AI Drafter 
TaxTMI 
TaxTMI 
2025 (7) TMI 820
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....ing the appeal order without considering the legal grounds raised by assessee. 3. That the National Faceless Appellate Centre (NFAC) is not justified in passing the appeal order without considering the rejoinder to the remand report by giving a false finding that the same was not filed by assessee while the same was duly filed. 4. That under the facts and circumstances of the case, an addition of As Rs. 3,00,00,000/- made by the Ld. AO u/s 68 of the Income Tax Act, 1961 and subsequently confirmed by the CIT(A) deserves to be deleted on account of various issues. 5. That under the facts and circumstances of the case, an addition of Rs. 1,30,00,000/- made by the Ld. AO u/s 68 of the Income Tax Act, 1961 and subsequently confirmed by the CIT(A) deserves to be deleted on account of various issues. 3. Brief facts of the case:- In this case, the original assessment u/s 143(3) of the Act was completed on 18.03.2015 at the returned income of Rs. 18,81,584/-. Thereafter, as seen from the reasons recorded by the Assessing Officer on 30.03.2019 for reopening of this case, the Assessing Officer received an information from the DDIT (Inv.) Unit-6(1), New Delhi vide....
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....ails were filed by the assessee company. Therefore, the Investigation Wing observed that in the absence of any explanation from the assessee company, the transaction entered into by it with PAM jewellers Pvt. Ltd. remained unverified. The Investigation Wing also informed that the details of company were perused from MCA site and it was found that the company had issued 3,00,000 shares to Kolkata based company at security premium during FY 2011-12 and was observed that the creditworthiness of Kolkata based entities which appear in the list of allotees for M/s Aura Gold Pvt. Ltd. need to be determined. Thus in the light of the above, it was noted by the Investigation Wing as below: (i) Transaction entered into between PAM jewelers Pvt. Ltd. and M/s Aura Gold Pvt. Ltd. has remained unexplained. (ii) The creditworthiness of the allotees of share in the case of M/s Aura Gold Pvt. Ltd. need to be verified. The information has forwarded to this office for necessary remedial action u/s 147 of Income Tax Act, 1961. 3.2. Based on this information notice u/s 148 was issued on 31.03.2019 after obtaining prior approval of the competent authority and the notice u/s ....
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.... business of the assessee is manufacturing, trading, export, import of all kinds of gold, silver, platinum, diamond, jewellery and ornaments to cut, saw, clean, polish, sort drill etc. The company filed its Return of income for A.Y. 2012-13 on 22-09-2012 declaring income Rs. 18,81,584/- The return was processed u/s 143(1) of I.T. Act. The case was picked up for scrutiny, and assessment u/s 143(3) was made at the returned income. Sh. Nitin Gupta, Neetu Gupta, Deepak Gupta and Hema Gupta were Directors of the Company during the A.Y. 2012-13. 2. Information Investigation Wing, New Delhi. 2.1. The DDIT (Inv.) Unit-6(1), New Delhi vide letter F.No. DDIT(Inv)Unit-6(1)/ A.O/2018-19/700 dated 22-03-2019 forwarded therewith information in the case of M/s. Aura Gold Private Limited. Information was received that the saving account held in the name of M/s PAM Jewellers Pvt. Ltd. having account NO. 629205031115 in ICICI bank received large value cash transaction in this account. During the period 28.9.2011 to 20.1.2012, total cash credit in the account is 13 Cr. and total debit is 13 Cr. which is transferred to linked account No. 000705030999, 113805500015 and 629205030804. M....
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.... to be verified. The information has forwarded to this office for necessary remedial action u/s 147 of Income Tax Act, 1961. 3. Analysis of Information Received 3.1. I have perused the information received from the Investigation Unit. The following facts emerged in from the inquiries:- (i) The transactions entered into between M/s Pam Jewellers Pvt. Ltd. and M/s Aura Gold Pvt. Ltd. during AY 2012-13 remain unexplained (ii) The creditworthiness of the allotees of share at Share Premium in the case of M/s Aura Gold Pvt. Ltd. is unexplained. 4. Enquiries made by the AO pursuant to information received from Investigation Wing 4.1 Analysis of ITR:- 4.1.1 The return of income of Assessee Company has been downloaded from the ITD system and the same was examined in the light of information received from Investigation Unit. On examination of return of income of the assessee company for A.Y. 2012-13, the following facts have been observed with regard to the financial condition of assessee company:- Sl. No. Particular A.Y. 2011-12 A.Y. 2012-13 1 Authorized Share Capital 10,00,000/- Rs. 10,00,000/- ....
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....ction after the expiry of four years from the end of the relevant assessment year, unless any income chargeable to tax has escaped assessment, for such assessment year by reason of the failure on the part of the assessee to make a return under section 139 or in response to a notice issued under sub-section (1) of section 142 or section 148 or to disclose fully and truly all material facts necessary for his assessment for that assessment year. In view of the above, provisions of clause (c) of explanation 2 to section 147 are applicable to facts of this case and the assessment year under consideration is deemed to be a case where income chargeable to tax has escaped assessment. In light of the above, it is held that the assessee has failed to disclose fully and truly all material facts necessary for his assessment for the relevant assessment year and income of Rs. 1,30,00,000/- of the assessee has escaped assessment for AY 2012-13." 7. Ground no.1 of the appeal is challenging the above reopening of the assessment and the reasons recorded and stating that on the same facts there was a change of opinion by the AO as no new material facts or any tangible fact brought on reco....
