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TMI Blog2019 (4) TMI 283X X X X Extracts X X X X X X X X Extracts X X X X ..... rol Bagh, New Delhi with PAN No. AAACV0475F. The audited accounts and the paper book in the case of M/s. VIP Leasing & Finance Private Limited disclosed the name of the assessee in the schedule of investment at Sr. No. 132 according to which an amount of ₹ 30 lacs has been invested in shares of the assessee company. There are also various investments in shares of different companies. No adverse inference has been drawn in the order passed u/s 153C/153A. The assessee in the instant case has filed the copy of the assessment order in the case of share applicant i.e. M/s. VIP Leasing & Finance Private Limited. Since the assessment has been framed u/s. 153C and 153A, it cannot be said that the assessee is a non existing company or a bogus company. Since this vital evidence was not considered by the AO or CIT(A) although the same was very much available with the department during the course of the assessment proceedings, therefore, deem it proper to restore this issue to the file of the Assessing Officer with a direction to verify the assessment record of M/s. VIP Leasing & Finance Private Limited from their Assessing Officer and decide the issue afresh and in accordance with la ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d from the balancesheet of the assessee that it has received share application money of ₹ 2,25,000/- in the previous year i.e. year ending 31.03.2008 and in the current year i.e. 31.03.2009 it has received ₹ 30 lacs as share application money. The assessee has not filed any P L Account for the financial year 2008-09. He, therefore, held that assessee willfully did not file its P L account. In absence of the same it is not ascertainable that the assesee has done any business and no income from operation has been shown. This according to the Assessing Officer gives a fair belief that the assessee s own income has been routed through balancesheet. He, therefore, asked the assesee to explain as to why the amount should not be added in its own hand in view of the seized documents which were found during the search operation at the premises of Sh. S. K. Jain wherein there is a clear mention of M/s. VIP Leasing Finance Ltd., where the name of the assesse company appears. Further there is also mention of the pay order number, date of Pay Order number and amount of ₹ 30 lacs. According to the Assessing Officer the assessee had not carried out any genuine transacti ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... The appellant craves leave to amend or alter all or any of the aforesaid grounds of appeal and add any other ground of appeal . 8. The Ld. Counsel for the asseessee at the outset strongly challenged the order of the CIT(A) upholding the action of the Assessing Officer in reopening the assessment. He submitted that assessee filed his objections to the notice u/s 148 of the IT Act on 31.08.2016 and the Assessing Officer disposed of the objections vide order dated 19.12.2016. The Assessing Officer passed the assessment order on 28.12.2016 and thus the Assessing Officer has not given the period of four weeks to the assessee and passed the order, therefore, the assessment order is null and void. Further the Assessing Officer has not passed a speaking order while disposing off the objections of the assessee. He submitted that the authorities have also accorded their sanction in a mechanical manner without due application of mind. Referring to page 27 of the paper book where the approval has been given by the additional CIT and DCIT, he submitted that these are not proper approval. Relying on various decisions he submitted that the reassessment proceedings are based on report of th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... bmitted that although these documents were very much available before the lower authorities, however, these were completely ignored and addition has been made which is not justified. 11. The Ld. DR on the other hand heavily relied on the orders of the Assessing Officer and CIT(A). He submitted that information was received in the instant case from the investigation wing that the assessee has received ₹ 30 lacs from an entity belonging to the S. K. Jain group of companies who are engaged in providing accommodation entries. Although the assessee was asked to furnish documents to substantiate the identity and credit worthiness of the share applicant and the genuiness of the transaction, the assessee could not substantiate with evidence to the satisfaction of the Assessing Officer regarding the identity and credit worthiness of the share applicant and genuiness of the transaction. 12. Relying on the following decisions he submitted that the order of the CIT(A) which is in accordance with law should be upheld on validity of the reassessment proceedings as well as the addition on merit :- 1. Sudhir Kuamr Sharma (HUF) Vs. CIT 46 taxmann.com 340 (Punjab Haryana) [2014] 224 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... commission. Since the assessee according to the assessing officer could not satisfy him regarding the identity and credit worthiness of the share applicant and genuine of the transactions, the Assessing Officer made addition of ₹ 30 lacs to the total income of the assessee company being the amount received for share application money by the assessee company from M/s. VIP Leasing Finance Private Limited. I find the Ld. CIT(A) upheld the action of the Assessing Officer both on merit as well as validity of the reassessment proceedings for which the assessee is in appeal before the Tribunal. 14. So far as the validity of the reassessment proceedings are concerned, I do not find any infirmity in the order of the CIT(A) and, therefore, I uphold the same. I find the Assessing Officer in the instant case, after obtaining the report of the investigation wing has applied his mind and taken one approval of the higher authorities. He has also disposed of the objections. Since, the rereopening was based on specific information. No notice u/s 153 C is also required. The various arguments advanced by the Ld. Counsel for the assessee in the instant case are without any merit and theref ..... X X X X Extracts X X X X X X X X Extracts X X X X
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