9911796707
TMI Blog2012 (12) TMI 1211X X X X Extracts X X X X X X X X Extracts X X X X ..... in subscribing share capital of various concerns and advancing loan. On appraisal of profit and loss account and balance sheet, the Assessing Officer observed that share application money outstanding has been reduced to ₹ 17.34 lakhs from previous years ₹ 129.89 lakhs , preference shares of M/s. Sam Industries has been reduced to ₹ 47.02 lakhs from ₹ 52.25 lakhs. Accordingly, addition of ₹ 60,95,500/- was made u/s 68. The Assessing Officer also made protective addition of ₹ 98,05,000/-. The addition so made was deleted by the ld.CIT(A) after having the following observations :- "4.1.3. On perusal of the assessment order, submissions made by the assessee on different dates with its enclosures, remand re ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... y him in the assessment order. The assessee during the course of appeal justified in explaining the source of investment through various documents and the Assessing Officer himself satisfied with the explanation of the assessee in remand report. Considering the totality of the facts of the present case, addition of ₹ 60,95,000/- as made by the Assessing Officer in respect of investment made by the assessee in different companies by invoking the provision of Section 68 is not justified. Accordingly, the addition of ₹ 60,95,000/- on this account is deleted. 4.2.3 On perusal of the assessment order, submissions made by the assessee on different dates with its enclosures, remand report as submitted by the Assessing Officer and re ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d that the additions were made merely on the basis of investment made in unquoted shares. However, there was no fresh investment in toto but the amount of share application money was transferred from share application money to investment in unquoted shares. The learned CIT(A) also recorded a finding after considering the remand report that the assessee has properly explained the investment in different companies which was added by the Assessing Officer on protective basis. A finding was also recorded by CIT(A) to the effect that no fresh funds were received in the year under appeal, which is as per material on record. Since there is no increase in overall investment, nor in loans and advances, we are in agreement with the finding of the lea ..... X X X X Extracts X X X X X X X X Extracts X X X X
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