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TMI Blog2023 (2) TMI 269X X X X Extracts X X X X X X X X Extracts X X X X ..... ances of the case, the Ld. CIT(A) has erred in deleting the addition of Rs 1,82,00,000/- made by A.O. as unexplained investment in unlisted equities ignoring the facts that the identity and creditworthiness of entities from whom funds were taken to invest in unlisted equities during the financial year relevant to A.Y. 2015-16 were not established by the assessee company before the A.O. " 3. The assessee is a private limited company incorporated on 16.05.2000.It e-filed its return for A.Y. 2015-16 on 24.10.2015 at nil income. The return was processed u/s 143(1) of the Income Tax Act, 1961 (the "Act") on 05.11.2015. The case was selected for limited scrutiny due to large increase in investment in unlisted equities during the year. During as ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ities during the year and has sufficient share capital and reserves to purchase the above shares. Certain more documents were also furnished. 4. The Ld. AO did not accept the explanation of the assessee for the reasons, among others, that though summons issued by him u/s 131 of the Act to the Principal Officers of M/s. Rasaraj Sales ltd. and M/s. Gunvardhan Vyapaar Pvt. Ltd. on 23.10.2017 at their given address were duly served but they did not respond. He therefore held that the assessee could not prove the identity, creditworthiness and genuineness of the transaction with M/s. Gunvardhan Vyapaar Pvt. Ltd. and M/s. Rasaraj Sales Ltd. during the year. Accordingly, he added the amount of Rs. 1,82,00,000/- as unexplained investment and compl ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Copy of Bank Statement of M/s Rajdarbar Breverages (P) Ltd. for the period from 01.04.2014-31.03.2015 118 2. Copy of confirmation along with Bank Statement & ITR of M/s Kashyap Property (P) Ltd. 129-131 5.1 In para 4.7 of his order, the Ld. CIT(A) has recorded his findings and deleted the impugned addition. Para 4.7 is reproduced below : "4.7 The source of investment during the year is from the funds received in return from group companies only which was invested earlier in 2009 and 2011. The flow of funds is supported by entries in book statements and reflected in Balance sheets of the respective companies. The fact that there were inter corporate adjustments between group companies routed through bank accounts and Balance sh ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... iven address. Therefore, identity of the concerns from which the assessee received the amount of Rs. 42,56,000/- and Rs. 1,39,44,000/- utilised towards purchase of 2,80,000 shares of M/s. Spectrum Distributors Pvt. Ltd. cannot be doubted. Balance sheet of these concerns for the year indicating their high networth was placed on record establishing their creditworthiness. The shares were purchased by the assessee from M/s. Kashyap Property Pvt. Ltd. (now known as Rajdarbar Group Pvt. Ltd.). Documentary evidence, namely copy of bank statement of M/s. Rajdarbar Beverages (P) Ltd. for the period from 01.04.2014 to 31.03.2015 as also copy of confirmation along with bank statements and ITR of M/s. Kashyap Property (P) Ltd. was filed before the Ld. ..... X X X X Extracts X X X X X X X X Extracts X X X X
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