The Mumbai Bench of Income Tax Appellate Tribunal presided by Mr. Prashant Maharishi, AMand Mr. Sandeep Singh Karhail, JM has held that amounts credited in books of accounts lack genuineness and upholds addition made u/s 68.
The appellant, Suncap Commodities Private Limited, is a company dealing in various types of commodities and shares, mainly it trades in chilli.During the course of assessment proceedings, the AO found that unsecured loan had assigned to the assessee, being interest free in nature, without any mortgage or security.
The AO further noticed that both the companies from whom the loans have been assigned were found to be bogus, further the parties who assigned the loans are also found to be in violation of the respective laws. Hence, AO observed that both the loan of ₹ 21 crores and ₹ 50.41 crores assigned to the assessee are non-genuine, bogus and are added u/s 68 of the Actand computed total income at ₹ 709,388,680/-against the returned loss of ₹ 4,768,824/-, which was upheld by the CIT – A.
The Tribunal observed that assessee executed a tripartite agreement and took the responsibility of the loan of stephens financial services private limited and Manali properties and finance private limitedfrom Dunlop India Ltd andFalcon tyres Ltd respectively without any consideration or placing any security. The assessee was used as a conduit company along with other companies to violate the provisions of minimum public shareholding criteria under SEBI Laws.
The Tribunal while dismissing the appeal has held that “amounts credited in the books of accounts of assessee lack genuineness. In view of above facts, we do not find any infirmity in the orders of the lower authorities in confirming the addition of ₹ 504,157,505/– and of ₹ 21 crores u/s 68 of the Act. Accordingly, we confirm the orders of the lower authorities”.
Mr. Shekhar L. Gajbhiye appeared for the revenue.
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