TaxTMI 
TaxTMI 
2020 (1) TMI 158
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.... Act, 1961 (for short "the Act") and a sum of Rs. 8,05,000/- under section 69 of the Act made by the Assessing Officer. 2. Brief facts of the case are that the assessee is a private limited company. For the assessment year 2005-06 it had filed its return of income on 27/3/2006 declaring nil income. Assessment under section 143(3) of the Act was completed by order dated 2/4/2007. Subsequently basing on the report of the Investigation Wing of the Department to the effect that the assessee was indulging in taking accommodation entries, learned Assessing Officer reopened the assessment by issuance of notice under section 148 of the Act. 3. It could be seen from the assessment order that in the search and survey action that was carried out o....
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.... consideration, were taken by the assessee as indicated in the report received from the Investigation Wing. The details of such transactions were incorporated in the assessment order. Learned Assessing Officer recorded that in the wake of investigations done by the Investigation Wing, which is an integral part of the Department, and noncompliance on the part of the assessee established that the assessee company had taken an amount of Rs. 4.6 crores from an entry operator which remains unexplained and escaped assessment in the assessment year 2005-06. Learned Assessing Officer further recorded that the said accommodation entries were taken by the assessee by giving equivalent amount in cash with commission at the rate of 1.75% to the entry o....
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....nk statements reflecting the payments for purchase of shares, copies of resolution for purchase of shares, copies of their financial statements along with audit reports etc in discharge of its burden as envisaged under section 68 of the Act and on a perusal of such material CIT(A) concluded that the income tax particulars and bank statements of the share applicants established the identity, the Balance Sheet of these applicants prove the creditworthiness and documents filed by way of copies of bank statements etc establish the genuineness of the transaction. Ld. CIT(A) therefore, reached a conclusion that the assessee had discharged the burden of establishing the identity and the creditworthiness of the share applicants, and the genuineness....
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...., no doubt the assessee had meticulously completed the paperwork and filed the documents as enumerated by the Ld. CIT(A), but the fact remains that the entire transaction is clouded with doubt and during the assessment proceedings under section 147/143(3) of the Act there was no cooperation from the assessee. Merely because certain documents are filed by the assessee, it cannot be presumed that the assessee had established the identity and creditworthiness of the share applicants or the genuineness of the transaction. He further submitted that in view of the decisions in the case of PCIT vs. NRA Iron and Steel (P) Ltd (2019) 13 taxmann.com 48 (SC) and CIT vs. NR Portfolio Private Limited (2014) 42 taxmann.com 338 (Delhi) it is incumbent on ....
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.... whether the investor was an angel investor? what is the quantum of money invested? how the party believed the credit-worthiness of the recipient? what is the object and purpose of payment/investment? whether the share applicant is in existence and an independent entity? how the financial capacity of the share applicant to invest funds is proved? how the source of funds from which the high share premium was invested is dealt with by the assessee? why the investor companies had applied for shares of the Assessee Company at a high premium? in case the field enquiry conducted by the AO revealed that the investor companies were found to be non-existent, and the onus to establish the identity of the investor companies, was not discharged by the ....