9911796707
TMI Blog2022 (5) TMI 812X X X X Extracts X X X X X X X X Extracts X X X X ..... the Banka Group. As per the Assessment Order dated 30 March, 2022 (para 5) the Income Tax Authority has categorically stated that the transaction received from the Financial Creditor is nothing but the Corporate Debtors own fund which was routed through the account of the lender i.e., the Financial Creditor. Further, the Corporate Debtor also failed to establish the business utility of unsecured loan and even failed to establish the genuineness of the credit worthiness of the Financial Creditor. On the other hand, the Authority noticed from the post search enquiries that the Financial Creditor is engaged in providing accommodation entries by way of bogus unsecured loan entries and is a shell company. A company petition under section 7 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... housand) including interest as on 31 December, 2019. The date of default is stated to be 28 August, 2019. 5. It is submitted in the Petition, Part II that the authorised share capital of the Corporate Debtor is Rs.3,00,00,000/- (Rupees Three Crores only) with paid up Capital as Rs.2,95,00,000/- (Rupees Two Crore Eighty Ninety Five Lakh only). 6. Submissions by the Ld. Counsel appearing on behalf of the Financial Creditor 6.1 The Financial Creditor is a private limited company engaged in the business of investment in shares and securities and providing corporate finances. The Corporate Debtor is engaged in the business of growing crops, market gardening, and horticulture. 6.2 The Corporate Debtor approached the Financial Credit ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ate Debtor till date has not made any payment towards the discharge of its debts. On the contrary, the Corporate Debtor sent a mischievous response to the said notice. However, the Corporate Debtor in their letter dated 27 September, 2019 admits the aforesaid amount. 6.7 There is a default in repayment of loan amount by the Corporate Debtor even after several reminders by the Financial Creditor. 7. Submissions by the Ld. Counsel appearing on behalf of the Corporate Debtor 7.1 The transaction between the parties does not classify as a Financial Debt under the provisions of the Code. Further, the Financial Creditor has failed to disclose whether it has obtained registration from the Reserve Bank of India to carry on Non-Banking Fin ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... editor. Though the said application is not maintainable on the face of the records but still the Corporate Debtor tried to settle the dispute amicably. The Corporate Debtor to show its bona fide has also paid a sum of Rs.5,00,000/- by way of RTGS on 14 February, 2022 to the account of the Financial Creditor. 9.2 However, during the pending of the application the Corporate Debtor had received a demand notice dated 22 November, 2021 issued by the Income Tax Department under section 143 (2) read with section 147 of the Income Tax Act, 1961. From the perusal of the said notice it is evident that the Corporate Debtor had received a sum of Rs.25,00,060/- from the Financial Creditor during the financial year 2016- 2017. It is also the finding o ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ded. 9.6 The Corporate Debtor will suffer from double jeopardy if the Corporate Debtor pays the entire amount as mentioned in the section 7 Application and also to the Income Tax Authorities. It is pertinent to mention that the Financial Creditor had abstained from submitting or saying anything in these issues. In these facts and circumstances the Corporate Debtor pray for an adjustment for a sum of Rs.12,38,099/- from the amount due to the Financial Creditor. Analysis and Findings 10. We have heard the Ld. Counsel appearing on behalf of the Financial Creditor and the Ld. Counsel appearing on behalf of the Corporate Debtor. No reply has been filed by the Financial Creditor in the I.A. (IB) No. 356/KB/2022 . 11. Upon perusal ..... X X X X Extracts X X X X X X X X Extracts X X X X
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