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TMI Blog2015 (2) TMI 546X X X X Extracts X X X X X X X X Extracts X X X X ..... ere rebutted with any evidence by the Revenue. Thus uphold the order of the Commissioner of Income Tax (Appeals) in deleting the addition and reject the grounds raised by the Revenue. - Decided in favour of assessee. - ITA No. 1259/Mds/2013, CO No.154/Mds/2013, ITA No.1259/Mds/2013 - - - Dated:- 19-12-2014 - A. Mohan Alankamony AM And Challa Nagendra Prasad, JM,JJ. For the Appellant : Mr A. V. Sreekanth, JCIT For the Respondent : Mr S Sridhar, Adv. ORDER Per Challa Nagendra Prasad,JM This appeal is filed by the Revenue against the order of Commissioner of Income Tax (Appeals)-I, Coimbatore dated 05.03.2013 for the assessment year 2009-10. 2. The Revenue raised the following grounds in its appeal:- 1. The CIT(A) erred in not giving an opportunity to the Assessing Officer by calling for remand report to establish the genuineness creditworthiness and identity of the creditor company. 2. The CIT(A) had failed to cross examine the company namely Top Grain Vyapar and its director and neither has the details of the outcome of his enquiry regarding the credibility of the shareholder companies stated in his appeal order. Though Revenue raised ground a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... lance sheet, profit loss account and other statements in support of the returns filed. On 21.12.2011 the assessee filed details of directors, their PAN, ROC details, copies of acknowledgement of return filed by these two companies. Summons were issued by Assessing Officer under section 131(1A) of the Act on 22.12.2011 to the directors of the two companies and statement of Mr. Ratanlal Nakhat, one of the directors of M/s. Top Grain Vyapar (P) Ltd. was recorded on 26.12.2011 wherein he deposed that he does not know about share call advance money, the transaction and activities of M/s. Top Grain Vyapar (P) Ltd. are all looked after by the other Director of the company Mr. Sharvan Patwari. Summons were also served on Mr. Sharvan Patwari, Director of M/s. Top Grain Vyapar (P) Ltd., and Mr. Ram Chandra Sahara and Mr. Sunilkumar Mundhara on 27.12.2011 and 26.12.2011 respectively. Those directors appeared to have sent their reply on 29.12.2011 by fax. Not satisfied with the details produced by the assessee, the assessment was completed on 30.12.2011 by the Assessing Officer treating share call advance money made by those companies as income of the assessee stating that creditors are not ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... emently supports the order of the Commissioner of Income Tax (Appeals). As far as opportunity not given by the Commissioner of Income Tax (Appeals) by calling for remand report from the Assessing Officer is concerned, counsel submits that no new material was filed before the Commissioner of Income Tax (Appeals) which were not filed before the Assessing Officer. The counsel submits that in fact it is the finding of the Commissioner of Income Tax (Appeals) that all these information were in possession of the Assessing Officer and there was lack of enquiry by him. Relying on the order of the Commissioner of Income Tax (Appeals), counsel prays for sustaining the order of the Commissioner of Income Tax (Appeals) in deleting the additions. 6. Heard both sides. Perused orders of lower authorities. In the course of assessment proceedings, the Assessing Officer called for various details of the creditors and the directors of the creditor companies to prove identity and genuineness of the transaction of investments made by these creditors as share application money in the assessee company. The assessee furnished various details of their addresses, PAN, directors confirmations, directors ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 22.12.2011 to appear before him on 29.12.2011. As seen from assessment order, the summons were served on 26.12.201 and 27.12.2011 respectively. The Assessing Officer received a fax on 29.12.2011 wherein the three Directors have given reply through letter. Even in the course of appellate proceedings, Shri Ram Chander Sharma, Director of M/s. Umang Commo Trade P Ltd., appeared before me and filed a letter dated 13.06.2012. This proves that the Directors are existing and thereby the companies are also existent. I had also verified from the ROC website www.MCA.gov.in wherein the address of the two companies have been at 1B, Black Burn Lane, 4th floor, Bow Bazar, Kolkatta and the company status is shown as active. 16. I had also asked the assessee to file all the bank details of taken over concerns and also to furnish bank account of M/s. Top Grain Vyapar (P) Ltd. and M/s. Umang Commo Trade P Ltd., Kolkatta. The details of ledger extracts of Narendra Kumar Cotton Mills, NKCM Spinners and M/s. NKCM Textiles were also verified. 17. M/s Narendra Kumar Cotton Mills had transaction with Top grain :Vyapar {P} Limited. As on 1.4.2007, opening balance was ₹ 75,00,00,000/-. Further ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... M/s. Narendrakumar Cotton Mills (a firm) ii) M/s. NKCM Spinner (a firm ) and iii) M/s. NKCM Textile (Proprietory concern) (b) The above two companies namely M/s. Umang Commo Trade (P) Ltd. and M/s. Top Grain Vyapar P) Ltd. have alredy lent sums to the said three concerns earlier, (c) The assessments of two concerns, out of the three concerns whose assets and liabilities were taken over by the appellant company were completed by orders u/s.143(3) wherein confirmations filed in respect of sums lent by the said two companies, were admitted and (d) The companies and the addresses were never found to be fictitious / bogus. 23. The Assessing Officer has not carried out the exercise which is required in law and as the Assessing Officer has all the evidences/materials in its possession and then came forward to merely reject the same on presumptions, I am of the considered view that there was clearly a lack of inquiry on the part of the Assessing Officer. Further, as the appellant had furnished all the relevant materials, including the assessment order u/s.143(3), intimation u/s.143(1) evidencing refund and copies of certificates issued u/s.197 for the two companie ..... 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