2016 (3) TMI 1073

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.... the share applicants companies were in existence in spite of the fact that Departmental enquiries could not able to trace out the alleged share applicants at the given addresses. 2) Whether, on the facts' and in the circumstances of the case, the Ld. CIT (A) is correct in holding that the onus of the assessee was held to stand discharged where the identity of the alleged share subscribers were not proved even after sufficient opportunities have been provided to the assessee to produce share subscribers before the Assessing Officer for examination. 3) The appellant craves leave to add, alter and modify the grounds of appeal before or during the course of proceedings."   3. The Assessee is a company. It is engaged in the bu....

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.... for A.Y.2004-05 in the case of Shree Shyam Trexim Pvt. Ltd and for A.Y.2005-06 for M/s. Jewellock Trexim Pvt. Ltd., were also furnished. The financial statements of the three parties were also furnished wherein the investment made in the form of share application money in the shares of the assessee company was duly reflected in those financial statements. 5. The AO, however, deputed his Inspector to conduct an inquiry. According to the AO when the Inspector visited the premises of Shree Shyam Trexim Pvt. Ltd., and Navalco Commodities Pvt. Ltd., he found that there was no sign board nor any letter box in the name of the aforesaid two companies. He also reported that on inquiry he was informed that there was no such company at the address....

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....k Trexim Pvt. Ltd. had filed their confirmations wherein each of them confirmed that they had applied for shares of the appellant *company. All the three companies provided* the cheque number, copy of bank statements and their PAN. It is observed' that these companies also filed, copies of their return of income and financial statements for as well as copy of their assessment order u/s.143(3) of the I.T.Act for A.Y.2005-06. In the case of M/s. Jewellock Trexim Pvt. Ltd. the assessment for A.Y.2005-06 was completed by the ITO, Ward 9(3), Kolkata and the assessments in the case of M/s. Navalco Commodities Pvt. Ltd. and M/s. Shree Shyam Trexim Pvt. Ltd. for A.Y.2005-06 and A.Y.2004-05 respectively were completed by the ITO, Ward 9(4), Kolk....

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....ound that the identity of the investor is not proved cannot be sustained. Attention was also to the similar ruling of the ITAT Kolkata bench in the case of ITO vs Devinder Singh Shant in IT A No.208/Kol/2009 vide order dated 17.04.2009. 9. We have considered the rival submissions., We are of the view that order of CIT(A) does not call for any interference. It may be seen from the grounds of appeal raised by the revenue that the revenue disputed only the proof of identity of the share holder. In this regard it is seen that for A.Y.2004-05 Shree Shyam Trexim Pvt. Ltd., was assessed by ITO, Ward-9(4), Kolkata and the order of assessment u/s/143(3) dated 25.01.2006 is placed in the paper book. Similarly Navalco Commodities Pvt. Ltd., was ass....