TaxTMI 
TaxTMI 
2019 (9) TMI 44
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....in both appeals. Therefore, for the sake of brevity, a ground of appeal filed by the revenue in ITA No. 903/Mum/2018 is reproduced as under:- 1. "Whether on the facts and circumstances of the case and in Saw, the CIT(A) was justified in deleting the addition of Rs. 9,80,00,000/- made by the Assessing Officer ignoring the fact that the AO has rightly considered statement admitted by Shri Kamal Khetan and Shri Vikash Sankhlech u/s 131 was an credible and admissible in the eyes of law? 2. Whether on the facts and circumstances of the case and in law, the CIT(A) was justified in deleting the addition of Rs. 9,80,00,000/- made by the Assessing Officer ignoring the fact that statement made u/s 131 givers by Shri Kamal Khetan retracted after long gap of more than 2 years, making inordinate delay of 2 thus deserves to be rejected as the same was an afterthought on the part of the Assessee ? 3. The appellant prays that the order of the CIT(A) on the stove grounds be set aside and that of the Assessing Officer be restored.- 4. The appellant craves leave to amend or alter any ground and/or add new grounds which may be necessary. 3. The assessee has, take....
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....ey was received. The assessee was also asked to furnish justifications for share premium charged and collected amounting to Rs. 9,80,00,000/-. Thereafter, the AO, in order to verify, the genuineness of transactions and establish the fact, whether the assessee company commends such huge premium, issued notice 133(6) of the Income Tax Act, 1961, to the Bank of Rajasthan (Now ICICI Bank Ltd.) for the purpose of ascertaining details of transactions for financial year 2008-09. The AO has also issued notices u/s 133(6) of the Act, to various other parties with whom, the assessee company has entered into transactions, during the relevant period. However, most of the notices returned un-served with a remark 'left' or 'not known'. Thereafter, the AO deputed Inspector of his office to examine where about of the bank address of Bank of Rajasthan and the Inspector visited the premises and noticed that Bank of Rajasthan has been taken over by the ICICI Bank Ltd. Accordingly, a letter was issued to the Principal Officer of ICICI Bank, calling for information u/s.133(6) of the Act, in respect of bank statement for the period from 01/04/2008 to 31/03/2015, for which the bank has replied that th....
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.... share capital and share premium, which is evident from the fact that although, the above companies carries huge reserves and surplus of Rs. 46.06 crores, but said companies have been taken over by Sunteck group through SK Infrastructure Pvt.Ltd. at face value of Rs. 1 crore. He, further analyzed financial statement of the assessee company and come to the conclusion that although, the assessee has issued shares at huge premium, but on perusal of its financial statement, the financial of the company does not support such huge valuation of shares, which is evident from the fact that it has earned 'nil' income from operations and also declared net loss of Rs. 24,676 for the year under consideration. Therefore, he opined that the assessee has failed to prove, credit found in the form of share capital and share premium received from allotment of shares by discharging its onus cast upon u/s 68 of the I.T.Act, 1961, in order to prove identity, genuineness of transactions and credit worthiness of the parties and accordingly, by relied upon various judicial precedents, including the decision of Hon'ble Supreme Court in the case of Suamati Dayal vs CIT (995) 2014 ITR 801 and also decision of....
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.... of assessment was in accordance with provisions of section 147 of the Income Tax Act, 1961. The relevant findings of the ld. CIT(A) are as under:- 8.0 I have gone through the assessment order, the appellant's submission and other materials on record. 8.1 The main thrust of the appellant's arguments is that the A.O. has not applied his mind and has mechanically reopened, the assessment for A.Y.2009-10. In this regard, it has been noted that the A.O. has received credible information from DIT (I & CI),regarding the receipt of huge amount of share premium, which according to the A.O. was prima-facie not justifiable. 8.2 It is pertinent to note that no scrutiny assessment was done in the case of the appellant company and the case was just processed u/s 143(1) of the Act. In view of this, there was hardly any information on record, which could have explained the huge quantum of share premium introduced during the year under consideration. The A.O, has also noted that the appellant is a new company and barely had the financial strength to support the quantum of share premium, as has been received. 8.3 It is a matter of record that the copy of ....
