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TMI Blog2019 (5) TMI 746X X X X Extracts X X X X X X X X Extracts X X X X ..... laimed were genuine. Even the loss income declared by the assessee was not accepted by the A.O. and it was treated as NIL income. CIT(A) specifically noted that when plant and machinery were leased-out to the sister concern and assessee did not carry out any manufacturing activity, how the amount was spent on repair of machines. In the absence of any evidence on record to rebut the finding of fact recorded by the authorities below, no interference is required in the matter. Ground of the appeal are dismissed. - ITA.No.2078/Del./2014 - - - Dated:- 9-5-2019 - Shri Bhavnesh Saini, Judicial Member And Shri N.S. Saini, Accountant Member For the Assessee : Shri R.K. Kapoor, FCA For the Revenue : Shri Amit Katosh, Sr. D.R. ORDER PER BHAVNESH SAINI, J.M. This appeal by assessee has been directed against the Order of Ld. CIT(A)-IV, New Delhi, Dated 25th February, 2014 for the assessment year 2006 2007. 2. We have heard the Learned Representatives of both the parties and perused the material available on record. 3. On Ground Nos. 1 to 6, the assessee challenged the ad ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... is bank account against sale of agricultural land, but, the same have been ignored. Copy of the bank statement was filed to show that there were no cash deposit prior to making investment in assessee company. 4.3. Similarly, in the case of M/s. Wianxx Impex P. Ltd., assessee filed confirmation, affidavit, audited balance sheet, bank statement and list of the Directors. It was submitted that average bank balance appearing in their case was ₹ 1.75 crores and no cash have been deposited. 4.4. The submissions and documents filed by the assessee were forwarded to the A.O. for filing remand report. The A.O. recorded statement of Shri Surendra Singh Yadav in which he has stated that he was not filing any income tax return as income was below taxable limit. He has also stated that he has not been allotted any shares by the assessee company and money was repaid to him. The A.O. recommended that addition may be confirmed. 4.5. The Ld. CIT(A) after considering the submissions of the assessee in detail and material on record, confirmed the addition and dismissed this ground of appeal of assessee because assessee failed to prove ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... is no question of making investment by a loss making company in a loss making assessee company. The Ld. D.R, therefore, submitted that both the additions may be confirmed. 7. We have considered rival submissions. In the case of Shri Surendra Singh Yadav Investor, though the affidavit of the creditor is filed, but, the bank statement of the investor shows that prior to making investment in assessee company of ₹ 15 lakhs, there are cash deposits on three occasions of ₹ 5000/-, ₹ 50,000/- and ₹ 15,000/-. Prior to it, there was a zero balance. After the transaction with the assessee also, there is a cash deposit of ₹ 5 lakhs in the account of the investor. The assessee claimed that the investor has sold the agricultural land and got a cheque for ₹ 17,63,084/- which is credited in his account, but, no copy of the sale deed is produced on record in relation to proof of selling of the agricultural land. He appeared before A.O. in the remand proceedings and his statement have been recorded by the A.O. in which he has affirmed that his approximate annual income is of ₹ 2,50,000/- including salary income of ₹ 1,8 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e him, but, balance sheet of the investor company would show NIL investments in assessee company as on 31.03.2007. These facts clearly show that assessee failed to prove creditworthiness and genuineness of the transaction in the matter. The Hon ble Supreme Court in the case of Durga Prasad More 82 ITR 540 (SC) and Sumati Dayal 214 ITR 801 (SC) have held that Courts and Tribunals have to judge the evidence before them by applying the test of human probabilities. If the said test is applied in this matter, it is clearly established that assessee has failed to prove creditworthiness of the Investors and genuineness of the transaction in the matter. It is difficult to believe that the assessee company being a loss making company, any investor would make investment in them, particularly, when Shri Surendra Singh Yadav has no source to make any investment in assessee company and that M/s. Wianxx Impex P. Ltd., (Investor Company) itself was running into losses, therefore, there is no question of proving creditworthiness of both the investors and genuineness of the transaction in the matter. We, therefore, do not find any merit in these grounds of appeal of assessee and th ..... X X X X Extracts X X X X X X X X Extracts X X X X
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