9911796707
TMI Blog2025 (1) TMI 1336X X X X Extracts X X X X X X X X Extracts X X X X ..... the Directors of the assessee company u/s.68. 3. The brief facts are that the assessee has filed its return of income for A.Y.2014-15 on 15/12/2014 declaring net loss of Rs. (-23,702). Later on assessment was selected for scrutiny and order u/s. 143(3) was passed on 23/12/2016 and income was assessed as 'Nil' income. Thereafter, assessee's case has been reopened u/s.147 on the following reasons recorded: - The company has received Unsecured Loans wherein the Creditworthiness is not proved. This fact came to the notice of the AO while assessing the company for A. Y. 2015-16. It was noticed that during the A.Y. 2015- 16, the assessee company had received Rs. 143,60,000/- as fresh loans during the year from it's three directors. However ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... r Shetty as on 31.03.2014 submitted, the loan is not reflected. As per the Capital A/c., an amount of Rs. 12,22,00,000/- has been introduced. 2. Shri Shaikh Sajid Aziz: In the case of this Director, it is seen from the balance sheet as on 31.03.2014 submitted that, the unsecured loan of Rs. 1,54,01,000/- is lent to the company out of the borrowings made by him from various persons. 3. Shri Rajesh Chintaman Wade: In the case of this Director, it is seen from the Balance Sheet as on 31.03.2014 submitted that, the unsecured loan of Rs. 1,47,47,500/- is lent to the company out of the borrowings made by him from various persons. 6. Thus, Ld. AO deduced that Directors have lent the unsecured loans to the company out of the borrowings made ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rectors, i.e., Shaikh Sajid Aziz and Shri Rajesh Chintaman Wade who have given loan of Rs. 1,54,01,000/- and Rs. 1,47,47,500/- respectively Ld. CIT (A) has confirmed the addition. Regarding Mr. Shaikh Sajid Aziz, Ld. CIT (A) noted that he has shown net income of Rs. 37,47,346/- and had also filed the balance sheet, statement of total income and bank statements, however, he noted that loan has been advanced to the assessee out of borrowings made from various persons and he has not provided the details of persons from whom these loans have been raised. Although in the balance sheet he has declared unsecured loans taken from various parties however, break-up was not given. Similarly, in the case of Shri Rajesh Chintaman Wade, he had shown retu ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... IT(A) that these Directors have given loan out of unsecured loans received by them which has been declared in the balance sheets from various other persons. Thus, both the authorities have challenged source of the source which was not the criteria under the section 68 in the A.Y.2 014-15 as amendment has been brought in the statute w.e.f. A.Y. 2023-24. Thus, no addition could have been made as assessee discharged the onus cast upon it. 10. On the other hand, ld. DR relied upon the observation and finding of the ld. AO and ld. CIT (A) and submitted that assessee has to prove the source from where the Directors have received the loan and should have provided the details to examine the source in their hands. Thus, this was the onus cast upon ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... details of the persons alongwith documentary evidence who have provide loan to the Directors. Similarly, in the case of Shri Shaikh Sajid Aziz, he declared income from other sources of Rs. 34,59,734/- and income from business and profession at Rs. 3,97,702/-. He has duly disclosed the loans given to the assessee and has filed the confirmation and bank statement before the ld. AO and ld. CIT (A). One very important fact here in this case which proves the genuineness of the loan is that, these are not direct loan given to the assessee company but payment was made to various persons on behalf of the company in respect of the property to be purchased in the name of the company. These details of payments made to 169 people were filed alongwith t ..... X X X X Extracts X X X X X X X X Extracts X X X X
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