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TMI Blog2020 (12) TMI 334X X X X Extracts X X X X X X X X Extracts X X X X ..... se documents by saying that confirmation letters and source of the share application money was not submitted although before us, it is established by the assessee by filing various documents in the paper book that confirmation of some investors, bank statements of some investors, NBFC Certificate of some investors issued by RBI etc. were very much submitted before the AO and there is no finding of the AO as to how the same are not relevant for examining and deciding the identity and credit worthiness of the investors and genuineness of the transaction. Instead of brushing aside all documents without any discussion, the AO should have discussed about the issue and the documents brought on record by the assessee as to how the same fails to establish the identity and credit worthiness of the investors and genuineness of the transaction. But the AO has not done so and therefore, it is not possible for us to examine the correctness or otherwise of the conclusion drawn by the AO in a summary manner. It is also seen that copy of Investigation Wing report was also not provided to the assessee to enable the assessee to file reply. Hence, we do not decide any of the issues on merit and resto ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ons made by the assessing officer without application of mind which is opposed to the settled principles of natural justice and thus the order passed needs to be set aside on the facts of the case. 6. The action of the assessing officer in treating the confirmation letters filed by the appellant as bogus is unfounded and on imaginary basis as the appellant had proved the identity of the persons and consequently the addition made on such incorrect basis does not stand the test of law. 7 The addition of ₹ 1,97,95,000/- is without application of mind and contrary to the evidence on record and thus the addition made needs to be deleted in the interest of equity and justice. 8. Without prejudice, the amount of ₹ 1,97,95,000/- cannot be brought to tax in the hands of the appellant under the facts and circumstances of the case. 9. a) The authorities below erred in not providing the copy of investigation reports of the Kolkata and the Bengaluru investigation units, which was used against the appellant and therefore the additions made on such basis cannot stand the test of law and needs to be deleted on the facts of the case. b) The authorities below are not justified ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... (A) ought to have examined the vital aspects of search and failure to do so renders the entire proceedings bad in law. g) The CIT(A) erred in law in examining the Explanation 1 to section 132(1) of the Act and the same is to be ignored as the past actions have not been validated and consequently the learned CIT(A) ought not to have looked into the Explanation (1) to section 132(1) of the Act to adjudicate the validity of search under the facts & circumstances of the case. h) The order of the assessment is bad in law as the mandatory conditions to invoke the jurisdiction under section 153A of the Act did not exist, or having not been complied with and consequently the order of assessment is bad in law for want of requisite jurisdiction. 11. The copy of the approval of the Joint Commissioner was not obtained or having obtained, the copy of the same is not provided to the appellant which is in violation of the settled principles of natural justice and thus the order of assessment needs to be set aside under the facts and circumstances of the case. 12. The authorities below passed the order without considering the critical and important submissions made by the appellant which i ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... order passed needs to be set aside on the facts of the case. 6. The action of the assessing officer in treating the confirmation letters filed by the appellant as bogus is unfounded and on imaginary basis as the appellant had proved the identity of the persons and consequently the addition made on such incorrect basis does not stand the test of law. 7 The addition of ₹ 3,50,00,000/- is without application of mind and contrary to the evidence on record and thus the addition made needs to be deleted in the interest of equity and justice. 8. Without prejudice, the amount of ₹ 3,50,00,000/- cannot be brought to tax in the hands of the appellant under the facts and circumstances of the case. 9. a) The authorities below erred in not providing the copy of investigation reports of the Kolkata and the Bengaluru investigation units, which was used against the appellant and therefore the additions made on such basis cannot stand the test of law and needs to be deleted on the facts of the case. b) The authorities below are not justified in not affording an opportunity to cross examine the third parties whose statements were used against the appellant, which is against the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... in law in examining the Explanation 1 to section 132(1) of the Act and the same is to be ignored as the past actions have not been validated and consequently the learned CIT(A) ought not to have looked into the Explanation (1) to section 132(1) of the Act to adjudicate the validity of search under the facts & circumstances of the case. h) The order of the assessment is bad in law as the mandatory conditions to invoke the jurisdiction under section 153A of the Act did not exist, or having not been complied with and consequently the order of assessment is bad in law for want of requisite jurisdiction. 