AI Drafter 
TaxTMI 
TaxTMI 
2019 (1) TMI 593
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.... three assesses belong to the Triveni group in respect of which the search operations were conducted on 28.9.2010 giving rise to the reassessments u/s 153A the Income-tax Act, 1961 ("the Act") and the grounds involved are more or less similar, we deem it just and convenient to dispose these of by way of this common order primarily with reference to the facts involved in ITA No.6126/Del/2014. ITA Nos6126 /Del/ 2014 and CO No. 165 /Del/ 2015. 3. Original return of income was filed declaring a total income of Rs. 2,82,271/- and subsequently, pursuant to the search that was conducted on 28.9.2010 in respect of Triveni group of which the assessee is also a part, notice u/s 153A of the Act was issued and the assessee filed the return of income on 10.12.2012 declaring as total income of Rs. 7,26,490/-. Learned AO added a sum of Rs. 4,90,800/- which the assessee had declared as agricultural income on the ground that the agricultural land was in the name of the deceased father of the assessee at Dholpur and the assessee had not filed any proof regarding the agricultural activity carried out on the said land. Learned AO further added a sum of Rs. 5,01,90,000/-u/s 68 of the Act in respe....
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.... in dispute was put to agricultural use and the assessee has been consistently declaring the same in the return of income and the revenue has been accepting the same without raising any objection. 8. In the circumstances, reliance of the learned CIT(A) on the decision of the Hon'ble Apex Court in the case of Radhaswami Satsang vs CIT (1992) 193 ITR 321 (SC) in respect of the necessity of following the rule of consistency cannot be found fault with. On this aspect, the approach of the learned CIT(A) is perfect and needs to be confirmed. We accordingly decline to interfere with the same. Hence, ground No.1 of the appeal is dismissed. 9. Now coming to the addition u/s 68 of the Act, learned AO recorded that in the bank account of the assessee, an amount of Rs. 5,05,90,000/- was found credited and that the assessee had filed the cash flow statement for the year under consideration and also for earlier years, since no proof in support of various cash receipts was filed, such cash flow statements remain self serving document and no reliance could be placed. On this premise, learned AO proceeded to make the addition. 10. In appellate proceedings, learned CIT(A) looked into the co....
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....res during the year and paid a sum of Rs. 2.65 crores to the assessee for purchase of shares. On this, learned CIT(A) directed the assessee to prove the identity and creditworthiness of all the partners of these entities, in response to which the assessee submitted copies of return of income, computation sheet and balance sheet for each of the partners. Since these documents were submitted before the learned CIT(A) and were not available before the learned AO, learned CIT(A) transmitted the documents to the learned AO calling upon him to submit the report. Learned CIT(A) recorded that in spite of three reminders, there was no response from the learned AO. In those circumstances, learned CIT(A) in order to ascertain the authenticity of the return of income, identity and creditworthiness of each of the partners addressed a letter to the Directorate of Income-tax (Systems) and obtained the report. On analysis of the return and document, learned CIT(A) found that out of the 17 partners of M/s Vivek Commodities, the creditworthiness of one Harveer Singh was doubtful, as such, the learned CIT(A) confirmed his contribution to an extent of Rs. 2,62,500/-. 13. Similarly, out of 20 partne....
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....tainers Ltd confirmed the addition to the extent of the money contributed by these partners with doubtful creditworthiness. When the learned CIT(A) transmitted the documents submitted by the assessee to the learned AO calling for the report, record speaks that there was no response from the learned AO in spite of three reminders. No explanation is forthcoming from the revenue even before us as to what prevented the learned AO to verify the documents to submit report if there is a serious objection on the identity and creditworthiness of such partners. In these circumstances, we are convinced that the reasoning of the learned CIT(A) that he addressed a letter to DIT (Systems) for the purpose of identity and creditworthiness of these partners and to proceed with the matter having analyzed the report and the documents submitted by the assessee. No other course was left open to the learned CIT(A) in view of the non response of the learned AO to the letter dated 22.5.2014 of the learned CIT(A). In these circumstances, we hold that the approach of the learned CIT(A) cannot be found fault with and the learned CIT(A) did the possible exercise that should have been done in the given circums....
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.... order speaks that in order to prove the identity, creditworthiness and genuineness of the transaction the assessee submitted the copy of their returns of income and their balance sheet and profit and loss account, confirmation of accounts etc by explaining that on account of pledging of some of the shares of Triveni Infrastructure Development Company Ltd (TIDCO) which were owned by her, pursuant to the share purchase agreement entered with Mr. Mathur Mittal and Mr. Sumit Mittal, as TIDCO was likely to come up with an IPO at a price band higher than the 20% of the present value agreed upon by share purchase agreement and pledged deed. Upon going through the copy of the return of income and balance sheet of Mittal traders, Ld. CIT(A) found that this firm had shown nil income and balance sheet and profit and loss account filedwith the return of income revealed that there was no business activity worthwhile undertaken meaning thereby "profit earning apparatus" was missing; and that Mittal Traders is a partnership concern of 20 partners and those partners had brought in a capital of Rs. 1,72,50,000/-in the year under consideration, out of which they Mittal Traders paid a sum of Rs. 1,2....
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....on sheet, balance sheet for each of the partners and seeking the remand report from the learned Ld. AO Ld. CIT(A) returned a finding that it was beyond a reasonable doubt that the identity and creditworthiness of 19 partners of Mittal traders who have contributed Rs. 1,64,50,000/-was duly proved. 24. The order of the Ld. CIT(A) was challenged by the revenue before this Tribinal, and a coordinate bench of this Tribinal in ITA No. 6122 and 6123/Del/2014 for the assessment years 2007-08 in 2008-09 by order dated 12/7/2018 upheld the same. No reasons are assigned before us as to why should we take a different view from this one. We do concur with the Ld. CIT(A) in his finding in the impugned order for the AY 2007-08. 25. Insofar as the amount of Rs. 75,000/-received from Smt. Seema Rajesh Sharma, is concerned, according to the assessee this amount was received on account of sale of 10 lakh shares of TIDCO to her at the rate of Rs. 7.50 per share whereas the face value was Rs. 10, by suffering a loss of Rs. 25 Lacs and thisshort-term capital loss was claimed by them in their return of income filed on 31/3/2009, but since the said return was late the short-term capital loss was not....