2024 (12) TMI 37

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.... four years and also challenged the addition of Rs. 99,00,000/- added towards share application money u/s. 68. 3. Before us, ld. Counsel submitted that here in this case the return of income was filed on 29/09/2009 declaring total income of Rs. 1,33,16,240/- and thereafter assessment was completed u/s. 143(3) on 23/12/2011 after making adhoc disallowance of various expenses of Rs. 11,00,000/- and assessment was completed at an income of Rs. 1,44,60,240/-. Thereafter, notice u/s. 148 was issued on 29/01/2013 on account of some alleged bogus purchases and addition of Rs. 3,40,64,343/- was made, adding entire purchase and total income was assessed at Rs. 4,74,24,583/-. Now again second reopening u/s 147 has been done and notice u/s. 148 has b....

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....sessee has received share application alongwith share premium from following six entities. Sr. No. Name of the shareholder No. of equity Share capital Total capital Share Premium Share Premium     Shares Face Value     Amount 1. Blazer Venture Pvt. Ltd. 120000 10 1200000 10 1200000 2. Capetown Mercantile Company Pvt. Ltd. 50000 10 500000 10 500000 3. Fairment Venture Pvt. Ltd. 120000 10 1200000 10 1200000 4. Kumaon Engineering Co. Pvt. Ltd. 100000 10 1000000 10 1000000 5. Moto Soft Tel Pvt. Ltd. 55000 10 550000 10 550000 6. Vibhuti Multi Trade Pvt. Ltd. 50000 10 500000 10 500000   Total 49500   4950000   4950000 5. According to the AO, since a....

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....itworthiness of the parties and once it is a fact that assessee had received credit entries, the reopening is valid. Thus, he strongly relied upon the order of the ld. CIT(A) confirming the reopening. 8. We have heard both the parties and also perused the relevant finding given in the impugned orders. As noted above, here in this case original assessment order was passed u/s. 143(3) on 23/02/2011 and then again re-assessment order was passed u/s. 143(3) / 147 on 03/12/2013, whereby addition was made on some alleged bogus purchases. The quantum appeal against this addition had attained finality from the stage of the Tribunal wherein the addition on account of bogus purchases was limited to application of net profit rate. Now again reopening....

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....e assessee. There has to be specific material coming on record and correlation with the entries in the book. Here in this case there is no accommodation entry of Rs. 20,00,000/- credited in the books of the assessee, which fact is also borne out from the assessment order. The share application money has come from six entities and without any material information on record as to how these companies were Benami concerns of Shri Pravin Jain or group and how these companies are related to Shri Pravin Jain, can there be any reason to believe as contemplated in section 147. Without this information, how can AO entertain reason to believe that income chargeable to tax has escaped assessment in the form of share application money, because it is in ....

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....irector in the following companies 1. Anchal Properties Pvt Ltd 2. Easy Mercantile Pvt Ltd 3. Nakshatra Business Pvt Ltd 4 Olive Overseas Pvt Ltd 5. Picadily Overseas Pvt Ltd 6. PIM Trading (1) Pvt Ltd 7. Raghunandab Reyons Ltd 8. Riddhi Siddhi Multitude Pvt Ltd 9. Sanjivani Enviro Protection Ltd 10. SBI Training India Pvt Ltd 11 Sumith Commercial Pvt Ltd 12 Spine Infotech Pvt Ltd 13. Angel Softlang Pvt Ltd With the following companies and other entities, I am not formally associated but, these are managed and controlled by me 1. Aalla Diamond Industries Limited 2. Ansh Merchandise Pvt Ltd 3. Atharv Business Pvt Ltd 4. Bhagyashree Gems Pvt Ltd 5 Casper Enterprise Pvt Ltd 6. Duke Business Pvt Ltd 7. ....