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TMI Blog2017 (7) TMI 908X X X X Extracts X X X X X X X X Extracts X X X X ..... u Srivastava, JM For The Assessee : Sh. Salil Kapoor, Adv. For The Revenue : Sh. Umesh Chander Dubey, Sr. DR ORDER Per N. K. Saini, AM: These two appeals by the assessee are directed against the separate orders each dated 27.10.2010 of the ld. CIT(A)- I, New Delhi. 2. Since these appeals relating to the same assessee, having similar issues involved were heard together so these are being disposed off by this consolidated order for the sake of convenience and brevity. 3. The grounds raised in ITA No. 430/Del/2011 for the assessment year 2006-07 read as under: 1. The learned CIT [A] has erred in confirming the order of the Assessing officer. 2.1 The Department has not confronted the documents which it has collected behind the back of the assessee, and afforded an opportunity to cross-examine the person from whom it has recovered the documents and then gave him an adequate and reasonable opportunity to rebut them. 2.2 The assessment is based on photocopies found from a third party [Transworld ICT Solutions Pvt. Ltd., in Bangalore.] which are neither authenticated nor has found the original documents and such that unauthenticated photocop ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Control Authorities in India under FEMA are investigating against Transworld ICT Solutions Pvt. Ltd., of Bangalore and a number of others and they are yet to decide on the erring parties. 4. That without prejudice to the foregoing that the Account was not opened by the appellant there are a large number of arithmetical errors and double additions in the amount worked out by the learned AO in the addition made. 5. The learned AO has ignored the fact that the loan agreement with the alleged Mr. Ajiab Singh of Wise berry Services U.K. does not bear the signatures of the partners of the assessee. 6. The disallowance of ₹ 36,300 as l/5th of the total expenses shown in P L A/c as un-vouched is wrong as the total expenses debited in P L A/c including consumable stores are ₹ 1,20,983 only. 7. The interest charged u/s 234A and 234B are wrong. 8. That the above grounds are independent and without prejudice to each other. 9. That the appellant seeks leave to add, amend, alter or abandon any of the above grounds at the time of hearing of the appeal. 4. The facts of the case in brief are that a search and seizure operation u/s 132 of the In ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... exure-A-01: Bank Account statement of M/s United Refrigeration and Industries having a client reference number -04-801- 204330-01 This is an alleged bank account with First Curacao Bank transcript of which was taken by the Department from Transworld ICT Solutions Pvt. Ltd., Bangalore. It does not bear any authentication or signatures. 2. Annexure-A-02: Corporate banking account application form bearing the signature of Sh. Ravinder Datta dated 18.11.2005. This is a document taken by the Department from Transworld ICT Solutions Pvt. Ltd. Bangalore. It does not bear any authentication or signatures. The signatures on the form are not signatures of Mr. Ravindra Dutta but his forged signatures. FIR filed by assesses, Forensic expert report also submitted by the assessee before the CIT[A]. 3. Annexure-A-03: Company History Questionnaire. This is a document taken by the Department from Transworld ICT Solutions Pvt. Ltd. Bangalore. It does not bear any authentication or signatures. The assessee denies having submitted it. 4. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... having submitted it to Transworld ICT Solutions Pvt. Ltd. Bangalore and /or First Curacao Bank. It may have been taken in a unauthorized manner from some other source. 10. Amiexure-A-10: Copy of PAN of M/s United Refrigeration and industries attested on 9.11.2005 This is a document taken by the Department from Transworld ICT Solutions Pvt. Ltd. Bangalore. This is a copy of the PAN of the assessee but the assessee denies having submitted it to Transworld ICT Solutions Pvt. Ltd. Bangalore and /or First Curacao Bank. It may have been taken in a unauthorized manner from some other source. 11. Annexure-A-11: Copy of Income Tax Return of Sh. Ravinder Datta and M/s United refrigeration and industries for the A.Y 2005-06 attested on 9.11.2005 This is a document taken Department from Transworld Solutions Pvt. Ltd. Bangalore. This copies of tax returns etc but the assessee denies having submitted it to Transworld ICT Solutions Pvt. Ltd. Bangalore and /or First Curacao Bank. It may have been taken in a unauthorized manner from some other source. 12. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... t does not bear any authentication or signatures. It is apparently issued, by Transworld itself. The assessee denies having submitted it. 18. Annexure-A-20: Audited Consolidated Income statement of M/s United Refrigeration and industries for the different assessment year taken from the data bank of Transworld Solutions Pvt. Ltd. during the search in its premises on 19.12.2006 This is a document taken by the Department from Transworld ICT Solutions Pvt. Ltd. Bangalore. It bears the signatures of a firm of chartered accountants but does not bear any signatures of the appellant. The appellant declares that it has never dealt with such a firm of chartered accountants. Furner the format of the accounts is also different from the format used in India. The assessee denies having submitted it. 19. Annexure-A-21: Special Test key - 4304 for generating the test key for operating the ebanking account This document came to the address of the appellant. It is a common feature that public receive a number of communications offering loans, money making deals and huge prize moneys ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... appellant both in the course of assessment proceedings and appeal proceedings has denied the existence of the account. According to the appellant, the documents