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TMI Blog2024 (2) TMI 216X X X X Extracts X X X X X X X X Extracts X X X X ..... the Assessing Officer while computing the assessment made addition of Rs. 1,33,32,875/- under section 68 of the Income Tax Act, 1961 (the Act) being the share capital/share premium and also disallowed expenses of Rs. 53,36,782/- claimed in the profit and loss account, while making the best judgement assessment under section 144 of the Act as the assessee neither appeared nor furnished any information/replies to the notices issued by the Assessing Officer. 4. Assessee preferred appeal before the ld. CIT (Appeals) and filed additional evidences in respect of the addition made under section 68 of the Act and also on the disallowance of expenses. The ld. CIT (Appeals) admitted the additional evidences and called for remand report, which was furnished by the Assessing Officer. 5. The ld. CIT (Appeals) after considering the rejoinder filed by the assessee to the remand report of the Assessing Officer deleted the addition made under section 68 of the Act and also the entire expenses disallowed by the Assessing Officer observing as under:- "Decision I have considered the submission of the appellant, observation of the Assessing Officer made in the assessment order on the issue. It ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ank Account(s): SI. No. Date and Mode of Payment/ Amount Account No. and Branch Address of the Account from which payment was made. Cheque No. & date, if applicable. The replies received in the remand proceedings in response to notice u/s 133(6) from the share applicants is being analyzed hereunder one by one: Sh. Atim Kabra: He has invested Rs. 24,98,958/- as share application money in the appellant's company towards equity share. The money has been transferred from NRE Axis Bank Marine Line, Mumbai Branch on 07.12.2011 through RTGS. Sh. Atim Kabra is a non-resident for several years and has sufficient funds for making investment. He has also filed his return of income for the AY 2012-13 in India declaring his income Rs. 5,37,975/-. In the AY 2011-12 he has declared income of Rs. 16,74,913/-. He has also filed copy of the bank statement of the Axis Bank, wherein he has got deposit of Rs. 1,50,90,257/- as on 01.12.2011 which proves that he has sufficient fund in his account for making investment. He has confirmed the investment in response to notice issued under section 133(6) of the Income Tax Act, 1961 vide his letter dated 20.02.2017. Therefore, identit ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ed notice u/s 133(6) of the I.T. Act which was received back as unclaimed. However, reply to the notice was received via e-mail wherein copy of the intimation u/s 143(1) of the I.T. Act issued by CPC, Bangalore was sent. He has declared an income of Rs. 32,93,323/- during the FY 2011-12 relevant to AY 2012-13. He has also sent the salary certificate issued by SCHLUMBERGER ASIA SERVICES LTD. He has confirmed the transaction with appellant company. Therefore, in this case identity, creditworthiness and genuineness of the transaction has been established. Sh. K.N. Mehta: He has invested Rs. 24,98,958/- as share application money in the appellant company during FY 2011-12. During the appellate proceedings, the appellant company has filed Confirmation, Share Application Form, copy of Permanent Account Number, copy of Bank Statement in support of its contention. The AO issued notice u/s 133(6) of the I.T. Act vide letter dated 9.2.2017. He has confirmed the transaction with the appellant company vide his letter dated 26.2.2017 and has stated that he has invested Rs. 24,98,958/- through his bank accounts maintained with ICICI Bank and HSBC Bank. He has filed copy of bank statement an ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tment in the appellant company is reflected. The said company has also filed copy of the bank statement maintained with HDFC Bank, Nariman Point, Mumbai wherefrom DD of Rs. 30,00,000/- was issued in favour of the appellant company on 23.11.2011. Therefore, in this case identity, creditworthiness and genuineness of the transaction has been established. Sh. Lokesh Kumar. He has invested Rs. 7,33,844/- as share application money in the appellant company during FY 2011-12. During the appellate proceedings, the appellant. company has filed confirmation, Share Application Form, copy of Permanent Account Number, copy of Bank Statement and copy of Passport in support of its contention The AO issued notice u/s 133(6) of the I.T. Act vide letter dated 9.2.2017. However, no reply has been received in response to said notice. He has shown his address as 301, Summit Avee Apartment, 501, Seattle WA. He has also given copy of his bank statement maintained with Chase JP Morgan Bank. He has transferred US$15000 from Chase Bank to ICICI Bank of the appellant company maintained in India on 1 November, 2011 and 4th November, 2011 Therefore, in this case identity. creditworthiness and genuineness ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d Rs. 4,56,500/- as rent paid during the year for the premises hired during the year. All these payments have been made by way of account payee cheques from the appellant company's bank account and TDS have been deducted. The appellant has given details of all expenses in the form of ledger account. It is, therefore, held that all these expenses were incurred by the appellant wholly and exclusively for business purposes of the appellant company and same are held to be allowable. Therefore, the disallowance made by the AO of Rs. 53,36,782/- is deleted. In the result, ground no. 3(a) and (b) are allowed." 6. On careful perusal of the findings of the ld. CIT (Appeals) we observe that the assessee discharged its initial burden by filing various evidences in the form of confirmations, bank statements, share application forms, addresses, PAN numbers to prove the identity, genuineness and creditworthiness of the share holders. The ld. CIT (Appeals) considering all the evidences on record and the remand report and the rejoinder concluded that the share holders are genuine and assessee has proved the identity, genuineness and creditworthiness of the share holders and accordingly the ad ..... X X X X Extracts X X X X X X X X Extracts X X X X
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