AI Drafter 
TaxTMI 
TaxTMI 
2024 (12) TMI 1050
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....2 153A r.w.s 143(3) 17.12.2019 5. 2591/Del/2022 2016-17 29.08.2022 153A r.w.s 143(3) 17.12.2019 6. 2592/Del/2022 2017-18 29.08.2022 153A r.w.s. 143(3) 17.12.2019 2. As noted, the captioned appeals were set in motion from search assessments passed under s. 153A of the Act. Accordingly all the captioned appeals were heard together and a consolidated order is passed hereunder: 3. As transpired in the course of hearing, the assessment years 2012-13, 2013-14 & 2014-15 stood concluded on the date of initiation of search and are thus unabated assessment years for the purposes of section 153A whereas assessment years 2015-16, 2016-17 & 2017-18 were pending on the date of search and thus stood abated. ITA No.1211/Del/2023, ITA No.2588/Del/2022 & ITA No.2589/Del/2022 (Assessment Years : 2012-13, 2013-14 & 2014-15) 4. Briefly stated, a search under s.132 of the Act was conducted on RNB Group including assessee on 20.04.2017. Consequently, notice under s. 153A of the Act was issued on the assessee and assessment was framed under s. 153A of the Act wherein additions and disallowances of varied amounts were made in different assessment years.....
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.... verification and held that the explanation of the assessee stands substantiated by documentary evidences furnished in the course of remand proceedings and therefore, the additions are not sustainable even on merits. For such proposition, the Ld. Counsel for the assessee relied upon the decisions rendered by the Co-ordinate Bench of the Tribunal in group cases in Lalita Bajaj vs DCIT & Ors. in ITA Nos.2596 & 2598/Del/2022; ITA Nos.2593, 2600, 2597/Del/2022 and ITA No.2599/Del/2022 order dated 11.10.2023. Besides, these broad issues, the Ld. Counsel for the assessee also raised the issue of mechanical approval granted under s. 153D of the Act. 7. The Ld. Counsel for the assessee thus submits that the additions made by the AO and endorsed by the Ld.CIT(A) cannot be countenanced in law both on grounds of jurisdiction available to the AO as well as on merits, where the AO himself has eventually found the documentary evidences to be satisfactory. The Ld. Counsel for the assessee thus sought the reversal of the additions made by the AO. 8. The Ld.CIT DR for the Revenue relied upon the first appellate order. 9. We have carefully considered the rival submissions and perused the ma....
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....nancial Services etc. stands substantiated by documentary evidences submitted. 13.1. The remand report filed by the AO before the Ld.CIT(A) concerning AY 2012- 13 is reproduced hereunder for ready-reference:- "Kindly refer to the above cited subject wherein the remand report was called in the case of the above mentioned assessee for the AY 2012-13 in relation to the additional evidences filed by the appellant under Rule 46A. 2. The assessment in the case of the assessee was completed on 17.12.2019. Wherein addition of Rs. 1,41,25,000/- was made under section 68 of the IT Act 1961 in the hands of the assessee on account of undisclosed income and credits in the bank account of the assessee. 3. The appellant vide its application before the Ld. CIT(A) in the present case has filed following additional evidences: S.No. Particulars Page No. 1. Copy of replies dated 16.12.2019 along with acknowledgement dated 19.12.2019 and 21.12.2019 filed in response to notice issued u/s 142(1) dated 19.10.2019 218-222 2. Copy of Form 2 Le. return of allotment for year 2007 filed on 24.06.2010 with MCA by RNB Synthetics Pvt. Ltd. 223-238 3. ....
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....1-462 Copy of assessment order for AY 2013-14 463-466 Copy of letter from Nagar Palika, Deshnoke dated 27.10.2014 467 Copy of assessment order u/s 143(3) of M/s. Vijay Sanjay Tradecom Pvt.Ltd. for AY 2018-19 468-470 Copy of confirmation filed by Vijay Sanjay Tradecom Pvt.Ltd. 471 Copy of bank statement 472-474 11. Ganeshvani Investment Advisors Pvt. Ltd. Copy of return of income 475 Copy of audited financial statements 476-487 Copy of MOA & AOA 488-511 Copy of PAN Card 512 Copy of confirmation filed by Ganeshvani Investment Advisors Pvt.Ltd. 513 Copy of bank statements 514 4. In the application under rule 46A, the assessee has submitted that the credits/funds received in the bank account in the year under consideration are on account of sale of investment held by assessee in preference shares of RNB Synthetics Pvt. Ltd. to RNB Leasing and Financial Services. It is further submitted by the assessee that amount received by assessee from the alleged shell concern was merely on the instructions of RNB Leasing and Financial Services, however, it has no business relation with the alleged shell conc....
