TaxTMI 
TaxTMI 
2019 (11) TMI 867
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....and since the issues involved therein are common, the same have been heard together and are being disposed of by a single consolidated order for the sake of convenience. 2. The solitary common issue involved in both these appeals relates to the addition made by the Assessing Officer and confirmed by the ld. CIT(Appeals) on account of share application money received by the assessee during the years under consideration by treating the same as unexplained cash credit under section 68 of the Income Tax Act, 1961. 2. The assessee in the present case is a Company, which belongs to Bhalotia Group. A search and seizure action under section 132 was conducted on 01.12.2015 in the cases belonging to Bhalotia Group including the case of the assesse....
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....e application money were routed through banking channel and the copies of Bank statements of share applicants were produced before the Assessing Officer to support and substantiate the said submission. It was further submitted by the assessee that there was no incriminating material found during the course of search, which could show that the transactions involving receipt of share application money were not genuine. These submissions made by the assessee were not found acceptable by the Assessing Officer for the following reasons given in his impugned order:- "(i) Mere filing of documents that the transactions were routed through banking channels would not suffice to prove the genuineness of the transactions. A transaction, prima ....
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....relevant. 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 genuine....
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.... received during the years under consideration was not satisfactorily explained by the assessee in terms of section 68 and additions to that extent were made by him to the total income of the assessee by treating the share application money as unexplained cash credit in the assessments completed under section 153A/143(3) of the Act vide an order dated 27.12.2017. 3. Against the orders passed by the Assessing Officer under section 153A/143(3), appeals were filed by the assessee before the ld. CIT(Appeals) and since the submissions made by the assessee in support of its case that the additions made by the Assessing Officer under section 68 were not sustainable, were not found acceptable by the ld. CIT(Appeals), he proceeded to confirm the ....
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....dicial 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 appellant. These arguments are accordingly rejected. I also have to record that the factual matrix of the case clearly points out that the contributions received by the assessee-company from the contributors of share capital/share premium were from persons who did not have the means to be creditworthy, and could not establish their creditworthiness". Aggrieved by the orders of the ld. CIT(Appeals), the assessee has preferred these appeals before the Tribunal. 4. We have heard the arguments of both the sides and also perused the rel....
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.... 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 balancesheet 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 incriminating material found during the course of search, the additio....