TaxTMI 
TaxTMI 
TaxTMI 
2017 (4) TMI 456
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....thout satisfying other conditions precedent for initiating proceedings under that section. 1.2 That on the facts and in the circumstances of the case, the Commissioner of Income Tax (Appeal) erred in upholding the action of the Assessing Officer in initiating proceedings under section 147 of the Act solely on the basis of certain information purportedly received from the Investigation Wing, without any independent application of mind, which is sine qua non for assumption of valid jurisdiction. 2. For that the Learned Commissioner Income Tax (Appeal) is not justified in upholding the addition made u/s 68 of the Income Tax Act, 1961 by the Income Tax Officer amounting to Rs. 10,01,000/- (Rupees Ten Lakhs One Thousand Only) received from the following parties: a. Rabik Exports Ltd. Rs. 5,00,500/- b. Dignity Finvest Pvt. Ltd. Rs. 5,00,500/- The addition amounting to Rs. 10,01,000/- may, please be deleted and the share application money may not be treated as unexplained cash credit as per provisions of section 68 of the Income Tax Act, 1961. 3. For that the penalty proceedings initiated u/s 271(1)(c) of the Income Tax Act may please be deleted. 4. For that any other....
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.... 4. Aggrieved with the order of the Ld. CIT(A), Assessee is in appeal before the Tribunal. 5. At the time of hearing, Ld. Counsel of the assessee has certified that assessee has filed all the documentary evidences before the AO as well as before the Ld. CIT(A) for substantiating its claim and in spite of the same the Revenue authority has wrongly made the addition in dispute. In support of his contention, Ld. Counsel of the assessee has also filed a Paper Book containing pages 1 to 49 having the copy of Audited Balance Sheet alongwith Annexure of Allotted shares, Ledger A/c copy Bank Statement; Written submission to CI"T(A) vide letter dated 6.11.2012; Form No. 2 of Companies Act for allotment of shares and filing with the ROC on 29.5.2002; Application for asking for reasons; Filing of objections dated 25.11.2009; Letter to AO dated 11.12.2009; Details of Investors i.e. (a) Rabik Exports Limited: Share Application Form, Minutes of Board Meeting, Details of CIN NO., MOA, Confirmation, Affidavit, ITR and Financial Statement; (b) Dignity Finvest Private Limited : Share Application Form, Minutes of Board Meeting; CIN No., MOA, PAN No., ITR, Confirmation and Affidavit. Ld. Counsel of ....
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.... are as under:- Sl.No. Name of the party from whom amount received Details of Bank Instrument No. and date Total amount 1. M/s Rabik Exports Ltd. Ratnakar Co-op. Bank, Karol Bagh 2260 dated 26.11.2001 Rs. 5,00,500/- 2. M/s Dignity Finvest Pvt. Ltd. Vijaya Bank, Rani Bagh 2945 dated 27.11.2001 Rs. 5,00,500/- The details filed alongwith the return of income does not indicate the transactions held with the above parties. Further, the investigation wing had a detailed enquiry in this regard and came to a conclusion that the assessee had received the above receipts under the name of share application money / share subscription. Thus, the assessee had ploughed back unaccounted money of Rs. 10,01,000/- in its business through the channel of accommodation entry. Therefore, it is failure on the part of the assessee to disclose fully and truly all material facts necessary for its assessment, for the assessment year 2002-03 and has not paid tax on such amount. The unaccounted moneys which should have been charged to tax are being ploughed back to business without paying due tax on it. In view of the above facts the then AO had the reason to believe that the income to t....
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....ccurate particulars of the same. It is therefore, liable for penalty u/s. 271(1)(c) of the I.T. Act, 1961 proceedings for which is being initiated separately. With these remarks, the income of the assessee is computed as under:- Income returned as per return of income : Rs. 24,636 Add: Un-explained credits u/s. 68 (as discussed Above) : Rs. 10,01,000 Total income : Rs.10,25,636/- Rounded off to Rs. 10,25,640/- Assessed accordingly on a total income at Rs. 10,25,640/-. Give credit to pre-paid taxes, charge interest u/s. 234B of the I.T. Act. Issue demand notice, Challan and copy of ITNS 150 ............................" 7.2 We further note that Ld. CIT(A) while dismissing the appeal of the assessee has passed a detailed order 21.11.2012 by observing as under:- "3.4 The appellant has argued that the companies shown as share applications are having PAN and payments are made by cheque. The Appellant's argument is unacceptable in view of the specific information received from the Investigation Wing regarding investigations which shows that the appellant had received bogus accommodation entries. It is well known that in such cases, companies are registered and doc....
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....1 We further note that Ld. CIT(A) has supported and upheld the addition made by the AO by the following judicial decisions and held that the addition made u/s. 68 is justified. i) CIT vs. Nova Promoters & Finlease P Ltd. (2012) 324 ITR 169 (Delhi) ii) CIT vs. Gold Leaf Capital Corpn Ltd. (2012) 205 Taxman 16 (Delhi) iii) ITO vs. Diza Holdings P Ltd. (2002) 255 ITR 573 (Ker) iv) CIT vs. United Commercial & Indl. Co. P Ltd. (1991) 187 ITR 596 (Cal) v) CIT vs. Neelkanth Ispat Udhyog Pvt. Ltd. 2012-TIOL- 606-HC-DEL-IT vi) ITO vs. Onassis Axies Pvt. Ltd. 2012-TIOL-415-ITATDEL vii) Dhingra Global Credence (P) Ltd. vs. ITO (2010) 1 ITR Trib. 529 (Delhi) 7.3 We have carefully gone through the assessment order as well as appellate order. We find that AO in the assessment order has not at all discussed and corroborated the documentary evidences which were available with him, as certified by the Ld. Counsel of the Assessee. The same documentary evidences are being filed before the Tribunal also in the shape of Paper Book i.e. copy of Audited Balance Sheet alongwith Annexure of Allotted shares, Ledger A/c copy Bank Statement; Written submission to CI"T(A) vide letter dated 6.11.2012; F....