9911796707
TMI Blog2023 (5) TMI 1040X X X X Extracts X X X X X X X X Extracts X X X X ..... 8 of the Income Tax Act, 1961 without appreciating the facts that the ld. CIT(A) vide appeal No. 254/2011-12 dated 31.01.2013 has upheld the addition on the same ground in the assessee's own case in the A.Y. 2009-10." 3. Heard the arguments of both the parties and perused the material available on record. 4. The assessee filed return of income on 26.08.2008 declaring income of Rs. 95,23,700/-. The original assessment under section 143(3) of the Act was completed on 08.12.2010 wherein returned income was accepted. Owing to the order of the ld. CIT passed u/s 263, assessment proceedings have been reinitiated by the AO. 5. The Assessee received the share capital amounting to Rs. 5,60,00,000/- from 29 shareholders. The AO issued notices ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... hree Ram Enterprises 10 . Ravindra Singh HUF 25 , 00 , 000 Shree Ram Enterprises 11 . Shadeo Mishra 25 , 00 , 000 Shree Ram Enterprises 12 . Shyam Mishra 25 , 00 , 000 Shree Ram Enterprises 13 . Arbind Kumar Singh HUF 40 , 00 , 000 Shree Ram Enterprises Total of funds received from Shree Ram Enterprises (A) 3,40,00,000 14. Kiran Devi 20,00,000 Shubh Laxmi Tex 15. Lalita Devi 20,00,000 Lalita Devi received funds from Kiran Devi who in turn had received funds from Shubh Laxmi Tex Total of funds received from Shubh Laxmi Tex (B) 40,00,000 Total funds received from Shree Ram Enterprises and Shubh Laxmi Tex (A+B) 3,80,00,000 8. The AO through order sheet entry dated ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Radhe Shyam Aggarwal 20 , 00 , 000 7 . Sarbati Devi 20 , 00 , 000 Total funds received from M/ s Amarnath Synthetics 1 , 40 ,00 ,000 11. The AO passed order u/s 143(3) r.w.s. 263 on 28.03.2014 and made addition of Rs. 5,20,00,000/- on account of unexplained share capital received from 22 shareholders u/s 68 of the Act on account of the following reasons: i) Financial statements of Shree Ram Enterprises and Subh Laxmi Tex reflected huge turnover but negligible profits; ii) The income declared by both the parties in their respective return of income established that both the parties didn't have the creditworthiness of their own; iii) Both the parties were merely used as one of the channel to rotate funds by the Assesse ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Assessee also furnished the confirmations, ITRs. (A.Y 2007-08, 2008-09), relevant bank statements, Tax Audit Report and Audited financial statements for A.Y 2008-09 and the ledger Account of Shree Ram Enterprises and Shubh Laxmi Tex Co. who provided the funds from their own sources to 15 shareholders who in turn subscribed the share capital of the Assessee Company. 16. The proprietors Sh. Ram Kripal Parikh of Shree Ram Enterprises and Sh. Govind Tripathi of Shubh Laxmi Tex Co. stated in their respective confirmations that they are in the business of trading of fabrics for a long time and had long term relationship with BTM Exports and had done trading of fabrics with the Assessee Company in the past. They further stated that share applica ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he source firms, each entry of movement of funds from the proprietorship firms to the share applicants and from the share applicants to the Assessee Company can be tallied. Besides, all the 22 share applicants and their source firms independently responded to the notices u/s 133(6) issued to them and provided the desired information to the AO. The AO brought no evidence on record to support his baseless allegations which are mere conjectural and hypothetical that share capital introduced in the Assessee Company is unaccounted income/money of the Assessee Company. There was no allegation of share capital issued at unreasonable share price or excessive share premium and there was also no allegation of any cash deposit prior to payment of shar ..... X X X X Extracts X X X X X X X X Extracts X X X X
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