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TMI Blog2019 (2) TMI 1057X X X X Extracts X X X X X X X X Extracts X X X X ..... for formation of belief that the assessee has introduced its own money in the form of share application money through proper companies. 4. On the facts and circumstances of the case, the CIT(A) has erred in quashing the order u/s 147 and thereby deleting the addition of Rs. 1.85 crores on account of unexplained share application money. 5. On the facts and circumstances of the case, the CIT(A) has erred in quashing order u/s 147 and thereby deleting the addition of Rs. 3.33 lacs on account of unexplained expenditure in form of commission paid to the entry operators. 6. The appellant craves leave to add, amend any/ all the grounds of appeal before or during the course of hearing of the appeal." 3. Ground No.1 is of general in nature and needs no separate adjudication. 4. Ground No.2 and 3 go to the root of the matter. 5. Briefly stated that facts of the case are that original assessment was framed u/s 143 (3) of the Act vide order dated 24.12.2009. The search seizure action was conducted in the case of KM group of cases including the assessee on 27.06.2013. During the course of pre search investigation it was found that the assessee had taken accommodation entries in the for ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... case of KADHPL are as under- Financial Year Share application money pending allotment Premium 2007-08 0 0.76 2008-09 1.3 0.99 2009-10 1.72 9.99 2010-11 15.19 9.99 Please explain from whom the share application money of Rs. 13.47 Crs_ (Rs.15.19 Crs- Rs. 1.72 Crs) were raised, how and when same were raised ? I will furnish the relevant details a week's time. We are sitting in your office, please check the account of the company M/s. KADHPL for the Financial Year 2010-11 and furnish the relevant detail. Recording of statement resumed at 5.45 AM on 18.08.2013. Q.30 Please state whether M/s. KAD Housing Private Limited has entered into any financial transaction with M/s. Salwan Developers and Promoters Pvt. Ltd. M/s. Fair 'N' Square Exports Pvt. Ltd. M/s. Ribbel Manufactures and Exports Pvt. Ltd. M/s. APT Properties Pvt Ltd. M/s. Scient Informatics I Pvt Ltd. M/s. Multitech Semiconductors Pvt. Ltd. M/s. Brainsoft Info consultants Pvt Ltd. M./s. Chardhan Impex Pvt Ltd if yes, please provide relevant detail. Ans : As per memory it seems to me that I have heard the name of these companies and M/.s. KAD Housing Pvt. Ltd. has entered into some ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ssued statutory notice u/s 142 (1) and 143 (2) of the Act alongwith a questionnaire. 8. On perusal of the balancesheet of the assessee, the Assessing Officer found that the assessee has raised share capital and / or allotted to the following companies and received amounts mentioned each:- S. No. Name F.Y Amount 1 M/s. Ribbel Manufacturing and Exporters Private Limited 2006-07 15,00,000/- 2 M/s. APT Properties Private Limited 2006-07 25,00,000/- 3 M/s. Scient Informatics (I) Private Limited 2006-07 40,00,000/- 4 M/s. Multitech Semiconductors Private Limiied 2006-07 20,00,0Cw, 5 M/s. Brainsoft Info Consultants Private Limited 2006-07 20,00,000/- 6. M/s Chardham Impex Private Limited 2006-07 25,00,000/- 7 M/s Shweta Mehndi Products Private Limited 2006-07 25,00,000/- 8. M/s Tejasvi Investment Private Limited 2006-07 15,00,000/- 9. During the course of the assessment proceedings information u/s 133 (6) of the Act was called for from the companies from whom the assessee claimed to have received share application money. These companies were requested to furnish the copies of accounts of loan and advances, to produce books of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... on the part of the assessee fully and truly all material facts necessary for the assessment. The CIT(A) accordingly deleted the entire addition by annulling the assessment order framed u/s. 147 of the Act. 13. Before us the DR vehemently stated that reopening is valid since in the original assessment proceedings the Assessing Officer has not examined the facts which were unearthed by a search and seizure operation. It is the say of the DR that since the accommodation entries taken by the assessee were not examined by the Assessing Officer, therefore, the Assessing Officer had new tangible material evidence for reopening the complete assessment and therefore the notice issued u/s 148 of the Act is valid in law. The DR further pointed out that the Assessing Officer has nowhere mentioned that he has called for the relevant details examined and found in order. The DR continued stating that a mention of fact cannot be constituted as verified and examined. The DR vehemently stated that the CIT(A) has not examined the issues on merits and as simply analysed the assessment. 14. Per contra the counsel for the assessee reiterated what has been stated before the CIT(A). 15. We have give ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Affidavit iii. Income Tax returns filed by the share applicants iv. Audited balance sheet filed by the share applicants v. Bank statement of the share applicants. vi. Form-2 filed by the appellant in respect of allotment of shares to the share applicants. 18. The aforestated details clearly show that during the course of original assessment proceedings the Assessing Officer had made elaborate enquiry to examine the share application money in the light of section 68 of the Act and after satisfying himself he accepted the same as genuine. Therefore, in our considered opinion in the light of the proviso to section 147 of the Act there is no failure on the part of the assessee to disclosed fully and truly all material facts relating to the assessment. 19. The contention of the DR that the Assessing Officer has not mentioned anything in his assessment order does not hold any water because when the Assessing Officer is satisfied with a query he leaves that query and move on to make additions in respect of the queries which are not satisfactorily replied. 20. The DR has relied upon various judicial decision in her written synopsis. We have carefully considered each decision and ..... X X X X Extracts X X X X X X X X Extracts X X X X
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