9911796707
TMI Blog2023 (4) TMI 242X X X X Extracts X X X X X X X X Extracts X X X X ..... , in view of the aforesaid findings, we deem it appropriate to remand this matter to the file of the AO for de novo adjudication after necessary examination/verification of the various aspects as highlighted above. Grounds raised by the assessee as well as by the Revenue allowed for statistical purposes. - ITA no.4208/Mum./2018 And ITA no.4066/Mum./2018 - - - Dated:- 5-4-2023 - Shri Om Prakash Kant, Accountant Member And Shri Sandeep Singh Karhail, Judicial Member For the Assessee : Shri Bimlendu Bhushan For the Revenue : Smt. Mahita Nair ORDER PER SANDEEP SINGH KARHAIL, J.M. The captioned cross appeal has been filed challenging the impugned order dated 28/03/2018, passed under section 250 of the Income Tax Act ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ntity of investors creditworthiness of lenders beyond doubt, and hence the addition was maintainable as per proviso to Section 68 of the I.T.Act 1961. 3. The appellant prays that the order of the Id.CIT(A) on the above ground be set aside and that of the Assessing Officer be restored. 4. The appellant craves leave to add, amend or alter any grounds or add a new ground which may be necessary. 4. The brief facts of the case as emanating from the record are: The assessee is engaged in the business activities of a full-fledged money changer holding RBI license. For the year under consideration, the assessee filed its return of income on 30/09/2009 declaring a total income of Rs.4,66,398 under the normal provisions and book prof ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ,44,000 and share capital of Rs.6,39,600 as bogus and unexplained cash credit and added the aggregate amount of Rs.9,01,83,600 to the total income of the assessee under section 68 of the Act. 5. The learned CIT(A) vide impugned order granted partial relief to the assessee and directed the deletion of Rs.8,82,03,600 as genuine share application money and an amount of Rs.19,80,000 as not explained. Being aggrieved, both parties are in appeal before us. 6. We have considered the rival submissions and perused the material available on record. As per the assessee, it had issued 6,39,600 equity shares at a face value of Rs.10 each and a premium of Rs. 140 each. As per the assessee, the following subscribers have subscribed to its equity sha ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he assessee and directed the AO to delete the addition in respect of these entities. Therefore, in order to decide the grievance of both parties, it is relevant to examine the information vis- -vis the findings of the lower authorities in respect of each entity. 8. In respect of Cicago Commodities Private Limited, the assessee filed confirmation, ITR acknowledgement, bank statement, balance sheet, and profit and loss account. During the appellate proceedings, the learned CIT(A) directed the AO to furnish its report in respect of details furnished by the assessee. The AO vide its letter dated 24/11/2016, forming part of the paper book on pages 159-161, submitted that information under section 133(6) of the Act was sought from Cicago Commo ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the money from some other entity. The learned CIT(A) vide impugned order held that the AO has reported that said amount was transferred from M/s VRLA Manufacturing Company Private Limited, however, the said objection is not relevant as the assessee can utilise the amount anywhere as per the requirement of its business. We find that the assessee is required to satisfy the condition of identity and creditworthiness of the investors and the genuineness of the transaction. However, the learned CIT(A) did not examine the aspect of creditworthiness of the investor in light of the objections raised by the AO in its remand report that the money was received by the investors from some other entity before being transferred to the assessee. During th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... pt the allotment of shares for which the payment was made in the preceding financial year. Thus the Revenue can question the creditworthiness of the entity in the year in which the payment is made. However, we find that without examining the aforesaid aspect the plea of the assessee was rejected. Further, we find that the assessee has not produced the parties as required by the AO during the remand proceedings. 11. Therefore, in view of the aforesaid findings, we deem it appropriate to remand this matter to the file of the AO for de novo adjudication after necessary examination/verification of the various aspects as highlighted above. Since the matter is remanded for fresh adjudication, the assessee shall be at liberty to adduce any evid ..... X X X X Extracts X X X X X X X X Extracts X X X X
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