TaxTMI 
TaxTMI 
2022 (4) TMI 1693
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....ions of Section 153A of the IT. Act, 1961 which required the total income to be brought under tax without any restrictions. 2. On the facts and in the circumstances of the case and in law, the Ld. CIT (A) has erred in law and on facts in holding that such assessment or reassessment u/s. 153A of the IT. Act, 1961 is to be restricted only to the incriminating material found during the search. 3. On the facts and in the circumstances of the case and in law, the Ld. CIT (A) has erred in law and on facts in deleting the disallowance of loss of Rs. 9,50,00,000/- made by the AO. 4. On the facts and in the circumstances of the case and in law, the Ld. CIT (A) has erred in law and on facts in deleting the disallowance of loss of Rs. 9,50,00,000/- without appreciating the several findings of the AO which - show that the transaction was an accommodation entry. 5. On the facts and in the circumstances of the case and in law, the Ld. CIT (A) has erred in law and on facts in deleting the disallowance of Rs. 9,28,414/- made by the AO u/s. 14A of the Act. 6. On the facts and in the circumstances of the case and in law, the Ld. CIT (A) oug....
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.... per the provisions of Income Tax Act, there was no requirement of valuation of shares of private limited company. It further explained that investment in shares was made by the company from the funds received from Ganesh Housing Corporation Ltd. The ledger accounts of Suraj Ltd. and Ganesh Housing Corporation Ltd. substantiate this fund transaction for making the impugned share transactions. To explain the genuineness the assessee has also furnished copy of share application form, copy of PAN card of Suraj Ltd., copy of Form 2 filed with ROC by Suraj Ltd and copy of share certificate issued by the Suraj Ltd. Statement of Shri Shekhar G. Patel recorded under section 131 of the Act on 25.3.2014 clearly establish the case of the assessee that transaction of purchase and sale of shares of Suraj Ltd. was genuine. So far as issue of variance in the date of sale and purchase of shares in the books of the assessee-company and Suraj Impex P. Ltd. was concerned the same was due to omission on the part of the accounting staff. It further pleaded that when the management of the assessee-company came to know that Suraj Ltd. was not going to be listed in the market, in order to minimize the los....
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....ssessee has made detailed submissions which were reproduced by the CIT (A) from page nos.2 to 19 of the order. The ld.CIT(A) considered the submissions and also relied upon various cases including the decision of jurisdictional High Court in the case of Pr.CIT Vs. Saumya Construction P. Ltd., 387 ITR 528. These case laws relied upon by the ld.CIT(A) are listed in page no.20 to 22 of the order. Based on these decisions, he ld.CIT(A) held that there was no mention of any incriminating material belonging to the appellant was mentioned in the assessment order. Therefore, in absence of any incriminating material found and seized during the course of search proceedings in the case of Suraj Group against the appellant company and in the absence of any statement of directors of Suraj Group and/or related person of Suraj Group against the assessee-company, the addition made by the AO in the assessment order under section 143(3) r.w.s 153C of the Act was not justified and the same was deleted. The ld.CIT(A) also deleted disallowance under section 14A of the Act of Rs. 9,28,414/-. Dissatisfied by the action of the CIT(A), Revenue is now before the Tribunal. 6. Before us, the ld.DR sup....
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....ted on the basis of documents which pertains to the company. Thus, a condition precedent for issuing notice under section 153C itself not fulfilled by the AO. As regards, addition on merit also, the ld.CIT(A) has rightly appreciated the factum of case of the assessee and allowed the claim of the assessee. Therefore, the order of ld.CIT(A) does not require any interference, and the appeal of the Revenue should be dismissed. 8. In the present case on hand, the issue before is us about the merit of disallowances made by the Assessing Officer in an assessment framed under section 143(3) r.w.s 153C of the Act. We find that the AO on the basis of these seized papers, made certain disallowance, which according to the assessee is without appreciating the facts of the case and submissions made before him even when no evidence of incriminating material was found and seized related to the assessee from the possession of the searched person. In appeal, the ld.CIT(A) found that the disallowance made by the AO could not be justified in the absence of incriminating and cogent material belonged to the assessee. He accordingly deleted all the disallowances on merit and allowed appeal of the asse....
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....ing material is found, no addition or disallowance can be made in relation to that assessment year in exercise of powers under section 153A of the Act and the earlier assessment shall have to be reiterated. In this regard, this court is in complete agreement with the view adopted by the Rajasthan High Court in the case of Jai Steel (India), Jodhpur (supra). Besides, as rightly pointed out by the learned counsel for the respondent, the controversy involved in the present case stands concluded by the decision of this court in the case of Jayaben Ratilal Sorathia (supra) wherein it has been held that while it cannot be disputed that considering section 153A of the Act, the Assessing Officer can reopen and/or assess the return with respect to six preceding years; however, there must be some incriminating material available with the Assessing Officer with respect to the sale transactions in the particular assessment year. 20. For the foregoing reasons, it is not possible to state that the impugned order passed by the Tribunal suffers from any legal infirmity so as to give rise to a question of law, much less, a substantial question of law, warranting interference. The appeal, t....
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.... (a) Application for equity shares by the assessee company to Securities Analysis (India) Pvt. Ltd. along with Board Resolution as per Exhibit-IV. (b) Xerox copy of Share Certificate as per Exhibit-V. (c) Form no. 2 filed by Securities Analysis (India) Pvt. Ltd. for the allotment of shares to the assessee company as per Exhibit-VI. (d) PAN Card of Securities Analysis (India) Pvt. Ltd. as per Exhibit-VII. (e) Share transfer form along with sale note for sale of shares to Shree Ganesh Fintrade Ltd. as per Exhibit-VIII. (C) We are attaching herewith the following documents for TPL Finance Ltd. (a) Confirmation regarding sale of shares of TPL Finance Ltd. along with share transfer form as per Exhibit-IX. (D) We are attaching herewith the following documents for Suraj Ltd. (a). Application form for allotment of equity shares as per Exhibit-X. (b). PAN Card of Suraj Ltd. as per Exhibit-XI. (c). Form No. 2 for allotment of shares to the company along with Xerox copy of share certificate as per Exhibit-XII. (d) Sale note for sale of shares of Suraj Ltd. as per Exhibit-XIII. ....
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....A of the Act. But the assessee under no circumstance can be penalized on account of non-response of the notice issued under section 133(6) of the Act to the parties. In holding so we draw the support and guidance from the judgment of Hon'ble Gujarat High Court in the case of Rohini Builders reported in 127 Taxman 523, where the head note reads as under: "Whether merely because summons issued to some of creditors could not be served or they failed to appear before Assessing Officer, could not be ground to treat those credits as non-genuine - Held, yes **** ***** ***** 17.10. It is an undisputed fact that all the parties with whom the assessee carried out such transaction were identifiable and there was also a consideration among such parties. Admittedly, the price of the shares in market is not always based on the company's financial position, profit/growth rather its value/price is determined on the demand and supply of the script/shares and various other factors such as elaborated below: a. the field in which the company is operating b. the competition that the companies facing c. the difficulty for making the entry in the pa....