TaxTMI 
TaxTMI 
2024 (5) TMI 1676
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....e Ld. CIT(A) erred in confirming the action of the AO in adding back share capital along with premium amounting to Rs. 1,49,10,000/- when all the documentary evidences were admittedly filed to prove identity and genuineness of the transactions and creditworthiness of the parties. 3. For that the Ld. CIT(A) erred in confirming the action of the AO in adding back share capital along with premium amounting to Rs. 1,49,10,000/- simply on the ground that the directors of the share subscribing companies did not appear physically when admittedly they duly confirmed the transaction in reply to summons issued to them. 4. For that the Ld. CIT(A) erred in confirming the action of the AO in adding back share capital along with premium from 12 individuals and 3 companies when all the companies were duly assessed u/s 143(3), had substantial net-worth and were active compliant companies as per MCA records." 3. At the outset, the ld. Counsel for the assessee did not press Ground No. 1 challenging the validity of notice u/s 143(2) of the Act. Accordingly, Ground No. 1 raised by the assessee is dismissed as not pressed. 4. Vide Ground Nos. 2 to 4, the grievance of the assesse....
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....ry evidence has explained identity and creditworthiness of share applicants and genuineness of the transactions stated that the duty casted upon the assessee u/s 68 of the Act has been discharged by furnishing all necessary details to explain the nature and source of the alleged sum. He submitted that out of the 12 share applicants, mostly are individual shareholders who are friends and relatives of the assessee and as regards the remaining share applicants which are private limited companies, all are assessed to tax and have sufficient funds in the form of share capital and reserves and surplus to explain the investments. The ld. Counsel for the assessee placed reliance on the following decisions in support of its contentions :- 1) M/s. Mahalakshmi Vinimay (P) Ltd. vs. ITO in ITA NO. 35/Kol/2020; Assessment Year 2008-09, order dt. 18/05/2023 2) Principal CIT vs. Sreeleathers reported in [2022] 448 ITR 332 (Cal) 3) CIT vs. Gagandeep Infrastructure (P) Ltd. 80 taxmann.com 272 (Bombay) 4) M/s. Inter Securities Pvt. Ltd. vs. ITO in ITA No. 609/Kol/2018; Assessment Year 2012-13; order dt. 16/10/2023. 8. On the other hand, the ld. D/R supported tha....
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....9679; Copy of Sale Deed with regards to source of source for making investment in assessee company 32-50 5. Documents relating to Ashok Kumar Bissa(Subscriber) Do ● Copy of ITR Acknowledgement (Asst. Yr. 2012-13) 51 ● Copy of Financial Statements as on 31st March 2012 along with the Computation of Total Income 52-53 ● Copy of Bank Statement highlighting the transaction 54-55 ● Copy of account confirmation with Dilip Bothra from whom fund was received for making investment in assessee company 56 6. Documents relating to Dilip Bothra(Subscriber) Do ● Copy of ITR Acknowledgement (Asst. Yr. 2012-13) 57 ● Copy of Financial Statements as on 31st March 2012 58-60 ● Copy of ledger account with Mahaveer Agency from whom fund was received for making investment in assessee company 61 ● Copy of Bank Statement highlighting the transaction. 62-64 7. Documents relating to Lecla Devi Bothra (Subscriber) Do ● Copy of' FIR Acknowledgeme....
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.... ● Copy of computation of total income for A.Y 2012-13 95 ● Copy of Bank Statement highlighting the transaction 96-97 ● Copy of account confirmation with Vinod Kumar Bothra from whom fund was received for making investment in assessee company 98 13. Documents relating to Manoj Kumar Jingar (Subscriber) Do ● Copy of ITR Acknowledgement (Asst. Yr. 2012-13) 99 ● Copy of computation of total income for A.Y 2012-13 100 ● Copy of Development Agreement with regards to source of source for making investment in assessee company 101-107 ● Copy of Bank Statement highlighting the transaction 108-109 14. Documents relating to Ankit Bothra (Subscriber) Do ● Copy of ITR Acknowledgement (Asst. Yr. 2012-13) 110 ● Copy of Financial Statements as on 31st March 2012 111-112 ● Copy of Bank Statement highlighting the transaction 113-115 ● Copy of ledger account with Mahaveer Agency from whom fund was received for making investment in ....
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.... Do ● Confirmation of source of investment in shares of Devbhumi Vinimay 213 ● Copy of ITR Acknowledgement 214 ● Copy of Bank Statement highlighting the transaction 215 ● Copy of PAN 216 ● Copy of Audit Report & Audited Financial Statement as on 31st March 2012 217-233 ● Copy of MCA Master Data 234 20. Documents relating to Dhanlaxmi Trexim Pvt. Ltd. (Subscriber) Do ● Copy of ITR Acknowledgement for Asst Yr 2012-13 235 ● Copy of Bank Statement highlighting the transaction 236-237 ● Copy of Audit Report & Audited Financial Statement as on 31st March 2012 238-249 ● Copy of MCA Master Data 250 9.1. Referring to the above documents placed in the paper book the ld. Counsel for the assessee submitted that the assessee has explained that all these individual persons were having PAN Nos. and they had an immediate source of funds which was utilised for making investments. The source of funds with the individual share applicants is not only the loan r....
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..... We have considered the rival submissions of the ld. representatives of the parties and also gone through the record. In this case a perusal of the Assessment order would reveal that the AO has duly acknowledged the receipt of the relevant documents/evidences not only from the assessee, but also from the subscriber companies. However, he insisted for personal appearance of the directors of the subscriber companies without even going through and discussing about the discrepancies, if any, in the documents furnished by the assessee as well as by the share subscriber companies to prove the identity and creditworthiness of the subscribers and the genuineness of the transaction. The AO has not pointed out in the Assessment Order as to what further enquiries he wanted to make from the directors of the subscribers to insist for their personal presence. The Assessee in this case, as noted above, explained about the identity, creditworthiness and financials etc. of each of the share subscriber company individually. However, we note that in the assessment order that the AO has not even mentioned the names of the share subscriber companies and even has not mentioned a word as to which of the....
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.... 8. It has to be further noted that though powers of the ld. CIT(A) are co- terminus with the AO and the ld. CIT(A) had all the plenary powers as that of the AO. The Hon'ble Delhi High Court in the case of Commissioner of Income-tax vs. Manish Build Well (P.) Ltd. reported in [2011] 16 taxmann.com 27 (Delhi) has held that the CIT(A) is statutory first appellate authority and has independent power of calling for information and examination of evidences and possesses co-terminus power of assessment apart from appellate powers. However, a perusal of the impugned order of the ld. CIT(A) shows that the ld. CIT(A) has not discussed anything about the material facts of the case. He has not pointed out any defect and discrepancy in the evidences and details furnished by the assessee but simply upheld the order of the Assessing Officer in mechanical manner. The order of the ld. CIT(A) is a non-speaking order. The same is not sustainable as per law. 9. In view of the above discussion we do not find justification on the part of the lower authorities in making the impugned additions and the same are accordingly ordered to be deleted." 8.2. Further the Hon'ble Jurisdictio....