TaxTMI 
TaxTMI 
2023 (3) TMI 774
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.... 15.03.2020 till 28.02.2022 has been excluded for calculating the limitation period. Since the period of limitation in the case of the assessee falls during this period, the same deserves to be extended, we therefore, condone the delay and admit the appeal for adjudication on merits. 3. The assessee is in appeal before this Tribunal raising the following grounds: "1. Whether the Ld. CIT (A) was justified in deleting the addition of Rs. 1,65,00,000/- made u/s. 68 wherein the identity, genuineness and creditworthiness of investor company remained unsubstantiated as it failed to appear before A.O. against summons issued u/s 131 ignoring the decision of Hon'ble Supreme Court in the case of Pr. CIT (Central)-I Verses NRA Iron & Steel Pvt. Ltd. In Civil Appeal No. of 2019 [Arising out of SLP (Civil) No. 29855 of 2018]? 2. Whether the Ld. CIT (A) was justified in deleting the addition of Rs. 1,65,00,000/-without taking into cognigence of the observation of the A.O. based on the report of the departmental Inspector regarding identity, genuineness and creditworthiness of the investor companies failing to follow the law as declared by the Hon'ble Supreme court in the case of Pr.....
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....ly argued supporting the order of ld. AO and further stated that the share applicant companies are paper companies which do not have sufficient creditworthiness to make such investment. 7. On the other hand, ld. Counsel for the assessee heavily relied on the finding of ld. CIT(A), took us through the written submission made before ld. CIT(A) and also made reference to the details filed in the paperbook as well as placing reliance on various decisions. The index of the paperbook is extracted below: "1. Written submissions before the Hon'ble CIT(A), Asansol 2. Copy of Share Application of Volgina Finvest (P) Ltd. 3. Copy of Share Application of Wholetime Commotrade (P) Ltd. 4. Copy of the Bank Statement of the said Volgina Finvest (P) Ltd. 5. Copy of the Bank Statement of the said Wholetime Commotrade (P) Ltd. 6. PAN Card of Volgina Finvest (P) Ltd. 7. PAN Card of Wholetime Commotrade (P) Ltd. 8. Copy of acknowledgement of filing of return of Volgina Finvest (P) Ltd. 9. Copy of acknowledgement of filing of return of Wholetime Commotrade (P) Ltd. 10. Memorandum of Articles of Association of the said Volgina Finvest (P) Ltd. 11. Memorandum of Articles of Associat....
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....Bombay High Court in INCOME TAX APPEAL NO. 1613 OF 2014 33. Copy of order in the case of Khubchandani Healthparks Pvt. Ltd. vs. ITO, Mumbai 34. Copy of order in the case of DCIT vs. Anshika Investments Pvt. Ltd. the Hon'ble Bombay High Court in ITA No. 523/2014 vide order dated 16th April, 2015." 8. We have heard rival contentions and perused the records placed before us. Revenue is aggrieved with the finding of ld. CIT(A) deleting the addition of Rs. 1.65 Cr made by ld. AO u/s 68 of the Act for the share capital including share premium raised from two companies namely M/s. Wholetime Commotrade and M/s. Volgina Finvest Pvt. Ltd. The contention of ld. Counsel for the assessee in short is that the assessee company made investment for purchase of flat and to finance the said investment share capital including share premium was raised from two of its group companies; M/s. Wholetime Commotrade and M/s. Volgina Finvest Pvt. Ltd. Ld. Counsel for the assessee has also contended that the source of source of the said share capital and share premium is also explained as for the said investment M/s. Wholetime Commotrade received Rs. 1.55 Cr from Real Ispat and Power Ltd. in lieu of sale o....
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.... Ltd. had made a part payment of Rs. 55.00,000/- to M/s Wholetime Commotrade Pvt. Ltd. on 10-10-2011, which was utilized by M/s Wholetime Commotrade Pvt. Ltd. for making payment to the appellant company on 12-10-2011 as a consideration of shares of the appellant company issued to M/s Wholetime Commotrade Pvt. Ltd. The balance sheet of M/s Shivalay Ispat was also produced during the course of the appeal proceeding and from the balance sheet of M/s Shivalay Ispat as on 31-03-2012, it is seen that M/s Shivalay Ispat was having revenue from operations amounting to Rs. 1,31,67,98,124/- during the financial year ending 31-3-2012 and revenue from operation amounting to Rs. 112.59.28.970/-in the immediately proceeding financial year ending 31-03-2011. Further, from in the balance sheet, it is observed that M/s Shivalay Ispat was having net plant and machinery of Rs. 26,48,34,817/- and total fixed assets of Rs. 40.12.24,924/-as on 31-03-2O12. Thus, from this, it can be concluded that M/s Shivalay Ispat is an actual, genuine and existing entity having turnover of more than Rs. 100 crores and fixed assets of more than Rs. 40 crores. The balance sheet and the Profit & Loss account of M/s R....
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....Ltd. from M/s Real Ispat & Power Pvt. Ltd. on 07-09-2011. an amount of Rs. 1 crore was given as a loan to M s Shree Gopal Concrete Pvt. Ltd. on 26-09-2011 and was returned backed by M/s Shree Gopal Concrete Pvt. Ltd. to M/s Wholetime Commotrade Pvt. Ltd on 10-11-2011. Thus, the source of the. amount of Rs. 1.55 crore invested by M/s Wholetime Commotrade Pvt. Ltd. in the shares of the appellant company are from the sales consideration received from M/s Real Ispat & Power Pvt. Ltd. for the transfer of shares of M/s Shivalay Ispat. The balance sheet of M/s Shree Gopal Concrete Pvt. Ltd. was also submitted and it was observed that M/s Shree Gopal Concrete Pvt. Ltd. was having revenue from operation of Rs. 135,03,92,427/- as on 31-03-2012 and was having a net plant and equipment of Rs. 15,00,89,138/- and total fixed asset of Rs. 29,96,68,675/- as on 31-12-2012. Thus, M/s Shree Gopal Concrete Pvt. Ltd. is not a paper entity but is a genuine, existing entity. Similarly M/s Volgina Finvest Pvt. Ltd. was also a share holder in M/s Shivalay Ispat as is evidenced from the document submitted to the ROC. M/s Volgina Finvest Pvt. Ltd. had received Rs. 10,00,000/- from M/s Real Ispat & Power ....