9911796707
TMI Blog2022 (11) TMI 1252X X X X Extracts X X X X X X X X Extracts X X X X ..... me for A.Y. 2009-10 on 28.03.2010 declaring total income at Rs. Nil. AO has noted that the case of the assessee was selected for scrutiny u/s 147 of the Act and for which notice u/s 148 of the Act was issued on 28.03.2016. Thereafter, a search and seizure operation was carried out in the case of Priya Gold Group & its promoters on 16.12.2014 and during the proceedings of search and seizure, substantial documents relating to the assessee was found and seized. In view of the aforesaid, the assessment proceedings u/s 148 of the Act were abated as per proviso of the Section 153C r.w.s 153A of the Act and proceedings u/s 153C of the Act were initiated. Thereafter, assessment was framed u/s 153C r.w.s 143(3) of the Act vide order dated 30.12.2016 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... uing the appeal filed by it. In the absence of any co-operation from the side of the assessee, we don't find any reason to keep the matter pending before us. In such circumstances, we, therefore, have no option but to dispose of the appeal after considering the material available on record and after hearing the Ld. D.R. 5. Before us, Learned DR took us through the findings of AO and CIT(A) and supported the order of lower authorities. 6. We have heard the rival submissions and perused the material available on record. The issue in the present ground is about the addition made of Rs.84,00,000/- on account of share application money by invoking the provision u/s 68 of the Act. We find that while CIT(A) upholding the order observed as under: ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nuineness of these transactions. The appellant in his reply vide letter dated 23.12.2016 did not provide details of debit entries of bank account and also made no effort to prove the genuineness of the transactions. Neither before the AO nor before the undersigned the appellant submitted documentary evidences to prove the identity and creditworthiness of the so called share applicants and genuineness of the transactions. The appellant just contended that the appellant company is a shell company. It has no assets except paper entries showing investment in other shell companies. In fact if there were actual assets in these shell companies then these would have been taken over by the Priya Gold Group and in that case the Group would be the rec ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... appellant company should have provided details of beneficiary during the period relevant to AY 2009-10 in support of its contention. The appellant company cannot shirk from its legal obligation to prove the identity and credit worthiness of the so called share applicants and genuineness of transactions by adjudging itself as shell company. 5.6 The contention of the AR of the appellant in his written submission dated 22.11.2018 that the investments shown in the Balance Sheet are in other shell companies which are mere paper entries and have no intrinsic value is contrary to his own assertion made in the same submission that the appellant company had made investments in various companies in AY 2009-10 which were sold in AY 2011-12 and furt ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... n the books of such company also offers an explanation about the nature and source of such sum so credited; and (b) such explanation in the opinion of the Assessing Officer aforesaid has been found to be satisfactory; Provided further that nothing contained in the first proviso shall apply if the person, in whose name the sum referred to therein is recorded, is a venture capital fund or a venture capital company as referred to in clause (23FB)of section 10. " 5.8 Thus, as per section 68 of the Act, the primary onus is on the appellant to prove to the satisfaction of the AO that sum credited in its books of accounts is genuine. The appellant has to prove to the satisfaction of the AO, the identity and creditworthiness of the creditor a ..... X X X X Extracts X X X X X X X X Extracts X X X X
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