of return of income as per the provisions of section 139(1) The appellant may add or alter or amend or modify or substitute or delete or rescind all or any of the grounds of appeal at any time before or at the time of hearing of the appeal". 8. Vide letter dated 8.11.2018, the assessee has raised the following further additional grounds of appeal: "31 As per the ratio laid down by the Hon'ble Supreme Court of India in the case of National Thermal Power Co. Ltd vs. CIT (1998) 229 ITR 383 (SC) the ITAT has jurisdiction to examine any question of law though not raised before the CIT (A) but is raised before the IT AT for the first time. 32 The Ld. CIT (A) ought to have considered CBDT circular No. 37/2016, wherein any such disallowance made, shall enhance the claim of the assessee for deduction V/s 80lB of the Income Tax Act,1961 33 The Ld. CIT (A) ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ons and genuineness of the transaction but without examining the details so furnished, the CIT (A) has held that the creditworthiness of the people is not proved. Further, he submitted that the assessee has subsequently allotted shares in the names of these people and therefore, once the shares have been allotted, the share application money and unsecured loans cannot be treated as bogus. He relied upon certain case law in support of his contention. He has also filed additional evidence to prove that the shares have subsequently been allotted to the persons who have allegedly advanced share application money and unsecured loans. 11. The learned DR submitted that this is nothing but an afterthought as the shares have been allotted subsequent to the order of the CIT (A) and therefore, such evidence has no relevance to the issue on hand. 12. The learned Counsel for the assessee submitted that the assessee, being a listed company, had to follow the procedures for allotment of shares and therefore, there was certain delay in allotment of the shares and the same should be considered for deleting the additions made by the AO. 13. Having regard to the rival contentions and the material ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... uch an amount and therefore, the disallowance u/s 40(a)(ia) is not to be upheld. Since we have set aside the entire issue to the file of the AO, we direct the AO to consider the assessee's arguments on this issue as well. 18. The only other issue on which the assessee is in appeal is against the disallowance u/s 10AA of the Act. The learned Counsel for the assessee submitted that the assessee in its return of income had claimed deduction u/s 10AA of the Act but alternatively has filed the revised computation of income making the alternative claim u/s 80IB of the Act. He submitted that since the assessee is eligible for deduction u/s 80IB, the assessee's claim should be considered and the additional grounds of appeal raised by the assessee are towards this alternate claim. 19. After hearing both the parties, we deem it fit and proper to admit the additional grounds on this issue and remand the same to the file of the AO with a direction to consider the assessee's claim of deduction u/s 80IB of the Act and if the assessee satisfies all the conditions for allowance of deduction u/s 80IB, we direct the AO to allow the same. In view of the same, the assessee's appeal is treated as all ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
