2023 (5) TMI 1040

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....Rs. 5,20,00,000/- as unexplained cash credit u/s 68 of the Income Tax Act, 1961 without appreciating the facts that the ld. CIT(A) vide appeal No. 254/2011-12 dated 31.01.2013 has upheld the addition on the same ground in the assessee's own case in the A.Y. 2009-10." 3. Heard the arguments of both the parties and perused the material available on record. 4. The assessee filed return of income on 26.08.2008 declaring income of Rs. 95,23,700/-. The original assessment under section 143(3) of the Act was completed on 08.12.2010 wherein returned income was accepted. Owing to the order of the ld. CIT passed u/s 263, assessment proceedings have been reinitiated by the AO. 5. The Assessee received the share capital amounting to Rs. 5,....

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.... Lal Chand Bhagat HUF 25 , 00 , 000 Shree Ram Enterprises 7 . Manoj Shah HUF 25 , 00 , 000 Shree Ram Enterprises 8 . Nageshwar Mishra HUF 25 , 00 , 000 Shree Ram Enterprises 9 . Rameshwar Shah HUF 25 , 00 , 000 Shree Ram Enterprises 10 . Ravindra Singh HUF 25 , 00 , 000 Shree Ram Enterprises 11 . Shadeo Mishra 25 , 00 , 000 Shree Ram Enterprises 12 . Shyam Mishra 25 , 00 , 000 Shree Ram Enterprises 13 . Arbind Kumar Singh HUF 40 , 00 , 000 Shree Ram Enterprises Tot....

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....4) of the Act and the Assessee filed the confirmation and the bank statement of Shree Amarnath Synthetics vide letter dated 25.03.2016. The particulars of shareholder who received the funds from Shree Amarnath Synthetics are as under: S. No. Name of shareholders who received funds from Shree Amarnath Synthetics Amount ( in Rs.) 1 . Gangaram Aggarwal 20 , 00 , 000 2 . Godavari Devi 20 , 00 , 000 3 . Kamini Devi 20 , 00 , 000 4 . Panna Devi 20 , 00 , 000 5 . Pashupati Nath Aggarwal 20 , 00 , 000 6 . Radhe Shyam Aggarwal 20 , 00 , 000 7 . S....

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....ds by cross checking the bank statements of 22 shareholders and their source firms and the Assessee's bank statement and also examined the detailed confirmations filed by the 22 shareholders and their source firms explaining the nature and source of the investment as well as the reason of making investment in the Assessee Company. She also verified the Audited Financial Statements of the source firms in order to examine the creditworthiness of the parties. 15. The Assessee Company has furnished detailed confirmations explaining nature, source and the reason of making investment in the form of share capital in the Assessee Company, ITRs. (AY 2007-08 & 2008-09), relevant bank statements and PAN No. and addresses of all the 22 Share App....

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....al statements of Shree Ram Enterprises as on 31.03.2008 shows turnover of Rs. 2.55 crore and investment of Rs. 4.36 crore and advances (liability) of Rs. 2 crore. The Audited financial statements of Shubh Laxmi Textile Co. as on 31.03.2008 shows turnover of Rs. 33.5 crores and investment of Rs. 40 lakhs and Loans and advances(Assets) of Rs. 2 crore. The bank statement of Shree Amarnath Synthetics is also on record. 18. All the 22 share applicants also confirmed in their respective confirmations that they received funds from Shree Ram Enterprises, Shubh Laxmi Textile Co. and from Shree Amarnath Synthetics to invest in the share capital of the company and in fact on cross verification of the bank statements of the Assessee Company, 22 shar....