TaxTMI 
TaxTMI 
2022 (7) TMI 553
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....re heard at length, the case records carefully perused. 5. Briefly stated, the facts of the case are that during the course of scrutiny assessment proceedings, and on perusal of the financial statements, the Assessing Officer came to know that the assessee has issued 65,886 shares at premium, for total amount of Rs. 2,95,56,417/. 6. When called for, the assessee furnished the details of share application money and share holders which is as under: Sr. No. Particulars No. of shares issued @ 10 each Share Capital (Rs.) Share Premium @ 450 each (Rs.) Amount (Rs.) i) M/s Karda Traders (P) Ltd. 6666 66,660 29,33,040 29,99,700 ii) M/s Capative Equity Management (P) Ltd. 11111 1,11,110 48,88,840 49,99,950 iii) M/s Neat & Clean Infratech (P) Ltd. 5555 55,550 24,44,200 24,99,750 iv) M/s Movers Realtech (P) Ltd. 3333 33,330 14,66,520 14,99,850 v) M/s Shree Aeran Marketing (P) Ltd. 17000 1,70,000 74,80,000 76,50,000 vi) M/s Macro IT Systems (P) Ltd. 5555 55,550 24,44,200 24,99,750 vii) M/s Sai Infoweb (P) Ltd. 5555 55,550 24,44,200 24,99,750 viii) M/s Europas Meditecnik Industries Ltd. 11111 1,11,110 48,88,840 49,99,950 Total 65....
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....ced strong reliance on the orders of the authorities below and read the relevant part of the assessment order and the order of the ld. CIT(A). 18. We have given thoughtful consideration to the orders of the authorities below. It is not in dispute that the assessee has furnished complete details in relation to share applicant companies, their confirmations, Income tax particulars, bank statements and financial statements. The evidences include the following: i) Name and address of the investor; ii) PAN of the investor; iii) Income tax Jurisdiction of the investor; iv) Detail of amounts received and made of receipt, cheque no, date of cheque, amount of cheque; v) Confirmation by the investor company; vi) Share application form and share certificate; vii) Bank statement of the investor company; viii) Master dat from ROC online sites of the investor company showing them as active company; and ix) Acknowledgement of return of income of the investor company alongwith audited financial statements. 19. The entire basis for dismissing the vortex of evidences is the fact that the notice u/s 133(6) of the Act issued by the Assessing Officer was returned unserved. 20. The ....
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.... The burden of proof can seldom be discharged to the hilt by the assessed; if the AO harbours doubts of the legitimacy of any subscription he is empowered, nay duty-bound, to carry out thorough investigations. But if the AO fails to unearth any wrong or illegal dealings, he cannot obdurately adhere to his suspicions and treat the subscribed capital as the undisclosed income of the Company." XXX XXX 15. At this stage, we would like to refer to the judgment of the Bombay High Court in the case of CIT Vs. M/s Creative World Telefilms Ltd. (in ITA No.2182 of 2009 decided on 12.10.2009). The relevant portion of this order is reproduced below: "In the case in hand, it is not disputed that the assessee had given the details of name and address of the shareholder, their PA/GIR number and had also given the cheque number, name of the bank. It was expected on the part of the Assessing Officer to make proper investigation and reach the shareholders. The Assessing Officer did nothing except issuing summons which were ultimately returned back with an endorsement 'not traceable'. In our considered view, the Assessing Officer ought to have found out their details through PAN cards....
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.... the previous year; and (iii) either (a) the assessee offers no explanation about the nature and source of such credits found in the books or (b) the explanation offered by the assessee, in the opinion of the AO, is not satisfactory. It is only then that the sum so credited may be charged to income tax as the income of the assessee of that previous year. The expression "the assessee offers no explanation" means the assessee offers no proper, reasonable and acceptable explanation as regards the sums found credited in the books maintained by the assessee. The opinion of the AO for not accepting the explanation offered by the assessee as not satisfactory is required to be based on proper appreciation of material and other attending circumstances available on the record. The opinion of the AO is required to be formed objectively with reference to the material on record. Application of mind is the sine qua non for forming the opinion. In cases where the explanation offered by the assessee about the nature and source of the sums found credited in the books is not satisfactory there is, prima facie, evidence against the assessee, viz., the receipt of money. The burden is on the assessee t....