AI OCR 
TaxTMI 
TaxTMI 
TaxTMI 
2024 (2) TMI 1329
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.... Assessment Year 2012-13 an exparte appellate order was passed. For the Assessment Year 2012-13 one Shri Sagar Vasoya appeared before Ld. CIT(A), however the assessee appeal was dismissed by a detailed speaking order. 3. ITA No. 425/Ahd/2019 relating to the Asst. Year 2012-13 is taken as the lead case. The brief facts of the case is that the assessee is a Company engaged in the business of manufacture of Pharmaceuticals and Plastic empty syringes. For the Asst. Year 2012-13, assessee filed its Return of Income on 23.09.2012 declaring total income of Rs. 53,720/-. The return was taken up for scrutiny assessment, the Assessing Officer noticed that the assessee company had received investment in shares from four parties as follows: Sr. no Name of share holder Amount of investment Rs. 1 M/s, Gopalka Investo Motors Pvt. Ltd. 9,50,00,000 2 M/s. Pushpadant Commotrade Pvt. Ltd. 4,12,50,000 3 Shri Pawankumar Agarwal 1,83,40,000 4 Smt. Zameer Pawankumar Agarwal 1,16,40,000 3.1. On detailed verification of the investments made by the above parties, the assessee could not prove identity, genuineness of the transaction and creditworthiness of the parties. Therefore the A.O. tre....
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....ch, 2012 It is not known how the appellant company has fixed premium on its shares. It is evident that shares were issued at different rate of premium to M/s Gopalka Motor investo Pvt. Ltd. and M/s Pushpadant Commotrade Pvt. Ltd, whereas during the same period when the shares of the appellant company have been issued to two individuals and no premium has been charged by the appellant company. As per the details furnished by the appellant during the assessment proceedings, A.O. has mentioned that money was given by M/s Gopalka Motor Investo Pvt. Ltd to these two Individuals enabling them to make investment in the shares of the appellant company. Shri Pawankumar Agarwal has received Rs. 1.83 crores whereas Smt.Zameer Pawankumar Agarwal has received Rs 1.16 crore from M/s. Gopalka Motor Investo Pvt. Ltd. in the form of loan in order to make investment in the appellant company. 5.2 In order to check identity, genuineness and creditworthiness of the Investors, A.O. has taken efforts to reach out to the investors. M/s Gopalka Motor Investo Pvt. Ltd. was not found at the address furnished by the appellant. Since the funds for investment made by Shri Pawankumar Agarwal and Smt. Zameer P....
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.... the appellant on 14/03/2015 wherein appellant has referred to the reason why the summons could not be served on the corporate entities by the investigation unit of Kolkata A.O, has concluded that appellant was trying not to co-operate with the department and delaying the assessment proceedings. At page 8 of the assessment order, A.O. has also made financial analysis of M/s Gopalka Motor Investo Pvt. Ltd arid M's Pushpardant Comiotrade Pvt Ltd AD has observed that during A Y 2011-12 income of M/s Gopalika Motor Investe Pvt. Ltd was only Rs. 1,41,814/- and whereas for AY 2012-13 M/s Gopalka Motor Investo Pvt. Ltd have incurred loss of Rs. 8,78,679/ Similarly, M/s Pushpadant Commotrade Pvt. Ltd had filed income of Rs. 2,906/- for AY 2011-12 and Rs. Nil for AY 2012-13 and A Y. 2013-14 Therefore, A. O has raised strong doubts matching the creditworthiness of these two corporate, entities for making investment of more than Rs. 15.60 crores in the shares of the appellant AO has also further so served that bank account of M/s Pushpadant Commmarade Pvt. Ltd was maintained with Bank of Baroda New Cloth Market branch, Ahmedabad and the address given on the bank account was that of Ahmeda....
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....lance sheet along equal amount of investment, but when the profits and loss account is looked into it seems complete dry as interest against investment running in crores the income shown is few thousand and so is the total turnover". The facts of the case under consideration are very similar to the facts of the case deliberated by Hon'ble Tribunal. Hon'ble Tribunal has also relied upon judgment of Hon'ble Supreme Court in the case of Navodaya Castle Pvt. Ltd. v/s CIT 56 taxmann.com 18 (SC), CIT vs. Maithan International 375 ITR 123 (Cal), CIT vs. Empire Builtech P. Ltd. 361 ITR 258 (Del) etc. Relying upon various case law quoted by Hon'ble Tribunal as well as judgment of Hon'ble Tribunal in the case of Nakoda Fashion Pvt. Ltd (supra) I completely, agree with conclusion drawn by the A.O and hereby confirm the addition of Rs. 16,61,50,000/- made by the A.O on account of investments made to its share capital Thus ground of appeal No. 2,3 & 5 raised by the appellant are hereby dismissed 5.4 The A.O. has further mentioned at para 3 9 of the assessment order that Shri Pawankumar Agarwal has advanced of Rs. 1.83 crores, Smt. Zameer Pawankumar Agarwal had advanced of Rs ....
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.... Tax (Appeals) erred in holding that AO is correct and justified. 3. The Ld.AO has erred in making addition of Rs. 3,75,50,000/-u/s 68 being an amounts for the advances received by Shri Pawankumar Agrawal of Rs. 1,83,00,000/-, Shri Zameer Agrawal of Rs. 2,00,000/- and Rs. 1,90,50,000/-received from Gopalka Motors Investo Pvt. Ltd & Pushpadant Commotrade Pvt. Ltd by the appellant company. On the facts and in the circumstances of the case and in law the learned Commissioner of Income Tax (Appeals) erred in holding that AO is correct and justified. 4. The Ld. AO has completed the assessment in hurried manner without complete verification of the facts including the submissions of the latest address of share applicant companies namely Gopalka Motors Investo Pvt. Ltd. & Pushpadant Commotrade Pvt. Ltd. On the facts and in the circumstances of the case and in law the learned Commissioner of Income Tax (Appeals) erred in holding that A.O. is correct and justified. 6. As stated earlier, None appeared on behalf of the assessee in spite of service of notices, the assessee in its letter head sought for adjournment on 16.03.2021, whereby the appeals were adjourned to 15.04.2021. Ag....