11. The copy of the approval of the Joint Commissioner was not obtained or having obtained, the copy of the same is not provided to the appellant which is in violation of the settled principles of natural justice and thus the order of assessment needs to be set aside under the facts and circumstances of the case. 12. The authorities below passed the order without considering the critical and important submissions made by the appellant which is opposed to the principles of natural justice. 13. The appellant denies itself liable to be levied to interest under section 234A(3), 234 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rs filed by the appellant as bogus is unfounded and on imaginary basis as the appellant had proved the identity of the persons and consequently the addition made on such incorrect basis does not stand the test of law. 7. The addition of ₹ 6,39,00,000/- is without application of mind and contrary to the evidence on record and thus the addition made needs to be deleted in the interest of equity and justice. 8. Without prejudice, the amount of ₹ 6,39,00,000/- cannot be brought to tax in the hands of the appellant under the facts and circumstances of the case. 9. a) The authorities below erred in not providing the copy of investigation reports of the Kolkata and the Bengaluru investigation units, which was used against the appellant and therefore the additions made on such basis cannot stand the test of law and needs to be deleted on the facts of the case. b) The authorities below are not justified in not affording an opportunity to cross examine the third parties whose statements were used against the appellant, which is against the principles of natural justice. c) The authorities below erred in not providing the sworn statement recorded from the managing direct ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... lidated and consequently the learned CIT(A) ought not to have looked into -the Explanation (1) to section 132(1) of the Act to adjudicate the validity of search under the facts & circumstances of the case. h) The order of the assessment is bad in law as*the mandatory conditions to invoke the jurisdiction under section 153A of the Act did not exist, or having not been complied with and consequently the order of assessment is bad in law for want of requisite jurisdiction. 11. The copy of the approval of the Joint Commissioner was not obtained or having obtained, the copy of the same is not provided to the appellant which is in violation of the settled principles of natural justice and thus the order of assessment needs to be set aside under the facts and circumstances of the case. 12. The authorities below passed the order without considering the critical and important submissions made by the appellant which is opposed to the principles of natural justice. 13. The appellant denies itself liable to be levied to interest under sections 234A (3) and 234B of the Act and further the computation of interest was not provided to the appellant as regard to the rate, period and method ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... g the confirmation letters filed by the appellant as bogus is unfounded and on imaginary basis as the appellant had proved the identity of the persons and consequently the addition made on such incorrect basis does not stand the test of law. 7. The addition of ₹ 10,25,00,000/- is without application of mind and contrary to the evidence on record and thus the addition made needs to be deleted in the interest of equity and justice. 8. Without prejudice, the amount of ₹ 10,25,00,000/- cannot be brought to tax in the hands of the appellant under the facts and circumstances of the case. 9. a) The authorities below erred in not providing the copy of investigation reports of the Kolkata and the Bengaluru investigation units, which was used against the appellant and therefore the additions made on such basis cannot stand the test of law and needs to be deleted on the facts of the case. b) The authorities below are not justified in not affording an opportunity to cross examine the third parties whose statements were used against the appellant, which is against the principles of natural justice. c) The authorities below erred in not providing the sworn statement recorde ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... actions have not been validated and consequently the learned CIT(A) ought not to have looked into the Explanation (1) to section 132(1) of the Act to adjudicate the validity of search under the facts & circumstances of the case. h) The order of the assessment is bad in law as the mandatory conditions to invoke the jurisdiction under section 153A of the Act did not exist, or having not been complied with and consequently the order of assessment is bad in law for want of requisite jurisdiction. 11. The copy of the approval of the Joint Commissioner was not obtained or having obtained, the copy of the same is not provided to the appellant which is in violation of the settled principles of natural justice and thus the order of assessment needs to be set aside under the facts and circumstances of the case. 12. The authorities below passed the order without considering the critical and important submissions made by the appellant which is opposed to the principles of natural justice. 