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ITO Versus Gopi Pvt. Ltd.

2015 (6) TMI 55 - ITAT DELHI

Unexplained credits u/s 68 - assessee received share application money are providers of accommodation entries - CIT(A) deleted the addition - Held that:- In view of observations of the AO as well as CIT(A) we clearly note that the AO noted that the assessee expressed its inability to produce copies of IT Return and director or of Officer of the company which provided or contributed share application money and the CIT(A) in para 5.2 at page 16 observes that the assessee has furnished all the rele .....

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ted to the Revenue to controvered explanation and supporting evidence and material filed by the assessee while discharging its onus as required as per ratio of the recent decision dated 19.02.2015 of Hon’ble High Court of Delhi in the case of CIT Vs. M/s Jasampark Advertising and Marketing (P) Ltd. [2015 (3) TMI 410 - DELHI HIGH COURT]. Thus sole issue require verification and examination at the end of the AO. Therefore, the sole issue is restored to the file of the AO for proper of adjudication .....

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2002-03. 2. The revenue has raised following grounds in this appeal :- 1. On the facts and circumstances of the case the CIT(A) has erred in deleting the addition of ₹ 20,02,2000/- on account of unexplained credits u/s 68 of the I.T.Act. Ignoring the following fate :- (v) All companies from whom the assessee received share application money are providers of accommodation entries. (vi) All companies (accommodation entries providers) first deposited cash of the same amount in their bank acc .....

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eficiaries before issuing cheques. 2. On the facts and circumstances of the case, the CIT(A) has failed to appreciate that facts of this case are clearly distinguishable from that of Lovely Exports and therefore, the judgment of the Apex Court is not applicable to the facts of this case. 3. Briefly stated the facts of this appeal are that the assessee filed return of income on 29.10.2002 declaring the income of ₹ 55,703/- and assessment was framed u/s 143(1) of the Income Tax Act, 1961 (fo .....

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id by the beneficiary to the entries providers. The AO opened the assessment and finalized reassessment order by making addition of ₹ 20,02,000/- u/s 68 of the Act. The aggrieved assessee preferred an appeal before CIT(A) it was allowed by passing of the impugned order and entire addition was deleted by following the decision of Hon ble Supreme Court in the case of CIT Vs. Lovely Exports Pvt. Ltd. 2008, 216 CTR 195 (SC). Now the aggrieved revenue is before this Tribunal in this 2nd appeal .....

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cheque to the assessee and at the same time they also signed same papers which were handed over to the beneficiaries and these papers were confirmation deeds and other fabricated documents to support the bogus transaction. The Ld. DR, further, contended that before the investigation wing the accommodation entry providers have given statements under oath that they are entry providers and have received cash from the beneficiaries before issuing cheques. The Ld. DR strenuously contended that the Fi .....

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TA No. 493/2013. 6. The Ld. Counsel of the assessee replied that the assessing officer opened the assessment on the fake information of Investigation Wing. The Ld. Counse, further, pointed out that the assessee submitted before the AO that the assessee has not received any share application money from Sh. Nitin Kumar and M/s Acoot India Pvt. Ltd. and the assessee received share application money from M/s Blizm Metal Pvt. Ltd. ₹ 2,00,000/- and M/s Amba Alloys Pvt. Ltd. ₹ 4,00,000/- to .....

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by the assessee and in simply relying on statements of alleged entry providers which were recorded on the back of assessee. The Ld. Counsel supporting the impugned order submitted that the CIT(A) rectified all the mistakes committed by the AO and properly considered relevant evidence of the assessee which clearly show that the transactions were genuine and the assessing officer without examining the same simply proceeded to reject the explanation and evidence of the assessee. The Ld. Counsel fi .....

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ey from Shri Nitin Kumar and M/s Acoot India Pvt. Ltd. appearing in serial no. 3 and 5 in the double given in the reasons recorded by the AO. The assessee further, clarified that instead of above two entities the assessee actually received share application money from M/s Bliz Pvt. Ltd. and M/s Amba Pvt. Ltd. From last para at page 3 , we also note that the assessee expressed his inability to file current IT particulars and to present directors or officers of alleged entities in person. Thereaft .....

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the statements of the entry providers recorded by the Investigation Wing of the department and went on to held that the assessee got the confirmation from these entry providers at the time of receiving credits of the share application money and in fact no real transaction were took place. 8. From the operative part of the impugned order, we note that the CIT(A) granted relief by following decision of Hon ble Apex Court Vs. CIT(A) Vs. Lovely Export Pvt. Ltd. (supra) by holding as under : 5.1 It .....

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r evidence brought on record. 5.2. The appellant on the other hand has furnished all the relevant details in this regard during the course of the assessment proceedings as well as in the appellate proceedings, which have been placed on record. 5.3. At the outset, it has been submitted that the order has been passed by the Assessing Officer without bringing any material on record in support of his contention. The Assessing Officer has not conducted any enquiry from his own side to verify the tran .....

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re capital, by disclosing all the material facts truly and correctly and produced/ filed the following details during the course of the assessment proceedings with respect to its subscribers to share capital :- Name and address of subscribers as registered with the company along with complete detail of investments. - Changed address as available with Registrar of Companies. - Certificate of incorporation along with copy of Memorandum of Association - Permanent Account no. along with copy of retu .....

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the AO noted that the assessee expressed its inability to produce copies of IT Return and director or of Officer of the company which provided or contributed share application money and the CIT(A) in para 5.2 at page 16 observes that the assessee has furnished all the relevant details during the course of assessment proceedings and granted relief by relying of decision of Hon ble Apex Court in the case of Lovely Exports (Supra). Hence, we are unable to satisfy ourselves as to whether the assess .....

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