TaxTMI 
TaxTMI 
TaxTMI 
2024 (8) TMI 1674
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....raised in letter dated 13.10.2023 is not to be pressed. Accordingly, the said ground is dismissed as not pressed. 4. Insofar as the other grounds are concerned, though, we have heard the parties both on the legal issues as well as on the issue arising on merits, at the outset; we propose to deal with the issues on merits. So far as the merits of the issues are concerned, the assessee basically has contested the following three additions: i. Unexplained investment in purchase of shares under section 69B Rs. 1,84,17,025/- ii. Unsecured loan treated as unexplained cash credit under section 68 of the Act. Rs. 47,89,760/- iii. Undisclosed investment in jewellery under section 69B of the Act Rs. 26,25,776/- 5. Insofar as additions mentioned at items nos. i and ii are concerned, briefly the facts are, the assessee is a resident individual. For the assessment year under disputed, the assessee filed her return of income on 28.03.2011. Subsequently, the Assessing Officer received certain communications from the Deputy Commissioner of Income Tax, Central Circle, intimating that in course of search and seizure operation carried out on 14.09.2010 ....
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....investments in shares amounting to Rs. 1,84,17,025/- in M/s. Vidya Shankar Investments Pvt. Ltd. and unsecured loans availed of Rs. 47,89,760/-. However, he accepted the investment in shares of M/s. Index Securities & Research Pvt. Ltd. as genuine. Though, the assessee contested the aforesaid additions before learned first appellate authority, however, they were confirmed. 7. Before us, learned counsel appearing for the assessee submitted that in course of assessment proceedings, the assessee had furnished cogent documentary evidences to prove the investments in the shares as well as the unsecured loans availed during the year. He submitted, not only the confirmations from the parties were filed, but various other documentary evidences, such as, Memorandum of Association of both the companies, copies of bank statements, copies of documents filed by the concerned companies before the Ministry of Corporate Affairs, etc. were filed before the Assessing Officer. However, he submitted, without properly verifying the documentary evidences, the Assessing Officer had made the additions merely relying upon the information received form DCIT, Central Circle. 8. He submitted, ....
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.... the genuineness of transactions through proper documentary evidences, the additions made are purely on conjectures and surmises have to be deleted. 11. Learned Departmental Representative strongly relied upon the observations of the Assessing Officer and learned first appellate authority. 12. We have considered rival submissions and perused the materials on record. We have also applied our mind to the decisions relied upon by learned counsel for the assessee. As discussed earlier, the assessee has contested the additions relating to investment in shares of a company, named, Vidya Shankar Investments Pvt. Ltd. as well as unsecured loans availed from the M/s. Vidya Shankar Investments Pvt. Ltd. and M/s. Index Securities & Research Ltd. Observations of the Assessing Officer in the assessment order qua the additions made clearly indicate that his conclusion regarding the additions are primarily based on the information received from DCIT, Central Circle, through certain communications. Though, in the said communications, the concerned authority has stated that in course of search and seizure operation conducted in case of Jagat Group, certain incriminating materials were found i....
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....e assessment year, proceedings under section 153C of the Act were initiated against both the entities. In the assessment order passed under section 143(3) read with section 153C of the Act on 28.03.2013, a copy of which is placed at page 134 of the paper book, it is observed that the Assessing Officer, while completing the assessment, has accepted the income computed by the assessee in the return of income and no adverse inference has been drawn. Similarly, in case of M/s. Index Securities & Research Pvt. Ltd., though, in the assessment completed under section 143(3) read with section 153C of the Act vide order dated 28.03.2013, the Assessing Officer has made addition of more than Rs. 50 crores, however, learned first appellate authority, while deciding the appeal filed by the concerned entity, deleted the addition. 17. The Revenue being aggrieved with the decision of learned first appellate authority preferred an appeal before the Tribunal. While deciding the appeal, the Tribunal in order dated 26.08.2016 passed in ITA No. 430 to 432/Del/2014 upheld the decision of learned first appellate authority. It is noteworthy, the aforesaid decision of the Tribunal was challeng....
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....7-08 Rs. 7,75,00,000/- qua AY 2008-09 and Rs. 9,73,37,500/- qua AY 2009-10, by treating the bogus share application money/share premium as unexplained cash credit?" 20. Undisputedly, the assessee company has supplied confirmation letter from the share applicants; copies of bank accounts of a day or week of the share applicants; copy of acknowledgement of ITRs and copy of balance sheets etc. for scrutiny by the AO, which the AO has declared ingenuine on the basis of conjectures and surmises inter alia that these documents do not prove the capacity of these persons to give the share capital/ share premium for investment; that these companies appear to be not doing any business and drawing such income to justify their investment, and that most of the investors sold their shares to the person connected or controlled by Shri Sant Lal Agrawal and Shri Satish Kumar Pawa at the price of 1/4th of the face value of the share. 21. When undisputedly AO has perused the relevant details pertaining to the share capital/share premium qua the year under assessments as furnished by the assessee company and has not minced a word to question the validity of those documents ....
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....providing accommodation entries only. 20. It is a fact on record that in course of assessment proceedings, the assessee had furnished all documentary evidences, including confirmations from the concerned parties to prove the genuineness of the transactions relating to both the investments in shares and availing of unsecured loans. The Assessing Officer has not taken care to analyze and inquire into the evidences furnished by the assessee. No effort has been made by the Assessing Officer to disprove and discredit them. Without making any inquiry on his own or even establishing on record that evidences furnished by the assessee are not valid, the Assessing Officer could not have proceeded to treat the investments in shares and unsecured loans availed as nongenuine. It is prima facie evident, the Assessing Officer has treated the transactions between the assessee and M/s. Vidya Shankar Investments Pvt. Ltd. and M/s. Index Securities & Research Pvt. Ltd. as non-genuine, merely, relying upon the observations made by the DCIT, Central Circle in the communications sent to the Assessing Officer. No independent inquiry at all has been made by the Assessing Officer to verify the genuinene....