AI OCR 
TaxTMI 
TaxTMI 
TaxTMI 
2021 (6) TMI 733
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....) for assessment year (AY) 2011-12. In the assessment order the assessing officer made addition under section 68, on account of share application and share premium of Rs. 90.85 lakhs and Gift of Rs. 1.99 Crore. Though, the revenue has raised multiple grounds of appeals. However, as per our considered view, the substantial grounds of appeal relates to deleting the additions on account of account of share application and share premium of Rs. 90.85 lakhs and Gift of Rs. 1.99 Crore. 2. Brief facts as stated and gathered from the order of the lower authorities are that assessee is a company, engaged in the business of trading of textile fabrics. The assessee filed its return of income for relevant assessment year on 30th September 2011 declar....
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....ng time-barred, the assessing officer made addition of share application and share premium and amount of gift under section 68 at the time of passing the assessment order on 30th March 2015. 3. Aggrieved by the additions in the assessment order the assessee filed appeal before learned Commissioner (Appeals). Before learned Commissioner (Appeals) the assessee file detailed written submission as recorded in para 5 of his order. The assessee explained that assessee company submitted complete details of share application money and shares premium received by the assessee company and clearly submitted that assessee company has not received a single penny as a gift from anyone, but the reasons best known to the assessing officer, he had considere....
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.... copy of passport of shareholder and trade license issued by UAE Government to do business at Dubai. For genuineness of transaction the assessee explained that money was received through banking channel NRE account. For creditworthiness the assessee furnish the copy of net worth certificate issued by a Chartered Accountant (CA) from Dubai along with copy of bank statement. Against the addition of gift at the hand of assessee, the assessee explained that no such gift was received by assessee company. The gift of Rs. 1.99 crore was received by one of the Directors of the assessee company. All documents relating with the receipt of gift by Director of the company, consisting gift deed, copy of bank statement of Axis Bank of recipient Jagdish B....
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.....6 crore. The assessing officer also relied on various case laws that onus to prove the identity of the creditor, capacity of creditor to advance share application money and genuineness of transaction has not been proved by the assessee. The learned DR for the revenue prayed for upholding the addition made by assessing officer by reversing the decision of learned Commissioner (Appeals). 5. On the other hand the learned AR for the assessee supported the order of learned Commissioner (Appeals). The learned AR of the assessee further submitted that the assessing officer made addition without considering the documentary evidence furnished by assessee. The assessing officer has not given any finding on documentary evidence furnished by assesse....
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....e representative and the orders of the lower authorities. We have also considered the documentary evidences filed before us, which were filed before lower authorities as well. We find that the assessing officer in Para 5.2 of his order recorded that "on 31.03.2014, a letter was received from Joint Secretary FT & TR division New Delhi, that his request has been forwarded to the UAE authorities for seeking information under the 'exchange of information' under Articles of Indo UAE to furnish in information about the UAE based entities, Girish Kumar Bodra, Bodra Trading Company (LLC) and Shyam Trading Company (LLC). So the assessment did not get time barred on 31.03.2014 and time barring date is extended by 12 month, i.e TB on 31.03.2015". Furt....
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....directed the assessing officer to verify from record whether any report is received from UAE authorities. The assessing officer vide his report dated 03.10.2017 has informed that no reply has been received from UAE authorities in reference to the request made under exchange of information under the Articles of indo-UAE DTAA. We further find that the ld. Commissioner (Appeals) independently examined the evidences filed before him and concluded that the assessee proved the identity and status of Girish Bodra being NRI at Dubai who is having income from Director's remuneration and profit share in Bodra Trading Company LLC and Shyam Trading Co. (LLC). After examining the worth of investor held that the investor has sufficient capacity to inves....