TaxTMI 
TaxTMI 
2024 (6) TMI 262
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....009-10. 2. Since the appeal and cross objections were heard together, they are disposed of by this common order for the sake of convenience and brevity. 3. Grievances of the Revenue read as under: "(1) Whether on the facts and under the circumstances of the case, the Ld. CIT (A) has erred in law as well as on facts of the case in deleting the addition of Rs. 16,55,00,000/ - made by the AO on account of unexplained cash credit u/s 68 of the Act received by the assessee from M/ s. Luminous Infrastructure Pvt. Ltd, M/ s. Heaven Infracon Pvt Ltd and M/ s. Shine Infracon Pvt Ltd. (2) Whether on the facts and under the circumstances of the case, the Ld. CIT (A) has erred in law without considering the Modus operandi with t....
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....ssued and served on the assessee. 4. On the facts and circumstances of the case, the learned CIT(A) has erred, both on facts and in law, in upholding the reopening of assessment done by the AO, despite the fact that the initiation of the proceedings under Section 147, read with Section 148 of the Act is bad and liable to be quashed, as the conditions and procedures prescribed under the statute have not been satisfied and complied with. 5. On the facts and circumstances of the case, learned CIT(A) has erred both on facts and in law in confirming the reopening despite the fact that the same has been made by the AO without independent application of mind. 6. On the facts and circumstances of the case, the learned CIT....
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.... through CASS and accordingly, statutory notices were issued and served upon the assessee. 7. The assessee is engaged in the business of trading of under constructed flats. Returned income of Rs. 2,78,127/- was assessed at Rs. 3,27,511/- vide order dated 25.11.2011 framed u/s 143(3) of the Income-tax Act, 1961 [the Act, for short]. Vide notice dated 29.03.2016, assessment was reopened u/s 147 of the Act. Reopening was done on the basis of information received from the office of the ADIT, INV 1, Faridabad from which it came to the knowledge that various group companies of RPS Group have received share capital/premium from various dummy entities and the assessee is one of the group companies of RPS Group and has received share capital/prem....
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....on Pvt Ltd was Rs. 55,510/- and Luminous Infrastructure Pvt Ltd was Rs. 25,320/-. The Assessing Officer formed a belief that these companies are nothing but paper companies, having no net worth to subscribe to such huge share capital/premium. 12. Since Rs. 14.06 crores was introduced in M/s RPS Infrastructure Ltd, the Assessing Officer made protective addition of Rs. 14.06 crores in the hands of the assessee, as substantive addition has been made in the hands of RPS Infrastructure Ltd. Balance amount of Rs. 2.94 crores was also added on substantive basis u/s 68 of the Act. 13. The assessee carried the matter before the ld. CIT(A) and vehemently argued that the assessee has explained the transaction in light of section 68 of the Act. T....
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....three parties mentioned elsewhere. We have the benefit of the assessment order of Luminous Infrastructure Pvt Ltd for A.Y 2009-10 framed u/s 143(3)/147 of the Act wherein the share application money received by M/s Luminous Infrastructure Pvt Ltd has been accepted after thorough scrutiny. 19. M/s Luminous Infrastructure Pvt Ltd has invested in shares of the assessee company out of premium received by it and since its source has been accepted after thorough scrutiny, we do not find any reason why source of M/s Luminous Infrastructure Pvt Ltd in the assessee company be not accepted. 20. The same is the fate of M/s Shine Infracon Pvt Ltd whose assessment was also farmed u/s 147 r.w.s 143(3) of the Act and after thorough scrutiny, its fin....