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TMI Blog2023 (2) TMI 118X X X X Extracts X X X X X X X X Extracts X X X X ..... esent facts of the case. We hold that no addition is warranted in the given case under the provisions of section 68 - Accordingly, we set aside the finding of the CIT-A and direct the AO to delete the addition made by him. Appeal of the assessee is allowed. X X X X Extracts X X X X X X X X Extracts X X X X ..... ies. Had there been any doubt about the genuineness of the loan, the AO was entitled to issue summons u/s131 of the Act to the loan parties but he has not done so. However, the Ld.CIT(A), dis-regarded the contention of the assessee by observing that no prudent person will advance money without charging any interest and will carry risk of loan without any rewards. Accordingly, the circumstantial evidences suggest that the genuineness of loan is not reliable. In fact,the loan creditor namely K.C. Shah, only bank statement reflecting transfer of loan of Rs.5,00,000/- was furnished instead of detailed statement. Thus, the availability of money with K.C Shah cannot be relied upon. In the case of loan party namely shri BhavnaJ Sharma and Jagdishchandra Natvarlal Sharma, there were cash deposits before transferring the loan to the assessee. Same was in the case of Shri Alpesh (D.V. & Company) where the cash was deposited before transferring the fund to the assessee.In view of the above, the Ld.CIT(A), after placing reliance on the judgement of Hon'ble S.C in the case of PCIT vs NRA Iron & Steel Pvt Ltd. (2019) reported in 412 ITR 161 has confirmed the order of the AO which is reproduced a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... order of Pune Tribunal in the case of Deputy Commissioner of Income Tax Central Circle, Aurangabad v. Mahalaxmi TMT (P.) Ltd. Reported in 190 ITD 582 wherein it was held as under: "12. Now proceeding to examine whether the principles laid down by the Hon'ble Supreme Court in the case of Pr. CIT v. NRA Iron & Steel (P.) Ltd. [2019] 103 taxmann.com 48/262 Taxman 74/412 ITR 161 are applicable to the present facts of the case. In that case, the assessee-company received share capital and premium of Rs. 17.60 crores in all from nineteen parties (six from Mumbai, eleven from Kolkata and two from Guwahati). The shares had a face value of Rs. 10 and were subscribed by the investor-companies at a premium of Rs. 190 per share. The AO made the addition of Rs. 17.60 crores after carrying out various inquiries as under- (i) To verify the veracity of the transactions, the notices were served on three investor-companies namely Clifton Securities Pvt. Ltd.-Mumbai, Lexus Infotech Ltd.-Mumbai, Nicco Securities Pvt. Ltd. Mumbai but no reply was received. (ii) The address with respect to a company namely Real Gold Trading Co. Pvt. Ltd.-Mumbai was not correct. (iii) The notice could not be ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... relation to the facts and the other is in relation to the principles of law. A principle of law declared would be treated as precedent and binding on all. The finding of facts would bind only the parties to the decision itself and it is the ultimate decision that binds. Where facts are distinguishable, such as assessee has replied and clarified all the doubts like non-service of summons on the directors of the investing companies due to change of address, existence of the investing companies on the portals of MCA/ROC and with the Income-tax Department long after investment, providing DIN of directors of investing companies and their other particulars, providing reasons for charging huge premium, adequate creditworthiness on the basis of assets, source of immediate availability of funds for investment, etc., then this decision in NRA Iron & Steel (P.) Ltd. (supra) cannot be applied. 12.3 Admittedly, the assessee in the case on hand has sufficiently furnished the details of the parties which have been elaborated somewhere in the preceding paragraph. Therefore in our humble understanding the principles laid down by the Hon'ble Apex court in the case of NRA Iron & steels (P.) Ltd ..... X X X X Extracts X X X X X X X X Extracts X X X X
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