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....n. entitle him to issue notice u/s.148, if on the basis of such information, he has prima facie reason to believe that income has escaped assessment. So much so that it was held by the Hon'ble Supreme Court in Claggett Brachi Co.Ltd. vs CIT 177 ITR 409 (SC) that an information obtained during assessment proceedings of a subsequent year can also validate the proceedings initiated u/s 147 for earlier year. Similarly, Hon'ble Bombay High Court in the case of Anusandhan Investments Ltd. vs. M.R.Singh, DCIT, 287 ITR 482 held that a notice issued u/s. 148 based on assessment of subsequent assessment year is valid even if the appeal is pending for such assessment. 8.8 Further, it is the duty of the assesse to disclose full and true materials to the A.O. but for which the AO, could initiate the reassessment proceedings. It has been held by the Hon'ble Supreme Court in Shri Krishna P. Ltd. 221 ITR 538, 549 that every disclosure is not and cannot be Treated to be a true and full disclosure. A disclosure may be a false one or a true one. It may be a full disclosure or it may not be. The Hon'ble Supreme Court held that a partial disclosure may very often be a misleading one. ....
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.... - Ed.), it was held as under:- "10 The term 'failure' on the pan of the assessee is not restricted only to the IT return and the columns of the IT return or the tax audit report. This is the first stage. The said expression 'failure to fully and truly disclose material facts' also relate to the stage of the assessment proceeding, the second stage. There can be omission and failure on the part, of the assessee to disclose fully and truly material facts during- the course of the assessment proceedings. This can happen when the assessee does not disclose or furnish to the AO complete and correct information and details it is required and under an obligation to disclose. Burden is on the. assesses to make full and the true disclosure". 8.14 Further, in the case of Piaggio Vehicles P. ltd. YS. DCIT 290 ITR 377 (Bom), the Hon'ble jurisdictional High Court held that in a case of reopening after 4 years subsequent 10 scrutiny assessments, contradiction was discovered between Tax Audit report and Return of income, it was a case of omission and /or failure on the part of its income. It is also held by Hon'ble Supreme Court that facts which....
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....t case, the said material came to the notice of the AO subsequent to the assessment. There is no grievance that provisions of ss. 148 to 153 have not been followed. In such a situation, it cannot be held that the notice proposing reassessment is vitiated merely because one of the reasons. referred to order of TPO- Raymond Woollen Mills Ltd, vs. ITO &Ors. (1999) 152 CTR (SC) 418 ; (1999) 236 ITR 34 (SC) and Phool Chand Bajrang Lal vs. ITO (1993) 203 ITR 456 (SC): AIR 1993 SC 2390 relied upon. (Paras 46, 47, 50&51) 8.16 In view of the above binding precedents of the Hon'ble Supreme Court, 1 am of the view that t he AO had valid reasons to initiate reassessment proceedings which were duly recorded and communicated to the appellant. 8.17 Thus, there is no denying of the fact that the A.O had in his possession, credible information, which prima facie led to the formation of a belief that income has escaped assessment in the case of the appellant company. Therefore, in my considered opinion, reopening of assessment was in accordance with the provisions of section 147 of the Income Tax Act. Accordingly, this Ground of Appeal NO.1 of the appellant company is ....
