AI Drafter 
TaxTMI 
TaxTMI 
TaxTMI 
2018 (7) TMI 833
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....nufacture and sale of all kinds of papers, board, corrugated board, printing, absorbent and writing paper. It is a sister concern of M/s Krishna Tissues P Ltd (in short KTPL) which is engaged in the business of manufacturing of coated diplex paper board. During the year under review, the assessee had received total equity share capital with share premium of Rs. 1,25,00,000/- with a premium of Rs. 90 per share from the following shareholders :- a) RBM Impex Pvt Ltd b) Extreme Tie-Up Pvt Ltd c) Mahamaya Tie-Up Pvt Ltd d) Winson Vanijya Pvt Ltd e) Uphar Vanijya Pvt Ltd f) Kamna Housing Pvt Ltd 3.1. During the course of assessment proceedings, the ld AO called for examination of various details and documents with supporting evidences and one such issue of examination was with regard to receipt of share capital and share premium received during the year by the assessee. The assessee submitted all the details regarding the receipt of share capital with premium before the ld AO by submitting the names and addresses of the shareholders, their balance sheets, their income tax return acknowledgements and their bank statements. The ld A....
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....mitted that the ld AO ignored many vital factors including its book value per share being Rs. 29.35 per share before fresh issue of subject share capital, future prospects of doing business in big way without need to service debt liability by way of interest payments, credibility of present management who was running a biggest plant of manufacturing of duplex paper board in eastern India and close control of investor companies over affairs and funds of the assessee after their investment in shares of assessee company, the same being a private limited company. The assessee reiterated the submissions made before the ld AO and also furnished the following details before the ld CITA :- a) Bank statements for the year ended 31.3.2012 of share applicant companies. b) Final accounts for year ended 31.3.2012 of share applicant companies. c) Income tax return acknowledgements of share applicant companies for Asst Year 2012-13. d) Master Data of concerned share applicant companies as per website of Ministry of Corporate Affairs (MCA) which shows particulars of their directors and also shows that all of these companies are active. e) The copies of ....
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.... statements of directors of asssesse, share applicant companies allegedly admitting that those companies were created by providing alleged accommodation entities in the form of bogus share capital / bogus share premium , bogus unsecured loans. The assessee explained before the ld CITA that this was made by the ld AO based on the proceedings in the case of group company of M/s Krishna Tissues P Ltd (in short KTPL) wherein survey u/s 133A of the Act was conducted on 29.7.2015 and post survey operations, statement was recorded u/s 131 of the Act by DDIT (Inv.) of the following directors of companies from which the Krishna Tissues group raised share capital :- Name of the Director Statement Statement Name of the related companies Taken on Retracted on in which person is a director Brij Mohan Nangalia 17.8.2015 18.8.2015 RBM Impex Pvt Ltd Extreme Tie-Up Pvt Ltd Jaswant Kumar Nangalia 14.9.2015 16.9.2015 RBM Impex Pvt Ltd Extreme Tie-Up Pvt Ltd Rajesh Kumar Singhania 16.9.2015 18.9.2015 Mahamaya Tie-Up Pvt Ltd Sanjay Bajoria 14.08.2015 16.8.2015 Uphar Vanijya Pvt Ltd 3.5. The assessee submitted that the ld ....
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....cant No. of Shares Applied Cheque No. Bank Amount(Rs.) Applicant's PAN Date of Allotment No. of Shares 07.12.2011 Uphar Vanijya Pvt. Ltd. 20000 743750 Allahabad Bank 2,000,000 AABCU2424J 01.02.2012 20000 17.12.2011 Extreme Tie Up Pvt. Ltd. 20000 858630 IDBI Bank 2,000,000 AACCE0207G 01.02.2012 20000 19.12.2011 Uphar Vanijya 10000 743755 Allahabad Bank 1,000,000 AABCU2424J 01.02.2012 10000 Pvt. Ltd. 06.01.2012 Kamna Housing Pvt. Ltd. 10000 734883 Allahabad Bank 1,000,000 AAECK4606K 01.02.2012 10000 07.01.2012 Kamna Housing Pvt. Ltd. 5000 734885 Allahabad Bank 500,000 AAECK4606K 01.02.2012 5000 07.01.2012 Kamna Housing Pvt. Ltd. 10000 734884 Allahabad Bank 1,000,000 AAECK4606K 01.02.2012 10000 09.01.2012 Winson Vanijya Pvt. Ltd. 5000 735089 Allahabad Bank 500,000 AABCW0316P 01.02.2012 5000 09.01.2012 Mahamaya Tie-up Pvt. Ltd. 20000 227257 IDBI Bank 2,000,000 AAFCM6647R 01.....
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....es. d) Master Data of concerned share applicant companies as per website of Ministry of Corporate Affairs (MCA) which shows particulars of their directors and also shows that all of these companies are active. e) The copies of Form No. 18 filed by those share applicant companies for situation of their respective registered offices. f) PAN and address proof of directors of share applicant companies. g) The chart of net worth of concerned share applicants as on 31.3.2012 extracted from their respective balance sheets which shows that their net worth is several times more than the amount invested by them in the shares of the assessee company duly proving their capacity to invest in shares with premium in the assessee company. h) Details of directorships held in various companies by the directors of share applicant companies. 4.3. It is not in dispute that after collection of all these documents, the ld AO also sought to cross verify the same from the shareholder companies by issuing notice u/s 133(6) of the Act independently behind the back of the assessee. All these notices u/s 133(6) of the Act were duly responded by the share applican....
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....hereon and the same were recorded under coercion. We find that the ld AO thereafter accepted the contentions of the share subscribers of KTPL and accepted the receipt of share capital with share premium by KTPL for the Asst Year 2013-14 and completed the assessment u/s 143(3) of the Act for KTPL. However, he took a completely contrary stand while completing the scrutiny assessment of KTPL for the Asst Year 2014-15 for the additional receipt of share capital and share premium. This matter had come up before this tribunal in the case of KTPL and this tribunal in ITA No. 2215/Kol/2017 dated 1.12.2017 had decided the issue in favour of the assessee. Moreover, we find that the statements recorded by the DDIT(Inv.) from the directors of the share subscribing companies had lost its evidentiary value in as much as the ld AO had recorded further statement from the very same directors during the course of assessment proceedings. Hence the ld AO ought not to have placed any reliance on the statements recorded by DDIT(Inv.) which is not supported by any other corroborative evidences. 4.5. Hence we find that the main reliance placed by the ld AO on the statements recorded from directors in t....
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....ious decisions of this Court did not require that the order of the Tribunal must be examined sentence by sentence through a microscope as it were, so as to discover a minor lapse here or an incautious opinion there to be used as a peg on which to hang an issue of law. In considering probabilities properly arising from the facts alleged or proved, the Tribunal did not indulge in conjectures, surmises or suspicions. 13. In this case the assessee had given the names and addresses of the alleged creditors. It was in the knowledge of the revenue that the said creditors were the income-tax assessees. Their index number was in the file of the revenue. The revenue, apart from issuing notices under section 131 at the instance of the assessee, did not pursue the matter further. The revenue did not examine the source of income of the said alleged creditors to find out whether they were credit-worthy or were such who could advance the alleged loans. There was no effort made to pursue the so-called alleged creditors. In those circumstances, the assessee could not do any further. In the premises, if the Tribunal came to the conclusion that the assessee has discharged the burden that lay....