TMI Blog2021 (10) TMI 1006X X X X Extracts X X X X X X X X Extracts X X X X ..... oan parties, the statement recorded by the ld. CIT(A), the turnover of the companies the profits earned thereof, the position of the reserves surplus available with the lenders, we hereby decline to interfere with the well reasoned order of the ld. CIT(A). Accordingly, the interest disallowed by the Assessing Officer on account of interest expenses claimed by the assessee is also directed to be deleted. - Decided against revenue. - ITA No. 6404/Del/2017 - - - Dated:- 13-10-2021 - Suchitra Kamble, Member (J) And Dr. B.R.R. Kumar, Member (A) For the Appellant : Umesh Takyar, Sr. DR For the Respondents : Rajat Jain, CA ORDER Per Dr. B. R. R. Kumar , Accountant Member The present appeal has been filed by the revenue against the order of the ld. CIT(A)-3, dated 24.07.2017. 2. Following grounds have been raised by the revenue: 1. Ld. Commissioner of Income-tax (Appeals) erred in law on the facts of the case in deleting the addition of ₹ 8,48,00,000/- made by the AO on account of unexplained credit u/s. 68 of the Income Tax Act, 1961. 2. Ld. Commissioner of Income-tax (Appeals) erred in law on the facts of the case in deleting the additi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... and Sanraj Engineering Co. The AO held that the onus is on the assessee to prove undisputably regarding the sources of the credits. 8. During the proceedings before the First Appellate Authority in accordance with the sub-Section (4) of Section 250, the ld. CIT(A) issued summons u/s. 131 to the Principle Officers of the loan parties. The complete details are as under: Name of the Company Address as per Master Data Address as per Summons Strum Infra Development Pvt. Ltd. C- 17 , Ground Floor, Guru Nanak Pura, Laxmi Nagar, Delhi- 110092 4132 / 307 , A- 1 , 3 r d Floor, Naya Bazar, Delhi- 110006 Shilpkar Build Tech Pvt. Ltd. C- 17 , Ground Floor, Guru Nanak Pura, Laxmi Nagar, Delhi- 110092 4132 / 307 , A- 1 , 3 r d Floor, Naya Bazar, Delhi- 110006 Shri Entertainment Pvt. Ltd. Flat No. C- 283 , 2 n d Floor, Pocket- II, DDA Janta Flats, Jasola, New Delhi- 110025 C ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ssee. The company regularly files the return of income and the turnover during the year is ₹ 1,54,38,245/- (contracts income). The company had opening balance of reserves of ₹ 04,02,0255 as on 01.04.2013. The loan has been repaid back in the current financial year. (3) M/s. Jeevan Anand Multi Services Pvt. Ltd.- The company has given the loan of ₹ 50 lakhs and received the quarterly interest. The company files the regular Return of Income. The opening balance of the reserves as on 01.04.2013 was ₹ 1,96,42,072/-. The loan has been repaid back in the current financial year. (4) M/s. Shilpkar Buildtech Pvt. Ltd.- Shri Joginder Pal Gupta has POA from Sh. Vinod Kumar who was out of station. The company has given the loan of ₹ 75 lakhs on 18th May, 2013. The interest on quarterly basis has been regularly received. The company files the Return of Income regularly. The company had opening balance of Reserves as on 01.04.2013 of ₹ 6,62,33,930/-. The company is engaged in real estate business and received the revenue receipts of ₹ 1,06,13,161/-. The loan is repaid back in the current financial year. The director stated that the companies do ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... financial year. The company has received the interest on yearly basis. The company regularly files the return of income. The company has opening balance of the reserves of ₹ 97,90,97,481/- as on 01.04.2013. The company is doing the business of the development/contract work for the private construction. The consultant stated that the company is almost 10 years old and confirmed the transaction to be genuine and extended on the commercial basis. 9. The ld. CIT(A) held that the creditworthiness and the genuineness of transactions has been established from the fact that all the companies are having the opening balance of the reserves and surplus as on 1st April, 2013. The bank statement filed during the assessment as well as appellate proceedings show that there are no cash deposits and the loans have been advanced from the reserves which are available with the companies as on 31.03.2013. 10. The loans have been repaid by the 7 companies out of the 9 companies and the interest has been regularly paid by the assessee to the respective companies after deducting the requisite tax at source as applicable by the respective provisions of the Act. The ld. CIT(A) has also noted t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 12. The facts of the case state that the lenders have the requisite funds with them in the preceding year to the year under consideration, the ld. CIT(A) held that the addition under section 68 of the Act, is not called for. 13. Having heard the arguments of both the parties. We find that the assessee has given the new addresses and requested the Assessing Officer to send the summons u/s. 131 to the new address which the AO failed to do. Having failed to issue the summons and making the enquiries at the new address despite having the information provided to the AO by the assessee, the Assessing Officer made the addition, holding that the Directors of the companies have failed to attend for recording of the statement. The ld. CIT(A) issued summons which have been duly complied by the Principle Officer of the loan parties and duly recorded the statement. The facts of recording of the statement and the compliance made has also been conveyed to the Assessing Officer who has not objected to the proceedings before the ld. CIT(A). 14. Hence, in view of the undisputed facts on the record with regard to proving of the identity, creditworthiness, genuineness of the loan part ..... X X X X Extracts X X X X X X X X Extracts X X X X
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