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....m was received and the creditworthiness of the Kolkata entities which appear in the list of allottees from M/s Aura Gold Private Limited need to be determined. Therefore, in this case, new fact as discussed above came out to the notice of the AO through the enquiry report of the DDIT, Investigation Wing, which was not available at the time of original assessment. In view of these facts, the contention of the assessee that there was no tangible and new material for reopening of the assessment and the reopening of the assessment on the same facts is change of opinion is not correct and the case laws relied upon by the assessee do not support the ground of appeal and the submission made in this regard. Therefore, contention of the assessee that jurisdiction u/s 147 has been wrongly assumed by the AO is not correct and the ground no.1 of the appeal in this regard is dismissed. 8. Ground no.2 and 3 of the appeal are not pressed by the assessee and the same are dismissed as not pressed. 9. Ground no.4 is against the addition of Rs. 3,00,00,000/- made by the AO u/s 68 of the Act and confirmed by the Ld. CIT(A). On the basis of information received by the AO in this case, the AO issu....
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.... Statement as on 31.03.2012 -ITR & -Share application form -Postal Receipt Is enclosed at Page No 250 to 268 Details of the companies based outside which filed the submission through Post. 6 Arnab Properties Pvt. Ltd. AAHCA6172H 30000 300000 Reply to notice u/s 133(6) comprises -Confirmation of party, -Bank statement, -Audited Financial Statement as on 31.03.2012 -ITR & -Postal Receipt Is enclosed at page No 269 to 284 7 Nivedam Realtors Pvt. Ltd. AABCN8586A 30000 300000 Reply to notice u/s 133(6) comprises -Confirmation of party, -Bank statement, -Audited Financial Statement as on 31.03.2012 -ITR & -Postal Receipt Is enclosed at Page No 285 to 300. 8 Devgriha Promoters Pvt. Ltd. AABCD8941M 30000 300000 Reply to notice u/s 133(6) comprises: -Confirmation of party. -Bank statement, -Audited Financial Statement as on 31.03.2012 -ITR & -Postal Receipt Is enclosed at Page No 301 to 317. 9 Sneha Residency Pvt. Ltd. AAMCS8826R 30000 300000 Reply to notice u/s 133(6) comprises -Confirmation of party, -Bank statement, -Audited Financial Statement as on 3....
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....companies is not prima facie established. The details of which are not on record. As noted above, all the eleven parties did not respond to the notice u/s 133(6) of the Act and also all the notice sent through speed post came back to the office of the AO. Therefore, in given facts of the case, the identity, creditworthiness and genuineness of the transaction were not established by the assessee in the reassessment proceedings, which is an independent proceeding, as there was an information by the Investigation Wing hinting that the creditworthiness of the shares subscription by the Kolkata based parties needs to be verified. Further, it is also noted by the Ld. CIT(A) in the order u/s 154/250 dated 15.07.2024 that even during the assessment proceedings, the assessee did not comply with to the letter dated 19.12.2023 (as noted by the AO in para no.4.3 of his remand report dated 29.02.2024). Thus, it is seen that the assessee did not comply before the AO during the re-assessment proceedings and as noted earlier did not comply during the remand proceedings as discussed above. However, as noted by the AO in the remand report, the details regarding identity, creditworthiness and genuine....
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.... by the AO u/s 68 of the Act and subsequently confirmed by the ld. CIT(A). 13. The ld. AR submitted that the assessee is a reputed company and it had made sales to M/s Pam Jewellers Pvt. Ltd. through which the payments of Rs. 1,30,00,000/- was received through cheque. In this regard, the assessee submitted that the company Pam Jewellers Pvt. Ltd. had complied to the notices u/s 133(6) of the Act issued by the AO and submitted the details of the said transaction. However, the AO in his remand report did not agree with the above facts and submitted the following findings in para 4.5.3 of the remand report which is reproduced as under:- 4.5.3 Although PAM Jeweller Pvt Ltd has submitted the ledger account, bank statement and other documents. Even then, these are not sufficient to establish the genuineness of transaction. The fact is that the bank account (No. 629205031115) of PAM Jewellers Pvt ltd was operated only for the period of 6 months from 28.09.2011 to 28.03.2012 and there was huge cash deposits on single day in multiple times. Like on 13.10.2011 following cash were deposited in Chandanai Chowk branch: Rs. 15,00,000/- Rs. 25,00,000/- Rs. 15,00,000/- Rs. 45,00,000/- ....
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....he ratio of deposit of cash after 13.10.2011 has reduced drastically and even after 25.11.2011 there is no cash deposit till March 2012 i.e. there was no such cash sales after 25.11.2011 or prior to 28.09.2011. The bank statement clearly indicates that the bank account was only utilized for the purpose of cash deposit and transfer to beneficiary. The investigation report is also stating the same." 14. We have considered the rival submissions and perused the materials available on record. It is seen from the above table in the remand report of the AO that in bank account no.629205031115 of M/s Pam Jewellers Pvt. Ltd., at ICICI Bank there are entries of cash deposits and thereafter transfer to respective parties as mentioned therein in which a sum of Rs. 1,30,00,000/- in cash was deposited in the bank account of the M/s Pam Jewellers Pvt. Ltd. on 11.10.2011 and the same was transferred through cheque by M/s PAM Jewellers Pvt. Ltd. to the assessee on same date i.e. on 11.10.2011. Further, the assessee in its reply has not given any explanation regarding the finding of the AO as stated below the above table stating that the ratio of cash deposits after 13.10.2011 i.e. after date of ....