2023 (3) TMI 395

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....ircumstances of the case, ld. CIT(A) erred in fact and law in treating the notice issued u/s 148 of the I.T. Act, 1961 as void ab-initio and liable to be quashed without making proper appreciating of the findings and observation of the AO, the onus is on the assessee to prove the identity, creditworthiness and genuineness of the transaction which he had failed at the time of scrutiny proceedings. ii. Whether on the facts & in the circumstances of the case, ld. CIT(A) erred in fact and law in treating the notice issued u/s 148 of the I.T. Act, 1961 as void ab-initio and liable to be quashed ignoring the fact that assessing officer had made independent enquiries u/s 133(6) and u/s 131 from the directors of the companies from where sh....

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....ding of industrial goods. The assessee company filed its return of income for the the assessment year 2011-12 relevant to financial year 2010-11 on 26.09.2011 showing total income of Rs. 34,12,090/-. The return of the assessee was duly processed u/s 143(1) of the Act, immediately after it, the ld. AO on receiving credible information which was in possession of the department that the assessee company has shown to have received Rs. 2,32,00,000/- which included share capital of Rs. 23,20,000/- and share premium of Rs. 2,08,80,000/- and the AO asked the assessee company to furnish details of name, address, PAN of their relationship with the assessee company from whom said share capital and share premium was raised. The ld. AO further noticed t....

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....her summon u/s 131 was also issued to third parties for establishing identity of the applicant company. In pursuance to such notices, no compliance was made by M/s. Mangalam Viniyog Pvt. Ltd. which raised the question of identity of Investor Company. However in case of M/s. Brijdham Sales Pvt. Ltd. complied with the summon notice and Mr. Vikash Garg being director appeared and stated that the company had shifted from Kolkata to Purulia. However verify the fact where the company actually working from Kolkata in earlier years, inspectors were sent to Kolkata and the report submitted by the inspectors considered wherefrom it reveals that the company namely M/s. Brijdham Sales Pvt. Ltd. was not found in the given address. Infact, there was an o....

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....ntity and creditworthiness of the third parties and genuineness of the transaction although notice u/s 133(6) of the Act were issued for compliance. The ld. AO during the assessment proceeding called a report from the inspector to verify whether the company were actually exist or not and from the report of the inspector it reveals that no such company was found on the given address as furnished by the assessee. Therefore, the ld. AO rightly added the amount of Rs. 1,53,00,000/- in the hands of assessee shown to have received under the head of share capital & premium as undisclosed income. Therefore, the view taken by the ld. CIT(A) needed to be interfered and set aside the order passed by the ld. CIT(A) and sustained the order passed by the....