TaxTMI 
TaxTMI 
2020 (12) TMI 223
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.... 143(1) of the Act. However, later the assessment was reopened u/s 147 of the Act and the A.O noted the assessee had raised the share capital of Rs. 92.50 crores during the year. After calling for the details of share capital raised by the assessee along with copies of agreement of purchase of shares by the share applicants and issue of their own shares against such purchase of shares and the A.O after having issued notice u/s 133(6) to all the shareholders and after receiving confirmation, after the Assessing Officer being satisfied accepted the explanation filed by the assessee vide his assessment order passed u/s 147 / 143(3) dated 17.06.2010. Later the case of the assessee was set aside by the Ld. CIT-1, Kolkata vide his order u/s 263 of the Act dated 08.03.2013 for fresh enquiries and to pass a speaking order. Thereafter, the A.O passed the order dated 26.03.2014 u/s 143(3) / 263 of the Act herein he added Rs. 92.50 crores u/s 68 of the Act on the plea that the directors of the share applicants did not appear before him. 4. Aggrieved the assessee preferred an appeal before the Ld. CIT(A) who was pleased to allow the appeal of the assessee vide his impugned order by holding as....
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....ving the assessee's case is that the adjustment entries were made by notional cash entries to a view to bringing down the debt and capital ratio i.e. that while being discharged of the debt the said companies also jettisoned their assets, i.e. the shares held by them of equivalent sum without achieving the avowed purpose. Here the Tribunal certainly misdirected itself. The ratio to be reduced is of the loan in relation to the share capital and the reserves. Jettisoning the shares had the desired effect of reducing the borrowed capital. Again, as regards the Tribunal's refusal to take notice of the directions of the Reserve Bank, it is not correct for the Tribunal to hold that the said document was a new evidence in the true sense of the term. The assessee has been consistently pleading before the lower authorities that the entries had to be made in order to bring the companies in conformity with the said direction. Moreover, the direction of the Reserve Bank is a public document within the meaning of Section 74 of the Evidence Act, 1872. Documents of a public nature and public authority are generally admissible in evidence subject to the mode of proving them as laid down in section....
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....t genuine. If, for the sake of arguments, it is held that those shares were genuine then the contribution made by those companies by transferring their shares to appellant were also genuine and as such no addition can be made by treating the contribution of such shares as unexplained in exchange to which the appellant company issued its own shares. Alternatively, there may also be another presumption that the shares held by those share allottee companies were not genuine. In that case the allotment of its own shares of appellant company have been allotted by adjustment with the purchase price of those shares held by allottee companies. In that case the shares issued by the appellant company also becomes not genuine and there is no question of any cash credit in the hands of the appellant since what was contributed and what was issued both were not genuine and no addition can be made. Hence on that score also no addition can be made. In respect of issue (c) the appellant raised several issues as stated in the written submissions and rejoinder to remand report . The appellant submitted that the A.O did not carry out any enquiry in accordance with the directions of the ld. Commiss....
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....e appellant is supported by a number of judgments cited above. In view of the above addition on account of share capital u/s 68 is deleted. Since I have decided the issue in favour of the appellant on issue no (a) and issue no. (b), I refrain from dealing with the other contentions raised by the appellant." 5. Aggrieved by the action of Ld. CIT(A) giving relief to the assessee, the revenue is before us. 6. The learned CIT DR Shri Imokaba Jamir assailing the action of Ld. CIT(A) contended that the share capital and share premium amount credited in the books of account of the assessee company represented cash credit u/s 68 and since the primary onus to establish the identity and the capacity of the concerned share applicants as well as to prove the genuineness of the relevant transactions was not satisfactorily discharged by the assessee because directors of the share applicant companies did not bother to appear before the A.O, so the addition u/s 68 was rightly made by the AO by treating the same as unexplained cash credit. He contended that the Ld. CIT(A) however did not appreciate the facts and circumstances involved in the assessee's case and deleted the addition made by the ....
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.... he also drew our attention to the Paper Book and submitted that the same were filed before the AO as well as before the Ld. CIT(A) were sufficient to establish the identity and capacity of the concerned share applicants as well as the genuineness of the relevant transactions and the A.O could not point out any defects in the papers filed before him. The Ld. A.R contended that the AO completely overlooked the relevant documentary evidences filed by the assessee while the Ld. CIT(A) considered and appreciated the same in the right perspective to arrive at the conclusion that the primary onus to establish the identity and capacity of the concerned share applicants as well as genuineness of the relevant transactions having been established by the assessee on evidence and therefore on merits also the addition made by the AO u/s 68 was not sustainable. He, therefore, does not want us to interfere with the reasoned order passed by the Ld. CIT(A). 8. We have considered the rival submissions and also perused the relevant material available on record. First of all we note that the assessee company had issued its shares during the year under consideration at premium to certain companies in ....