TaxTMI 
TaxTMI 
2015 (2) TMI 546
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....to the Assessing Officer calling for remand report and cross-examining the creditor companies who invested share application money in the concerns which were taken over by the assessee, the issue relates to deletion of addition made by the Assessing Officer in respect of share application money and unsecured loan creditors. 3. Brief facts are that the assessee company which is into the business of trading and manufacturing of yarn filed its return of income for the assessment year 2009-10 on 29.9.2009 admitting income of Rs. 56,74,140/- under normal provisions of the Act and computed book profit under section 115JB at Rs. 37,89,604/- . The assessment under section 143(3) of the Act was completed on 30.12.2011 determining the income of the assessee at Rs. 3,26,61,000/-. While completing the assessment, the Assessing Officer made addition of Rs. 2,50,00,000/- on account of share application money received by the assessee and Rs. 16,14,923/- towards unsecured loan creditors on the ground that identity of the creditor companies has not been proved and therefore transactions are not genuine. In the course of assessment proceedings, the assessee was required to file addresses of credi....
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....e not established. On appeal, Commissioner of Income Tax (Appeals) deleted the additions considering the submissions of the assessee and on examining the evidences produced by the assessee in the form of assessment orders of M/s. Top Grain Vyapar (P) Ltd. and M/s. Umang Commo Trade P. Ltd., their bank statements, their investments in the other concerns of the assessee and those concerns were later acquired by the assessee, copies of certificates issued under section 197 by the Revenue , copies of communications by the companies to Reserve Bank of India and communications dated 30.3.2011 by Reserve Bank of India to those companies evidencing the addresses of these two companies at 1B, Black Burn Lane, 4th floor, Kolkata. On examining all these evidences furnished by the assessee, the Commissioner of Income Tax (Appeals) came to the conclusion that the creditor companies are identified and the transactions are genuine. The Commissioner of Income Tax (Appeals) further held that though having sufficient materials in his possession there is lack of enquiry on the part of the Assessing Officer and the additions were made only based on the report sent by the Assistant Commissioner of Inco....
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....eport from his counterpart at Kolkatta on the existence of these companies since these companies did not respond to the letter issued by the Assessing Officer. Based on the report sent by the ACIT, Circle -XIII, Kolkatta, stating that the companies are not in existence at the given address, he further asked details of the companies and the assessee furnished all these details and directors also confirmed through fax. Since there was not much time left for completion of assessment, the Assessing Officer without proper enquiries seems to have completed the assessment without considering the explanation of the assessee added the share application money as creditors were not identified and genuineness of the transaction are not established by the assessee. The Commissioner of Income Tax (Appeals) considering the submissions and evidences furnished by the assessee deleted the addition observing as under:- "13. It is vital and appropriate to point out the details with evidences filed by the appellant as to the existence of those two companies, which are as under. (1) Evidences as to registration of the two companies with Registrar of Companies. (2) PAN of the two companies (3....
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....s repayment of Rs. 15 lacs, interest is Rs. 7,67,984/-. As on' 31.3.2008, amount transferred is RS.90.40 lacs. There were transactions with Canara Bank, Kolkata and IClCI Bank account, Kolkata. The IClCI Bank account was opened on 5.3.2004. A/c NO.000605004386. Address: 1-B, Black Burn Lane'4th Floor, Kolkata. All the transactions are by cheque and NKCM Spinners received from Top grain Vyapar {P} Limited. The details available from 2007 onwards verified. The Canara Bank a/c number of Top grain :Vyapar {P} Limited is 0315201005231 and the address given is 1B, Black Burn Lane, Fourth Floor, Kolkata-700012". This bank account in 2007 did not show any cash deposits. 18. Regarding M/s Umang Commo Trade (P) Ltd, Kolkata, the appellant also filed ledger extracts of Narendra Kumar Cotton Mills, and NKCM Textile. The opening balance in Narendra Kumar Cotton Mills is 1.4.2007 - Rs. 8,50,000/- Receipts - Rs. 75 lakhs and on 31.3.2008 closing Rs. 84,92,891. The opening balance in NKCM Textile on 1.4.2007 is Rs. 72,74,999/- and on 31.3.2008 closing balance is Rs. 79,27,894/-. The appellant also filed HDFC bank account of M/s. Umang Commo Trade (P) Ltd. The bank account no. is 2322320....
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....amely Umang Commo Trade (P) Ltd. and M/s. Top Grain Vyapar P) Ltd. do exist at the address 1-B, Black Burn Lane, 4th floor, Kolkata-700012 more particularly of the fact that after adducing evidences in support of the share call advance and unsecured loan by the appellant, no finding as to the untrustworthy or credibility-lacking of the materials and evidences filed by the appellant company was given and that the "Assessing Officer merely concluded on the basis of the enquiry report. Hence, the Assessing Officer is, directed to delete the additions made on account of share call advance money of Rs. 250,00,000 /-and unsecured loan (net) with interest thereon Rs. 16,14,923/-." 7. On going through the above order, we find that the assessee has furnished various evidences to establish the identity of the creditor companies as extracted by the Commissioner of Income Tax (Appeals) in his order. We also find that directors were appeared before the Commissioner of Income Tax (Appeals). The Commissioner of Income Tax (Appeals) directed them to file bank details of which concerns they are directors. The information required by the Commissioner of Income Tax (Appeals) were also furnished. O....