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TMI Blog2025 (1) TMI 1336X X X X Extracts X X X X X X X X Extracts X X X X ..... not a case of direct loan been given to the assessee company, albeit all the Directors have made payment to various persons for the purchase of the property to start the project of the company and the company has shown this as liability in the balance sheet in the name of the Directors. Accordingly, it cannot be said that the onus cast upon the assessee has not been discharged. Once all these facts have been brought on record, then simply because these Directors have taken unsecured loan for making payments to various parties for purchase of land in the name of the company cannot be added u/s.68 once all these documents have been furnished. Accordingly, addition made by the ld. AO and as confirmed by the ld. CIT (A) is deleted. Decided i ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ained Cash- credits" u/s. 68 of the Act. The assessee has received loans from these directors during the A. Y. 2014-15 as well to the tune of Rs. 5,01,48,500/-. On the basis of the above farts, I have reason to believe that an amount of Rs 5,01,48,500/-has escaped assessment within the meaning of the provisions of Section 147 of the Income Tax Act, 1961." 4. The ld. AO noted that assessee company has received unsecured loan to the tune of Rs. 5,01,48,500/- from its Director, the details of which are as under:- Sr. No. Name of the loan lender Loan received during the year 1 Shri Karunakar Menka Shetty (Rs.) 2,00,00,000/- 2 Shri Shaikh Sajid Aziz (Rs.) 1,54,01,000/- 3 Shri Rajesh Chintaman Wade (Rs.) 1,47,47,500/- TOTAL ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... n borrowed by the director from various person (Rs.) Unsecured loan advanced by the director to the company (Rs.) Remarks Shri Karunakar Menka Shetty 12,22,00,000/- 2,00,00,000/- Capital introduced. Unsecured loan is not reflected in the lender's Balance Sheet as on 31.03.2014. Shri Shaik Sajid Aziz 1,77,00,000/- 1,54,01,000/- The directors have lent the unsecured loans company to the out of the borrowings made by them from various persons. Shri Rajesh Chintaman Wade 1,75,57,000 1,47,47,500/- The directors have lent the unsecured loans company to the out of the borrowings made by them from various persons TOTAL 15,74,57,000/- 5,01,48,500/- 7. Ld. AO thus, inferred that assessee company had failed to establish the credi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Canbara Infra Pvt. Ltd. out of borrowing made from various persons. 9. We have heard both the parties at length and also perused relevant finding given in the impugned orders as well as material placed on record. As noted above, the assessee has taken loan from three of its Directors and before us it has been submitted that these money was given by the Directors prior to the incorporation of the assessee company for purchase of land for the construction purpose. After the incorporation of the company, it owed the liability to the Directors and therefore, there was a credit balance in the hands of the Director which was shown as unsecured loan from the Directors in the first year of balance sheet. Ld. Counsel further submitted that that ear ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... etty had declared net profit of more than Rs. 6.94 Crores and he had huge funds in his balance sheet apart from loan. However, in respect of other two persons despite noting the fact that they were regular assessees showing their income and also filed balance sheets, statement of total income and bank statements, however, the source of loan given to the assessee company was out of source from unsecured loans shown by them, which he has confirmed. It is an admitted fact that two Directors namely, Shri Shaikh Sajid Aziz and Shri Rajesh Chintaman Wade have declared the source of the funds in the balance sheet from where they have given the loan the details of such funds. Shri Rajesh Chintaman Wade has shown unsecured loan of Rs. 1,75,57,000/- ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e company and the company has shown this as liability in the balance sheet in the name of the Directors. Accordingly, it cannot be said that the onus cast upon the assessee has not been discharged. Once all these facts have been brought on record, then simply because these Directors have taken unsecured loan for making payments to various parties for purchase of land in the name of the company cannot be added u/s.68 once all these documents have been furnished. Accordingly, addition made by the ld. AO and as confirmed by the ld. CIT (A) is deleted. 12. Once we have deleted the addition on merits, the validity of reopening u/s.148 is treated as academic. 12. In the result, appeal of the assessee is allowed. Order pronounced on 18th Decemb ..... X X X X Extracts X X X X X X X X Extracts X X X X
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