2021 (5) TMI 790

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....inst the order of assessment passed u/s.143(3) of the Income Tax Act, 1961 (hereinafter referred to as Act) dated 31/03/2015 by the ld. Dy. Commissioner of Income Tax, Central Circle-5(1), Mumbai (hereinafter referred to as ld. AO). 2. The Revenue has raised the following ground:- 1. "Whether on the facts and in the circumstances of the case and in law, the Ld.CIT(A) has justified in deleting the protective additions in this case considering that the issue of substantive addition in the case of Shree Global Tradefin Ltd. has not reached finality.?" 3. In the Cross Objections of the assessee, the assessee has raised several grounds challenging the validity of re-assessment proceedings. 4. We have heard the rival submissions and perused ....

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....dly made by the ld. AO after a period of four years from the end of the relevant assessment year. We find that in the re-assessment proceedings completed u/s.143(3) r.w.s. 147 of the Act on 31/03/2014, the ld. AO had made an addition of Rs. 2,50,00,000/- on account of unexplained cash credit u/s.68 of the Act in respect of share application money received by the assessee company on the ground that the three necessary ingredients of Section 68 viz., identity of share subscriber, creditworthiness of the share subscriber and genuineness of the transactions were not proved by the assessee company. This addition also includes Rs. 1,00,00,000/- already added by the ld. AO in the assessment framed u/s 153A of the Act. We find that the ld. AO also ....

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....is address:- * Auster Properties Ltd., * Reva Properties Ltd., * Archive Realty Developers Ltd., * Vedisa Properties Ltd., * Martand Properties Ltd., * Karburi Properties Ltd., * Cikura Properties Ltd., 4.4. All the above listed companies were found to have shown investment activities and had made an investment in equity shares of various companies. These investments were made out of the share capital of the respective companies which solely consist of share application money received from various other concerns. It was found that there was common Directors in these companies as tabulated below:- S.No. Name of Director Name of Company 1. Sh. Ajay Kumar Jogia Properties Ltd. 2. Sh. Ajay Kumar Auster Properties Ltd 3.....

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....ven mentioned in the said document. In support of these, he placed reliance on the decision of the Co-ordinate Bench of this Tribunal in the case of Astra Exim Pvt. Ltd., in ITA No.277/Mum/2018 dated 31/08/2018. 7. We find that assessee vide letter dated 26/04/2019 had filed additional evidences containing 5 pages and also requested this Tribunal to admit those additional evidences for dealing with the legal issue of challenging initiation of re-assessment proceedings. These additional evidences are summarised as under:- 1. Application made vide letter dated 25/06/2018 for inspection and copies of records for A.Y.2008-09. 2. Letter issued by the Assessing Officer dated 12/07/2018 in response to our application. 3. Letter of the Asses....