2020 (12) TMI 389

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....the Revenue has raised certain common grounds of appeal except variation of addition, the Ld.CIT(A) passed consolidated order for both the assessment years, therefore, with the consent of the parties, both the appeals were heard and are decided by common order. For appreciation of facts, appeal for A.Y. 2009-10 was treated as lead case. The Revenue as raised following grounds of appeal: "[1] On the facts and in the circumstances of the case and in law, the Ld. CIT (A) has erred in deleting the addition of Rs. 3,13,90,000/- made by the AO on account of unexplained cash credits u/s.68 of the Act stating that completed assessment can be interfered with by the AO making assessment u/s,153A only on the basis of some incriminating materi....

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.... the order of the Assessing Officer. [4] It is, therefore, prayed that the order of the CIT (A) may be set aside and that of Assessing Officer may be restored to the above extent." 3. Facts of the case in brief are that the assessee is a company engaged in the business of embroidery of cloth and job work. The assessee filed its Return of Income for year under consideration on 15.09.2009 declaring total income of Rs. 1,85,10,810/-. The Return of Income was processed and accepted under section 143(1) of the Act. A search action under section 132 was carried out on 18.02.2014 on the premises of the assessee. Consequent upon the search a notice under section 153A dated 28.11.2014 was issued to the assessee to file Return of Income f....

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....th the share application money. The investor company has sufficient share capital and reserve funds available with them. It was stated that their employee made some mistake in filing up the details in the share certificates and same was discarded not signed. These unsigned shares were rough papers, which were not destroyed. The assessee also stated that onus passed under section 68 of the Act fully discharged. The assessee also submitted that in response to notice under section 133(6), the investor company responded and filed its reply confirming the transaction. 6. The AO not accepted the contention of the assessee. The AO concluded that the assessee has failed to pass the test as required under section 68 of the Act to prove the ide....

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....credit worthiness of shareholders and the genuineness of the transaction. The assessee stated that he has discharged the onus under section 68 of the Act to prove the identity, credit worthiness and genuineness of share capitals by submitting relevant evidences viz.. name, address PAN, Income tax Acknowledgment, copy of bank statements and reply filed by the shareholders in response to notice under section 133(6) of the Act. The AO while making addition rebutted the submission of assessee. The assessee could not prove to the satisfaction of AO the investor company is the real and genuine company. The identity of Shareholder Company is not established. The share application money was unaccounted money of the assessee which was routed in t....

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....CIT vs Continental Warehousing Corporation (Nhava Sheva) Ltd [58 taxmann.com 78] (Bombay HC) 4 CIT vs Kabul Chawla [ 93 CCH 0210] (Del HC) 5. CIT v/s Meeta Gutgutia[395 ITR 0296] (Del HC) 6. CIT v. Lancy Constructions [383 ITR 168] (Kar. HC) 7. ACIT vs. Ravnet Solutions Pvt. Ltd. [52 CCH 0223] (Del. Trib) 8. Garg Brothers Pvt. Ltd. & Ors. Vs. DCIT & Ors. [ 52 CCH 0334 ] (Kol. Trib) 9. DCIT vs. Pacific Industries Ltd. [111 taxmann.com 32] (Jodh. Trib) 10. DCIT vs Viren S Shah [IT(SS)A No. 274-275/Ahd/2016] (Surat Trib) 9. We have considered the submission of both the parties and have gone through the orders of Lower Authorities. We have also deliberated on various case laws re....

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.... respect of assessments which have became final if no incriminating material found during the search. 11. Before us, the Ld.CIT-DR failed to bring any fact that assessment for the year under consideration was pending at the time of search on 14.02.2014 of that the issue of share capital was not the subject matter in the assessment was not reported while filing the Return of Income in the assessment year under consideration. The Ld. DR referred the explanation attached with section 153A that the AO has power to assess or re-assessing total income in respect of each assessment year falling within six assessment years. There is not dispute regarding statutory provision in the Act. However, the Hon'ble Bombay Delhi High Court has laid do....