2009 (7) TMI 1393

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....ame of the company/individual Amount (Rs.) 1.  Shri Vinay Rai 12, Aurnagzeb Lane, New Delhi 5,00,000/- 2. Gordon Herbert (India) Limited 94, Mahatama Gandhi Road, Lucknow. 89,00,000/- 3. Koshika Telecom Limited B-309, IIIrd Floor, Ansal Chamber-1, 3, Bhikaji Cama Place, New Delhi. 1,00,00,000/- 4. Information Technologies (India) Limited Shankar Vihar Colony, Hardooi Road, Lucknow. 1,00,00,000/-     2,94,00,000/- 2. The Assessing Officer was of the opinion that these companies were bogus front companies of Usha Group controlled by Vinay Rai who were involved in transfer of funds from one entity to another. Some of the donors were produced before the Assessing Officer but they....

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....tatements of these persons recorded by the AO on 24.3.05. Sh. M.N. Choudhary, director of Information Technologies India Ltd. In his statement had no knowledge about filing of Income-tax return of the company after asstt. Year 1995-96. He stated that he had joined the company w.e.f. 16.6.03 and the earlier aspect was not know to him. He further stated that all the records of the company were lying in the registered office at Lucknow. He also stated that he was not aware of the taxation matters and regarding filing of the returns of income for which he will have to consult the auditors. He also could not produce any evidence to support that he was the director or principal officer of the company. The records also show that no books of accoun....

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....s form one entity to the other. These findings of the AO are very crucial to decide the issue and no comments were offered on the same. The issue regarding floating of bogus companies and trusts for siphoning off of funds had also come up prominently in the case of M/s Usha Foundation, another trust of Usha Group in the asstt. Year 2001- 02 and similar addition in respect of corpus donations made in the case of that trust was upheld by CIT (A). In the light of these facts and circumstances stated above, I am of the considered view that the sum credited in the books of account in the appellant trust in the garb of corpus donations amounting to Rs.2,94,00,000/- does not get proved and, therefore, the AO was justified in making addition of Rs.....