9911796707
TMI Blog2024 (5) TMI 1178X X X X Extracts X X X X X X X X Extracts X X X X ..... ion 68 of the Income Tax Act, 1961 vide order dated 17.12.2019. 2. Brief facts of the case are that the appellant/assessee filed its return on 22.02.2016 declaring income of Rs. 7,11,260/- for assessment year 2015-16 which was processed under section 143(1) of the Income Tax Act, 1961. The assessee is partner of M/s. RNB Leasing and Financial Services. A search and seizure operation was carried on Bajaj Group and others group on 20.04.2017. During the course of search and seizure a key of Indian Overseas Bank locker was found. This locker was in the name of Lalita Bajaj and the assessee i.e. Mrs. Shrikanta Bajaj. Search action on 22.05.2017 was carried out on locker no. 111 Indian Overseas Bank. No incriminating document or material was fo ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... essment under section 153A only on the basis of some incriminating material unearthed during the course of search. Assessee had received Rs. 45,00,000/- on consideration for sale of her share in RNB Infrastructure Pvt. Ltd. at par value. Assessee had sold the shares out of the old investments made by the assessee. Learned AO and Learned CIT(A) had not doubted the purchase of investments by the assessee. Before Learned CIT(A) assessee submitted an application under rule 46A of the Income Tax Act, 1961 with documents in support of her explanation. Learned CIT(A) called for a remand report from Learned AO. In remand report Learned AO submitted that in order to verify the claim of assessee that the funds received in bank account was on account ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ied upon various findings of the search and survey operations carried out on the premises of the appellant and the shell concerns as well as pre search and post search investigations to the fact that the concern from whom funds has been received by the appellant and other RNB Group entities are shell concern managed and operated by Nirmal Kumar Sarda or his family members and do not have any business activity. The concerns operated by Mr. Sarda are merely shell concerns which are receiving credits immediately before transfer of money to the RNB group and are being used for providing accommodation entries by layering of unaccounted money. Learned CIT(A) rightly held that funds are rotated through family members and concerns of M/s. N.K. Sard ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of the Act. Before Learned CIT(A), assessee filed an additional evidence under Rule 46A of the Income Tax Rules and remand report was called from the AO wherein the AO after verification and examination of additional evidence and by taking on record the replies of the assessee from the share purchaser parties in response to notice u/s 133(6) of the Act reported as follows: "4. In the application under rule 46A, the appellant has submitted that the credits/funds received in the bank account in the year under consideration are on account of sale of investment held by her in equity shares of RNB Infrastructure Pvt. Ltd. to RNB Leasing and Financial Services. It is further submitted by the appellant that amount received by her from the alleg ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... xplanation they have submitted copy of their bank statement, financial statements, ITR. The explanation given by assessee is substantiated by the documents submitted. 6. It is noticed that the explanation/submission now being made by the assessee was not made during the course of assessment proceedings. During the assessment proceedings ample opportunities were given to the assessee to discharge her onus to substantiate the genuineness of the transactions. However, no plausible explanation was given in this regard at that time. However, the documents now being filed before your good self and replies have also been received from various parties confirming the same Hence, the decision of considering the additional evidence may be Taken on m ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... y adverse comments on the additional evidences filed by the assessee and submitted the report by finally stating that the documents now being filed as additional evidences and replies of share purchaser confirming the transaction of purchaser of shares are on record. 12. In view of above factual findings stated by the AO in the remand report, we are unable to see any valid reason to invoke the provision of Section 68 of the Act treating the amounts received by the assessee as considering of sale of shares as unexplained to credits particularly when the Department has not objected the investment of shares by the assessee during F.Y. 2007-08 relevant to A.Y. 2008- 09. On respectful and careful perusal of the proposition relied by the Learne ..... X X X X Extracts X X X X X X X X Extracts X X X X
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