2017 (5) TMI 1748

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....ion, it declared a turnover of Rs. 202.99 crores and net profit of Rs. 5.91 crores. The return of income of the assessee was taken up for scrutiny. The AO noticed that the assessee has issued 15,000 shares having face value of Rs. 100/- at a premium of Rs. 1000/- and thus received a sum of Rs. 1.65 crores by way of share capital & premium. The AO noticed that the shares have been issued to a company named M/s Talent Infoway Ltd, a company belonging to Mukesh Chokshi group. The AO noticed that the revenue had conducted search action in the hands of group concerns of Mr. Mukesh Choksi on 25.11.2009 and a statement of Mr. Mukesh Choksi was recorded on 11.12.2009. In the sworn statement, he admitted that he and his group companies are engaged i....

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....r a remand report and in the remand proceedings, Shri Mukesh Chokshi appeared and confirmed the transactions. Accordingly he submitted that the addition made by the AO  was deleted by the Ld CIT(A) in that year. The director also offered to produce Shri Mukesh Chokshi before the AO, if required. The AO took the view that the decision taken in the earlier year cannot be applied for the year under consideration. He also observed that the assessee has not been able to produce Shri Mukesh Choksi and no financial statement was submitted. Accordingly he took the view that the share capital of Rs. 1.65 crores received by the assessee was not genuine and accordingly added the same to the total income of the assessee u/s 68 of the Act. 4. In t....

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....ence the assessee furnished financial statements of M/s Talent infoway Ltd pertaining to FY 2008-09. He submitted that the above said company had sufficient funds to make the impugned investment. Accordingly he submitted that the observations made by the AO were against the facts available on record. He submitted that the stand taken by Shri Mukesh Chokshi that he had provided accommodation entries was related to assessment years 2005-06 and other years. Further the stand taken by him cannot override the factual aspects and the documents furnished to support the case of the assessee. The Ld A.R submitted that the assessee has discharged the initial burden of proof placed upon it by proving the identity and creditworthiness of the investor a....

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.... of the share application forms duly filed by the authorized signatories for applying the shares of the appellant company; (b) Copies of the Resolution for Subscribing to the shares by Talent infoway Ltd.; (c) Copies of the PAN card; (d) Copy of Confirmation of Investment by M/s. Talent Infoway Ltd, in the Appellant co. (e) Copy of the bank statement of M/s, Talent Infoway Ltd; (f) Copy of Memorandum & Articles of Association with certificate of incorporation; (g) Copies of Balance Sheet with P&L a/c and its schedules. (h) Copy of the top 100 Shareholders of M/s. Talent Infoway Ltd. (i) Copy of the annual returns of M/s. Talent Infoway Ltd. The Ld CIT(A) also noticed the fact that the director of the assessee company has of....