TaxTMI 
TaxTMI 
2015 (12) TMI 1081
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....posing of the respective appeals preferred by the Assessee against the assessment orders dated 31st December, 2010 passed in respect of the aforementioned AYs. 2. The Revenue has projected the following questions of law in each of the aforesaid appeals:- "(i) Whether in the facts and circumstances of the case and in law, ITAT could have held that both the AOs making assessment u/s 153A as well as AO initiating proceedings u/s 153C, should have separately recorded their satisfaction even when the AO making assessment u/s 153A is the same person as the one initiating proceedings u/s 153C? (ii) Whether in the facts and circumstances of the case and in law, ITAT could have upheld the deletion of addition u/s 68, even when it was established that the assessee is an entry operator? (iii) Whether in the facts and circumstances of the case, ITAT could have deleted additions under section 68 of the Act on the ground that they are not based on any material found as a result of the search on the assessee company? (iv) Whether in the facts and circumstances of the case, ITAT could have held that there was no valid search since the impugned additions have been made under section 153....
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....roup and other Table-I shareholders; and Table-III shareholders comprised 74 companies. The Assessee, in the present case, is one of the 12 companies that were not subjected to search but was assessed under Section 153C of the Act. 7. The assessment order records that a notice under Section 153C of the Act was issued by the Assistant Commissioner of Income Tax, Meerut ('ACIT, Meerut') on 15th September, 2010 for the AYs 2003-04, 2004-05, 2005-06, 2006-07 & 2007-08. On the same date, a notice under Section 142(1) of the Act was issued for AY 2009-10. In response to the notice under Section 153C and 142(1) of the Act, the Assessee filed its returns of income on 22nd November, 2010 for the respective six AYs in question. On 23rd November, 2010, notices were issued under Section 143(2) and 142(1) of the Act were issued by Assistant Commissioner of Income Tax, Central Circle, Ghaziabad ('AO'). 8. Thereafter, various notices were issued by the AO. According to the AO, the said notices were not fully complied with. However, this is disputed by the Assessee and the paper book filed by the Assessee in these proceedings indicates that the notices were responded to. On 31st December, 2010, ....
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....cuments and books of account found and seized from the business premises of M/s SVP Builders India Ltd, 17, Kiran Enclave, G.T. Road, Ghaziabad, I am satisfied that some- documents including following documents belong to M/s Flucky Leasing & Finance (P) Ltd, B-4/71-A, Lawrence Road, New Delhi. Annexure A-5 Pages no 27 to 39- loose papers regarding purchase of shares by, B-4/71-A, Lawrence Road, New Delhi. These papers include resolution dated 14-06-2006 in favour of Mr. Ghansyam Dass, director, affidavit of Mr. Ghansyam Dass dated 26-02-2007 regarding investment of Rs. 10,00,000/- in purchase of shares of M/S SVP Builders India Ltd, 4-share applications, acknowledgement receipt of return for assessment year 2006-07 along with P & L A/c & balance sheet, certificate incorporation of the company, one page of associated of articles, copy of statement by M.G. Investment of having advanced a loan of Rs. 10,00,000/- to M/S Gulbarga Associates (P) Ltd Annexure A-15- page no. 240 to 248- copies of share certificates held by individuals/ companies of M/S SVP Builders India Ltd. Registered folio no. 028, certificate no. 00239 to 00247 in the name of M/S Flucky Leasing & Finance (P) Ltd ....
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....ders India Ltd. in connection with the investment made by the Assessee in the share capital of that company. Therefore, the said documents no longer belonged to the Assessee. Insofar as share certificates are concerned, it was contended that the some of the documents alleged to be share certificates were not share certificates but counter foils of the shares certificates issued by SVP Builders India Ltd. and the other share certificates seized pertained to shares that had already been sold by the Assessee and, therefore, the certificates no longer belonged to the Assessee. 11. During the course of the proceedings before the CIT(A), the Assessee also furnished affidavits of various persons who had invested in the Assessee company either by applying for shares or by lending money as short term loans. 12. The CIT(A) observed that the balance sheet of the Assessee did not reflect any physical assets and the Assessee was not engaged in any actual business activity. The shares sold and purchased by the Assessee were not saleable in the open market and were not tradable commodities. It is further observed that the profit or loss shown from the activity of sale and purchase of shares by ....