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TMI Blog2021 (1) TMI 613X X X X Extracts X X X X X X X X Extracts X X X X ..... ssee has raised following grounds of appeal: 1. Whether on the facts and in the circumstances of the case, the Ld. CIT(A) was justified in deleting the addition of ₹ 90,00,000/- on account of bogus incurred loan u/s. 68 and ₹ 1,18,330/- on account of interest paid thereon as bogus loan are received from M/s. Purvi finvest Ltd., M/s. East West Finvest Ltd. and M/s. Trimurti Finvest Ltd., who have procured bogus share application money/premium from the paper companies of Kolkata and thereafter advances loan to the assessee and also many persons/entry/companies as per enquiries carried out through investigation Wing Kolkata. 2. Whether on the facts and in the circumstances of the case, The Ld. CIT(A) was justified in deleting the additions of ₹ 90,00,000/- + interest of ₹ 1,18,330/- inspite of specific findings of the Assessing Officer in the assessment order. 3. The appellant craves leave to add to or deduct from or otherwise amend the above grounds of appeal. 2. The facts giving rise to the present appeal are that the case of the assessee was reopened for assessment, on the ground that the assessee had obtained bogus share application mone ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s leave to add to or deduct from or otherwise amend the above grounds of appeal. GROUND NO. 1 2 OF THE DEPARTMENTAL APPEAL: 1.1] The Department in these grounds of appeal has challenged the deletion of additions made by the assessing officer of ₹ 90,00,000/- and ₹ 1,18,330/- to the total income on account of unsecured loans received and interest paid thereon respectively thereby aggregating to ₹ 91,18,330/-. 1.2.1] At the outset, it is pertinent to mention that the present appeal as filed by the Department is not maintainable before the Hon'ble ITAT, Indore Bench in light of the Circular No. 17/2019 dated 8th August, 2019 as issued by the Hon'ble CBDT wherein monetary limit of tax effect for filing of appeals by the Department before the Hon'ble Income Tax Appellate Tribunal was enhanced to ₹ 50,00,000/- from the erstwhile monetary limit of ₹ 20,00,000/-1.2.2] The Hon'ble CBDT in Para 4 of the Circular No. 3/2018 dated 11th July, 2018 defined the term 'tax effect' as the difference between the tax on the total income assessed and the tax that would have been chargeable had such total income been reduced by the a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tal Gains (LTCG)/Short Term Capital Loss (STCL) through penny stocks from monetary limits specified in any Circular issued under section 268A of the Income-Tax Act, 1961. 1.3.3] In the facts of the present case, the respondent assessee received unsecured loan of ₹ 90,00,000/- and paid interest thereon of ₹ 1,18,330/- which was duly substantiated with ample supporting documentary evidences. The case of the respondent assessee was not a case involving bogus Long Term Capital Gains (LTCG)/Short Term Capital Loss (STCL) through penny stocks. 1.4] In view of the above, the present appeal as filed by the Department is not maintainable due to low tax effect. 6. Ld. Departmental Representative opposed the submissions and submitted that the issue fall in the exception clause of the circular issued by CBDT. 7. We have heard rival submissions and materials placed before us and gone through the orders of lower authorities. The contentions of the assessee are that case does not fall in the exception clause. He brought to our notice, Circular No. 23 of 2019 dated 06.09.2019 and Office Memorandum dated 16.09.2019, for the sake of clarity both the Circular and Office M ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... lletin and for circulation as per usual mailing list. 4. The Comptroller and Auditor General of India. 5. ADG (Vigilance), Mayur Bhawan, New Delhi 6. Joint Secretary Legal Advisor, Ministry of Law Justice, New Delhi 7. All Directorates of Income-tax, New Delhi and Pr. DGIT (NADT), Nagpur 8. ITCC (3 copies). 9. ADG (System)-4, for uploading on the Department's website. 10. Data Base Cell for uploading on irsofficersonline.gov.in. 11. [email protected] for uploading on NJRS 12. Hindi Cell for translation. 13. Guard file F. No. 279/Misc./M-93/2018-ITJ(Pt.) Government of India Ministry of Finance Department of Revenue Central Board of Direct Taxes New Delhi, Dated: 16th September, 2019 OFFICE MEMORANDUM Subject: -Special Order of Board exempting cases involving bogus Long Term Capital Gains(LTCG)/Short Term Capital Loss (STCL) through penny stocks from monetary limits specified in any Circular issued under Section 268A of the Income-tax Act, 1961-reg The undersigned is directed to refer to Circular No. 23 of 2019 dated 6th September, 2019 and to say that by virtue of powers of t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 00/- respectively during the year 2009-10. The information has been received from DCIT 1(1) Bilaspur stating that the companies M/s. East West Finvest India Ltd., M/s. Purvi Finvest Limited M/s. Trimurthi Finvest Limited that During the assessment proceedings for the A.Y. 2014-15 in the case of above mentioned companies it has come to notice that the company namely M/s. Purvi Finvest Limited, East West Finvest Limited and Trimurti Finvest Limited has procured bogus share application money/premium from paper companies of Kolkata and thereafter advance loan to various persons/entity/companies. The directors of these concerns were found to be dummy directors to the entry operators. The lender company has given merely an entry as unsecured loan to assessee and assessee has used its unaccounted money is shadow of these companies as creditors. The assessee Shri Manoj Daga is also one of the beneficiary who has obtained entry as unsecured loan from M/s. Purvi Finvest Limited, East West Finvest Limited and Trimurti Finvest Limited of ₹ 25,00,000/-, ₹ 25,00,000/- and ₹ 40,00,000/- respectively and the assessee has introduced his unaccounted money in shadow of these compa ..... X X X X Extracts X X X X X X X X Extracts X X X X
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