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....hetan & Shri Vikas Sankhlecha, which are with reference to subsequent events falling in A.Y. 2012-13. 12.18 It is pertinent to note that in relation to the current A.Y, 2009-10, Shri Kamal Khetan was in no way connected with any of the 5 companies viz. M/s Pali Fabrics Pvt Ltd., M/s Acro Exports Trade Pvt.Ltd. M/s Amazon Metal Pvt. Ltd., M/s Bell Fabrics Pvl. Ltd.& M/s Gandhar Yarn Pvt. Ltd, It is also a fact that in the A.Y. 2009-10, Shri Kainal Khetan was nm connected / related even with the holding company namely, M/s Akshunya Energy Private Limited, Shri Kamal Khetan was neither a shareholder nor a director in the 5 companies or it's holding company in the A.Y. 2009-10. It was only in A.Y. 2012-13 that Shri Kamal Khetan of Sunteck Group has taken over M/s AkshunyaEnergy Private limited through M/s Eskay Infrastructure Private Ltd ( a concern of Sunteck Group) 12.19 In view of these circumstances, it is factually incorrect to adversely interpret the statements of Shri Kamal Khetan & Shri Vikas Sanklecha, which are not relevant for the current assessment year i.e. A.Y. 2009-10. It is pertinent to note that neither Shri Kamal Khetan nor Shri Vikas Sa....
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....tement reflecting the amount received through banking channel, etc in order to prove the identity, genuineness and creditworthiness of the investor. Such details were also filed before the undersigned, during the course of the appellate proceedings, it is a fact that the AO has not raised any doubt on any of the voluminous' documentary evidence placed on record, by the Appellant, No further verification or enquiries were done by the A.O. on the documentation of shareholders / investors provided by the Appellant. Thus, the Appellant Company has duly discharged the onus for proving the identity, genuineness and creditworthiness of the various investors. 12.24 As regards the valuation of the shares of the appellant company is concerned, it has been submitted that valuation is a consideration for the investor and not for the Revenue, especially in the light of the fact that the provisions of section 56(2)(viib) were introduced in the statue w.e.f. 01.04.2013 and have not been given retrospective effect. Thus, as per the Appellant, the provisions of section 56(2)(viib) are applicable from the A.Y, 2013-14 and onwards. Accordingly, it has been submitted that the A.Q, ought t....
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....s unexplained cash credit." 12. 27 The Appellant company has also relied upon the decision of Apex Court in the case of Lovely Exports Pvt. Ltd, , 216 CTR 195, wherein it was held as under:- "The assessee had received certain amounts from various persons as share application money. No addition on account unexplained cash credits could be made to its income in the absence of any evidence to suggest that the subscribers were benamidars or any part of the share capital represented the assessee's own income from undisclosed sources, as the assessee had furnished relevant details of the subscribers and the shares were allotted as per the rules of stock exchange." 12.28 Apart from the above two decisions, the Appellant Company has also relied on many other decisions in support of its contention that no such addition could have been made by the assessing officer in the light of the fact that statue was amended with the proviso appended to section 68 w.e.f. A.Y.2013-14 and it WAS not a retrospective amendment. 12. 29 Another objection of the A.O. contained in the assessment order is that the bank of the appellant company has failed to provide the bank st....
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....-16, vide order dated 24.02.2017 deleted the addition made on the basis of statement of Shri Paras Porwal& Shn Vikas Sanklecha. In the present appeal at hand, instead of Shri Paras Porwal of ''Om Shanti Group", Shri Kamal Khetan of "Sunteck Group" is involved. My Ld. Predecessor CIT(A)-50, Mumbai has deleted the addition in the case of M/s Prime Developers for AT. 2012-13 by holding as under;- "6. 1 In the course of the appeal proceedings, the AR of the appellant submitted that the addition is not sustainable for the following reasons: * Ld. A.O. made addition without bringing material on records which is bad in taw. * Mr Paras Ponval was not partner and employee of this firm and hence the addition is bad in laws. * There should sufficient and adequate material on records for making any addition. * During the assessment year there was not purchases and sales of properly and assesses profit & Loss account shows very clearly that there was not deaf in immovable property during the year. * The statement given by Paras Porwal is retreated by him on 26 July 2013 and he said retraction confirmed on 29-04-2014 vide aff....