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....of assessment do not cut much ice any longer. The allegations initially made thus stood negated by the AO himself. The Ld.CIT(A) has not assigned any cogent reason to brush aside the categorical findings of the AO in the Remand Report. The Ld.CIT(A) has endorsed the additions based on the observations of the AO in the assessment order. In the wake of observations made by the AO in the Remand Report, the additions made is not justified on merits either. 14. We also take notice of the view expressed by the Co-ordinate Bench in group cases in Smt. Poonam Bajaj (ITA No.2593/D/2022); Smt. Pushpa Devi Bajaj (2600/D/2022) & Shri Pramod Bajaj (2597/D/2022) order dated 31.01.2024 where the issue was adjudicated the issue in favour of the assessee. In consonance thereof also, we have no difficulty to accept the contentions of assessee. 15. Thus judged from any angle, the additions/disallowances made by the AO for assessment years 2012-13, 2013-14 & 2014-15 are unsustainable in law both on points of jurisdiction and merits. The respective orders passed under s. 250 by the Ld.CIT(A) are thus set aside and the additions made qua these assessment years are reversed. Having held so, we do n....
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....batore Pvt. Ltd. 488-499 5. List of share transfer as on 31.03.2015 filed with the MCA by RNB Synthetics Pvt. Ltd. 500-501 6. List of shareholders as on 31.03.2015 filed with the MCA by RNB SEZ Bikaner Pvt. Ltd. filed with MCA 502 7. List of shareholders as on 31.03.2015 filed with the MCA (503 by RNB SEZ Coimbatore Pvt. Ltd. filed with MCA 503 8. For RNB Leasing and Financial Services * Copy of affidavit 504-505 * Copy of PAN card 506 * Copy of return of income 507 9. For Founder Properties Pvt. Ltd. * Copy of return of income 508 * Copy of audited financial statements 509-520 * Copy of COI, MOA & AOA 521-536 * Copy of PAN card 537 * Copy of confirmation 538-539 * Copy of bank statements 540-542 * Copy of assessment order for AY 2014-15 543-544 10. For Raachi Consultancy Pvt. Ltd. * Copy of return of income 545 * Copy of audited financial statements 546-556 * Copy of COI, MOA & AOA 557-568 * Copy of PAN card 569 * Copy of confirmation 570 * Copy of bank statements 571-575 * Copy of assessment order for AY 2....
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....filed by M/s Kashi Prayag Tradelink Pvt Ltd. 795 * Copy of bank statement 796 17. For Sanchar International * Copy of return of income 797 * Copy of balance sheet 798 * Copy of joint venture agreement 799-804 * Copy of PAN card 805 * Copy of bank statements 806 * Copy of confirmation filed by M/s. Sanchar International 807 18. Vijay Sannjay Tradecom Pvt. Ltd. * Copy of return of income 808 * Copy of audited financial statements 809-821 * Copy of COI, MOA & AOA 822-840 * Copy of registration certificate under various indirect tax laws 841-852 * Copy of letter from Nagar Palika, Deshnoke 853-854 * Copy of assessment order for AY 2013-14 855-858 * Copy of letter from Nagar Palika, Deshnoke dated 27.10.2014 859 * Copy of PAN card 860 * Copy of record of survey proceedings in the case of Vijay Sanjay Tradecom Pvt. Ltd. 861-865 * Copy of email dated 06.12.2019 from Radheyshyam Upadhyay to ACIT, Central Circle 32 866-868 * Copy of affidavit filed by Radheyshyam Upadhyay vide letter dated 13.12.2019 869-874 * Copy of assessment order u/s143(3) of....
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.... share respectively, which were acquired by it directly from RNB Synthetics Pvt. Ltd., RNB SEZ Bikaner Pvt. Ltd. and RNB SEZ Coimbatore Pvt. Ltd. @500, @400 and @400 per share respectively. Referring to the above mentioned additional evidences the assessee has stated that funds received by it in the year under consideration were only on account of sale of investments at par out of which no gain/profit has arisen to it and since, no surplus money being received by it except for the recovery of cost of investments, the transactions cannot be regarded as accommodation entries. 5. In order to verify the above documents and submissions made by the assessee, notice under section 133(6) were issued on 27.04.2022. In response to which documents pertaining to the parties from whom funds were received by the assessee were filed. The reply is further supported by the confirmations of the above parties that funds were given to the assessee on behalf of RNB Leasing and Financial Services on account of purchase of shares by them from RNB Leasing and Financial Services out of their disclosed sources of fund. Further, in support of their explanation they have submitted copy of their confi....
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....r substantiation of the transactions and therefore in the wake of such findings, the additions made by the AO even on merits do not continue to hold water any more. Similar plea on merits has been taken in respect of other AYs under consideration. The assessee thus contends that the Ld.CIT(A) was not justified in confirming the action of the AO despite categorical remand report obtained in the first appellate proceedings and without assigning any reason to depart from the view expressed in Remand Report. 20. We have carefully considered the rival submissions and perused the respective orders passed by the lower authorities. The first contention raised by the assessee that the additions made under s.153A in the absence of incriminating material is not justified do not appear to be in consonance of law governing the field, since the AYs 2015-16 and subsequent AYs were pending at the time of search and stood abated. In the abated assessments, the power of the AO is not limited to incriminating material found in the course of search alone. The plea of the assessee is thus rejected. 21. We however find merit in the plea of the assessee that in view of the averments made in the rem....