2021 (4) TMI 390
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....ctively. Heard both parties. Case files perused. 2. The assessee has raised its 18 and 37 substantive grounds; assessment year-wise, respectively in seeking to reverse both the lower authorities' findings making various disallowances/additions. It has also filed identical petition(s), seeking admission of its additional grounds. 3. Learned CIT-DR vehemently objected to admission thereof at this alleged belated stage by way reasons of its act and conduct throughout. We find no merit in Revenue's technical stand going by the hon'ble apex court's landmark decision in National Thermal Power Co. Ltd., Vs., CIT [229 ITR 383] (SC) considered in All Cargo Global Logistics Ltd., Vs. DCIT (2012) [137 ITD 217](SB) (Mumbai) that any of the party....
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....r figures as per the books of account. That being the case, we observe that the learned lower authorities' impugned action assessing 8% profit element on both contractual as well as sub-contractual receipts of Rs. 6,43,12,692/- (involving GHMC, Rail Wheel Factory, Karnataka Milk Federation and South Central Railway having corresponding sums) and sub-contract receipts of Rs. 33,99,69,320/- derived during the relevant previous year from M/s.VVDPL, Variegate Projects Private Limited, Sri Amar Constructions and Patel Engineering (as per pg.39 to 77 in the paper book) in identical lines is not sustainable. We thus affirm the learned lower authorities' action only qua contractual receipts assessment @8% at this stage. 6. Learned CIT-DR vehementl....
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....o dispute clinching fact that the assessee's books have indicated the impugned receipts from scrap sales than any 'other' source inviting application of Section 57 of the Act. We conclude in this factual backdrop that the assessee's scrap sales income of Rs. 23,71,836/- deserves to be treated under the regular business head followed by assessment thereof @8%. We order accordingly. The Assessee's substantive ground Nos.3 to 6 and 14 to 16 in AY.2010-11 ITA No.1766/Hyd/2017 are partly accepted in above terms. 8.1. Same order to follow in assessee's corresponding ground Nos.3 to 7 and additional ground No.41 in AY.2011-12 involving contractual, sub-contractual and scrap receipts of Rs. 5,02,19,281/-, Rs. 36,55,40,382/- and Rs. 7,13,373/-; res....
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....ant has received an amount of Rs. 9,99,99,900/- on account of share capital and share premium from M/s.General Capital and Holding Co. Pvt. Ltd, Ahmedabad during the year. The AO held that the creditworthiness and the genuineness of the transaction were not proved by the appellant and accordingly made the addition under Section 68 of the Act for the above amount. The appellant has submitted that all three ingredients such as, credit worthiness, genuineness and the identity of the share applicant have been proved and therefore, the addition should not have been made by the AO. During the course of appellate proceedings, the assessment records were also obtained from AO and the same have also been examined by me to ascertain the facts corre....
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....nel. The director of the investing company had also appeared before the Assessing Officer and also confirmed the transactions. The CIT [A] and the Tribunal also did not confirm the Assessing Officer's finding that the assessee failed to establish the creditworthiness or genuineness of the transactions. No question of law arises. Tax Appeal is dismissed". 11. We further wish to emphasise here that the assessee's first investor is none other than its Managing Director; taking all key decisions could not be treated as a bogus entity in other words. We thus direct the Assessing Officer to delete the impugned addition. 12. Next comes the latter three investor parties (supra) who have not filed confirmations all along but they have also bee....
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....nvolving contractual and sub-contractual receipts as well as scrap sales' incomes (supra) have already been accepted in part in view of our detailed discussion in AY.2010- 11. We therefore direct the Assessing Officer to act accordingly in above terms. 15. Next comes the second issue of assessee's share application money of Rs. 40 lakhs out of Rs. 1 crore treated as unexplained cash credits in the CIT(A)'s order. We note that the relevant facts herein are no different than those in AY.2010-11 wherein all these parties have filed confirmations and detailed evidence followed by allotment of shares without involving any cash deposits or withdrawals or any other suspicious circumstances. 16. Ld.CIT-DR's case in tune with the CIT(A)'s detailed....