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TMI Blog2021 (12) TMI 48X X X X Extracts X X X X X X X X Extracts X X X X ..... at the investor companies has not established the source of funds from which the investment was ultimately made. Further that he has relied upon a judgment passed in the matter of NRA Iron Steel Pvt. Ltd. [ 2019 (3) TMI 323 - SUPREME COURT] and came to the finding that the onus to establish the creditworthiness of the investor companies was not discharged by the assessee; the entire transaction made in that particular matter seemed bogus and lack credibility. AO though initiated enquiry but was not been able to proceed further since no one appeared on behalf of the investor companies and, therefore, finally the addition was confirmed. In the instant case by producing various documents the appellant had proved that balance of convenience was in its favour. Considering the entire aspect of the matter we find no rational for sustaining the addition made to the total income of the assessee on account of advance received from these parties solely on the reason that notices issued u/s 133(6) of the Act either not served or no reply was received in response to such notices - the appellant by filing ample documentary evidences sought to justify the identity and creditworthiness of t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 1. M/s. Navyug Vinimay Private Limited AACCN0408N 18,20,000 2. M/s. Vardhan Distributors Private Limited AACCV9659H 12,67,000 3. M/s. Azzasr Trading Private Limited AAKCA3114C 15,00,000 4. M/s. Siddhi Commodeal Private Limited AAMCS5478F 5,00,000 Total 50,87,000 4. The AO finalized the assessment upon making addition of ₹ 50,87,000/- to the total income of the appellant by holding failure on the part of the appellant to establish the identity, creditworthiness of the parties and genuineness of the transaction entered into with these parties. While making addition the Ld. AO observed as follows: 7.1.1 As per Note 3 of the balance sheet under the head unsecured loan, the assessee has shown amount of ₹ 5,44,28,539/- from ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ouse, Kohe-fiza, Bhopal Neft dtd 12.11.12 1,65,000/- 101431 dtd. 18.03.13 1,28,000/- Total- 1,73,236.35 1,28,000/- Nil 45,236.35 Grand Total: 5,44,28,539.35 Advance from Others: 1. AAKCA3114C M/s Azzasr Trading Pvt. Ltd 19, Madan Mohan Burman Street Kolkata 700007 RTGS. dtd. 08.10.12 15,00,000/- Total: 15,00,000/- Nil 15,00,000/- 2. AACCN0408N M/s Navyug Vinimay Pvt. Ltd. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ion of ₹ 50,87,000/- In appeal the First Appellate Authority confirmed the said addition. Hence, the instant appeal before us. 5. The following details were submitted by the assessee before the Ld. AO to substantiate the identity, creditworthiness of the parties and genuineness of the said transaction made between the parties: S. No. Particulars Page No. 1 Navya Vinimay P Limited (AACCN0408N) of ₹ 18,20,000/- 1.1 Copy of account of above party in the book of the assessee company 1 1.2 Confirmation of the party duly signed 2 1.3 Copy of acknowledgement of Income Tax return as filed 3 1.4 Copy of Master Record and Signatory Details as downloaded from the site of the Registrar of Companies 4 1.5 Copy of Certificate of Incorporation ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Particulars of appointment of Managing Directors/ directors in Form No. 32 59 to 62 3.8 Copy of Memorandum of Association 63 to 68 4 Siddhi Commodeal P Limited (AAMCS5874F) of ₹ 5,00,000/- 4.1 Copy of account of above party in the book of the assessee company 69 4.2 Confirmation of the party duly signed 70 71 4.3 Copy of acknowledgement of Income Tax return as filed 72 4.4 Copy of Master Record and Signatory Details as downloaded from the site of the Registrar of Companies 73 4.5 Copy of Certificate of Incorporation 74 4.6 Copy of Form No. 1 in respect of Application and declaration for incorporation of a company 75 to 83 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d before the Ld. CIT(A). The PAN of loan creditors, the copy of Income Tax Return, the Bank statement, Master records and balance sheet of those parties were duly placed before the Ld. CIT(A). Thus, the assessee has properly discharged its onus by providing the identity, creditworthiness and genuine of the unsecured loans as received. 8. While confirming the addition made by the Ld. AO relying upon the Remand Report the Ld. CIT(A) observed that the investor companies has not established the source of funds from which the investment was ultimately made. Further that he has relied upon a judgment passed in the matter of NRA Iron Steel Pvt. Ltd. (Arising out of SLP (Civil) No. 29855 of 2018) and came to the finding that the onus to establish the creditworthiness of the investor companies was not discharged by the assessee; the entire transaction made in that particular matter seemed bogus and lack credibility. The Ld. AO though initiated enquiry but was not been able to proceed further since no one appeared on behalf of the investor companies and, therefore, finally the addition was confirmed. 9. In regard to the contention of Revenue that the assessee has to prove the sou ..... X X X X Extracts X X X X X X X X Extracts X X X X
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