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....ity of the creditors, remaining two aspects of the issue i.e. genuineness of the transaction and creditworthiness of the subscribers are in doubt. The DR further submitted that mere furnishing of documents to prove identity is not sufficient enough to come out of the shadow of provisions of section 68 of the I.T.Act, 1961, but, what is relevant is to discharge the onus by filing necessary evidence to prove true identity of the creditors, genuineness of the transactions and creditworthiness of the parties. In this case, although the assessee has filed number of documents to prove the identity, he could not produce creditors in person when the AO called upon the assessee to produce them personally for examination, therefore, it is very clear that identity of the parties is in doubt. As regards genuineness of transaction and creditworthiness of parties, the AO has brought out clear facts to the effect that the assessee could not discharge its onus in respect of creditworthiness. Although, the subscribers have filed their acknowledgment of income tax return, but profit declared for the year under consideration is either nil or negligible when compared to the huge amount of share cap....
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....e basis of income declared for the year under consideration without appreciating the correct legal position of law that in order to bring any credit within the ambit of section 68 of the Act, the Assessing Officer should prove that the credit is, in fact, the income of the assessee from undisclosed sources. In this case, nothing has been pointed out by the Assessing Officer. The learned AR further referring to various judicial precedents including the decision of Hon'ble Bombay High Court in the case of CIT vs. Creative World Telefilms Ltd. (333 ITR 100) submitted that once the assessee has discharged initial onus of proving identity, genuineness of transaction and credit worthiness of the parties, then the Assessing Officer can proceed to re-open the assessment of the creditors, but sum so received from the creditors cannot be regarded as undisclosed income of the assessee. The assessee has further relied upon the following judicial precedents: a) CIT vs. Green Infra Ltd (2017) 292 CTR 233(Bombay) b) CIT vs. Gagandeep Infrastructure Pvt Ltd.(2017) 394 ITR 680(Bombay) c) CIT vs. Goa Sponge and Power Ltd Tax Appeal No. 16 of 2012 (Bombay High Court) ....
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....kay Infrastructure Development Pvt.Ltd. had acquired a controlling interest in M/s Akshunya Energy Pvt.Ltd. by investing a sum of Rs. 1 crore, as additional capital in the company, which has made him 99% owner of the company. Another statement of Shri Kamal Khetan was recorded on 16/10/2013. In response to question No.10, he confirmed that one of his group company M/s Eskay Infrastructure development Pvt.Ltd. had acquired holding company of five companies namely M/s Akshunya Energy Pvt.Ltd for a consideration of Rs. 1 crore. During the course of assessment proceedings, another statement of shri Kamal Khetan was recorded u/s 131 of the I.T.Act, 1961 on 08/11/2016. In the said statement, while replying to question No.9, he had denied any knowledge about all the transactions of investments and share capital in the above mentioned five companies. He, further stated that transactions of investments and share capital were handled by the old management and hence, he was not in a position to offer any comments on the admission made by the old management, in respect of share capital and share premium. In the said statement, in reply to question No.11, shri Kamal Khetan, once again stated th....
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....ere any sum found credited in the books of accounts of an assesee, in any previous year, for which the assesee offered no explanation about the nature and source, thereof or the explanations offered by the assessee, in the opinion of the AO is not satisfactory, then sum so found credited may be charged to income tax, as income of the assesse of that previous year. In order to fix any credit within the ambit of section 68 of the I.T Act, 1961, the AO has to examine three ingredients ie., identity, genuineness of transactions and creditworthiness of the parties. In this factual and legal background, if you examine, the present case in the light of various evidences filed by the assessee, in order to prove credit found in the form of share capital and share premium, one has to see, whether the assessee has discharged its initial onus cast upon u/s 68 of the I.T.Act, 1961 or not. In this case, the assesee has filed various details, including share application form, copy of declaration, board resolution, bank statement of Investor Company, PAN card, acknowledgment of return of income, financial statement of Investor Company, form No. 2 for allotment of equity shares and bank statement r....
