9911796707
TMI Blog2012 (4) TMI 841X X X X Extracts X X X X X X X X Extracts X X X X ..... dings of the authorities below and considered the material on record. 3. Briefly, the facts of the case are that the assessee challenged the addition of Rs.48,00,000/- made by the AO u/s. 68 of the IT Act in respect of six parties, namely; S. No. Name of Lender Amount (Rs.) 1. Paska Construction Pvt. Ltd. 500000 2. Deepak Holdings Pvt. Ltd. 1000000 3. Aptech Finlease Pvt. Ltd. 300000 4. Shiva Handicrafts Pvt. Ltd. 1500000 5. Ajay Ice Factory Pvt. Ltd. 1000000 6. Jindal Capsec Pvt. Ltd. 500000 TOTAL 4800000 4. The AO noted that while finalizing the assessment for subsequent assessment year 2004-05, the AO observed that the assessee has received loans of Rs.48,00,000/- from the above parties and that these p ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ort the explanation of the assessee. The details of the loans returned through banking channel have also been furnished. In the case of M/s Deepak Holdings Pvt. Ltd., the Director was also examined on oath and he has confirmed giving of loan to the assessee. Apart from it, in some of the cases, the authorized capital of the depositor companies was found more than Rs.50 lacs. The ld. CIT(A), considering the evidences on record, held that the assessee is able to prove the creditworthiness of the creditors and genuineness of the transactions and accordingly, additions were deleted. 5. The ld. DR relied upon the order of the AO and submitted that no interest was charged on the loans. Therefore, the addition was rightly made by the AO. On the o ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... er of the ld. CIT(A) in deleting the entire addition. It is admitted fact that all the depositors have filed their confirmations accepting therein that they have given loan to the assessee through banking channels. The copies of the bank statements are filed, which support the contention of the assessee that the depositors had sufficient balance in their bank accounts to give loans to the assessee. All the creditors are assessed to tax and even one of the director of the depositor company was examined in which he has confirmed giving of loans to the assessee. The overwhelming evidences on record clearly prove that the initial onus upon the assessee is discharged by proving identity of the creditors, their creditworthiness and genuineness of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... at question was final. A construction company took time to earn profits and it could not have earned a huge profit within a few days after the commencement of its business. Hence, it was reasonable to assume that the cash credit entries represented capital receipts though for one reason or another the assessee had not come out with the true story as regards the source of the receipts." 6.1 Since it is proved on record that no business activities were carried out and the assessee was at the stage of formation and completion of the company, therefore, such an addition is unjustified in view of the above decision of Hon'ble Supreme Court. Considering the totality of facts and circumstances of the case and evidence on record, non-charging of ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
