TMI Blog2021 (7) TMI 1021X X X X Extracts X X X X X X X X Extracts X X X X ..... ounted money and on the same analogy amounts in the hands of Mohd. Sayed which was given as loan to the assessee cannot be unaccounted money. In the same way, in so far as Mohd. Naeem is concerned, he is also having inter-banking account with the assessee, M/s. Modsal Frozen Foods Pvt. Ltd. and Modern Enterprises - There is no adverse comment on these accounts of any of these entities. It is not the case of Revenue that whatever the amounts that have been credited in the bank accounts of assessee were raised from any third person other than the group concerns. Further by filing the statement of account of Mohd. Naeem with the bank of Baroda and also with M/s. Modsal Frozen Foods Pvt. Ltd. as well as Modern Overseas Pvt. Ltd., it was esta ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ved by the order dated 16/10/2017 passed by the learned Commissioner of Income Tax (Appeals)-6, New Delhi ( Ld. CIT(A) ) for the assessment year 2014-15, Modern Overseas Pvt. Ltd. ( the assessee ) filed this appeal. 2. Brief facts of the case necessary for disposal of this appeal are that the assessee company is engaged in trading of animal husbandry, producing livestock, meat, hide and skin. For the assessment year 2014- 15, it has filed its return of income on 29.11.2014 declaring income of ₹ 14,53,310/-. During the assessment proceedings, ld. Assessing Officer noticed from the balance sheet that the assessee company tad taken unsecured loans from its directors to the tune of ₹ 7,06,82,500/-. When called upon, the assessee ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 377; 5.55 lacs and since the bank statement of Mohd. Saleem reflects some cash deposits prior to loan given to the assessee, an amount of ₹ 1,48,400/- was disallowed. 4. Aggrieved by such an action of the Assessing Officer, assessee preferred appeal before the CIT(A). On a perusal of material available on record, CIT(A) also returned a finding that though the assessee filed the material like confirmations in respect of source of deposits by the Directors, bank statements, statements of the Directors with the assessee M/s. Modsal Frozen Foods Pvt. Ltd. and M/s. Modern Enterprises, the fact remains that such directors who advanced the loan, were not at all men of means for advancing such huge amounts of loan to the assessee and there ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... keep the cash in pocket and it is only as and when they re-structure their loans and investments, they withdraw the amounts from one concern, it would be deposited in bank and then they would be issuing the cheques which are quite normal and natural in business practice. Lastly, it is submitted that unless and until Revenue contends that any unaccounted or tainted money is involved in this flow of funds, it cannot be said that section 68 of the Income-tax Act, 1961 ( the Act ) is attracted. 6. Learned DR vehemently places reliance on the orders of the authorities below and submitted that there is no reason for the assessee to route the amounts through Modsal Frozen Foods Pvt. Ltd., Abdul Wahid and Mohd. Sayed to deposit the very same am ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 8377; 2.46 crores; in respect of Mohd. Naeem, there is deposit of ₹ 1,65,25,750/- and in respect of Mohd. Saleem, the addition is to the tune of ₹ 1,48,650/-. 9. Case of the assessee is that in the books of assessee there is a credit entry in respect of M/s. Modsal Frozen Foods Pvt. Ltd. in its interbanking account. It was so in respect of assessment years 2013-14 and 2014-15 also. The facts are demonstrated by ledger account at page No. 46 and 47 of the paper book. In discharge of this obligation towards M/s. Modsal Frozen Foods Pvt. Ltd., assessee paid a sum of ₹ 2,42,40,000/- which M/s. Modsal Frozen Foods Pvt. Ltd. in turn paid to Abdul Wahid. Abdul Wahid gave such amount in loan to Mohd. Sayed who in turn deposited ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... f any of these entities. It is not the case of Revenue that whatever the amounts that have been credited in the bank accounts of assessee were raised from any third person other than the group concerns. Further by filing the statement of account of Mohd. Naeem with the bank of Baroda and also with M/s. Modsal Frozen Foods Pvt. Ltd. as well as Modern Overseas Pvt. Ltd., it was established that all the money that is circulated inter se the group concerns is that accounted money well reflected in the books and no any funds other than the withdrawals from the group concerns is found to have been deposited by Mohd. Naeem. In these circumstances, it is difficult to say that the money accounted in the books of these concerns and circulated from on ..... X X X X Extracts X X X X X X X X Extracts X X X X
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