9911796707
TMI Blog2013 (4) TMI 229X X X X Extracts X X X X X X X X Extracts X X X X ..... crux of the surviving elaborate grounds No.1 and 2 of the appeal of the revenue are reproduced herein for reference: "1. The ld. CIT(A) has erred in law on facts in deleting the addition of Rs.46,20,541/- made by the Assessing Officer u/s. 68 of the Act, being unexplained cash credit received from American Mannequin Co. 2. The ld. CIT(A) has erred in law and on facts in deleting the disallowance of Rs.29,54,941/- made by the A. O. under section 43B of the Act, holding that since the payments were made before filing of return of income, they were allowable." 3. The assessee, a Limited Company engaged in the business of manufacturing of IV Fluids filed its return of income for the assessment year 2001-02 on 30-10-2001 declaring total loss ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rectly transferred the money to the assessee without any prior correspondence regarding issue of shares prior to passing resolution in this regard by the assessee company on 28-03-2002 which is evident from the letter of the aforesaid Company dated 15-12-2001. (ii) The assessee company had not followed the procedure for issue of these shares amounting to Rs.53,26,160/- as per guidance issued by the Reserve Bank of India. (iii) The assessee did not submit Form NO.5 and Form No.23 pursuant to mandatory provisions of section 192 of the Companies Act, 1952 with regard to allotment of shares to foreign companies. (iv) During the assessment proceedings the assessee did not produce any evidence such as ledger folio number, share certificate num ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... for the assessment year 2002-03 dated 31-07-2008 passed in ITA No.2646/Ahd/2006 on the same issue, cited supra is reproduced herein below for reference: "8. We have heard both the sides and considered their rival submissions. Requisite ingredients required to be satisfied to claim relied under Section 68 have been established by the assessee, as the CIT(A) on appreciation of facts and material on record found that all the relevant documents and evidences important for issuance of shares on private placement and receipt of share application money were placed before the AO. Moreover, identity, routing of funds through banking channels and compliance of law have also been made out. Apart that receipt of funds through automatic channels is al ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nexure 9 to 3 CD report submitted by the assessee that these amounts pertained to earlier year. From the Annexure 9 to 3 CD report the learned AO further observed that out of Rs.40,78,870/- and Rs.10,55,071/- an amount of Rs.29,54,941/- was paid after the end of financial year 2000-01. Therefore, the learned AO was of the view that as per the provisions of section 43B, these expenses should have been claimed in the assessment year 2002-03. Hence, the learned AO added the amount of Rs.29,54,941/- to the income of the assessee. 8.1 When the matter crept in appeal before the learned CIT(A), the learned CIT(A) directed the learned AO to delete the aforesaid addition. While doing so, the learned CIT(A) observed in Para 5.1 and 5.2 of his order ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nvestment Corporation in accordance with terms and conditions of the agreement governing such a loan or borrowing has to be allowed on actual payment. Since, the appellant has paid the interest before the due date of filing of the return, the disallowance and addition made by the AO is not justified. The same is hereby directed to be deleted." 9. Before us, the learned DR supported the order of the learned AO and prayed for sustaining the same. On the other hand, the learned AR relied on the order of the learned CIT(A) and pleaded that his order may be upheld. 10. We have heard the rival submissions and peruse the orders of the revenue authorities along with the materials produced before us. On perusal of the Annexure and ledger account a ..... X X X X Extracts X X X X X X X X Extracts X X X X
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