TaxTMI 
TaxTMI 
TaxTMI 
2025 (10) TMI 946
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.... (System) through CASS. Notice under Section 143(2) of the Act dated 12.08.2013 was issued. Various notices under Section 142(1) of the Act were issued calling for specific evidence, explanation and clarifications. During hearing further clarifications were obtained. The assessee also filed report of the Auditor in Form 3CD with related Trading Account, P. & L. Account and Balance Sheet with Annexures. Initially, Shri Pankaj Gupta, CA attended proceedings. Later, Shri Ravindra Agarwal, C.A. attended the proceedings. On completion of proceedings, Ld. AO vide order dated 27.03.2015 made addition of Rs. 4,00,00,000/-. 3. Against order dated 27.03.2015 of Ld. AO, the appellant/assessee preferred appeal before the Ld. CIT(A) which was partly allowed vide order dated 28.02.2020. 4. Being aggrieved, the appellant/revenue preferred present appeal with following grounds: "1. The CIT(A), Meerut has erred in law in not appreciating the fact that in view of the section 68 of the I.T. Act, 1961, the onus was upon the assessee company to proved the source of credit entries of Rs. 4,00,00,000/- received by the assessee company as share application money from M/s Approva Leasing Fin....
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....t order dated 28.08.2020 was filed on 22.12.2020. Because of Covid Pandemic 2019, as per Notification, dated 24.06.2020, the last day for filling the departmental appeal had been extended up to 31.03.2021. 6. Learned Authorized Representative for the respondent/assessee had no objection. 7. In view of above submissions raised by the Learned Authorized Representative for the Department of Revenue, since appeal was filed with extended period, there is no delay in filing the appeal. Therefore, since the period for filing appeal by the Revenue had been extended, the application for condonation of delay in filing of appeal is dismissed. 8. Learned Authorized Representative for the Department of Revenue further submitted that a search & seizure action was conducted by Director of Income Tax (Inv), Unit -VI(2), New Delhi in the Surendra Kumar Jain Group of cases. During the course of post search Investigations and while examining the seized documents it was observed that Sh. Surendra Kumar Jain and Sh. Virendra Kumar Jain were engaged in the business of providing accommodation entries to large number of beneficiary companies through various paper and dummy companies floated and c....
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....on dated 12.03.2015 that since assessment order has not yet been finalized opportunity may be provided to the assessee to produce the director of the Investor company. In the interest of natural justice request was granted and date of 20.03.2015 was fixed to produce the Director. On 20.03.2015 assessee submitted reply that the Director of the investor company has given tentative date of 24.03.2015, hence adjournment for 24.03.2015 was sought. The adjournment was granted for 27.03.2015. 8.3 Learned Authorized Representative for the Department of Revenue that regarding creditworthiness of the person from whom money was taken, submitted that investor company M/s. Apoorva Leasing Finance and Investment Company Limited didn't had any credit worthiness of its own. The documents as provided by the Investigating wing clearly suggested that at one side the company operative were receiving the money in cash, depositing in their sister concern and then transferring to the company for further transfer to the entry seeking beneficiary companies. Perusal of Bank A/c No. 014706400000509 maintained with Dhanlaxmi Bank of investor company M/s. Apoorva Leasing Finance and Investment Company L....
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....5 the assessee was required to furnish several details. The intention was to provide the assessee an opportunity to explain the transaction as genuine. Vide Point No.(iv) of order sheet entry dt.05.02.2015 the assessee company was required to furnish a brief note on the transaction of the share capital. The assessee in written submissions dated 27.02.2015 only provided the mathematical calculation without throwing any purpose/understanding/memorandum understanding, signed with the company. Thus it failed to submit any document to substantiate the genuineness of the transaction. Even the copy of the counterfoil of Share Certificate issued was not submitted. Vide Point No.(v) of order sheet entry dt.05.02.2015 the assessee company was asked about the motive of investor company M/s. Apoorva Leasing Finance and Investment Company for Investing huge amount with premium of 49 times the share allotted. It is to be mentioned here that the share of Rs. 10 was sold for Rs. 500. M/s. Apoorva Leasing Finance and Investment Company had simply stated that due to future prospects the share premium was paid. The company M/s. Apoorva Leasing Finance and Investment Company main objects are to invest....
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....020, Ld. CIT(A) in para nso. 5.3.7 to 5.3.9 observed as under: "5.3.7 I have considered the facts, findings of the A.0., submissions of the appellant and the various case laws relied upon by the A.O. as well as appellant and have observed that an amount of Rs. 4,00,00,000/- was invested by M/s. Apoorva Leasing Finance and Investment Company Ltd. in the appellant company, as the share capital and share premium. The invested was credited in the books of account of the appellant. The appellant was legally required to prove the same u/s 68 of the I.T, Act, 1961. The A.0. required the appellant to explain the credit of share capital and share premium and after considering the evidences filed before him, reached a conclusion that the appellant could not prove the identity and creditworthiness of the share investor and genuineness of the transaction with him. The A.O. has placed heavy reliance on the report/information received from the Investigation wing, Delhi, stating that the documents provided by the Investigation Wing clearly suggest that at one side the investor company was receiving the money in cash, depositing in their sister concern and then transferring to the investo....