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TMI Blog2023 (7) TMI 1048X X X X Extracts X X X X X X X X Extracts X X X X ..... facts of this case, additions made by the Revenue are not sustainable. - Decided in favour of assessee. - INCOME TAX APPEAL NO.85 OF 2020 - - - Dated:- 4-7-2023 - HON'BLE MR JUSTICE P.S. DINESH KUMAR AND HON'BLE MR JUSTICE T.G. SHIVASHANKARE GOWDA For The Appellants (By Shri. E.I. Sanmathi, Advocate) For The Respondent (By Shri. A. Shankar, Sr. Advocate For Shri M. Lava, Advocate) JUDGMENT P.S. DINESH KUMAR J., This appeal by the Revenue has been admitted to consider the following questions of law recorded in the Order dated 12th October, 2020: 1. Whether, in the facts of the case, the impugned Order of the Tribunal is perverse in ignoring the relevant material evidence brought out in the Ass ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d for scrutiny and notice under Section 143(2) of Act was issued to the assessee. In response, the assessee appeared and explained the return. The AO [Assessing Officer] has noted that nineteen companies had invested monies with the assessee Company along with their respective share application totalling to Rs. 8,64,30,300/-. The AO issued notices to the said nineteen Companies directing them to appear before the ADIT [Assistant Director Income Tax (Investigation), Kolkata], Kolkata. The Companies appeared through their representatives and filed their replies. On consideration of the said replies, the AO recorded his finding at paragraph 3.7 of the order and held that the share application money had remained unexplained. Accordingly, he ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... peared before the ADIT and submitted their papers. The ADIT sent his report to the AO. The copies of the papers filed by the respective Companies before the Income Tax authorities were made over by the Department to the assesse. The said papers have been filed by the assessee before the CIT(A). 7. According to Shri A. Shankar, the ITAT has considered all nineteen investments independently and recorded its opinion from paragraph 6 onwards in the impugned order. Making particular reference to the nineteenth investor, Shri A. Shankar, submitted that the Directors of the said Company and the Directors of the Assessee are one and the same. In substance, Shri Shankar s argument is that in obedience to AO's directions, all nineteen Companie ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ome in the hands of the assessee. The CIT(A), has increased the tax liability by Rs. 35,21,000/-. The ITAT has deleted the additions made by the two authorities. It has recorded its reasons from paragraph 6 onwards in the impugned order. A careful perusal of the ITAT order shows that it has considered all nineteen investments individually. It has noticed that the replies given by the Companies were available in the paper books filed before the Tribunal. It has also noticed that the copies of the bank statement, income tax returns along with audited balance sheets, audited reports, etc., were also part of the records. After doing such exercise in respect of nineteen companies, only with regard the nineteenth Company (M/s. Matajawala Investme ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... se on hand, the identity of the investors have been established. They have appeared before the authority and submitted the records showing the source of income. In the facts of this case, additions made by the Revenue are not sustainable. 14. Insofar as the authority relied upon by Shri. Sanmathi in NRA Iron and Steel is concerned, in our opinion, the ITAT has rightly held that the facts in the case of NRA Iron and Steel are not applicable to the facts in this case. In the said authority, the investing companies had not explained the valuation and in this case, the investors have filed all the details. 15. Hence, we find no infirmity in the order passed by the ITAT. In the result, we pass the following: ORDER i) Appeal is di ..... X X X X Extracts X X X X X X X X Extracts X X X X
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