13. The appellant denies itself liable to be levied to interest under sections 234A(3), 234B(3), 234B and 234C of the Act and further the computation of interest of was not provided to the appellant ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ction of the assessing officer in treating the confirmation letters filed by the appellant as bogus is unfounded and on imaginary basis as the appellant had proved the identity of the persons and consequently the addition made on such incorrect basis does not stand the test of law. 7) The addition of ₹ 10,39,00,000/- is without application of mind and contrary to the evidence on record and thus the addition made needs to be deleted in the interest of equity and justice. 8) Without prejudice, the amount of ₹ 10,39,00,000/- cannot be brought to tax in the hands of the appellant under the facts and circumstances of the case. 9) a) The authorities below erred in not providing the copy of investigation reports of the Kolkata and the Bengaluru investigation units, which was used against the appellant and therefore the additions made on such basis cannot stand the test of law and needs to be deleted on the facts of the case. b) The authorities below are not justified in not affording an opportunity to cross examine the third parties whose statements were used against the appellant, which is against the principles of natural justice. c) The authorities below erred in ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... assessee that in the facts of the present case, the entire issue should be restored back to the file of AO for a fresh decision. He submitted that as per ground No.5 raised by the assessee before the tribunal for Assessment Year 2007-08, this is the grievance of the assessee that the lower authorities had failed to take cognizance of the various documents/details/information submitted by the assessee and confirmed the addition made by the AO. He also submitted that as per ground No.9 raised by the assessee in Assessment Year 2007-08, this is the grievance of the assessee that copy of investigation reports of Kolkata and Bengaluru Investigation Units were not provided to the assessee although the same were used against the assessee. This is also the grievance of the assessee that the authorities below were not justified in not affording opportunity to cross-examine the third parties whose statements were used against the assessee. He pointed out that as per ground No.9C raised by the assessee in Assessment Year 2007-08, this is also a grievance of the assessee that the authorities below have erred in not providing the copy of sworn statement recorded from the MD of the assessee comp ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... reproduce the brief synopsis filed by learned AR of the assessee after completion of the hearing. The same is as under: 4. We have noted the contentions raised by the learned AR of the assesses in the brief synopsis as reproduced above in addition to the oral arguments advanced by both sides. We find that on page No.324 of the Paper Book being part of written submissions filed by the assessee before the AO on 26.02.2015, it has been submitted by the assessee before the AO in para 16 that although it was stated in the letter given by the AO to the assessee that copy of enquiry report was enclosed but no such document has been enclosed along with that letter and the assessee has not received the same. We also find that on page No.1253 of the Paper Book is a Certificate of Registration issued by Reserve Bank of India, Department of Non-Banking Supervision, Regional Office, Kolkata to one of the investors M/s. Amit Goods & Supplies Pvt. Ltd. and on page No.1311 of the Paper Book is a Certificate of Registration issued by Reserve Bank of India, Department of Non-Banking Supervision, Regional Office, Kolkata to another investor M/s. Apsara Fintrade Pvt. Ltd. and similarly, on page 1362 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... hese documents by saying that confirmation letters and source of the share application money was not submitted although before us, it is established by the assessee by filing various documents in the paper book that confirmation of some investors, bank statements of some investors, NBFC Certificate of some investors issued by RBI etc. were very much submitted before the AO and there is no finding of the AO as to how the same are not relevant for examining and deciding the identity and credit worthiness of the investors and genuineness of the transaction. In our considered opinion, instead of brushing aside all documents without any discussion, the AO should have discussed about the issue and the documents brought on record by the assessee as to how the same fails to establish the identity and credit worthiness of the investors and genuineness of the transaction. But the AO has not done so and therefore, it is not possible for us to examine the correctness or otherwise of the conclusion drawn by the AO in a summary manner. It is also seen that copy of Investigation Wing report was also not provided to the assessee to enable the assessee to file reply. Hence, we do not decide any of ..... X X X X Extracts X X X X X X X X Extracts X X X X
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