TaxTMI 
TaxTMI 
2017 (1) TMI 1294
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....me of Rs. 9,490/-. Subsequently, the Assessing Officer received information from the office of DIT(Inv.) that the assessee company had introduced unaccounted money in its books without paying tax with the help of entry operators. It was informed that assessee company had received Rs. 3,00,000/- from M/s Basant Agencies Pvt. Ltd. and Rs. 4,00,000/- from M/s Right Choice Construction Pvt. Ltd.. Accordingly, assessment was reopened u/s 148 of the Act. In the course of assessment proceedings, it was informed by the assessee company that it had allotted 400 equity shares of face-value of Rs. 100/- at a premium of Rs. 900/- to M/s Right Choice Construction Pvt. Ltd. and 300 shares of face-value of Rs. 100/- at a premium of Rs. 900/- to M/s Basant....
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.... any analysis. It was, further, pointed out by ROC that as per Ministry Circular No.3/46/11-CL-2 dated 13.07.2011 the matter was referred to Regional Director (NR) Ministry of Corporate Affairs, Noida. In the meantime, the assessee company furnished confirmation of M/s Basant Agencies Pvt. Ltd. and M/s Right Choice Construction Pvt. Ltd. but expressed its inability in furnishing bank statement for the relevant assessment year. Therefore, the Assessing Officer deputed Inspector to conduct necessary enquiry about the physical presence of the companies M/s Basant Agencies Pvt. Ltd. and M/s Right Choice Construction Pvt. Ltd. at 8/94, Sector-15, Rohini, Delhi. The Assessing Officer has reproduced the Inspector's report wherein he, inter-alia, s....
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....ny to substantiate its claim of activity of business of being carried out by these companies viz. M/s Basant Agencies Pvt. Ltd. and M/s Right Choice Construction Pvt. Ltd.. The Ld. CIT(A) dismissed the assessee's appeal for the following reasons :- (a) Inspite of correspondence done with Ministry of Corporate Affairs as noted in para 5.2 of his order, no clarification could be obtained. (b) He pointed out that absence of this information in itself could not be considered as a hurdle in deciding the issue on the basis of well-settled conditions laidout through several judicial decisions for deciding cash credit u/s 68 of the Act. He pointed out that this was an additional information directed by Tribunal for examining the bonafide of t....
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....t further proceeds. (f) Investigation Wing had carried out investigation of certain persons, who were found to be providing accommodation entries in the form of cheques on receipt of cash through various companies through which cheque amount was given to the ultimate beneficiary. (g) The assessee's company name was found in the list of such companies and the amount of receipt of such cash credit along with date and name of share applicants also duly tallied. (h) The assessee's case was held to be covered by the decision in the case of Nova Finlease and Promoters (P) Ltd., 342 ITR 169 (Delhi-HC) as by carrying out enquiry at the addresses furnished by the assessee and on finding no such cash creditors at such addresses, the Assessin....
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....hares in favour of Sil Verline Agro Industries Limited and Aarthik Finance & Leasing Pvt. Ltd.. Ld. counsel pointed out that notice was issued u/s 148 in March 2007 by which date both the shareholders had already transferred their shares. Therefore, it was difficult to locate them. 5. Ld. DR referred to assessment order and pointed that it was clearly noted by the Assessing Officer that the address of both the companies was fake as was corroborated by the statement of land-lady. No bank account was produced by assessee and the directors were not produced. He relied upon the findings of Ld. CIT(A) noted earlier. 6. Ld. counsel in the rejoinder submitted that date of Inspector's visit was 11th June, 2013 and as per the details of both t....
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....t Agencies Pvt. Ltd. the copy of return of income for assessment year 2002-03 is contained at page 136 of Paper Book wherein returned income has been shown at Rs. 6,070/-. This clearly shows that both the companies had meager incomes to their credit. As per the Balance Sheet of M/s Right Choice Construction Pvt. Ltd. the reserve and surplus was at Rs. 4081.18 and in the case of M/s Basant Agencies Pvt. Ltd. the reserve and surplus was at Rs. 14,359/-. Apart from that there are unsecured loans and current liabilities and, hence, it is evident that the net worth was not sufficient to acquire shares at such high premium for no reason or purpose being demonstrated. It is well-settled law that onus of substantiating the facts, as alleged by asse....