TaxTMI 
TaxTMI 
2022 (8) TMI 1183
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.... (Appeals)-16, Kolkata [in short ld. "CIT(A)"] dated 23.09.2020 which is arising out of the assessment order framed u/s 144/143(3) of the Act dated 02.03.2015. 2. The assessee is in appeal before this Tribunal raising the following grounds: "1. For that the order of the Ld. CIT(A) is arbitrary, illegal and had in law. 2. For that the Ld. CIT(A) erred in confirming the addition of Rs. 35,00,000/- as unexplained cash credit whereas the same were received from the group companies/relative of the directors of the company. 3. For that the Ld. CIT(A) erred in confirming the addition of Rs. 35,00,000/- merely by doubting the creditworthiness of the company. 4. For that under the facts and circumstances of the....
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....ounts of share applicants, relevant bank statements, income tax returns, audited balance sheets in case of corporate investors along with Memorandum of Association & Article of Association and copy of board resolutions. Similarly, details were also filed to prove the identity, genuineness and creditworthiness of the individual cash creditor namely Sadgi Agarwal. The Ld. CIT(A) sent these documents to Ld. AO and called for remand report. However, no such remand report was received by and, therefore, Ld. CIT(A) completed the appellate proceedings after examining the details and except for the share application money received from Sadgi Agarwal at Rs. 11 lakh and Milestone Commosales Pvt. Ltd. at Rs. 24 lakh totalling to Rs. 35 lakh, deleted t....
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....his proposition, reliance placed on the judgement of the Hon'ble Apex Court in the case of CIT vs. Orissa Corporation Pvt. Ltd. (1986) 159 ITR 0078 and CIT vs. Lovely Exports Pvt. Ltd. [2008] CTR 195 (SC). Further, reliance also placed on the judgement of Hon'ble Delhi High Court in the case of CIT vs. Value Capital Services Pvt. Ltd. (2009) 221 CTR 0511 (Del) and CIT vs. Steller Investment Ltd. (1991) 192 ITR 287 (Del). 6. Per contra ld. D/R vehemently argued supporting the orders of both the lower authorities. 7. We have heard rival contentions and perused the records placed before us and carefully gone through the decisions referred by the Ld. Counsel for the assessee. The assessee has raised six grounds of appeal of which Ground N....
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....he records and the paper book filed by the assessee running into 22 pages dated 13/07/2022, we observe that the bank accounts of both the share applicants are filed. On going through the bank account of Sadgi Agarwal placed at page 3 of the paper book, we notice that the investment of Rs. 11 lakh was made on 18/05/2011. On the very same day Sadgi Agarwal received loan of Rs. 11 lakh from M/s. Tobu Engineering Ltd. and just before receiving this loan the brought forward bank balance was Rs. 7,61,459/-. Similar is the case for Milestone Commosales Pvt. Ltd. which also invested Rs. 24 lakh on 07/02/2012 and on the very same day it received a credit transfer from M/s. Tobu Engineering Ltd. at Rs. 24 lakh. So, the common fact is that both the al....
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....ts on their part to examine the creditworthiness of the alleged share applicants even when the assessee has duly discharged its onus by providing necessary material to prove the creditworthiness of the share applicants. 12. Hon'ble Apex Court in the case of Lovely Exports Pvt. Ltd.(supra) has held that "if the share application money is received by the assessee company from alleged bogus shareholders, whose names are given to the Ld. AO, then the Department is free to proceed to reopen their individual assessments in accordance with law but this amount of share application money cannot be regarded as undisclosed income u/s 68 of the Act." 13. Honourable Delhi High Court in the case of Value Capital Services Pvt. Ltd. (supra) held that....