Addition under section 68 not permissible when the advances are received by account payee cheques and interest and shares have been paid and allotted against these advances

DCIT Vs. Bihariji Ispat Udyog Ltd. (ITAT Kolkata)- From the record it appears that all the aforesaid transactions were by Account Payee cheques and loan confirmation and also the confirmation for payment of Share Application Money were obtained from the said Ankur Marketing Ltd. with its I.T. File No. and the same were filed with the A.O. For the Share Application Money received by the assessee, shares were allotted immediately after close of the accounting year 2000- 01.

For the loans received by the assessee, it paid interest after deduction of Income-tax and issued necessary T.D.S. certificate to the said lender, copy of which was filed before the A.O. The assessee also filed its bank statements for proving the fact that all receipts of monies were by Account Payee Cheques. Based on these submissions ld. CIT(A) has deleted the same. Therefore, he requested to uphold the same.After hearing the rival submissions and on careful perusal of materials available on record, keeping in view of the fact that the aforesaid transactions were duly recorded by assessee and the transactions are made by account payee cheques and the interest on the said transactions have been paid after deduction of TDS and that AO should have e nucleated or brought on record unassailable, concrete and incontrovertible facts that could have clinched the issue in the Departmental favour as observed by ld. CIT(A). Therefore, we find no infirmity in the orders of ld.CIT(A) and we uphold the same.

ITAT KOLKATA

ITA Nos. 1982 & 1983/Kol/2010

Assessment Years: 2001-02 & 2006-07

DEPUTY COMMISSIONER OF INCOME TAX CIRCLE- 3, KOLKATA

Vs

M/s BIHARIJI ISPAT UDYOG LTD., KOLKATA

PAN NO:AABCB0830D

C.O. Nos.186& 187/Kol2010

ITA Nos. 1982 & 1983/Kol/2010

Assessment Years: 2001- 02 & 2006- 07

M/s BIHARIJI ISPAT UDYOG LTD
KOLKATA
PAN NO:AABCB0830D

Vs

DEPUTY COMMISSIONER OF INCOME TAX
CIRCLE-3, KOLKATA

B R Mittal, JM and C D Rao, AM

Dated: September 06, 2011

Appellant Rep by: Shri Basudev Hazra Respondent Rep by: Shri R Salarpuria

Revenue’s appeal dismissed

ORDER