AI Drafter 
TaxTMI 
TaxTMI 
2025 (4) TMI 645
X X X X Extracts X X X X
X X X X Extracts X X X X
....of the case, the CIT(A) has erred in deleting the addition of Rs. 2,00,000/- made by A0 on account of bogus expenses. 5. On the facts and circumstances of the case, the Ld. CIT (A) has erred in law in its decision that AO has not given sufficient opportunity to the assessee." 2. Grounds No.1 & 5 are general in nature, hence do not require any adjudication. 3. With regard to ground no.2 regarding addition of Rs. 3,00,00,000/- on account of cash credit in the form of shares, brief facts of the case are, search and seizure proceedings under section 132 of the Income-tax Act, 1961 (for short 'the Act') were conducted in the case of M/s. Mauria Udyog Ltd. and its group concerns and residential / factory premises of partners, directors and proprietors of the group on 07.08.2013. The warrants of authorization for search of various residential and business premises were issued on 06.08.2013 & 07.08.2013. During the course of search, documents, cash, jewellery etc. were found and seized. Thereafter, the case of the assessee was centralized with the AO, Central Circle 3, New Delhi vide order u/s 127 of the Act dated 13.07.2015 of CIT, Central 1, New Delhi. Thereafter, notice u....
X X X X Extracts X X X X
X X X X Extracts X X X X
....her identity nor creditworthiness of this party proved and the transactions are also not genuine. He observed that the details of cash credit received in the books of account of the assessee from this party i.e. M/s. Eastwest Enclave Pvt. Ltd. is Rs. 3,00,00,000/-. Accordingly, he held that Rs. 3,00,00,000/- that has been introduced as sale of shares from these parties is being treated as unaccounted income of the assessee u/s 68 of the Act and same is added to the total income of the assessee. 5. Aggrieved assessee preferred an appeal before the ld. CIT (A) and ld. CIT (A) deleted the addition made by the AO by observing as under :- "4.4 Ground no.02 relates to the addition of Rs. 3.00 crore on account of sale of shares held by the appellant in M/s Nexus Commosales Pvt. Ltd. (NCPL) to M/s SKP Commotrade Pvt. Ltd. (name changed to Manrup Comtrade Pvt. Ltd. - Manrup CPL) and M/s Siddeshwari Vyapaar Pvt Ltd. (SVPL). The facts of the matter are similar to that of the case of M/s Mauria Udyod Ltd. (MUL), M/s Quality Synthetics Pvt. Ltd. (QCPL) and M/s Sri Narayan Rajkumar Merchants Ltd. (SNRML) for AY 2013-14 and I have dealt the issue in detail in my order dt. 20.10.2016 i....
X X X X Extracts X X X X
X X X X Extracts X X X X
....enue had filed appeals in those cases which were dismissed by the ITAT. He submitted that ld. CIT (A) has relied upon the order passed in the case of Mauria Udyog Ltd. and the said order has been upheld by the ITAT in consolidated order dated 29.11.2018 in the case of M/s. Navneet Kumar Sureka, Mauria Udyog Ltd. & M/s. Narayan Rajkumar Merchants Ltd. and Hon'ble Delhi High Court order dated 23.07.2019 in the case of M/s. Mauria Udyog Ltd. 9. Considered the rival submissions and the material available on record. We find that the issue under consideration is squarely covered in favour of the assessee and ld. CIT (A) has rightly deleted the addition made by the AO. We do not find any infirmity in the order of the ld. CIT (A) and also the matter is squarely covered by the aforesaid decision of ITAT and Hon'ble Delhi High Court in the case of M/s. Mauria Udyog Ltd. Accordingly, ground no.2 of Revenue's appeal is dismissed. 10. With regard to Ground No.3 regarding protective addition of Rs. 14,97,50,000/- on account of unexplained share applciations money, the relevant facts are, during AY 2013-14, AO observed that authorized share capital of the assessee company was increased from....
X X X X Extracts X X X X
X X X X Extracts X X X X
....rotective basis. 11. Aggrieved assessee preferred an appeal before the ld. CIT (A). Ld. CIT (A) deleted the addition by holding as under :- "4.3 Ground no.01 relates to addition of Rs. 14,97,50,000/- on account of shares of the appellant company originally subscribed by five companies M/s Nexus Commosales Pvt (NCPL), M/s Mauria Udyod. Ltd. (MUL), M/s Quality Synthetic Ltd. (QSPL), M/s Sri Narayan Rajkumar Merchants Ltd, (SNRML) and M/s Jotindra eel & Tubes Ltd. (JSTL), all Mauria group companies, and subsequently sold to the Kolkata based companies (mentioned at para-3.2 herein above) by the original allottees of the Mauria group. The addition has been made protectively in the hands of the appellant and substantively in the hands of these five companies. The additions in the hands of these five companies, appeals of which are simultaneously being considered by me, have been made not on account of purchase of shares of LMPL (as also that of the other sister concern, NCPL), which investments have been accepted by the AO in their respective hands, but on account of subsequent sale of the same shares by the respective five companies of Mauria group to third parties of Kolka....
X X X X Extracts X X X X
X X X X Extracts X X X X
....ach of which has subscribed the share capital of the assessee company. He submitted that the Substantive addition made in the hands of the group companies have been deleted on merits by the ITAT. He submitted that the ld. CIT(A) has passed detailed order on merit in the case of Mauria Udyog Limited (being Appeal No. 15/16-17 dated 20.10.2016) and this order has been followed in the other group companies. He further submitted that the Revenue has come in appeal against the order of the Mauria Udyog Ltd. in ITA No.6660/Del/2016 and other group companies and the ITAT has confirmed the order of the CIT(A) deleting the addition on merit in the case of Mauria Udyog Ltd. ITAT has followed this order in other group companies. He submitted that the Revenue has filed appeal against the order of the ITAT in the case of group company, namely, Mauria Udyog Limited before the Hon'ble Delhi High Court and Delhi High Court dismissed the appeal filed by the Revenue vide order dated 23.07.2019 (supra). Accordingly, he pleaded to uphold the order of the ld. CIT (A). 15. Considered the rival submissions and the material available on record. We find that the issue under consideration is squarely cov....
X X X X Extracts X X X X
X X X X Extracts X X X X
....tor of M/s Trinity Shipping & Allied Services Pvt. Ltd. was recorded who stated that they had no business with the appellant company and that the trust receipts shown to him are forged. The AO has reproduced Q.Nos. 10 to 12 of the statement of Sh. Perumal at para-6 of the assessment order. As per Q.No. 11 the alleged receipts of M/s Trinity Shipping & Allied Services Pvt. Ltd. shown to Sh. Perumal were three receipts one of M/s Linkwise Marketing Pvt. Ltd. dt. 09.03.2013 and two receipts dt. 09,03.2013 and 05.03.2013 of M/s Nexus Commosales Pvt. Ltd., group companies of the appellant company, The AO has, based on these facts concluded that the appellant company had not stored any kind of goods in the SP and CC godowns at Kandla of M/s Trinity Shipping & Allied Services Pvt. Ltd. and in spite of the reply of the assessee, quoted at para 6.3 of the assessment order, that no expenses have been incurred by the company which has been paid to M/s. Trinity Shipping & Allied Services Pvt. Ltd. for storage of goods from AY 2008-09 to 2014-15 except for those mentioned herein above, the AO made an "ad hoc disallowance of Rs. 1.00 lakh" observing that "the disallowance is on account of bogus ....