TaxTMI 
TaxTMI 
2016 (8) TMI 1144
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..... CIT(A) is totally unjustified in dismissing the appeal of the assessee in upholding the order of the AO who made the addition of Rs. 10,00,000/- on account of share application money and Rs. 10,000/- on account of commission. 3. The ld. CIT(A) is totally unjustified in confirming addition on account of share application money and commission paid where no cross examination has been done by the AO. The appellant craves leave to add, amend or alter any of the grounds of appeal. 2. The brief facts of the case are that the assessee company filed its return of income for AY 2009-10 on 28.8.2009 declaring income of Rs. 10,86,360/-. The return was processed u/s. 143(1) at the returned income. An information was received from the Co....
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..../s. 147 after recording the reasons and order u/s. 143(3) r.w.s. 147 of the I.T. Act was passed on 22.12.2014 at a total income of Rs. 20,96,360/-. 3. Against the Order of the Ld. AO, assessee appealed before the Ld. CIT(A), who vide impugned order dated 21.10.2015 has dismissed the appeal of the assesseee. 4. Aggrieved with the aforesaid order of the Ld. CIT(A), Assessee is in appeal before the Tribunal. 5. Ld. Counsel of the assessee has filed the Paper Book of pages 1 to 90 containing Written Submission; Copy of the Order of Hon'ble Delhi High Court in the case of G & G Pharma India Ltd, ITA No. 545/2015; ITAT order in the case of G & G Pharma India Ltd. ITA No. 3149/Del/2015; Share Application Money Form of M/s Moderate Credit ....
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....on which suffers with serious debility and lacks definiteness, without describing the basic aspects of alleged transaction and in the absence of the same, whole action of the AO gets vitiated. To support his contention he submitted that the issue in dispute is squarely covered in favour of the assessee by the ITAT decision dated 09.1.2015 in the case of G&G Pharma India Limited vs. ITO passed in ITA No. 3149/Del/2013 (AY 2003-04) in which the Judicial Member is the Author. He further stated that the above decision of the ITAT dated 9.1.2015 has been upheld by the Hon'ble Jurisdictional High Court in its Decision dated 08.10.2015 in ITA No. 545/2015 in the case of Pr. CIT-4 vs. G&G Pharma India Ltd. In this regard, he filed the copies of the....
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.... Shri Aseem Kumar Gupta has been following 'layering' of accounts, wherey cash was introduced and beneficiaries were issued cheques from one of his intermediary company after rounding the funds among several intermediaries. Shri Aseem Kumar Gupta has stated on oath (at the time of search as well as during the assessment proceedings) that the cash and other unexplained deposits in various bank accounts of several entities controlled by him belong to the beneficiaries and should be taxed in the hands of respective beneficiaries. The evidences gathered at the time of search further corroborate the assertion made by Shri Aseem Kumar Gupta that he was merely providing accommodation entries. All the relevant evidences in the form of cash bo....
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....the eyes of law. The AO has mechanically issued notice u/s. 148 of the Act, on the basis of information allegedly received by him from the Directorate of Income Tax (Investigation), New Delhi. Keeping in view of the facts and circumstances of the present case and the case law applicable in the case of the assessee, I am of the considered view that the reopening in the case of the assessee for the asstt. Year in dispute is bad in law and deserves to be quashed. My view is supported by the following judgment/decision:- Pr. CIT vs. G&G Pharma India Ltd. in ITA No. 545/2015 dated 8.10.2015 of the Delhi High Court wherein the Hon'ble Court has adjudicated the issue as under:- "12. In the present case, after setting out four entries, sta....
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....ment that the AO must apply his mind to the materials in order to have reasons to believe that the income of the Assessee escaped assessment is missing in the present case. 13. Mr. Sawhney took the Court through the order of the CIT(A) to show how the CIT (A) discussed the materials produced during the hearing of the appeal. The Court would like to observe that this is in the nature of a post mortem exercise after the event of reopening of the assessment has taken place. While the CIT may have proceeded on the basis that the reopening of the assessment was valid, this does not satisfy the requirement of law that prior to the reopening of the assessment, the AO has to, applying his mind to the materials, conclude that he has reason ....