TaxTMI 
TaxTMI 
2021 (6) TMI 843
X X X X Extracts X X X X
X X X X Extracts X X X X
....ce the case was selected for scrutiny, AO issued notices u/s. 143(2) and 1442(1) of the Act. In response thereof, the authorized representative of the assessee appeared before the AO from time to time and submitted the details along with the written submissions. Since it was noticed that the assessee company had received a substantial amount towards application money during the previous year, the AO asked the assessee to furnish complete details of subscribers/introducers including their Bank account statements, ITRs, share certificates and contract notes. In compliance thereof, the assessee submitted the details of the companies from whom the assessee company had received application money during the previous year. Since the AO was not satisfied with the details and explanation furnished by the assessee in respect of three companies namely, M/s. Simplex Trading Ltd., Zinnia Sales Private Limited and Daisy Suppliers Private Ltd., from whom the assessee company had received Rs. 15,00,000/- each as share application money, AO made further enquiries and issues notice u/s. 133(6) to M/s. Simplex Trading and Agencies and sent letter u/s. 131(1)(d) of the Act to the Kolkata Office to obt....
X X X X Extracts X X X X
X X X X Extracts X X X X
....Counsel for the assessee submitted that the Ld. CIT(A) has affirmed the action of the AO without considering the evidence adduced by the assessee to establish the identity and creditworthiness of the aforesaid three companies from whom the assessee had receive application money of Rs. 15,00,000/- each and evidence adduced to establish the genuineness of the transactions in question. 6. The Ld. Counsel submitted that M/s. Simplex Trading & Agencies Ltd. is a listed company on Bombay Stock Exchange, Script Code of which is 504382. During the year relevant to the assessment year under consideration, the assessee company received a sum of Rs. 15,00,000/- from the said company towards share application money through RTGS. However, shares were not allotted during the assessment year. The assessee has furnished copy of certificate of incorporation, copy of memorandum of association articles of association, copy of 32nd Annual report 2012-13 of the said company, corporate information, copy of PAN card, ITR, Bank Statement and confirmation etc. in order to establish the identity of the said company. The Ld. Counsel invited our attention to the copy of ledger account of M/s. Simplex Tradi....
X X X X Extracts X X X X
X X X X Extracts X X X X
....rds share application money. In this case also shares were not allotted during the assessment year under consideration. The Assessee has furnished copy of PAN Card, ITR, bank statement and jurisdiction details of the said company. The Ld. Counsel further submitted that the net worth of the company during the assessment year under consideration was Rs. 1744.05 Lacs and the revenue from operation of the said company was Rs. 248.86 Lacs. The investment of the said company constitutes only 0.85% of the total current assets. The Ld. Counsel further submitted that since the assessee had furnished the documentary evidences to establish the identity and creditworthiness of the said companies and the genuineness of the transactions with the said company, the Ld. CIT(A) ought to have set aside the additions made by the AO. 11. The Ld. Counsel further placing reliance on the judgment of the Hon'ble Supreme Court in the case of CIT Vs. Lovely Exports (P) Ltd. (2008) 216 CTR (SC) 195 and CIT Vs. Steller Investment Ltd. (2001) 251 ITR 263(SC), judgment of Hon'ble Delhi High Court in the case of CIT Vs. Multiplex Trading & Industrial Co. Ltd. (2015) 128 DTR (Del) 217, submitted that th....
X X X X Extracts X X X X
X X X X Extracts X X X X
....e rival submissions of the parties and perused the material on record including the cases relied upon by the authorities below and the cases relied upon by the parties during the course of arguments. The only grievance of the appellant/assessee is that the Ld. CIT(A) has affirmed the action of the AO without appreciating the documentary evidence on record. As pointed out by the Ld. Counsel, the assessee has furnished the details and explanations called for by the AO during assessment proceedings. The assessee has placed on record the copies of Annual return, Corporate Information/BSE, Intimation regarding shifting of office, PAN Card, Income Tax Jurisdiction details of the assessee, ROC status as per Income Tax Department, Name designation and addresses of the directors, Statement of bank account, Income Tax Return for the assessment year 2011-12, share certificate in respect of the three companies from whom the assessee company received share application money amounting to Rs. 15,00,000/- each. These documents are available in the paper book submitted by the assessee. The contention of the Ld. counsel is that since the assessee has furnished each and every detail of all the three ....
X X X X Extracts X X X X
X X X X Extracts X X X X
....ilable at Pages 62 to 77 of the paper book. The copy of order passed by AO u/s. 143(3) for the AY 2015 in the case of M/s. Simplex Trading and Agencies Limited, intimation/order u/s. 143(1) of the Act for the AY 2017-18 in the case of M/S. Daisy Suppliers P. Ltd. and intimation/order u/s. 143(1) of the Act for the AY 2017-18 in the case of M/s. Zinnia Sales P Ltd. are available at pages at pages 1 to 5, 6 to 14 and 15 to 25 respectively in the paper book No. III submitted by the assessee. These documents not only establish the existence of these companies but also reveal businesses of the companies. The copy of confirmation of share application money by M/s. Simplex Trading and Agencies is available at page 78 of paper book. No. 2 submitted by the assessee. Copies of form of application for allotment of equity shares and Board resolution/minutes of board meeting of M/s. Zenia Sales Pvt. Ltd. and M/s. Dazy Suppliers Pvt. Ltd. are available at pages are available at pages 79 to 80 and 81-82 of the said paper book. The assessee company has also filed copy of assessment order passed u/s. 143(3) of the Act for the assessment year 2013-14 wherein the shareholding of the said three invest....