TaxTMI 
TaxTMI 
2021 (2) TMI 741
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....e assessee which was treated by the AO as income from undisclosed sources. 3. The assessee is a company engaged in real estate business. For Assessment Year 2010-11, proceedings under section 147 of the Income Tax Act, 1961 (hereinafter called 'the Act') were initiated against the assessee by issue of notice under section 148 of the Act. Proceedings were initiated on the basis of the details received from ITO (Investigation Wing-4, Kolkata) which was as under: "During the financial year 2009-10 relevant to the Assessment Year 2010-11 assessee M/s Suraj Stone Corporation Ltd had made cash transaction in total of Rs. 19,00,000/- with M/s Sherawali Corporation of Rs. 5,00,000/- and M/s Venkata Industries of Rs. 14,00,000/-. The assessee com....
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....urnished by the assessee. 6. The AO, however, made an addition of Rs. 29 lakhs with the following observations: "4. On verification of the documents submitted by the AR of the assessee It is noticed that in the bank account mostly the cash was deposited and subsequently the said funds were transferred to other entities by way of fund transfer/ RTGS. 4.1 It is also observed that as per Standard Chartered bank passbook bearing Account No. 331051308137 of the assessee the payment received from Venkata Industries are 8,00,000/- and 6,00,000/7 vide deposit date 06.10.2009 and 15.10.2009 respectively whereas payment received from the Sherwali corporation vide deposit date 19.092009 is Rs. 15,00,000/-. Therefore, the total amount which escap....
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....nk statement it is seen that funds were received from M/s Sherawali Corporation and M/s Venkata Industries through funds transfer. It was submitted that these transfers were on account of sale of shares of Mag Impex P. Ltd. However, from the copies of the ledger accounts submitted that it is at the signatures of the confirming parties i.e. M/s Sherawali Corporation and M/s. Venkata Industries are barely visible and no indication is available about the identity of the signatory to the confirmations. Further, the copies of the sale bills Landed show that these bills do not have any number and appear to be generated for the purpose of creating the necessary documentation with regard to the transactions. In light of the information contained in....
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....res of a company by name Mag Impex Ltd., was not disbelieved either by the AO or the CIT(A). As far as the assessee is concerned, he has filed confirmation of Sherawali Corporation and Venkata Industries. Copies of which are at pages 32 and 33 of the Paper Book. The CIT(A) has ignored this confirmation on the ground that the signature of the confirming parties were barely visible. The address of the confirming parties are very much available in the confirmation and if any doubt persisted on the veracity of the confirmation, then the proper course would have been to issue summons to the confirming parties to find out the truth or otherwise of the transactions on sale of shares on account of which monies were received by the assessee through ....