TaxTMI 
TaxTMI 
2022 (5) TMI 500
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....is on inexistent facts. 4. Without prejudice to the generality of grounds of appeal no. 1 & 2 above, on the facts and in the circumstances of the case of the appellant and in law, learned CIT( Appeals) has erred in not appreciating that the addition of Rs. 3,10,00,000/- has been made by the Assessing Officer without bringing on the appellant's assessment records any material in support of the facts alleged by him. 5. Without prejudice to the generality of grounds of appeal no. 1 & 2 above, on the facts and in the circumstances of the case of the appellant and in law learned CIT(Appeals) has erred in not appreciating that the addition of Rs. 3,10,00,000/- made by the Assessing Officer merely based on some communication received by him without verifying the correctness of the same and without confronting the appellant with any material in relation thereto. 6. Without prejudice to the generality of grounds of appeal no. 1 & 2 above, on the facts and in the circumstances of the case of the appellant and in law learned CIT(Appeals) has erred in holding that the appellant failed to support its explanation by any documentary evidence such as bank account statement, financial ....
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....gly, the assessment has been reopened by issue of notice u/s. 148 dated 09/03/2015 served upon the assessee on 11.03.2015. Thereafter notices u/s 143(2)/142(1) dated 08.09.2015 were issued and served on the assessee. 5. The assessee responded as under : 3. In response to the notice, the assessee filed letter dated 21.09.2015 therein stated that "the following transaction were recorded in books of account during the said assessment year 1. The shareholder of the company gave cheques of Rs.1,00,000/- for their contribution to share capital. The same was credited to share capital account and debited to bank account as cheques in hand. 2. One director of the company incurred preliminary expenses (ROC Charges) of Rs. 1,18,300/- on behalf of company. The same was debited to preliminary expenses account and credited to director account as a loan. 3. One professional person (Company Secretary) gave a bill of Rs. 10.000/- for his professional charge for the formation of work of the company. The same was debited to preliminary expenses account and credited to professional account as sundry creditors. Since no transaction were done (except above mentioned three transaction), mo....
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....that during search action by Ahmedabad Directorate in Mumbai at the residence and office of Shri Shirish C Shah on9.4.2013, it was found that Shri Shirish C. Shah was engaged in providing accommodation entries of share capital, share premium, share application money etc. and the appellant company is one of the beneficiaries who has taken accommodation entries from two entities, M/s. Empower Industries India Ltd. and M/s. Shri Ganesh Spinners Ltd. by way of bogus share application/share premium money amounting to Rs.3,10,00,000/-. The fact of providing accommodation entry towards loan has been unearthed by the Investigation Wing during the course of search action at the residence and office of Shri Shirish C Shah on 09.04.2013. Therefore there was sufficient reason to believe that income chargeable to tax to that extent has escaped assessment within the meaning of Section 147 of the Income Tax Act. The information so received by the Assessing Officer has live link with reason to believe that income has escaped assessment. At the time of issue of notice u/s. 148, there has to be prima facie belief based on some tangible and material information about escapement of income and there is....
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....5.2015 vide letter dated 11.05.2015 upon request made by the assessee. The objection raised by the appellant vide letter dated 25.05.2015 was rejected vide letter dated 29.07.2015 by passing speaking order. Further, notice u/s. 143(2) and 142(1) along with questionnaire were issued and served on the assessee. The assessee filed written submission response to the aforesaid notices. In the given facts and circumstances, I find no infirmity in the Assessing Officer reopening the assessment of the impugned assessment year of the appellant. The procedural maxim laid down in the Act and by judicial precedents in particular by the Hon'ble Supreme Court in the case of M/s. GKN Driveshafts (India) Ltd. vs. Income-tax Officer [2002] 125 Taxman 963 (SC) has been scrupulously followed by the Assessing Officer in reopening the assessment of impugned assessment year. In view of the foregoing facts and settled position of law, the grounds raised by the appellant are untenable. Accordingly, the grounds of appeal No. 1 & 2 are dismissed." 8. On merits learned CIT(A) held as under :- 7.2.4 On perusal of the above documents, it is observed that that the appellant company was incorporated on 2....
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....mmissioner of IncomeTax-8, in its order dated 24 August, 2017. The Hon'ble Court held as, "When even after giving opportunities, The Appellant had failed to produce relevant documents and explain the nature and source of the amount received by him as narrated above; the order of the Assessment officer and the appellate authorities in respect of those amounts is justified." 7.2.6 I find the appellant has failed to support its explanation by any documentary evidence such as bank account statements, financial statements and confirmation of the aforesaid entities to prove that no such funds was given to the appellant. The said parties were not produced before the AO during the assessment proceedings for deposition and verification despite the fact that the appellant was made aware of the tangible materials received by the AO unearthed in the course of search action u/s. 132 and those collected in the assessment proceedings. In the said facts and circumstances, the addition made u/s. 68 is sustained. In doing so, I take support of the decision held by the Hon'ble Bombay High Court in the cited above. I hereby confirmed the addition made by the Assessing Officer. The grounds o....