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TMI Blog2023 (2) TMI 269X X X X Extracts X X X X X X X X Extracts X X X X ..... he concerns u/s 131 of the Act were served at the given address. Therefore, identity of the concerns from which the assessee received the amount utilised towards purchase of 2,80,000 shares of M/s. Spectrum Distributors Pvt. Ltd. cannot be doubted. Balance sheet of these concerns for the year indicating their high networth was placed on record establishing their creditworthiness. The shares were purchased by the assessee from M/s. Kashyap Property Pvt. Ltd. (now known as Rajdarbar Group Pvt. Ltd.). Documentary evidence, namely copy of bank statement of M/s. Rajdarbar Beverages (P) Ltd. for the period from 01.04.2014 to 31.03.2015 as also copy of confirmation along with bank statements and ITR of M/s. Kashyap Property (P) Ltd. was filed ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... mpany incorporated on 16.05.2000.It e-filed its return for A.Y. 2015-16 on 24.10.2015 at nil income. The return was processed u/s 143(1) of the Income Tax Act, 1961 (the Act ) on 05.11.2015. The case was selected for limited scrutiny due to large increase in investment in unlisted equities during the year. During assessment proceedings the Ld. Assessing Officer ( AO ) required the assessee to explain the source of amount invested in the shares of unlisted equities and Fair Market Value of the shares. The assessee explained that during the year it has purchased 2,80,000 shares of M/s. Spectrum Distributors Pvt. Ltd. for an amount of Rs. 1,82,00,000/- from M/s. Kashyap Properties Pvt. Ltd. The source of investment is amount of Rs. 42,56,000/ ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ed but they did not respond. He therefore held that the assessee could not prove the identity, creditworthiness and genuineness of the transaction with M/s. Gunvardhan Vyapaar Pvt. Ltd. and M/s. Rasaraj Sales Ltd. during the year. Accordingly, he added the amount of Rs. 1,82,00,000/- as unexplained investment and completed the assessment on 19.12.2017 under section 143(3) of the Act. 5. Aggrieved, the assessee filed appeal before the Ld. CIT(A). During appellate proceedings the assessee furnished written submissions which has been reproduced by the Ld. CIT(A) in para 4.1 of his appellate order. The ld. CIT(A) made the following observations in para 4.4 and 4.5 of his order ; 4.4. During the year under consideration the appellant com ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... .03.2015 118 2. Copy of confirmation along with Bank Statement ITR of M/s Kashyap Property (P) Ltd. 129-131 5.1 In para 4.7 of his order, the Ld. CIT(A) has recorded his findings and deleted the impugned addition. Para 4.7 is reproduced below : 4.7 The source of investment during the year is from the funds received in return from group companies only which was invested earlier in 2009 and 2011. The flow of funds is supported by entries in book statements and reflected in Balance sheets of the respective companies. The fact that there were inter corporate adjustments between group companies routed through bank accounts and Balance sheets ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e given address. Therefore, identity of the concerns from which the assessee received the amount of Rs. 42,56,000/- and Rs. 1,39,44,000/- utilised towards purchase of 2,80,000 shares of M/s. Spectrum Distributors Pvt. Ltd. cannot be doubted. Balance sheet of these concerns for the year indicating their high networth was placed on record establishing their creditworthiness. The shares were purchased by the assessee from M/s. Kashyap Property Pvt. Ltd. (now known as Rajdarbar Group Pvt. Ltd.). Documentary evidence, namely copy of bank statement of M/s. Rajdarbar Beverages (P) Ltd. for the period from 01.04.2014 to 31.03.2015 as also copy of confirmation along with bank statements and ITR of M/s. Kashyap Property (P) Ltd. was filed before the ..... X X X X Extracts X X X X X X X X Extracts X X X X
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