Home Case Index All Cases Income Tax Income Tax + AT Income Tax - 2017 (4) TMI AT This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2017 (4) TMI 1008 - AT - Income TaxAddition u/s 68 - assessment u/s 153A - contention of the assessee is that all these companies have been dissolved as the names of these companies have been struck off by the Registrar of Companies for non filing of their annual returns - Held that:- Argument of the assessee does not hold water as the search took place on 26.11.2009 and further the notice u/s 153C/ 153A was issued on 25.05.2011. At that particular time all the companies were in existence. Furthermore, the names of the companies have been struck off for non filing of returns with the Registrar of Companies. However, such as act does not have any implications in the Income Tax proceedings where the companies have made investment. If the argument of the ld AR before the ld CIT(A) is to be believed then when the name of the depositor company struck off the investment made by them in the company also becomes share issued in the hands of non existing person. In any way that is not the case of the assessee. With respect to all the four creditors the assessee has not produced their return of income, their balance sheets, and even the confirmation and the bank statements. In absence of all these things it is not correct on the part of the ld CIT(A) to delete the addition u/s 68 with respect to the above four companies amounting to ₹ 32123000/-. Therefore, we set aside the whole issue of addition u/s 68 with respect to above four companies amounting to ₹ 3.21 crores back to the file of the ld AO with a direction to grant one more opportunity to the assessee to prove the identity, creditworthiness and genuineness of the above transaction after granting assessee proper opportunity of hearing. In the result ground No. 1 of the appeal of the revenue is allowed with above direction. Proof of incriminating material found - Held that:- All the evidences gathered during the course of search coupled with the availability of the books of accounts of the assessee along with other documents at the office of Today Group and corroborated by statement of several persons during the course of the survey at the address of the investor company were not at all appreciated by the ld CIT (A) , In fact these are the material which has shown a link to the ld Ao to make addition on account of issue of share capital u/s 68 of the act. Therefore we find that the order of the ld CIT (A) has not appreciated the evidences and their gravity and has held that the addition has been made without the evidences unearthed during the course of search in spite of the facts that ld AO has pointed out all these materials such as books of accounts, other documents, statements of various persons, survey report on the investor companies, including the pre search inquires and post search inquires conducted by revenue over and above the modus operandi of the group discussed , which should have been considered in proper perspective. The ld AO has devoted substantial portion of his assessment order on that incriminating material only, which has not been appreciated by the ld CIT (A). In view of this we set aside this ground of appeal also before the ld CIT (A) with a direction to examine the material unearthed during the course of search on the group looking at the pancahnama including the statements of various persons ,survey reports on investing companies and then decide the issue that whether the addition has been made by the ld AO based on the incriminating material found during the course of search or not. In the result ground no 2 of the appeal of the revenue is allowed with above direction.
|