TaxTMI 
TaxTMI 
2019 (5) TMI 1117
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....acts & circumstances of the case, the CIT (A) was justified in admitting additional evidence in violation of Rule 46A of I.Tax Rules, 1962." 4. "The Order of the Ld. CIT (A) is erroneous both in law and on facts.'' 5. "Any other ground that may be adduced at the time of hearing." 3. Since, the issue in both the grounds of appeal are interrelated pertaining to addition u/s 68 of the Act on account of unexplained investment in share capital and cash deposit and, therefore, adjudicated simultaneously. 4. Briefly, the facts of the case are that a search action u/s 132 of the Act was conducted in the business premises of the assessee and consequently, the assessment was completed u/s 143(3) r.w.s. 153A of the Act. During the course of assessment proceedings, the Assessing Officer noticed that the assessee has made investment in fixed assets and NABARD Bonds amounting to Rs. 21,00,000/- and Rs. 49,87,500/- respectively during the accounting period under consideration. The Assessing Officer further noticed that the assessee has shown credit of an aggregate amount of Rs. 56,00,000/- as share application money/share premium in the Balance Sheet as on 31.03.2009. The ....
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.... had any serious doubts about the transactions. This could have been done either by issuing summons u/s.131 or even by deputing Inspector, which was not done. Therefore, after considering the facts and circumstances of the case and the case laws relied up on by the appellant and the fact that all the persons are regularly assessed to tax and such investments are not disputed in their respective cases, the addition made by the AO is not sustainable and the same is deleted. This ground of appeal is, accordingly, allowed. ........... 4.3 I have gone through the observations of the A.O. and submissions of the appellant. The appellant has filed copies of bank statement, copy of cash book for the relevant periods, audited balance sheet with relevant schedule, to establish the opening cash balances, as additional evidences. The A.O. did not issue any query in this regard. Therefore, the same are admitted as additional evidences u/r.46A after affording opportunity to the A.O. Perusal of the cash book shows that the deposits were made out of cash balance available with the appellant as on the date of deposit. In fact the appellant has received Rs. 3,00,000/- on 01....
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....000/- c. The enhancement in returned income mainly relates to additions made u/s. 68 on account of Share Premium/Capital treated as Unexplained cash credit. GROUND NO. 1 AO's observations: (Para-4) * Aggregate share application money of Rs. 54,50,000/-, Rs. 16,00,000/-, Rs. 56,00,000/- were found credited respectively in above assessment years and assessee failed to satisfactorily explain the same. * In Remand report, AO contended that assessee was allowed several opportunities but he did not comply. * Additional evidences can be admitted only if conditions stipulated in Rule 46 A are fulfilled, hence he objected. CIT(A)'s findings (Para 3.3) * Assessee filed additional evidences, which are Copies of acknowledgement of ITRs, Confirmation of Account, etc of the Investors. * Though particulars of investors were filed before AO, the documents could not be filed for non-cooperation of investors who happened to be outsiders. * Under such circumstances non-supply of requisite information by outside parties has to be held as 'sufficient cause' for not submitting such evidences during assessment proce....
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....ion settled in this case including decision of Hon'ble Jurisdictional High Court in the case of CIT vs Venkateshwar Ispat P. Ltd. (2009) 319 ITR 0393(Chattisgarh), which holds field till date. GROUND NO. 2: (A.Yr. 2006-07 & 2009-10) AO's observations: * Cash deposit of Rs. 1,25,000/- and Rs. 24,00,000/- was made respectively in A.Yrs. 2006-07 & 2009-10 and assessee failed to satisfactorily explain the same. Hence he added CIT(A)'s findings (Para 4.1) * Assessee filed copies of bank statements, cash book for relevant period, relevant schedules of Audit Report to establish opening balances as additional evidences. * A.O. did not issue any query hence, these evidences are admitted u/s.46A. * The immediate source of deposit is covered by available cash balance and no adverse inference could be possible. Assessee's Submissions * The Ld. A.O. did not raise any query requiring the appellant to explain the source of cash deposits and the addition made is against the principles of natural justice. * The deposits were made out of cash balance available in the books of the company. * The financi....
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....ional evidences under Rule 46A in the interest of justice. The said additional evidences established the identity and creditworthiness of the creditors and genuineness of the transactions. The Assessing Officer without conducting enquiries to establish otherwise, made the addition for noncompliance in technical manner cannot be sustained in the interest of justice. Over and above, most of the investors are assessed to the income tax at the same place where the Assessing Officer could have very easily invoked such enquiry, if he had any serious doubts about the genuineness of transactions. This could have been done either by the summons u/s 131 of the Act or even by deputing Inspector, which was not done. These facts have not been controverted by the ld. DR. The contention of the ld. DR that no details have been filed before the Assessing Officer in respect of share application and has no satisfaction in the absence of supporting documentary evidences being available on record regarding shifting onus on the assessee without being any enquiry initiated by the Assessing Officer. Once the details have been provided by the assessee during the appellate proceedings before the ld. CIT(....