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Commissioner Of Income Tax vs Nova Promoters & Finlease (P) Ltd on 15 February, 2012

The assessing officer instead of examining the documentary evidences and record in depth, has made an attempt to link Mr. Suresh Nanda, who was having interest in the Companies namely M/s. UBS Trading FCZ and Y2KSIL, who were the different entities, who have provided loans and funds to Investor Companies. Even if certain documents were found during the course of search in the case of Mr. Suresh Nanda, but, nothing has been brought on record, if any, material was found that he has received any unaccounted money. No material was found during the course of search to prove Mr. Suresh Nanda was dealing with unaccounted money rather the Department had made similar addition in the hands of Mr. Suresh Nanda, which have been deleted by the ITAT and the Order of the ITAT have been confirmed by the Hon'ble Delhi High Court. The issue is also covered by Judgment of the Delhi High Court in the case of M/s. Russian Technology Centre (P) Ltd., (supra), in which, similar addition have been deleted on the same set of facts, in which the subsidiary of M/s. Russian Technology Centre (P) Ltd., which had received various amounts towards share capital from its related Companies and Promoters. The assessee filed all the documents as are filed in the present case and on that basis, the Tribunal deleted the addition and Judgment is confirmed by the Hon'ble Delhi High Court. In the present case assessee has received share application money from its holding Company.
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