AI OCR 
TaxTMI 
TaxTMI 
TaxTMI 
2017 (6) TMI 1353
X X X X Extracts X X X X
X X X X Extracts X X X X
.... in the facts and circumstances of the case, the Ld. CIT(A) has erred in facts and in law in accepting the additional evidence in the shape of assessee's affidavit in contravention of Rule 46A of I.T. Rules, 1962 and restricting the addition to total profit @9% of receipts ignoring assessee's letter regarding surrender @9% of receipts over and above the returned income, which was quite reasonable otherwise too. 3. That in the facts and circumstances of the case, the order of the CIT(A) may be set aside and that of the AO be restored. 4. That the appellant craves leave to add, modify and / or delete any ground(s) of appeal. 2. The brief facts of the case are that the assessee had filed its return of income for the relevant assessment year 2009-10 on 27.9.2009 declaring income of Rs. 25,00,928/-. The return was processed u/s. 143(1) of the I.T. Act, 1961. The case was selected for scrutiny and statutory notice u/s. 143(2) of the Act was issued on 23.9.2010 which was duly served upon the assessee. In response to the notices issued u/s. 143(2) of the Act and 142(1) of the Act, the A.R. of the assessee attended the proceedings and filed the requisite details and information from ti....
X X X X Extracts X X X X
X X X X Extracts X X X X
....f Balance Sheet ,Bank Statement and the copy of ITR acknowledgment 4. Shalini Holdings Ltd. The Capital and Free Reserves of the company are Rs. 124,87,30,000/-And has no loans from outside. Page 91 of paper book Total investments made by the investor are Rs. 116,95,01,200/- The assessee has received Rs. 1 Cr The number of companies invested are 253 including assessee. Reflects on page 95 of the paper book (80- 124) sr no 6 payments received by the assessee company are through banking channel and no cash is involved The assessee has proved the Identity, the creditworthiness and the genuineness of the transactions by submitting the Confirmation, the copy Form 2, the copy of ITR acknowledgment, the copy of Bank Statements, the set of Balance sheets and also the AO through Investigation wing had cross examined the investors who had agreed in principal for having made the investments. Pages 80 to 124 and page 135 to 144 Investigation wing question 11 and 12 page 140. Apart from the case laws already submitted the assessee also relies on the case law in the appeal no. 333/Dell2015 in the case of MODI NAGAR ROLLS L TD Vs ADCIT, Income Tax Range 1, Ghaziabad. The case of t....
X X X X Extracts X X X X
X X X X Extracts X X X X
....in telephoned the ACIT(TDS) and requested to meet her and the date was fixed for 23.12.2011. However, instead of Shri Jain one Shri Bharat Bhushan appeared. His statement was recorded. As he did not know about the transactions, summons to Shri S.K. Jain were issued and his statement was recorded. The report was submitted by the ACIT to the AO who informed that no office existed in so far as no sign board or hoarding of the companies were found. She had taken the photographs of the building and forwarded the statements recorded to the A.O. The A.O. formed her opinion on the basis of report and the statements recorded that the share applicants were paper companies. From bank statements of the share applicants it was seen that most of the deposits were withdrawn on the same day. She treated the share application money as bogus and added to the income of the assessee company u/s 68 of IT Act, 1961. On the other hand the AR argued that he submitted all the documents which were the Confirmations, the Bank Statements, the set of Balance sheets, the copy of ITR and the copy of Board Resolutions. He further stated that the Director in his statement before the Commission vide question ....
X X X X Extracts X X X X
X X X X Extracts X X X X
....res on the payment sheets were in most of the cases common and being in doubt issued a show cause notice for making an addition of 10% of the gross receipts to the overall returned income, The AR on the other hand, requested the AO for making an addition @ 8% of the gross receipts but by mutual consent the MD of the assessee company Ward @9% of the gross receipts and signed before the AO for the additions of 9% An affidavit of the MD of the assessee company has been submitted stating that he had agreed for the gross profit @ 9% of the gross receipts and not 15.97% (06.97% being taken in Profit Loss Account). The AO had worked the additions and reduced the bank interest ofRs. 15,90,787/- from the 9% receipts. The AO instead of reducing the gross profit already shown as Rs. 52,15,965/- reduced the bank interest of Rs. 15,90,787/-. Which resulted of taxing the gross receipts at 15.97% less Rs. 15,90,787/-. I have seen the affidavit of the Managing Director of the company and also the submissions of the AR. I have no doubt about the intentions of the assessee as they had agreed for the addition of9% of the receipts of the work contract. I hereby direct the AO to take the profit at ....
X X X X Extracts X X X X
X X X X Extracts X X X X
....ed all the documents which were the Confirmations, the Bank Statements, the set of Balance sheets, the copy of ITR and the copy of Board Resolutions. Ld. AR of the assessee submitted before the AO that the Director in his statement before the Commission vide question No.14 and question No. 14 had informed about the share applications and the premium paid on the share application. The AR further had given the figures of Rs. 112,12,50,000/- as issued capital and free reserves of Shalini Holdings Ltd and Rs. 14,86,25,000/- of Apoorva Leasing Finance & Investment Co. The investments made by the former were Rs. 116,95,01,200 and of latter were Rs. 13,20,35,000/-. The number of companies in which the these companies have invested are 253 by Shalini and 21 by Apoorva. These investments made by the companies only for the year under consideration but if the total investments are taken these are much more. Regarding the premium on shares, the AR has informed that these are taken not just on the basis of book value. There are multiple methods by which it is worked out. He further referred to the insertion of new clause in the Finance Bill, 2012, which shall tax the excess valuation other than....