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TMI Blog2025 (2) TMI 831X X X X Extracts X X X X X X X X Extracts X X X X ..... ent year, assessee has explained it by way of bank reconciliation statement duly corroborated by entries in the bank statement, both of the assessee and that of SPPL. All the stated documentary evidences are placed on record in the paper book.
As SPPL itself assessed by the Department for the transaction having a direct bearing on the addition made in the hands of the assessee, we unhesitatingly, delete the addition in the hands of assessee u/s.68. Appeal of the assessee is allowed. X X X X Extracts X X X X X X X X Extracts X X X X ..... eceived the funds from Forte International (M) Sdn Bhd, Malaysia. 3.1. Assessee explained the nature of transaction by submitting that SPPL was carrying on business of trading in recycled granules, plastic reprocessed granules and floor sweepings. It had to make purchase from one of the group company of assessee, i.e., Aishwarya Plast Exports Pvt. Ltd. and in order to secure the amount due to Aishwarya Plast Exports Pvt. Ltd. from SPPL, this amount was received by the assessee. Ld. Assessing Officer issued notice u/s.133(6), dated 04.10.2018 on SPPL. In response to this notice, SPPL submitted copy of its return of income, loan confirmation letter alongwith its bank statement. It also furnished details of purchases made from Aishwarya Plast ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ital of SPPL as its promoter's contribution, for which copy of share purchase agreement was already furnished in the course of assessment proceeding. On account of pending compliance formalities with Reserve Bank of India, shares could not be allotted to Forte International in the year under consideration. Accordingly, SPPL placed the amount received by it from Forte International, with the assessee as deposit against which supplies were made by another associate company of the assessee's group, namely Aishwarya Plast Export in September, 2011 i.e., in the next Assessment Year. It was also explained that there was a delay in supplies on account of procedural requirements of obtaining permission from Reserve Bank of India. All the corroborat ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e filed detailed reply contended that the company was incorporated on 09.03.2011 by to Malaysian residence and amount of Rs. 55.67.070-received as share application money. the shares for which was allotted in next year because company has only 22 working days in the current financial year. Necessary documents have been filed and after examination. placed on record. Keeping in view the details tiled by the assessee company. no adverse inference is being taken and return income of Rs. Nil as declared by the assessee is accepted. Assessed at Rs. Nil u/s 148/143(3) of the 1.T. Act, 1961. Issued notice of demand." 4.2. It was thus, evidently established that share application money received by SPPL from Malaysian company was accepted and as ..... X X X X Extracts X X X X X X X X Extracts X X X X
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