TaxTMI 
TaxTMI 
2018 (3) TMI 45
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.... to add, amend, vary, omit or substitute the aforesaid ground of appeal at any time before or at the time of hearing of appeal. 3. Brief facts of the case are that the assessee is engaged in the business of manufacturing of grey fabrics on jobwork basis. On perusal of the Balance Sheet it has been noticed that the assessee has received share premium of Rs. 1,39,50,000/- during the relevant A.Y.. During the course of assessment proceedings vide notice u/s 142(1) dt.07.08.2014, the assessee was requested to furnish details of share premium received during the year with name and address of the person from whom the share premium was received along with the bank statement. In response to this, the assessee vide letter dt. 20.08.2014 submitted the name and address of the person from whom the share premiums was received during the relevant assessment year. On perusal of the details furnished it is noticed that assessee has issued share of face value of Rs. 10 at a premium of Rs. 90 per share. 4. The Assessing Officer noted that in this case there is information received from DGIT (Inv)-II, Mumbai vide letter along with list of beneficiaries of accommodation entries in the case of Mr. Pr....
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.... companies arid furnished the data containing the details of beneficiaries who have taken accommodation entries from the concerns directly under the control of Mr. Praveen Kumar Jain. On perusal of the details, it has been noticed that the assessee is one of the beneficiary of the accommodation entry from Mr. Praveen Kumar Jain Group for share application money. As per the details, the assessee has obtained accommodation entries in respect of share application money from the following parties: Name of the Bogus Concern Operated by Praveen Kumar Jain Assessment Year Nature of Transaction PAN of the Beneficiary Name of the Beneficiary as per Books of Bogus Concerns Amount Transaction (in Rs.) of Casper Enterprises P Ltd (Ostwal Trading(I) P Ltd) 2012 -13 Share Money Application AAACV1653K Vinaylene Textile Industries Pvt Ltd 2,500,000 Olive Overseas P Ltd (Realgold Trading Co. P Ltd) 2012 -13 Share Money Application AAACV1653K Vinaylene Textile Industries Pvt Ltd 2,500,000 Triangular Infocom Ltd (Lexus Jnfotech Ltd) 2012 -13 Share Application Money AAACV1653K Vinaylene Textile Industries Pvt Ltd 2,000,OC 7. During the co....
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....ital and shore premium. Copies of the bank statements have also been submitted highlighting the amount received through banking channel. Kindly also find enclosed the following: i. Copies of Share Application received from the investors ii. Confirmation letters of the investors for the investment in shares and mode of payment of share application money. iii. Certified copy of resolution of the Board of Directors of the investor company for the investment in the shares of our above client. iv. Copies of the bank statements of the investor companies highlighting the amount paid to our above client through banking channel. You will kindly appreciate the fact that in support of the transactions relating to the share application money received from the above investors, their existence is proved. The copies of the bank statements of our above client and of the investors on record prove that the share application money has been received through banking channels. In view of the documentary evidences submitted in support of the addition can be made u/s 68 of the Act. Reliance is made on the ratio of the judgements of Hon'ble Rajasthan High Court in Shree Barkhs Synthetics Ltd.....
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....ing inquiries from the alleged share applicants by summoning them. However, as seen from the assessment order, he did not any such thing. Further, if the AO was not satisfied with what had been given to him by the appellant, he was duty bound to specify what more material he wanted the appellant to furnish. The AO never asked for any further material, though time and again the appellant asked in their submissions. This leads to the inescapable conclusion that the AO could not think of any further material to ask for and proceeded to reject the appellant's claims, relying upon the information/material, which he never even brought to the notice of the appellant for any rebuttal. The unequivocal conclusion is that all the 3 ingredients having been satisfied, .the impugned share application money have to be treated as explained ' satisfactorily and the AO was not justified in having disregarded overwhelmingly supportive evidence. No cogent material was adduced by him to show that loans were unexplained. Therefore, the impugned addition of under the heading share application money as made in the assessment order, fails on several counts - (1) reliance on evidence that is totally....
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....he perpetrators of these bogus companies had accepted before the revenue that these companies were engaged in providing bogus accommodation entries in the guise of share application money, unsecured loan, long- term capital gain. In a number of cases, such companies have even accepted before the revenue that they are only providing accommodation entry and their income is only 1 to 2 percent of the turnover. Thus, the background of bogus accommodation entry cannot be ignored by putting on blinkers and only looking at the documents being submitted. None of the case laws referred by the learned CIT-A and the learned counsel of the assessee were not in connection with bogus accommodation entry provider. As a matter of fact Hon'ble High Court's decision in the case of Major Metals Ltd. vs. Union of India [2013] 359 ITR 450 (Bom) has upheld the settlement commission's order where in unjustified huge share premiums where added as bogus accommodation entry. The Hon'ble Apex Court in the case of CIT vs. Durga Prasad More [1971] 82 ITR 540 (SC) and Sumati Dayal vs. CIT [1995] 214 ITR 801 (SC) has also expounded that revenue should not put upon blinkers and should look into the surroundin....