Case Law Details
Suncap Commodities Private Limited Vs DCIT (ITAT Mumbai)
The assessee was used as a conduit company along with other companies to violate the provisions of minimum public shareholding criteria under SEBI Laws. Accordingly, addition confirmed as the amounts credited in the books of accounts of assessee lack genuineness.
Facts-
The assessee filed its ROI on 28/9/2012 declaring a total loss of ₹ 4,768,824/–. ROI was processed u/s 143 (1) of the act. Subsequently the case of the assessee was picked up for scrutiny and notice u/s 143 (2) of the act was issued on 6/8/2013. During the course of assessment proceedings, AO found that M/s falcon Tyres Ltd had assigned a loan to the assessee company being interest free of ₹ 21 crores. Similarly Dunlop India Ltd has also assigned interest free loan of ₹ 50.41 crores without mortgage of security etc. AO issued notices u/s 133 (6) to both the parties on 23/2/2015, which remained Unanswered. Assessee was also asked to produce the above parties however none appeared. Further show cause notice was issued on 2/3/2015 in response to which the replies were received in tapal. Thereafter the learned assessing officer proceeded to assess both the above transactions as bogus, non genuine.
Being aggrieved with the order of CIT(A), assessee preferred appeal before Tribunal.
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