TaxTMI 
TaxTMI 
2021 (7) TMI 732
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....has erred in confirming the action of assessing officer in making addition of Rs. 1,05,000/-u/s 69C of the Act. 4. It is therefore prayed that above additions made by the assessing officer may please be deleted. 5. Appellant craves leave to add, alter or delete any ground(s) either before or in the course of hearing of the appeal. 2. Brief facts of the case are that the assessee is as Company, engaged in the garment business. The assessee filed its return of income for assessment year 2009-10 on 01.09.2009 declaring total income at Rs. 4,16,830/-. Initially the return of income was processed under section 143(1) and was accepted. The case of the assessee was reopened under section 147 and notice under section 148 dated 31.03.20214, was issued and served on the assessee on the same date. In response to notice under section 148, the assessee submitted his reply on 23.04.2014 stated therein that return filed on 01.09.2009 be treated as the return filed in response to notice under section 148. The assessee demanded reasons recorded for reopening. The copy of reasons recorded for reopening was provided to the assessee on 25.04.2014. In the reasons recorded the Assessing Officer rec....
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....Financial Companies (NBFC). The assessee provided copy of share applications, bank statement, copy of PAN, certificate of registration with Reserve Bank of India, certificate of incorporation registration of company and Memorandum of Association and Article of Association of all investor companies. 4. After receipt of reply, the Assessing Officer issued another show cause notice on 13.03.2015 as recorded in appeal as well at page No. 7 to 18 of the assessment order. In the show cause notice the assessing officer also referred the summary of report of investigation wing Kolkata. In the show cause notice, the Assessing Officer stated that investigation wing of Kolkata recorded the statement of one of the Director Flyhigh Export Pvt Ltd, namely Shri RajkumarTharad, who allegedly stated that his main source of income is commissions from business of providing entry through "jamaKhaarchi/ paper companies". The investigation wing of Kolkata recorded the statement of one of the Director of Vignhar Marketing Pvt Limited, namely Shri Jivendra Mishra, who has also stated that his main source of income is commissions from business of providing entry through "jamaKhaarchi/ paper companies". 5....
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....n the basis of suspicious. The Assessing Officer directly jump to the conclusion that the assessee received share capital and share premium and there was escape of income. On merit, the assessee contended that share application money and share premium was received in earlier financial year and not in the financial year under consideration. The assessee further stated that sufficient documentary evidence were provided to the Assessing Officer to prove the identity, creditworthiness and genuineness of transaction with related to investor company. The assessee also relied upon various case laws. Ld. CIT(A) after considering the factual and legal submission of the assessee upheld the validity of re-opening as well as addition on merit. Further aggrieved, the assessee has filed present appeal before us. 7. We have heard the submission of Ld. Authorized Representative (AR) of the assessee and Ld. Departmental Representative (DR) and have gone through the orders of authorities below. Ground No.1 relates to validity of re-opening. The Ld. AR of the assessee submits that there was no tangible material to form the belief that the income of the assessee as escaped adjustment under section 68....
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....vt. Ltd. Vs. ACIT Circle-5(1) (2015) 375 ITR 460 (Bom) 9. On the merit of case, i.e., on Ground No.2, the ld. AR for the assessee submits that the assessee received share application money with face value of share and its premium in the last financial year i.e., in assessment year 2007-08 and not the current financial year i.e., in financial year 2008-09. The assessee received share application and share premium from eleven companies. In reply to the show cause notice before the assessing officer, the assessee has specifically contended before the Assessing Officer that share application and share premium money was received in earlier financial year. The similar submission was made before the Ld. CIT(A). Both the lower authorities disregarded the submission of assessee. The Ld. AR for the assessee further submits that all the investor companies are registered of Non-Banking Financial Company (NBFC) with the reserve bank of India (RBI) and are regularly filing their return of income. The assessee substantiated its contention and to discharge its onus furnish copy of share application, bank statement, copy of PAN and registration certificate of investor company with RBI certificate ....
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.... * CCE Gujarat Cypromet Ltd. 34 taxmann.com 249 (Guj), * CIT vs. Indrajit Singh Suri 33 taxmann.com 281 (Guj) 12. Against, Ground No.3, the Ld. AR of the assessee submits that the Assessing Officer made addition by presuming that the assessee paid commission of 1% to the investor company for availing accommodation entry, therefore, the addition of Rs. 1.05 lakhs was also made as unexplained expenditure. The Ld. AR of the assessee submits that there is evidence on record that assessee had made any commission payment. The addition is purely on assumption and presumption basis. The Ld. AR of the assessee prayed that the assessee is entitled to succeed on legal issue as well as on merit. 13. On the other hand, Ld. Sr.DR of the Revenue supported the order of lower authorities. Ld. DR for the revenue submits that initially of the return of income was processed under section 143(1) and intimation was given to the assessee. The intimation under section 143(1) of the Act is not an assessment order. The case was re-opened on the basis of information received from Director of Income Tax (Intelligent & Criminal), which in turn received information from ROC. The assessee was provided full....
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....t and de-merit of the re-opening, first examine the date of receipt of various share application money. On perusal of record, we find that the assessee has received share application and share premium money from eleven investor companies in the following manner:- Sr. No. Name of Investor Amount deposited in assessee's account (in Rs.) Date pertaining to FY 2007-08 (FY 2008-09) 1. Balaji Indifin Ltd. 5,00,000/- 17.08.2007 5,00,000/- 20.12.2007 5,00,000/- 20.12.2007 2. Flyhigh Exports Pvt. Ltd. 5,00,000/- 21.01.2008 5,00,000/- 21.01.2008 3. G.R. Industries and Finance Ltd. 10,00,000/- 13.12.2007 4. MehndipuraTradelink 5,00,000/- 03.08.2007 5,00,000/- 27.08.2007 5. Prachi Chemicals and Ind. Ltd. 5,00,000/- 06.09.2007 6. Vinghnhar Marketing Pvt. Ltd. 5,00,000/- 03.08.2007 5,00,000/- 27.08.2007 7. Yograj Barter Pvt. Ltd. 5,00,000/- 31.12.2007 5,00,000/- 31.12.2007 5,00,000/- 10.01.2008 5,00,000/- 16.01.2008 8. Noiaty Dealers Pvt. Ltd. 5,00,000/- 07.09.2007 9. Yulan Marketi....