TaxTMI 
TaxTMI 
2019 (2) TMI 1057
X X X X Extracts X X X X
X X X X Extracts X X X X
.... the form of survey report of the investigation Wing was available for formation of belief that the assessee has introduced its own money in the form of share application money through proper companies. 4. On the facts and circumstances of the case, the CIT(A) has erred in quashing the order u/s 147 and thereby deleting the addition of Rs. 1.85 crores on account of unexplained share application money. 5. On the facts and circumstances of the case, the CIT(A) has erred in quashing order u/s 147 and thereby deleting the addition of Rs. 3.33 lacs on account of unexplained expenditure in form of commission paid to the entry operators. 6. The appellant craves leave to add, amend any/ all the grounds of appeal before or during the course of hearing of the appeal." 3. Ground No.1 is of general in nature and needs no separate adjudication. 4. Ground No.2 and 3 go to the root of the matter. 5. Briefly stated that facts of the case are that original assessment was framed u/s 143 (3) of the Act vide order dated 24.12.2009. The search seizure action was conducted in the case of KM group of cases including the assessee on 27.06.2013. During the course of pre ....
X X X X Extracts X X X X
X X X X Extracts X X X X
....ture Pvt Ltd during the course of search on 27.06.2013 and his statement is reproduced as under:- Q-28: The authorized capital and up capital of KAD Housing Pvt Ltd is Rs. Crs and Rs. 4.57 Crs respectively. The year wise share application money and premiums raised in the case of KADHPL are as under- Financial Year Share application money pending allotment Premium 2007-08 0 0.76 2008-09 1.3 0.99 2009-10 1.72 9.99 2010-11 15.19 9.99 Please explain from whom the share application money of Rs. 13.47 Crs_ (Rs.15.19 Crs- Rs. 1.72 Crs) were raised, how and when same were raised ? I will furnish the relevant details a week's time. We are sitting in your office, please check the account of the company M/s. KADHPL for the Financial Year 2010-11 and furnish the relevant detail. Recording of statement resumed at 5.45 AM on 18.08.2013. Q.30 Please state whether M/s. KAD Housing Private Limited has entered into any financial transaction with M/s. Salwan Developers and Promoters Pvt. Ltd. M/s. Fair 'N' Square Exports Pvt. Ltd. M/s. Ribbel Manufactures and Exports Pvt. Ltd. M/s. APT Prope....
X X X X Extracts X X X X
X X X X Extracts X X X X
....g for taking action Under Section 147 of the IT Act for the A. Y. 2007- 08 in the case of M./s. KAD Housing Pvt. Ltd. 7. The assessee was asked to furnish its return of income. The assessee in response to the notice u/s 148 filed a letter dated 17.06.2014 stating that the return filed u/s 139 may be treated as compliance to the notice u/s 148 of the Act. Thereafter the Assessing Officer issued statutory notice u/s 142 (1) and 143 (2) of the Act alongwith a questionnaire. 8. On perusal of the balancesheet of the assessee, the Assessing Officer found that the assessee has raised share capital and / or allotted to the following companies and received amounts mentioned each:- S. No. Name F.Y Amount 1 M/s. Ribbel Manufacturing and Exporters Private Limited 2006-07 15,00,000/- 2 M/s. APT Properties Private Limited 2006-07 25,00,000/- 3 M/s. Scient Informatics (I) Private Limited 2006-07 40,00,000/- 4 M/s. Multitech Semiconductors Private Limiied 2006-07 20,00,0Cw, 5 M/s. Brainsoft Info Consultants Private Limited 2006-07 20,00,000/- 6. M/s Chardham Impex Private Limited 2006-07 25,00,000/- 7 M....
X X X X Extracts X X X X
X X X X Extracts X X X X
....al assessment proceedings all the details were filed before the Assessing Officer which were examined by the Assessing Officer and there is no failure on the part of the assessee to disclose fully and truly all material facts. 12. After considering the facts and the submissions and the reasons recorded by the Assessing Officer for reopening the assessment the CIT(A) found that the completed assessment has been reopened after four years and therefore, proviso to section 147 squarely apply. The CIT(A) further observed that in the assessment order there is no indication of how the income has escaped assessment by reason of failure on the part of the assessee fully and truly all material facts necessary for the assessment. The CIT(A) accordingly deleted the entire addition by annulling the assessment order framed u/s. 147 of the Act. 13. Before us the DR vehemently stated that reopening is valid since in the original assessment proceedings the Assessing Officer has not examined the facts which were unearthed by a search and seizure operation. It is the say of the DR that since the accommodation entries taken by the assessee were not examined by the Assessing Officer, therefore, t....
X X X X Extracts X X X X
X X X X Extracts X X X X
....uestion of law arises for our consideration." 16. We find that during the course of the original assessment proceedings the assessee was specifically asked to discharge its onus u/s 68 of the Act for any fresh loans taken during the year and share application money received. 17. We further find that the FFA has also called for a remand report from the Assessing Officer to submit copies of the reply of the assessee filed during the course of the original assessment proceedings and related documents submitted by the assessee. We find that the following documents were submitted by the assessee to the Assessing Officer :- i. Application of shares ii. Affidavit iii. Income Tax returns filed by the share applicants iv. Audited balance sheet filed by the share applicants v. Bank statement of the share applicants. vi. Form-2 filed by the appellant in respect of allotment of shares to the share applicants. 18. The aforestated details clearly show that during the course of original assessment proceedings the Assessing Officer had made elaborate enquiry to examine the share application money in the light of section 68 of the Ac....