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....i Kamal Khetan, the present director of the assessee company asked for copies of statement of shri Vikas Sankhlecha and also opportunity for cross examination of shri Vikas Sankhlecha, the AO has denied, the opportunity of cross examination and also not furnished copies of statement recorded from shri Vikas Sankhlecha. It is a settled position of law that once, any third party information/statements is relied upon to make additions, it is the obligation of the AO to provide copies of such statements/information and also to provide an opportunity of cross examination of the person, who gave the statement, when such opportunity has been availed by the person against whom, such statements are used. This legal proposition is supported by the decision of Hon'ble Supreme Court in the case of Kishanchand Chellaram vs CIT 1980 125 ITR 713 (SC), where it was held that when, third party information is relied upon to draw an adverse inference against the assessee, the same needs to be provided and also opportunity of cross examination shall be given, if such opportunity is availed by the assessee. The Hon'ble Supreme Court in the case of Andaman Timber Industries Ltd Vs CCE, Kolkata II in App....
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....criber to the share capital. This amendment has been examined by the Hon'ble Bombay High Court in the case of CIT vs. Gagandeep Infrastructure (P) Ltd. (2017) 394 ITR 680, where the court observed that proviso inserted to section 68 w.e.f. 01.04.2013 is considered to be prospective in nature and is applicable from A.Y. 2013-14 onwards. From the above, it is very clear that similar amendment has been made to provisions of section 56(2) by insertion of clause (viib) so as to bring share premium within the ambit of section 56(2) of the I.T Act, 1961. Since, the proviso inserted to section 68 is considered to be prospective in nature, obviously sub clause (viib) inserted to section 56(2) is also considered to be prospective and cannot be applied to the assessment year in question. Even otherwise, assuming for a moment above provisions are applicable for the year under consideration, in order to apply said amended provisions, the AO has to prove that the assessee has not proved capacity of the investors and also not offered any justification for issue of shares at premium. In this case, from the facts on record, it is clear that the assessee has proved identity and genuineness of the tr....
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....thing except issuing summons which were ultimately returned back with an endorsement "not traceable In our considered view, the AO ought to have found out their details through PAN cards, bank account details or from their bankers so as to reach the shareholders since all the relevant material details and particulars were given by the assessee to the AO. In the above circumstances, the view taken by the Tribunal cannot be faulted." CIT vs. Lovely Exports (P) Ltd (2008) 216 CTR 195 (SC) "If the share application money is received by the assessee company from alleged bogus shareholders, whose names are given to the AO, then the Department is free to proceed to reopen their individual assessments in accordance with law, but it cannot be regarded as undisclosed income of assessee company." CIT vs. Steller Investment Ltd (2001) 251 ITR 263 (SC) (civil appeal) "That the increase in subscribed capital of the respondent company could not be a device of converting black money into white with the help of formation of an investment company, on the round that, even if it be assumed that the subscribers to the increased capital were not genuine, tinder no cir....
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....ssments of the shareholders whose names and details were given to the Assessing Officer." ACIT vs. Venkateshwarlspat Pvt Ltd (2009) 319 ITR 393 (Chhatisgarh-High Court) "If the share applications are received by the assessee from alleged bogus shareholders, whose names are given to the Assessing Officer, then the Department is free to proceed to reopen their individual assessments in accordance with law, but it cannot be regarded as the undisclosed income of the assessee." Mod Creations Pvt Ltd vs. ITO (2013) 354 ITR 282 (Del-High Court) "Held, allowing the appeal, (i) that the assessee had discharged the initial onus placed on it. In the event the Revenue still had a doubt with regard to the genuineness of the transactions in issue or as regards the creditworthiness of the creditors, it would have had to discharge the onus which had shifted on to it. A bald assertion by the Assessing Officer that the credits were a circular route adopted by the assessee to plough back its own undisclosed income into its accounts, could be of n o avail. The Revenue was required to prove this allegation. An allegation by itself which is based on assumption will no....
