9911796707
TMI Blog2015 (5) TMI 576X X X X Extracts X X X X X X X X Extracts X X X X ..... hares of the company M/s Sona Transport - CIT(A) deleted the addition - Held that:- From the record, we found that the company M/s Sona Transport Pvt. Ltd was promoted by his father Shri Pal Singh Saini and after the death of his father in the year 2000, all the 26,113 shares of the company held by father and father's HUF were transferred in the name of the assessee on 1st April, 2000 i.e. 8 years back. The register of the shares maintained by the company along with board resolution dated 1-4-2000 also indicating transfer of shares in the name of son. Thus, the shares received by the assessee from his father eight years back on father’s death cannot be said to be undisclosed investment on assessee. Since the shares were received as inheritance and no value was paid for the same, it was not shown in the balance sheet of the assessee filed during the course of assessment proceedings. Since there was no investment by the assessee in the shares of the company either during the year or in earlier year, there is no infirmity in the order of CIT(A) for deleting the addition - Decided against revenue. - ITA No.4374/Mum/2013 - - - Dated:- 10-4-2015 - Shri R.C.Sharma And Shri Sanjay G ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he following observations :- 3.3 I have considered the arguments of the Ld.AR and perused the assessment order. From the perusal of the assessment order, it is noted that the appellant had duly claimed before the AO also that the cash were withdrawn from the company M/s Sona Transport Pvt. Ltd. wherein the assessee was a major shareholder and then deposited the same in the ICICI Bank account to meet the expenditure incurred by drivers through debit cards issued to them from ICICI bank a/c in the name of appellant. The contention of appellant was that it merely acted as an escrow or agent for making payment to drivers on behalf of the company. But the AO in spite of verifying this contention of the assessee form the bank account of the company and bank account of the appellant, based his conclusion on the mere suspicion just because the assessee has surrendered cash deposits in other two bank accounts as undisclosed income and that the said bank account was not appearing in the balance sheet of the assessee submitted during course of asstt. proceedings. Before me the Ld.AR has produced the cash book of the company as well as the copy of the bank statement of ICICI Bank which ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tion. The AO brought nothing on record to exclusively rebut the contention of the assessee as far as cash deposits of ₹ 20,60,300 in ICICI Bank account are concerned. As regards the non appearance of ICICI Bank account in the return of the assessee, it is the contention of the appellant that no balance sheet was being drawn by the assessee as he has only salary income and the ICICI bank a/ c was being operated by assessee only as escrow agent on behalf of company. Moreover the cash deposits in ICICI bank, its utilization thereafter are duly reflected in books of company, therefore no adverse view can be taken even if in the provisional balance sheet given during asstt proceedings did not reflect the closing balances in ICICI bank. Hence the addition made by the AO to the extent of ₹ 20,60,300/- is not justified and the same is directed to be deleted. Against the above order of CIT(A), the revenue is in appeal before us. 4. We have considered rival contentions and carefully gone through the orders of the authorities below. From the record we found that the assessee is a Director in M/s Sona Transport Pvt. Ltd.. In order to effect payment of driver salary and diese ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ny M/s Sona Transport. Facts in this regard are that on verification of the balance sheet of the company M/s Sona Transport Pvt. Ltd it was noted by the AO that the assessee was owning 26,113 shares of the company as on 31/3/2009 valued at ₹ 26,11,350/-. However in the balance sheet of the assessee filed during the course of the assessment proceedings, no such investment in the shares of the company was reflected. Vide letter dated 14.12.2011, it was explained by the assessee that the company M/s Sona Transport Pvt. Ltd. was promoted originally by his rather Shri Pal Singh Saini and after the death of his father all the 26,113 shares of the company held by father and father's HUF were transferred in the name of the assessee. However, due to clerical error of the accountant, the said shares inherited by the assessee from his father were not reflected in the capital account of the assessee. Accordingly he disbelieved the contention of the assessee and added the sum of ₹ 26,11,350/ - as undisclosed investment in respect of the share in the company owned by assessee. 6. By the impugned order the CIT(A) deleted the addition after having following observation :-. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ppellant that the shares were received through inheritance after the death of the father without making any investment by the appellant is correct and hence addition of ₹ 26,11,350/ - made by the AO as unexplained investment is not justified and the same is directed to be deleted. 7. Against the above order of CIT(A), the revenue is in appeal before us. From the record we found that the AO had made addition of ₹ 26,11,350/- on account of unexplained investment in shares of the company M/s Sona Transport by observing that these shares were not shown in the balance sheet of the assessee filed during the course of assessment proceeding. The AO, therefore, treated the investment as unexplained. From the record, we found that the company M/s Sona Transport Pvt. Ltd was promoted by his father Shri Pal Singh Saini and after the death of his father in the year 2000, all the 26,113 shares of the company held by father and father's HUF were transferred in the name of the assessee on 1st April, 2000 i.e. 8 years back. The register of the shares maintained by the company along with board resolution dated 1-4-2000 also indicating transfer of shares in the name of son. Thus, ..... X X X X Extracts X X X X X X X X Extracts X X X X
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