2023 (12) TMI 1500

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.... on the basis of statement given by Shri Pravin Kumar Jain. 3. Brief facts are that the assessee is a Private Limited Company engaged in the business of Shares and Securities. Return for AY. 2009- 10 was filed on 15.09.2009 declaring total income of Rs. 3,333/-. During this assessment year, the assessee raised/received share application money of Rs. 45,00,000/- from four (4) parties named as under. Ansh Merchandise Pvt. Ltd. (M/s. AMPL) Rs. 10,00,000/- Atharav Business Pvt. Ltd. (M?s. ABPL) Rs. 10,00,000/- Duke Business Pvt. Ltd. (M/s. DBPL) Rs. 12,50,000/- Raghunandan Rayons Ltd (M/s.RRL) Rs. 12,50,000/- Total 45,00,000/- 4. Based on information from the DGIT(Inv.), Mumbai, the AO reopened the assessment....

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....s under: i) Duke Business P. Ltd. (JPK Trading I Pvt. Ltd.): M/s. Duke Business P. Ltd. PK Trading I Pvt. Ltd.) vide letter dated 03.11.2015 filed xerox copy of bank statement (A/c No. 246010200005579-UTI Bank, Pawai, standing in the name of M/s. JPK Trading I Pvt. Ltd.) for the period 01.02. 2009 to 28.02.2009. On 27.02.2009. There is a deposit of Rs. 19,50,000/- from Mohit International and on the same day Rs. 12,50,000/- debited in the name of the a assessee. ii) Atharv Business Private Ltd. (Faststone Trad (I) P. Ltd.): M/s. Atharv Business Pvt. Ltd vide letter dated 16.03.2016 filed. xerox copy of bank statement (A/c No.0155201002639- Cannera Bank,. Khetwadi, standing in the name of M/s. Faststone Tr....

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....Rs. 12,50,000/- "FT 0155201002427" and thereafter on: the same day an amount of Rs,10,00,000/- debited "TO CLG Savita". 17. Xerox copies of bank statements filed by the above parties are forming part of this order. From the bank statements, in some cases, it can be seen that before issuing cheques to the assessee there is deposits of cheques from the companies/concerns controlled and managed by Shri Praveen Kumar Jain." 5. According to the AO, during the search conducted in the premises of Shri Pravin Kumar Jain, Shri Pravin had explained the modus operandi of him floating several concerns including the four companies named (supra), which were utilized for providing accommodation entries in the form of share application/loan etc....

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.... 4.99.40,631 12.50 lakhs 7. During the course of assessment proceedings, the AO had issued notice u/s 133(6) of the Act to the four share applicants and pursuant to which they confirmed to AO that they have subscribed to the shares of the assessee company as well as filed the details called for by AO, which fact has been acknowledged by AO at para 5 of the assessment order. Despite assessee filing the primary documents to prove the identity, creditworthiness and genuineness of the four share subscribers who invested Rs.45 Lakhs in assessee company and they confirmed to AO, the AO took adverse view against the assessee based on the statement given by Shri Pravin Kumar Jain that the four shares applicant companies (supra) were one of t....

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....nus casted upon it u/s 68 of the Act by providing proof at investor i.e. identity of the shares subscriber by furnishing their PAN details, their ITR acknowledgment for AY. 2009-10; and from a perusal of the relevant financials of share subscribers, we note that they share have sufficient creditworthiness to make investment in assessee company; and from perusal of the bank statement it reveals that share application money was paid through banking channel and the source of the payment has also been brought to the notice of the AO. We further note that AO has not been able to find any infirmity in the aforesaid evidence furnished by the assessee. In such a scenario, we are unable to agree with the impugned action of the Ld. CIT(A) and direct ....