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TMI Blog2019 (11) TMI 931X X X X Extracts X X X X X X X X Extracts X X X X ..... e of M/s Pasa Sales and Marketing Ltd. even after merging w.e.f. 01.04.2014. Needless to say, the assessee shall be given reasonable opportunity of hearing and the assessee is directed to cooperate with the AO for early disposal of the case. This ground is allowed for statistical purposes. X X X X Extracts X X X X X X X X Extracts X X X X ..... ld not be treated as income of the assessee. In this regard submission as also made by the assessee which was not found to be satisfactory by the AO. Ld. AO checked on MCA website and from other sources and found that the profit A.Y.2015-2016 was ₹ 5,38,000/- and for A.Y.2014-2015 profit was ₹ 88,000/-, respectively and he also noticed that lender company has incurred expenses towards employee benefit expenses of ₹ 72,000/- for A.Y.2014-2015 and ₹ 1,08,000/- for A.Y.2015-2016 per annum, respectively. Accordingly, the AO noticed that only one or two employees were employed in the company to manage the affairs of the lender company and calculated that it was a shell company for only for the purpose to provide accommodation entries and to convert black money into white money by way of unsecured loans and share application money and share premium etc. He also noticed that this company was also prosecuted u/s.220(1) & 220(2) of the Companies Act by Chief Judicial Magistrate, Shillong. Therefore, the AO added to the total loan amount of ₹ 1 crore and interest paid thereon of ₹ 36,986/- u/s.68 of the Income Tax Act. Further, the AO also noticed that t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... can be seen that as on June 2017 the entire loan account of the assessee with that of M/s Matribhumi Fincap India Ltd was squared off/ settled and there was no any dues. It will also be pertinent to mention that in AY 2016-2017 further unsecured loan was received from this company which stands accepted incourse of assessment proceedings completed U/s 143(3) vide order dated 26/12/2018 copy of which is annexed. Therefore firstly we contend to say that where for one year the loan amount received has been accepted, the same cannot be disallowed or doubted in another year facts being the same. Principal of consistency shall be followed as held by Hon'ble Apexx Court in case of Union of India v Azadi Bachao Andolan (2003) 263 ITR 706 (SC). Further Reliance is placed on the decision of Hon'ble Jharkhand High Court in the case of CIT Vs Sidhi Vinayak Metcon Ltd (Dated 05/04/2018) wherein it was held that-Having heard counsels appearing for both sides and looking to the facts and circumstances of the case, we see no reason to entertain this Tax Appeal mainly for the reason that the addition made by the Assessing Officer should not have been made by him because amount received tow ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... was not justified in confirming ₹ 74,173/- sundry creditor in name of M/s Eastern Trading Agency. ₹ 15,456/- was the opening balance for the year under consideration which cannot be added in this year. Moreover the above company is our regular supplier which can be seen from the ledger account wherein transactions are recorded and as a matter of fact the same was repaid in the subsequent year. 3. Ld. CIT(A) was not justified in confirming the addition of ₹ 14,032/- sundry creditor in name of M/s Annupurna Trading. Complete details was filed for the same showing the day to day transaction with the supplier. Moreover it was also pointed out that in the subsequent year the same was repaid and as on 31/03/2018 the balance was NIL. Ld. CIT(A) failed to consider our submissions judiciously and confirmed the alleged additions in a summary manner. Apart from this, ld. AR filed a paper book containing page Nos.1 to 8 along with Memorandum and Articles of Association of the assessee company and submitted that the bank account in the name of M/s Pasa Sales & Marketing is still appearing maintained with HDFC Bank before merging into M/s Pasa Resources Pvt. Ltd and closi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... re made just to continue the bank account of M/s Pasa Sales and Marketing Ltd. and all the transactions of this account are incorporated in the financial statements of M/s Pasa Resources Pvt. Ltd. Before going into the merits of the case, we calculated as to why the assessee has still not changed the name in the HDFC bank till date of hearing and still he is doing transactions through this bank account. This transaction needs to be examined by the AO. We also noted that the loan amount of ₹ 1 crores taken in two instalments as stated supra has also been credited in this bank account. These facts need to be examined at the level of AO. Therefore, we think it appropriate to send back the disputed issue to the file of AO for examining of actual ownership of this bank account and why the assessee has not changed the name of the account in the name of M/s Pasa Resources Pvt. Ltd. in place of M/s Pasa Sales and Marketing Ltd. even after merging w.e.f. 01.04.2014. Needless to say, the assessee shall be given reasonable opportunity of hearing and the assessee is directed to cooperate with the AO for early disposal of the case. This ground is allowed for statistical purposes. 8. In r ..... X X X X Extracts X X X X X X X X Extracts X X X X
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