TaxTMI 
TaxTMI 
2026 (9) TMI 1698
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....ing with first Assessee's ITA No. 1096/Del/2024 (A.Y. 2014-15) wherein, the following solitary ground has been raised:- "That on the facts and circumstances of the case and in law, the CIT(A) was not justified in sustaining the addition of Rs. 81,00,000/- made u/s. 68 of the I.T. Act by the Assessing Officer on account of share capital received from M/s Growfast Realtors Pvt. Ltd. without considering the fact that the appellant during the course of assessment proceedings had filed all the documentary evidences to prove the identity, creditworthiness and genuineness of the party but the Assessing Officer had neither considered the same nor made any independent enquiry and solely relied upon the findings given by the Investigation Wing." 2. The brief facts of the case are that a search and seizure operation u/s. 132 of the Act was conducted at various business and residential premises of NV group on 20.4.2017. Thereafter, the assessee company was subjected to reopening proceedings under section 147 by issuance of notice u/s. 148 dated 30.3.2021. As per reasons recorded, the assessee company was found to be one of the beneficiaries of unaccounted income amounting to Rs. 2,....
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....tances of the case, the Ld. CIT(A) has erred in law and on facts in deleting the addition of unexplained credits amounting to Rs. 29,50,000/- received from shell company, M/s Growfast Reasltors Pvt. Ltd. even when the assessee failed to prove the identity and creditworthiness of the lender and to establish the genuineness of the transaction. 2. Whether in the facts and circumstances of the case, the Ld. CIT(A) has erred in concluding that the assessee did not receive funds fro Growfast Realtors Private Limited considering only the opening and closing balance of the entity as submitted by the assessee, without examining the bank statement or confirmation of accounts of Growfast Realtors Pvt. Ltd. Repayment of loan does not absolve the assessee from accommodation entry in form of loan and also, it is the common modus operandi of the beneficiary entities to clean up its account by repaying loan back to bogus entity. 3. Whether in the facts and circumstances of the case, the Ld. CIT(A) has erred in law and on facts in deleting the addition of unexplained credits amounting to Rs. 1,77,09,000/- being share capital and the addition of Rs. 23,55,29,700/- being the share p....
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.... company of RCI World Trade Links DMCC). 8. Whether in the facts and circumstances of the case, the CIT(A) erred in law and on facts in deleting the addition of unexplained commission expense amounting to Rs. 69,64,058/-. 9. Whether in the facts and circumstances of the case, the Ld. CIT(A) has erred in facts in concluding the addition of share premium was made u/s. 68 of the Income Tax Act, 1961 whereas addition was made u/s. 56(2)(viib) in the assessment order. 10. The order of the Ld. CIT(A) is perverse, erroneous and is not tenable on facts and in law. 6. The brief facts of the case are that AO assessed the income of the assessee at Rs. 26,31,23,269/-, as against the returned loss at Rs. 29,489/-, after making the addition of Rs. 25,32,38,700/- on account of share application money u/s. 68 of the Act; Rs. 29,50,000/- on account of unsecured loans u/s. 68 of the Act and Rs. 59,64,058/- on account of undisclosed commission @2.75% on the alleged share application money amounting to Rs. 25,32,38,700/-. Against the above action of the Assessee, assessee preferred the appeal before the Ld. CIT(A) who vide his impugned order has allowed the appeal of the ....
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.... 70,25,90,000/- - 3. Varun Jain 1,71,60,000 - 1,71,60,000 Total (as per audited balance sheet) 99,13,72,500 100,33,12,500/- -- 10.2 The Assessing Officer in the notice u/s. 142(1) dated 09.11.2019 show caused the appellant seeking the explanation of the appellant on the unsecured loan received by it in the A.Y. 2016-17 from M/s. Growfast Realtors Pvt. Ltd. 1ne appellant rebutted the allegation of the Assessing Officer vide its letter dated 09.12.2019, which is also reproduced in the body of the Assessment Order, Stating that no unsecured loan was received by the appellant from M/s. Growfast Realtors Pvt. Ltd. during the year. The AO did not counter the submission of the appellant in his Assessment Order and has not brought any counter evidence on record but proceeded with the addition of Rs. 29,50,000/- u/s. 68 of the Income Tax Act. 10.3 On perusal of the submission of the appellant as tabulated above, it is noted that the appellant did not receive any unsecured loan from M/s Growfast Realtors Pvt. Ltd. during the year under consideration instead it had made payment of Rs. 2,91,00,000/-. Accordingly, I find that the additi....
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....132(4) of the Act was retracted on 10.07.2017, therefore, it has no credence. The appellant also submitted that even if the statement given by Shri Ashok Jain is relied upon it could be observed that in response to question No. 14 of his statement he had stated that the capital received by M/s. Hillview Marketing Pvt. Ltd. from RCI World Trade Link, Dubai during the A.Y. 2016-17 of Rs. 36.06 crores at premium of Rs. 440.80 per share was genuine and it was as per guidelines of RBI and FEMA. Therefore, even if the statement of Shri Ashok Jain is relied upon the alleged share capital received by the assessee company from M/s. Hillview Marketing Pvt. Ltd. was genuine. I1.4 The appellant further submitted that the valuation report justifying the premium of the share capital received by the appellant company was filed before the Assessing Officer vide its reply dated 24.12.2019 but the same was not considered in the Assessment Order passed on 30.12.2019. The Assessing Officer did not find any mistake with the valuation of shares of the company and has simply rejected. The appellant further submitted vide its written submission dated 04.05.2022 that the issue of addition of Rs. 2....
