ITO Vs Lydia Construction Pvt Ltd (ITAT Ahmedabad)
ITAT Ahmedabad held that restriction of addition to Rs. 1.45 crore from Rs. 9 crore towards unexplained cash credit on account of share application money by CIT(A) justified as the same was based on evidences.
Facts- Assessee filed a “NIL” income tax return for the Assessment Year 2011-12, which was processed u/s. 143(1) of the Income Tax Act. Subsequently, information was received from DGIT(Inv) Mumbai about a search on Praveenkumar Jain Group, revealing that Praveenkumar Jain provided bogus loans, share applications, and sales/purchases. The assessee was identified as a beneficiary, having received Rs. 9 crore in accommodation entries. Based on this information, the assessment was reopened, and a notice u/s. 148 was issued. AO treated the sum of Rs. 9 crore as unexplained cash credit u/s. 68 of the Act.
CIT(A) restricted the addition to Rs. 1.45 crore. Being aggrieved, department has preferred the present appeal.
Conclusion- CIT(Appeals) on the basis of appreciation of evidence placed on record before him, restricted the addition to Rs.1,45,10,000/- by observing that it was effectively only this amount which was received by the assessee and the balance amount was either not received by the assessee or the same had been paid back by the assessee to the concerned sources, within a limited period of time. Thus, held that CIT(A) has passed a well reasoned order and we find no infirmity in the order so as to call for any interference.
