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TMI Blog2022 (1) TMI 984X X X X Extracts X X X X X X X X Extracts X X X X ..... g the addition of Rs. 41,34,000/- u/s 68 of the Act in respect of loan obtained from M/s. Topcare Trading Co. Pvt. Ltd. 4. On the facts and circumstances of the case and in law, the learned CIT(A) has erred in upholding the addition of Rs. 1,00,00,000/- u/s 68 of the Act in respect of loan obtained from M/s. New Tree Mercantile Co. Pvt. Ltd." 3. The brief facts of the case are that the assessee filed its return of income on 22.08.2015 declaring total income to the tune of Rs. 26,70,733/-. The assessment of the assessee was reopened on the basis of information received from the DGIT(Inv.), Mumbai to the effect that during search and seizure action carried out in the case of Shri Praveen Kumar Jain Group on 01.10.2013 it was found that the assessee is beneficiary of accommodation entries. It was revealed during search that Shri Praveen Kumar Jain is providing accommodation entries through his related concerns/entites which runs into thousands of crores. The assessee was one of the beneficiaries of such accommodation entries by way of share capital as per the details collected by the Investigation Wing. The assessee company has also received of Rs. 45,00,000/- as Share Application ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... t the assessee being not pressed. ISSUE NO.2 5. Under this issue the assessee has challenged in respect of Share Application Money from M/s. Alka Diamond Industries Ltd, in sum of Rs. 45,00,000/-. The Ld. Representative of the assessee has argued that the assessee has filed the sufficient proofs/documents to prove the genuineness and creditworthiness of the parties but the CIT(A) has wrongly dismissed appeal of the assessee and therefore, the order passed by the ld CIT(A) is wrong and can not be sustained. However, on the other hand, the Ld. Representative of the Department has refuted the said contentions. We noticed that the assessee filed the copies of ledger accounts , confirmation of Share Application Money received from M/s. Alka Diamond Industries Ltd, which is filed at page no. 3 of the paper book meaning thereby the confirmation from M/s. Alka Diamond Industries Ltd is on record. Similarly the bank account statement of M/s. Alka Diamond Industries Ltd is also furnished and lies at page no. 4 to 6 of the paper book which testifies the transfer of the said amount to the assessee. The income tax return and audited financial statements of M/s. Alka Diamond Industries Ltd, fo ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ceived for AY 2007-08 Share application money received for AY 2008-09 Total consideration recd. No. of shares applied & allotted Artillegence Bio Innovations Ltd. AAAC17349F 75,00,000 52,50,000 1,27,50,000 42,500 Alka Diamond Industries Ltd. AAACA5236D 1,00,00,000 35,00,000 1,35,00,000 45,000 Clifton Securities Pvt. Ltd. AAACC5995P - 75,00,000 75,00,000 25,000 Navlakha Agrex Pvt. Ltd. (formerly known as Olympus Vision Pvt. Ltd.) AAACO3898H 75,00,000 - 75,00,000 25,000 Nicco securities Pvt. Ltd. AABCN1737D 75,00,000 - 75,00,000 25,000 Macrosoft Technology Pvt. Ltd. AACCM3329H 75,00,000 75,00,000 25,000 Total 4,00,00,000 1,62,50,000 5,62,50,000 187,500 10. We find that exactly identical issue has been dealt with by us in the group cases in the case of Diwali Capital & Finance Pvt. Ltd. vs. DCIT in ITA No. 2091/Mum/2018 for AY 2008-09 wherein, we have held as under: - "11. We have heard rival contentions and gone through the facts and circumstances of the case. We find from the facts of the case that during the assessment proceedings, the assessee has submitted the following details: - During assessment proceedings th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ts are identical to AY 2007-08 and the reason recorded by CIT(A) while deleting the addition in AY 2007-08 are also exactly identical. In such circumstances, we have already confirmed the order of CIT(A) deleting the addition and hence, following the earlier years order as decided above, we delete the addition. The appeal of assessee is allowed." 11. As the issue is covered in assessee's group case in the case of Diwali Capital & Finance Pvt. Ltd. (supra), the facts being identical, we delete the addition and allow this appeal of assessee. 6. Considering the facts and circumstances of the case and the issue being covered by the decision of the Hon'ble ITAT in ITA. No.3987/Mum/2017 dated 10.01.2019, we set aside the order of ld CIT(A) on this issue and direct the AO to delete the addition. The ground no. 1 is allowed. ISSUE NO.3 & 4 7. Issue no.3 & 4 is against the confirmation by CIT(A) of addition of Rs. 1,41,34,000/- as made by the AO towards non genuine loans u/s 68 of the Act. These loans were taken from taken from M/s. Topcare Trading Co. Pvt. Ltd. Rs, 41,34,000/- and Rs. 1,00,00,000/- from M/s. New Tree Mercantile Co. Pvt. Ltd. The Ld. Representative of the assessee has ..... X X X X Extracts X X X X X X X X Extracts X X X X
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