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....mount was returned back to the investor company. 11.7 On perusal of the bank statement of M/s. Hillview Marketing Pvt. Ltd., it is further noted that the funds have been received in the bank account of M/s. Hillview Marketing Pvt. Ltd. immediately before the transfer of same to the appellant company. The appellant has submitted that the source of funds in the books of M/s. Hillview Marketing Pvt. Ltd. is the FDI amounting to Rs. 36,06,40,000/- received from M/s. RCI World Trade Link, Dubai. The funds received in the books of M/s. Hillview Marketing Pvt. Ltd. have been subject matter of assessment u/s. 148 of the Act. The reasons for re-opening of the case u/s. 147/148 along with the Assessment Order u/s. 148/143(3) submitted by the appellant been carefully perused. Assessing Officer assessed M/s. Hillview Marketing Pvt. Ltd., the investor Company, at returned income and no adverse remarks has been recorded in order u/s. 148/143(3) dated 30.03.2022 in respect of funds received by it from M/s. RCI World Trade Link, Dubai. Therefore, share capital/share premium which has been received by the appellant company from Marketing Pvt. Ltd. cannot be treated as unexplained. Hence, n....
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....r shell /accommodation entry providing company. Further, on perusal of the confirmation of accounts of M/s. Hillview Marketing Pvt. Ltd. in the books of the assessee company submitted by the assessee, it is noted that the assessee had received Rs. 35,93,00,000/- during the year under consideration against which Rs. 17,70,900/- shares were issued for Rs. 25,32,38,700/- and the balance amount was returned back to the investor company. On perusal of the bank statement of M/s. Hillview Marketing Pvt. Ltd., it is further noted that the funds have been received in the bank account of M/s. Hillview Marketing Pvt. Ltd. immediately before the transfer of same to the appellant company. The assessee has submitted that the source of funds in the books of M/s. Hillview Marketing Pvt. Ltd. is the FDI amounting to Rs. 36,06,40,000/- received from M/s. RCI World Trade Link, Dubai. The funds received in the books of M/s. Hillview Marketing Pvt. Ltd. have been subject matter of assessment u/s. 148 of the Act. Assessing Officer assessed M/s. Hillview Marketing Pvt. Ltd., the investor Company, at returned income and no adverse remarks has been recorded in order u/s. 148/143(3) dated 30.03.2022 in resp....
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.... search action notices u/s. 153A of the Act were issued by the AO requiring the assessee to file its return of income for the relevant assessment year, which was duly filed by the assessee company. The copy of the original return of income filed by the assessee for the relevant assessment year as on 28.10.2017 declaring total income of Rs. 1,09,69,490/- alongwith the copy of audited balance sheet for the relevant assessment year. Further, the copy of e-return filed in response to notice u/s. 153A of the Act on 09.03.2019 declaring income of Rs. 1,06,69,490/-. The AO passed the order u/s. 153A of the Act vide order dated 31.12.2019 wherein income of the assessee has been assessed at income Rs. 3,46,39,490/, against the returned income of Rs. 1,09,69,490/-, after making addition on account of share application money/share capital/ share premium received by the assessee company during the year u/s. 68 of the Act from Om Energy Limited amounting to Rs. 1,69,00,000/- and from Growfast Realtors Pvt. Ltd. amounting to Rs. 67,70,000/- thus totaling to Rs. 2,36,70,000/-. Against the said action, assessee preferred the appeal before the Ld. CIT(A), who vide his impugned order dated 17.3.2023....
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....ent of Rs. 50,00,000/-; Rs. 40,00,000/-; Rs. 29,00,000/-; Rs. 30,00,000/- Rs. 20,00,000/- thus, totaling to Rs. 1,69,00,000/-. In view of above, it is established that assessee company had furnished all necessary details with regard to proving identity, creditworthiness and genuineness of the investor company namely Om Energy Ltd, hence, addition made on account of share application received from Om Energy Limited is not sustainable thus, the same is deleted. 16. Similarly, it is submitted that the assessee company had also furnished all necessary details with regard to proving identity, creditworthiness and genuineness of the investor company namely Growfast Realtors Pvt. Ltd. For this, he drew our attention towards page no. 99 of the Paper Book which is a copy of confirmation of accounts from Growfast Realtors Pvt. Ltd.; page no. 100 is a copy of statement of account of Growfast Realtors Pvt. Ltd., page no. 101 is a copy of return of income acknowledgement, page no. 102-110 are the copies independent Auditor's Report of Growfast Realtors Pvt. Ltd. He further submitted that during the assessment proceedings as well as the appellate proceedings, the assessee company had poin....