seized from the premises of M/s Transworld ICT Solutions Pvt. Ltd. cannot be relied upon without cross examination of director of M/s Transworld ICT Solutions Pvt. Ltd., It has been contended that the failure of the director to appear before the learned officer shows that the evidence cannot be relied upon an affidavit supported by report of handwriting expert has also been placed on record to submit that signature on the bank opening forms and other documents of the partner of the appellant firm are forged signatures. It has been contended that activities if M/s Transworld ICT Solutions Pvt. Ltd. were conducted is an illegal manner and therefore cannot be relied upon. It has also been submitted that, rot a sing e rupee or income has come to the partners or the appellant firm. In other words, as a result of search no assets have been found to support such a huge addition. As regards, the documents found belonging to the partner from M/s Transworld ICT Solutions Pvt. Ltd., it was submitted that, the same cannot be relied upo ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... py of PAM is attested by notary, New Delhi. 11. Photocopy of Income Tax Return is attested by the Notary, New Delhi. 12. Form of beneficial ownership declaration of M/s United Refrigeration Industries which appoints Sh. Ravender Datta as the representative of the client. 13. Copy of E- mail from Ellyanne Salas, Resident compliance officer of First Curacao International Bank to Sh. Ravinder Datta is a request to Sh. Ravender Datta to provide the missing documents for the e-banking account. 14. Photocopy of Passport of Sh. Ravder Datta and PAN copy of Sh. Dana attested on 9.11.2005 is attested by the Notary, New Delhi. 15. Copy of Electricity Bill is attested by the Notary, New Delhi. 16. Letter of trust and reliability issued by U.K. Properties(Services) Ltd., 89, whitethorn Road, Yiewlsey, West Drayaton Middlesex, UB7 8LA is in favour of M/s United Refrigeration and Industries. 17. Letter of trust and reliability issued by U.K. frozen Food, 20th floor, wembley Point, 1 Harrow Road, Wembley, Middlesex, HA96DE is in favour of M/s United Refrigeration and Industries. 18. Good Conduct Certificate given by the Bank of India, Paharganj, D ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... sent by separate letters by Post, ONLY to the authorized user of the account. It is like the PIN Number of a debit card which is sent specially by post to the owner of the debit card. Therefore, in this case since Sh. Ravender Datta was the authorized user the account, the internet banking password and user id/test keys would have been sent only to him and no one else. Since it is apparent that huge transactions have been carried on through the said bank account, and since only Mr. Ravender Datta was aware of the internet banking password/Test key needed for the operation of the account, it is obvious that Shri Ravender Datta either operated the account on his own and carried on the internet trading activity or else passed on the information to someone else to enable its operation. In either case, Shri Ravender Datta had full knowledge of the fact that an internet bank account, had been opened, and the fact that e-trading activity was being carried on through the same. Also, Loan agreement between Ravender Datta and one Shri Ajaib Singh, proprietor of Wiseberry Service U. K. was found from the registered office of United Refrigeration Industries. As per the agreement, Shri Datta ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... l grounds and divorced from material en record. The filing of criminal complaints do not shift the burden and hence the submissions made are altogether unreliable and not sustainable. The appellant in the concise grounds has also raised a contention that there are airthmathetical error in the addition but no submissions have been made in this regard and therefore same is rejected. In light of the aforesaid, the addition made by the learned officer of ₹ 15,41,40,768/- is confirmed The aforesaid findings thus dispose of Ground Nos. 1 to 4 of Concise Grounds of Appeal. 6. Ground No. 5 of the Concise Grounds of Appeal is regarding disallowance of ₹ 36,300/-. The Assessing Officer has held in this regard as under: In the return of income filed for the Assessment Year 2006-07 in response to notice u/s 153A the assessee has shown a loss of Rs. (-4540). However the profit and loss account attached with the return of income shows different figures. In the receipt side assesses has shown ₹ 1,25,552 as service charge and various expenses amounting to ₹ 1,20,983/- have been debited to the profit and loss account. The profit and loss account filed alongwit ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... m Michael Kelly Dated 5/10/2012. vi) Company Details: Certificate of Incorporation of Risedale Ltd. vii) Company Details: Certificate of Incorporation of Wiseberry Service Ltd. viii) Letter written to Mr. Ajaib Singh dated 1/10/2012 with courier receipt. ix) Letter from Mr. Ajaib Singh dated 9/10/2012 with Envelope. 4. These documents were not available with the assessee at the time of proceedings before the lower authorities. 5. The assessee most humbly requests the Honourable Bench to admit the following additional evidences which are necessary for a just and fair disposal of appeal by the bench. 9. The ld. Counsel for the assessee reiterated the contention made in the aforesaid application dated 14.06.2014 and submitted that the documents now procured by the assessee go to the root of the matter to resolve the present controversy. It was further submitted that the assessee could obtain those documents after persistent follow up and the evidences could not be procured earlier due to the circumstances beyond the control of the assessee. He requested to admit the additional evidences/documents. In support of the above an affidavit dated 14 ..... X X X X Extracts X X X X X X X X Extracts X X X X
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