2025 (4) TMI 1987

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....012-13, which in turn arises out of assessment order passed by Assessing Officer u/s 143(3) of the Act dated 31.03.2015. Grounds of appeal raised by the assessee are as under: "1. On the facts and circumstances of the case as well as law on the subject, the learned CIT(A) has erred in partly confirming the action of the Assessing Officer by sustaining the addition of Rs. 52,00,000/- out of total addition of Rs. 6,52,00,000/- u/s 68 of the I.T. Act on account of bogus share application money. 2. It is therefore prayed that above addition made by Assessing Officer and confirmed by CIT(A) may please be deleted. 3. Appellant craves leave to add, alter or delete any ground(s) either before or in the course of hearing o....

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....had applied under VSVS-2020 in respect of addition of Rs. 6,00,00,000/- and the declaration is fully settled by issuance of Form-5. Since the source of fund was offered and taxes were paid, the consequential application of the same fund in case of the applicant cannot be sustained. The CIT(A) accepted this contention of assessee and deleted addition of Rs. 6,00,00,000/- out of Rs. 6,44,00,000/-. He confirmed remaining addition of Rs. 44,00,000/- of share application money of M/s Jaisal Mechatronics Pvt. Ltd. He also sustained addition of Rs. 4,00,000/- each in case of C.N. Shukadia (HUF) and Shardaben Shukadia by observing that they have filed return of income showing negligible income. Further, there are deposits of equivalent amount befor....

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....f income and bank statement which are at pages 78 to 88 of the paper book. These two persons are regularly assessed to tax and they are family members of Shri Sanjay Sukhadia, one of the directors of the assessee-company. The Ld. AR submitted that they are not entry providers and are genuine investors. The Ld. AR relied on the decisions in cases of (i) Earthmetal Electrical Pvt. Ltd. vs. CIT [Civil appeal No.6181/2010 of SLP No.217073/2009 (SC) (ii) Earthmetal Electrical Pvt. Ltd. vs. ITO [IA 590 of 2005 (Bom], (iii) Earthmetal Electrical Pvt. Ltd. vs. ITO ITA No.239/Mum/2005 of 2005 dated 28.06.2005, (iv) CIUT vs. Lovely Exports Pvt. Ltd. (2008) 216 CTR 195 (SC), (v) CIT vs. Steller Investment (2001) 251 ITR 263 (SC), (vi) CIT vs. Ujala Dy....

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....perused the relevant details and the evidences filed by the appellant. It is seen that M/s Jaisal Mechatronics Pvt. Ltd. is a group company of the appellant and it had share capital of the assessee-company out of its share capital of Rs. 8,10,00,000/-. The said M/s Jaisal Mechatronics Pvt. Ltd. has availed benefit of VSVS-2020 and paid taxes on amount of Rs. 6,00,00,000/- disclosed under VSVS-2020. We also find that the said M/s Jaisal Mechatronics Pvt. Ltd. had declared profit of Rs. 72,37,800/. Therefore, explanation of the appellant as regards the nature and source of investment of Rs. 44,00,000/- is accepted. The AO is accordingly, directed to delete the above addition. 6.1 The AO has also added Rs. 4,00,000/- each on account of shar....