CHANDRALOK HOTELS LTD. Vs. INCOME TAX OFFICER
LAWS(IT)-2014-5-82
INCOME TAX APPELLATE TRIBUNAL
Decided on May 23,2014

Appellant
VERSUS
Respondents

JUDGEMENT

B.RAMAKOTAIAH,AM. - (1.) THIS is an assessee appeal against the order of Ld. CIT(A) -II, Hyderabad dated 05.12.2013. Assessee in this appeal is contesting claim of interest of Rs.7,18,252/ - and salary payment of Rs.2,81,700/ - disallowed by A.O. and confirmed by Ld. CIT(A).
(2.) FACTS leading to the present appeal are that assessee is a company which has not filed return in the impugned year. A survey operation under section 133A was conducted on 17.03.2011 and proceedings under section 147 were initiated. Assessee filed return of income declaring loss of Rs.10,052/ -. However, as there was no compliance to various notices, in the absence of books of accounts and its verification, A.O. treated the share application money of Rs.1,21,49,236/ - and unsecured loans of Rs.59,82,840/ - as income of assessee from unexplained sources. Further noticing that unsecured loans are in the name of the firms M/s. Shiv Shakti 35MM - Rs.29,82,840/ - and M/s. Sandhya 70MM Rs.30,00,000/ - (treated as income above) and interest payment was in the names of individuals as below, the A.O. disallowed the interest of Rs.7,18,252/ -. a. Saritha Rs. 13,470 b. Brijlal Rs.4,12,500 c. Deepraj Rs. 71,025 d. Dhansri Rs. 20,205 e. B. Dheeraj Rs. 30,000 f. Gurucharan Singh Rs. 30,000 g. Rateen Rs. 33,675 h. Bank of India Rs. 27 i. Kuldeep Rs. 40,000 j. Prudhviraj Rs. 67,350 Total Rs.7,18,252
(3.) IN addition, the salary and bonus claim of Rs.2,81,700/ - was also disallowed on the reason of non - production of books of accounts and evidences thereon. Ld. CIT(A) after obtaining a remand report from A.O. who subjected the share application money and unsecured loans for verification, deleted the two additions. However, disallowance of interest and salary payments were confirmed.;


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