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TMI Blog2017 (1) TMI 1294X X X X Extracts X X X X X X X X Extracts X X X X ..... Therefore, do not find any force in this submission of assessee. - Decided against assessee - ITA No.1679/Del/2015 - - - Dated:- 1-12-2016 - SHRI S.V. MEHROTRA, ACCOUNTANT MEMBER For The Appellant : Shri Subodh Gupta, CA For The Respondent : Shri S. K. Jain, Sr. DR ORDER PER S.V. MEHROTRA, A.M : This is an appeal filed by the assessee against the order dated 23.01.2015 passed by the Commissioner of Income Tax (Appeals)-4, New Delhi, u/s 143(3)/147 of the Income Tax Act, 1961 (in short the Act ) relating to A.Y. 2004-05. 2. Brief facts of the case are that the assessee had filed return of income declaring income of ₹ 9,490/-. Subsequently, the Assessing Officer received information from the office of DIT(Inv.) that the assessee company had introduced unaccounted money in its books without paying tax with the help of entry operators. It was informed that assessee company had received ₹ 3,00,000/- from M/s Basant Agencies Pvt. Ltd. and ₹ 4,00,000/- from M/s Right Choice Construction Pvt. Ltd.. Accordingly, assessment was reopened u/s 148 of the Act. In the course of assessment proceedings, it was informed by the assessee company that ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ini, Delhi. The Assessing Officer has reproduced the Inspector s report wherein he, inter-alia, stated that resident land-lady did tell that the accommodation was residential flats and no commercial activity was being carried out from there and she had never heard the names of M/s Basant Agencies Pvt. Ltd. and M/s Right Choice Construction Pvt. Ltd.. Under these circumstances, the Assessing Officer required the assessee to furnish/explain the following details :- 1. Please produce director of M/s Right Choice Constructions Pvt. Ltd. and M/s Basant Agency Pvt. Ltd. alongwith their Permanent Account Number. 2. ITRs filed by them alongwith computation of income for the A.Y. 2004-05. 3. Proof of share allotted to them by you and same is reflected by them in their balance sheet as investment. 3. The assessee company in its reply expressed its inability to produce the directors of both the companies as it had no information of where about of the directors. The assessee also relied on the decision in the case of M/s Lovely Exports Ltd. and Devine Leasing Finance Ltd., for the proposition that share application money could not be treated as undisclosed income in the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... pointed out that the enquiry with the cash creditors u/s 133(6) could have elicited further information about the source of such cash credit, however, in the absence of the assessee producing the concerned directors of the cash creditors, the enquiry could not further proceeds. (f) Investigation Wing had carried out investigation of certain persons, who were found to be providing accommodation entries in the form of cheques on receipt of cash through various companies through which cheque amount was given to the ultimate beneficiary. (g) The assessee s company name was found in the list of such companies and the amount of receipt of such cash credit along with date and name of share applicants also duly tallied. (h) The assessee s case was held to be covered by the decision in the case of Nova Finlease and Promoters (P) Ltd., 342 ITR 169 (Delhi-HC) as by carrying out enquiry at the addresses furnished by the assessee and on finding no such cash creditors at such addresses, the Assessing Officer had discharged the onus, which stands shifted to the assessee. 4. Ld. counsel for the assessee referred to page 127 128 of Paper Book and pointed out that share premium was rec ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e second round of proceedings in which assessee was provided opportunity to again substantiate its claim of its shares being acquired by M/s Basant Agencies Pvt. Ltd. and M/s Right Choice Construction Pvt. Ltd. at a premium of ₹ 900/- each. In the second round of proceedings, the assessee has taken a plea that on account of considerable time gap and on account of both the companies being under the process of being struck off by ROC, assessee was not in a position to produce the directors of both the companies to establish the source of availability of cash with these two companies which was utilized to acquire the shares of assessee company at premium. The Tribunal in first round of proceedings had also pointed out that information could be obtained from ROC in this regard which has elaborately been considered by Ld. CIT(A) in his order as to how the same could not be made available to the Department. At page 132 of Paper Book, the copy of return of M/s Right Choice Construction Pvt. Ltd. is contained wherein copy of return of income is available for Assessment Year 2002-03. The returned income shown is at ₹ 6,033/-. As regards M/s Basant Agencies Pvt. Ltd. the copy of ..... X X X X Extracts X X X X X X X X Extracts X X X X
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