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....eir affidavits. In some cases such replies were not received through posts. Rs. 9 lacs represented those assessees who denied having made any investment altogether. The issue thus would fall sq uarely within the ambit of the judgment of the Supreme court in the case nf Lovely Exports (supra). No error of law can be stated to have been committed by the Tribunal. Tax Appeal is therefore dismissed." CIT vs. Peoples General Hospital Ltd (2013) 356 ITR 65 (MPHigh Court) " Held , dismissing the appeals , that it the assessee had received subscriptions to the public or rights issue through banking channels and furnished complete details of the shareholders, no addition could be made tinder section 68 of the Income-tax Act, 1961, in the absence of any positive material or evidence to indicate that the shareholders were benamidars or fictitious persons or that any part o f the share capital represented the company's own income from undisclosed sources. It was nobody's case that the non resident Indian company was a bogus or non-existent company or that the amount subscribed by the company by way of share subscription was in fact the money of the assessee. ....
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....ax returns and assessments. In these circumstances, the Department could not draw an adverse inference against the assessee only because the sub scribers did not initially respond to the summons. The subscribers, however, subsequently gave their confirmation letters as would be apparent from the impugned order. The identity of the subscribers stands established and it is also a fact that they have shown the said amounts in their audited balance sheets and have also filed returns before the IT authorities. The decision of the Tribunal deleting the addition cannot befaulted." 18. Coming to the case laws relied upon by the learned DR. The DR has relied upon the decision of the Hon'ble Supreme Court in the case of DCIT vs. NRA Iron & Steel Pvt. Ltd. (supra). We find that co-ordinate Bench of ITAT vide its order dated 03.05.2019 in the case of Shree Laxmi Estate Pvt. Ltd. in ITA No. 6557/Mum2017 for A.Y. 2013-14 had considered the decision of Hon'ble Supreme Court in the case of NRA Iron & Steel P. Ltd. and held that the facts of the case before the Hon'ble Supreme Court are entirely different, where on the basis of facts of that case Hon'ble Supreme Court came to the conclusion that....
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....deficiencies were noticed by the ld AO thereon. After this, the ld AO did not proceed to make further enquiry on the subject mentioned loan creditors. It is not in dispute that the assessee and the concerned loan creditors had duly filed their respective bank statements to prove the immediate source of credit for advancing loans to the assessee company, confirmation of having given loans to the assessee company, together with their income tax return acknowledgements and other requisite details called for by the ld AO in the notice u/s 133(6) of the Act. In case if the ld AO had any doubt on the veracity of the documents submitted by the loan creditors, the same could have been confronted on the said loan creditors by issuing summons u/s 131 of the Act and examine them on oath or correspondingly verify the same through the Assessing Offficers of the concerned loan creditors through the internal source of the department. The ld AO did not do either of these in the instant case and merely disregarded the evidences submitted on record before him both by the assessee as well as by the loan creditors directly to him. The written submissions filed by the ld DR in this regard is repetition....
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....furnishing necessary evidences including their financial statements, bank statements and IT returns. 6. The AO has made addition u/s 68 of the Act, on the ground that the unsecured loans are bogus accommodation entries provided by Shri Pravinkumar Jain through his hawala companies. The provisions of section 68 deal with cases where any sum found credited in the books of account of the assessee in any financial year and the assessee offers no explanation about the nature and source thereof or the explanation offered by him is not, in the opinion of the AO, satisfactory, then sum so credited may be charged to income-tax as the income of the assessee of that previous year. A plain reading M/s Shree Laxmi Developers of section 68 makes it clear that the initial burden of proof lies on the assessee. It is well settled legal position that the assessee has to discharge 3 main ingredients in order to discharge the initial burden of proof, i.e. the identity of the creditor, the genuineness of transaction and creditworthiness of the creditors. Once the assessee discharges initial burden placed upon him, then the burden todis prove the said claim shifts upon the AO. In this case, the....
