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TMI Blog2019 (12) TMI 589X X X X Extracts X X X X X X X X Extracts X X X X ..... Officer rightly calculated the proportional disallowance of the amount of CWIP. There is no justification to distribute the entire term loan amount over the total assets. Addition u/s 68 - unexplained cash credits - HELD THAT:- Assessee apart from filing the confirmation from the investor company has also produced on file the Income-tax returns and PAN numbers of the investor and statement of the financials of the Investor to prove the identity and financial capacity of the Investor. To prove the genuineness of the transactions, the assessee also filed conformation from the Investor regarding the investment made by it in the assessee company. During the appellate proceedings before the CIT(A), the assessee also furnished bank statem ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... some mistake on the part of Shri Jagdip Singh, Accountant of the assessee company as he misplaced the copy of the impugned order of the CIT(A). The averments made in the application have been supported / corroborated with the affidavit of the Shri Naveen Gupta, director of the assessee company as well as Shri Jagdip Singh, Accountant of the company. Considering the averments made in the application as well as the affidavits of the director and accountant of the company, there seems a reasonable cause for delay in filing the present appeal . The delay in filing the present appeal is, therefore, condoned. 3. Now coming to the merits of the case, the assessee in this appeal has taken the following grounds of appeal :- 1. T ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... y the order of the Assessing Officer on this issue, the assessee prefer red appeal before the Ld. CIT(A) and pleaded that the assessee had three types of secured loans. Firstly, was the car loan which was used for specific purpose for purchase of car; the second loan was short term which was out of cash credit limit and was used for working capital requirement of the assessee. The amount from the cash credit limit was not used for acquiring any fixed assets. The third loan amounting to ₹ 2,92,42,704/- was term loan from the PNB. In respect of the said term loan, it was pleaded before the CIT(A) that though the term loan was exclusively related to acquire fixed assets, however, the assessee submitted that the total assets of the assess ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... own capital of the assessee is not sufficient either to meet the loan and advances or to meet the capital work in progress. It is admi t ted case of the assessee that the term loan was used for acquisition of the capital assets. In view of this, the Assessing Officer rightly calculated the proportional disallowance of the amount of CWIP. There is no justification to distribute the entire term loan amount over the total assets. In view of this, we do not find any merit in this ground of the appeal and the same is accordingly dismissed. 8. Ground No.2 : The assessee vide ground No.2 has contested the addition of ₹ 22 lacs made by the Assessing Officer and confirmed by the Ld. CIT(A) on account of share a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... t. In appeal before the Ld. CIT(A), the assessee submit ted the following additional documents :- a. Bank statement of M/s Reliable Real tech P Ltd depicting the funds paid by the lender out of available business limit. b. Financials of M/s Reliable Real tech P Ltd regarding availability of funds to the tune of ₹ 2,75,96,619/-. c. Confirmations from M/s Reliable Realtech regarding repayment of such amount. d. Bank statement of assessee out of which the payment was repaid in next years. 10. However, the Ld. CIT(A) held that since the investor company was a loss making company, hence, it did not seem probable that such a company would have invested amount in question in the ass ..... X X X X Extracts X X X X X X X X Extracts X X X X
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