TaxTMI 
TaxTMI 
2020 (4) TMI 762
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....(Respondent No.4) and to further direct him to forebear from taking any coercive steps/actions against the petitioner for recovery of tax and also for removing lien marks on the bank accounts of the petitioner. 4. Mr. Manoj Singh, learned counsel for the petitioner states that the respondents had failed to appreciate that the assessment order dated 29th December, 2019 had been made on a 'high pitched basis' and therefore, the recovery and collection of tax had to be held in abeyance till the disposal of the appeal against the assessment order dated 29th December, 2019 pending before the respondent No.3. He contends that the respondents No.2 and 4 erroneously assumed that the pre-deposit of twenty per cent of the outstanding amount was mandatorily required in view of the instructions and office memorandum issued by CBDT dated 02nd December, 1993, modified by office memorandum (OM) dated 29th February, 2016 and 31st July, 2017. He submits that the CBDT instructions, guidelines and office memorandum cannot substitute or override the basic tenets to be followed in the consideration and disposal of stay applications. He states that the existence of a prima facie case for which illust....
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....ed, is a venture capital fund or a venture capital company as referred to in clause (23FB)of section 10." 8. The use of the words "any sum found credited in the books" in Section 68 of the Act indicates that the Section is widely worded, and includes investments made or unsecured loans received. As per settled law, the initial onus is on the assessee to establish by cogent evidence the genuineness of the transaction and creditworthiness of the investors/loan depositors under Section 68 of the Act. The assessee is expected to establish to the satisfaction of the assessing officer:- • Proof of identity of the creditors/lenders; • Capacity of creditors to advance loan; and • Genuineness of transaction 9. Recently, the Supreme Court in Principal Commissioner of Income Tax (Central-1) vs. NRA Iron and Steel Private Ltd., (2019) 15 SCC 529 has held as under:- "13. The principles which emerge where sums of money are credited as share capital/premium are: 13.1. The assessee is under a legal obligation to prove the genuineness of the transaction, the identity of the creditors, and creditworthiness of the investors who should hav....
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....Companies Act, 2013. However physical spot enquiries conducted at the registered address have revealed that the premise is actually a staff colony and is only for residential purposes of staff. No sign board/name plate/letter box was found in the name of M/s Glebe Trading Private Limited on the given address. The watchman at the premise reiterated the fact that the said premise is a staff colony of some other entity and was not aware of the name of M/s Glebe Trading Private Limited having existed there. Further, no documents such as electricity/water bill, registered rent agreements etc. have been produced in the name of the company for any of its addresses. The Address 'A-1, UPSIDC Industrial Area, Nandgaon Road, KosiKalan, Mathura, Uttar Pradesh' is the registered address of the assessee's group company and flagship concern of the group M/s Jindal Saw Ltd. Vide show cause notice mentioned above, the assessee was asked to furnish proof of whether the company had set up/commenced or made efforts to set up/commence its business for pursuing its main objects as stated above in its MOA. Further, it was asked to clarify if any income was generated in the course of the....
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.... 7 2017-18 84,74,200 As per information available with this office, the following Jindal Saw group companies claimed to have availed unsecured loans from the above company during AY 2017-18 (as per table below):- (Table B) Sl.No. Name of Company Unsecured loan received from Glebe Trading Pvt. Ld. (in Rs.) 1 Jindal Saw Ltd. 105,44,00,000 2 Jindal ITF Ltd. 151,83,70,000 3 JITF Urban Infrastructure Services Ltd. 196,50,00,000 4 Jindal Quality Tubular Ltd. NA 5 Jindal Fittings Ltd. 103,89,25,000 Total 557,66,95,000 From the above tables it is seen that in the AY 2017-18, M/s Glebe Trading Pvt. Ltd. had declared total income of Rs. 84,74,200/-. It had declared Nil income for the AYs 2011-12, 2012-13 and 201314, being the first three years since its incorporation. The highest income returned by the company from the initial assessment year of its existence to AY 2017-18 was Rs. 2,85,32,470/-, declared in AY 2016-17. However, during AY 2017-18, it had furnished huge amount of unsecured loans of Rs. 557,66,95,000/- to five Jindal Saw group companies. ....