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TMI Blog2023 (5) TMI 1040X X X X Extracts X X X X X X X X Extracts X X X X ..... sued at unreasonable share price or excessive share premium and there was also no allegation of any cash deposit prior to payment of share capital in the bank statements of the share applicants or the source firms. If the AO had any doubt then he could have made further inquiries and issued summons u/s 131 to the share applicants and their source firms but he did not do. Assessee Company has discharged its onus in establishing identity, genuineness and creditworthiness of the share applicants and all the amounts have been emanated from three entities namely, M/s. Shree Ram Enterprises, M/s. Shubh Laxmi Tex and M/s. Shree Amarnath Synthetics. The same has been confirmed by the shareholders as well as the Directors of all the three enti ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 0,000/- from 29 shareholders. The AO issued notices under section 133(6) of the Act on 14.02.2014 to all the shareholders seeking information to verify identity, creditworthiness genuineness of the transactions. 6. All the subscribers confirm that the subscription made by them including the copy of their ITRs, PAN, bank statements. Out of the 29 shareholders 7 were close relatives of the Director of the assessee company Shri Sanjeev Tekriwal which the AO has found to be genuine. 7. With regard to set of 15 subscribers, it was submitted to the AO that the investment was made on behalf of and out of the funds received from two parties i.e. Shri Govind Tripathi (Proprietor of M/s. Shubhlaxmi Tax Co.) and Shri Ram Kirpal Parikh (Proprie ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... war Shah HUF 25 , 00 , 000 Shree 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 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nath Synthetics. The Ld. CIT(A) called the information relating to M/s. Shree Amarnath Synthetics u/s 250(4) of the Act and the Assessee filed the confirmation and the bank statement of Shree Amarnath Synthetics vide letter dated 25.03.2016. The particulars of shareholder who received the funds from Shree Amarnath Synthetics are as under: S. No. Name of shareholders who received funds from Shree Amarnath Synthetics Amount ( in Rs.) 1 . Gangaram Aggarwal 20 , 00 , 000 2 . Godavari Devi 20 , 00 , 000 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 13. The ld. CIT(A) vide her order dated 29.03.2016 deleted the entire addition of Rs. 5.20 crore made u/s 68 of the Act after examining the documents furnished by the Assessee and the 22 shareholders and their source firms in response to the notices issued to them u/s 133(6) in order to verify the identity, genuineness and creditworthiness of the transactions. The ld. CIT(A) also called the information u/s 250(4) from Shree Amarnath Synthetics. 14. The ld. CIT(A) verified the movement of funds by cross checking the bank statements of 22 shareholders and their source firms and the Assessee's bank statement and also examined the detailed confirmations filed by the 22 shareholders and their source firms explaining the nature and sou ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... see Company, they provided funds to the share applicants who in turn invested in the share capital of the Assessee Company on their behalf. 17. The confirmation of Sh. Ram Kripal Parikh, proprietor of Shree Ram Enterprises and Sh. Govind Tripathi, proprietor of Shubh laxmi Tex Co. are on record. The ledger of the Assessee Company in the books of Shree Ram Enterprises and M/s. Shubh laxmi Textile showing business transactions Company showing purchase transactions is on record. The Audited financial statements of Shree Ram Enterprises as on 31.03.2008 shows turnover of Rs. 2.55 crore and investment of Rs. 4.36 crore and advances (liability) of Rs. 2 crore. The Audited financial statements of Shubh Laxmi Textile Co. as on 31.03.2008 shows t ..... X X X X Extracts X X X X X X X X Extracts X X X X
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