TaxTMI 
TaxTMI 
2019 (2) TMI 1910
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....ainst the deletion of addition of Rs. 1,00,00,000/- by Ld. CIT(A) as made by the AO under section 68 of the Act towards unexplained share application money where the identity, genuineness and creditworthiness of the lenders were not proved. 3. The facts in brief are that assessee filed the return of income on 21.10.2007 declaring an income of Rs. 1,01,22,230/- which was processed under section 143(1) of the Act. Subsequently, the case of the assessee was reopened under section 147 read with section 148 by issuing notice dated 21.03.2014 wherein AO noted that following receipt of information from DGIT, Investigation, Mumbai to the effect that the search on Pravin Kumar Jain group on 01.10.2010 revealed certain facts that the said group was ....
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....and share premium accountas there was an addition of Rs. 1,00,00,000/- and accordingly assessee was asked to submit the details of the said share capital and share premium received during the year which was replied by the assessee vide letter dated 07.10.2014 submitting a copies of confirmation of shareholder and various other documents evidencing the transactions. The AO also issued notices under section 133(6) to 8 parties out of which only notice was served to five parties and in respect of remaining three the postal authorities returned the letter with the remarks "not known and left". However, all the 8 parties filed the reply. Thereafter, the AO issued show cause notice to the assessee on 05.03.2015 which was replied on 12.03.2015. Fi....
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....ims, relying upon the information/material, which he never even brought to the notice of the appellant for any rebuttal. The unequivocal conclusion is that all the 3 ingredients having been satisfied, the impugned share application money have to be treated as explained satisfactorily and the AO was not justified in having disregarded overwhelmingly supportive evidence. No cogent material was adduced by him to show that loans were unexplained. Therefore, the impugned addition of under the heading share application money as made in the assessment order, fails on several counts - (1) reliance on evidence that is totally inadequate; (2) failure to make available incriminating material (reports, statements etc.) forming basis for action by the A....
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....Ld. D.R. submitted that the mere filing of evidences would not automatically prove that the money flowed from these entries in the form of share capital and premium were genuine and thus the order of Ld. CIT(A) is full of infirmities and should be reversed. 6. The Ld. A.R., on the other hand, the ld AR defending the order of CIT(A), vehemently argued that the order takes into account all the legal and factual aspects. The ld AR submitted that the mere general admission on the part of the directors of the companies who invested money in the assessee company would not render the transactions as non genuine and without any capacity to lend. The ld. AR submitted that during the course of hearing the assessee filed all the necessary documents t....
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....e the assessee's Shareholders. It is further submitted that the Hon. Bombay High Court in the case of M/s. Gagandeep Infrastructure Ltd. 394ITR 680 (Born) held that the proviso to Section 68 would not be applicable to Share Premium prior to 01.04.2013 and hence addition made u/s. 68 is directed to be deleted. The Jurisdictional High Court consistently following this decision and hence it is prayed that the departmental appeal be dismissed. The assessee relies on the following decisions:- 1. Komal Agrotech Pvt. Ltd. v. I.T.O. (ITAT Hyderabad) 2. M/s. Rushabh Enterprises v. A.C.I.T. (Bom H.C.) 3. Reliance Corporation v. I.T.O. (Mum ITAT) 4. S.D.B Estate Pvt. Ltd. v I.T.O. (Mum ITAT) 5. Prin. C.I.T. v. S.D.B Estate Pvt. Ltd. (Bom....
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....website, copies of bank accounts to evidence the transactions through banking channels, copies of MA & AA and share certificates of all the companies. We further find that all these transactions were entered into through banking channels and these companies are active on the website of Ministry of Corporate Affairs. Despite the filing all these information with the AO, he did not conducted any verification or investigation to dig out the truth but acted on the information supplied by the investigation wing. The Ld. CIT(A) considered the contentions of the assessee in detail and came to the conclusion that assessee has duly proved the genuineness, identity and creditworthiness of the parties by filing all the necessary evidences during asses....