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.... High Court is extracted below:- "The proviso to section 68 has been introduced by the Finance Act, 2012 with effect from 1-4-2013. Thus, it would be effective only from the assessment year 2013-14 onwards and not for the subject assessment year. In fact, before the Tribunal, it was not even the case of the Revenue that section 68 as in force during the subject years has to be read/understood as though the proviso added subsequently effective only from 1-42013 was its normal meaning. The Parliament did not introduced to proviso of section 68, with retrospective effect nor does the proviso to introduced states that it was introduced 'for removal of doubts' or that it is 'declaratory'. Therefore, it is not open to give it retrospective effect, by proceeding the basis that the addition of the proviso to section 68is M/s Shree Laxmi Developers immaterial and does not change the interpretation of section 68 both before and after the adding of the proviso. In view of the matter the three essential tests while confirming the section 68 laid down by the Court namely the genuineness of the transaction, identity and the capacity of the investor have all been....
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.... received by the assessee company from alleged bogus shareholders whose names are given to the AO, then the department is free to proceed to reopen their individual assessments in accordance with law, but this amount of share application money cannot be regarded as undisclosed income u/s 68 of the Income-tax Act, 1961. 10. Coming to the case laws relied upon by the Ld.DR. The Ld.DR relied upon the decision of Hon'ble Delhi High Court in the case of Principal CIT vs Bikram Singh in ITA No.55/Del/2017 dated 25-03-2017. We have gone through the case law relied by the Ld.DR in the light of facts of the present case and find that the facts of case before Hon'ble Delhi High Court are entirely different from facts of the present case. The Hon'ble Delhi High Court, has considered the fact that the individuals, who advanced loans had no financial strength to lend such huge sum of money to the assessee, that too, without any collateral security without interest and without a lender agreement. Under these facts, the Hon'ble Court held that mere establishing of their identity and the fact that the amounts have been transferred through cheque payment does not by itself ....
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.... these Companies were stated to be situated. In the aforesaid case before the Hon'ble Supreme Court, the result of the enquiry by the AO revealed the following:- a) Notice were duly served on certain investor companies, but no reply was received from them ; b) Some of the investor companies were found to be closed at their correct address ; c) Notice could not be served on some of the investor companies ; d) Some of the investor companies replied to notice u/s 133(6) of the Act wherein they had confirmed having made investment in share application money in NRA Iron & Steel Pvt Ltd but had limited income as per their income tax returns which in turn resulted in doubting of creditworthiness ; e) Most of the investor companies though confirmed the fact of having made investment in share application money in NRA Iron & Steel Pvt Ltd , but had not filed their bank statements to prove the immediate source of credit available to them for making the said investment. 8.1.1. In the instant case before us, the ld AO did not issue any summons u/s 131 of the Act or make further enquiries to examine the veracity of the evidences file....
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....rio, it could be safely presumed that the ld AO was apparently satisfied with the replies given thereon by the loan creditors directly before him in response to notice u/s 133(6) of the Act and hence there is no need to make any examination further. 8.2. In view of the aforesaid distinguishing features on facts of the assessee company vis a vis the facts before the Hon'ble Supreme Court, we hold that the reliance placed by the ld DR on the decision of Hon'ble Supreme Court supra does not come to the rescue of the revenue. 8.3. At the cost of repetition, we would like to state that the ld CIT(A) had merely placed reliance on the decision taken by his predecessor in Asst Year 2012-13 in assessee's own case in similar set of facts. We find that this decision for Asst Year 2012-13 in assessee's own case has been reversed by this tribunal vide its order dated 29.12.2017 referred to supra. In view of our aforesaid findings in the facts and circumstances of the case and respectfully following the decision of this tribunal in assessee's own case for Asst Year 2012-13, we hold that the assessee company had duly proved the nature and source of credit in the form of unsecure....