TaxTMI 
TaxTMI 
2019 (5) TMI 850
X X X X Extracts X X X X
X X X X Extracts X X X X
....cases belonging to Bhalotia Group including the case of the assessee. In pursuant to the said action, notice under section 153A was issued by the Assessing Officer, in response to which the return of income for the year under consideration was filed by the assessee on 15.02.2017 declaring the same total income of Rs. 59,660/- as declared in the return of income originally filed on 29.12.2012 under section 139 of the Act. During the course of search and seizure action, certain Bank accounts were found which revealed that the assessee-company had received share application money of Rs. 15,00,000/- during the year under consideration. During the course of assessment proceedings, the assessee was called upon by the Assessing Officer to prove the identity and capacity of the concerned share applicants as well as the genuineness of the relevant transactions. Notices under section 131 were also issued by the Assessing Officer to the share subscribers for cross examination. The said notices, however, either returned un-served or remained un-complied with. The assessee also could not produce the concerned share applicants for examination before the Assessing Officer when an opportunity i....
X X X X Extracts X X X X
X X X X Extracts X X X X
.... the bank accounts of the share subscribers is followed by a corresponding debit entry of equivalent amount on the very same day. The assessee has contended that this issue is irrelevant. But this issue is very much relevant. This issue coupled with the fact that all the shareholder companies had meagre income, clearly proves that these companies were merely used as fronts to route unaccounted money of the assessee in the garb of equities through multiple layers, (ix) Mere filing of copies of ITRs / bank statements/ accounts of the subscribers would not absolve the assessee from the complicity of introducing unaccounted money in his books in the garb of equities. (x) The assessee was given reasonable and sufficient opportunities to produce all the shareholders, which he failed to do. The assessee had failed to explain the inconvenience in producing the share a pplicants for verification of genuineness of transactions and creditworthiness of the applicants. (xi) It is true that when transactions are through cheques, it looks like real transactions. But one should look behind the transactions and find out motive behind transactions, Mere receipt of share ap....
X X X X Extracts X X X X
X X X X Extracts X X X X
....re application monies was to be denied to the assesseecompany, and was to be assessed as unexplained cash credit u/s 68 of the I T Act. The Ld. AO has placed on record the entire gamut of findings, and there is, in my considered view no further requirement for elaboration from this forum. In view of the facts there are elaborate and direct evidence to clearly indicate that at the entire transactions undertaken by the appellant were merely accommodation entries taken for the purpose of fiving a legal facade to the moneys which were entering the appellant's books of accounts in the grab of Share application Money. I also agree with the Ld. AO that the findings of the assessment were based on incriminating documents as the entire modus operandi of the activities of the assessee-company was located on the basis of the search action, and therefore the findings of the Ld. AO are also based on incriminating details found during the course of the search operation. Therefore none of the judicial precedents relied upon by the appellant in so far as stating that no incriminating documents were found during the course of the search to warrant any additions come to the assistance of the app....
X X X X Extracts X X X X
X X X X Extracts X X X X
....68 was made by the Assessing Officer on the basis of the said Bank accounts found during the course of search, the same is very much within the scope of assessment made under section 153A. He contended that the assessee could not establish the identity and capacity of the concerned applicants as well as also failed to establish the genuineness of the relevant transactions inspite of sufficient opportunity afforded by the Assessing Officer in this regard. He contended that the primary onus that lay on the assessee thus was not discharged and the addition made by the Assessing Officer by treating the share application money as unexplained cash credit under section 68 was rightly confirmed by the ld. CIT(Appeals). 6. In the rejoinder, the ld. Counsel for the assessee submitted that the Bank account found during the course of search was duly disclosed in the books of account of the assessee and even the share application money reflected in the said account was duly shown by the assessee in the balance-sheet filed along with the regular return of income. He contended that the said Bank account, therefore, did not constitute any incriminating material and in the absence of any other i....