TMI Blog2015 (8) TMI 1032X X X X Extracts X X X X X X X X Extracts X X X X ..... ntioned factual position; legal mandate and considering the submissions of the parties before the Bench, we deem it appropriate to set aside the impugned order and restore the issues back to the file of the Ld. CIT(A) with the direction to pass a speaking order in accordance with law after giving the assessee a reasonable opportunity of being heard. - Decided in favour of revenue for statistical purposes. - I.T.A .No.-4731/Del/2013, I.T.A .No.-4577/Del/2013, - - - Dated:- 19-8-2015 - SMT DIVA SINGH AND SH.INTURI RAMA RAO, JJ. For The Appellant : Ms.Ruchika Jain and Sh. Akash Chugh, CA For The Respondent : Ms. Anuradha Mishra, CIT DR ORDER PER DIVA SINGH, JM These are cross appeals filed by the assessee and the Revenue assailing the correctness of the order dated 01.04.2013 of CIT(A)-XXXIII, New Delhi pertaining to 2007-08 assessment year on various grounds which we propose to address in the later part of the order. 2. A perusal of the record shows that a search and seizure operation u/s 132 of the Income Tax Act, 1961 was carried out in HBN Group on 20.11.2009 as per the assessment order. The group is stated to be engaged in diverse businesses ranging ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Ltd. 333 ITR 169; (v) Vijay Power Generators Ltd. 3. Accordingly considering the seized material which clearly mentioned frequently Sanjay Jain Commission and M.L.SIngla Commission which proved that they had received commission and the statement on oath u/s 132(4) of the Act of Sh. Sh. S. G. Bhavnani, CFO of the HBN Group and the statement of oath recorded of Sh. M.L.Singla (E-2/77, Sector-16, Rohini, New Delhi) confronted to him who was also covered in section 133A who accepted that accommodation entries had been arranged by him and statement of Sh.H.S.Sran, HBN Group who had admitted the fact of bogus capital share introduction in various HBN group of companies and made a surrender in assessment years 2008-09 2009-10 income from unexplained credit of ₹ 3,08,00,000/- was made as referred to in para 13.5 of the assessment order addition of the said amount was made in the hands of the assessee. 4. For ready-reference, the relevant portion is extracted from the assessment order hereunder:- 13.4. Though the statement of Sh M.L. Singla was recorded during the course of survey proceedings and was not a statement u/s 132(4) of the Act, however in his statement t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... or the assessment year 2008-09 and 2009-10 also. From the Balance sheet it is seen that during the financial year 2008-09, no fresh share capital has been issued by the assessee company. There is no receipt of share application money disclosed in the accounts either. Thus, the confirmations/ details furnished in respect of investment in share capital made by the Sran family could not be relied upon. In the circumstances, when the facts relating to capital contribution made by the Sran family members are neither discernible with full precision nor the same are independently verifiable, I am constrained to consider entire share capital raised during the year, hitherto remaining unverifiable as unexplained cash credits within the meaning of section 68 of the Act. 15. In the circumstances, I have no hesitation in treating the entire unverified share capital including the share premium amount aggregating to ₹ 3,08,00,000/- as income of the assessee from undisclosed sources under the provisions of section 68 of the Act. 5. Aggrieved by this, the assessee came in appeal assailing the action of the AO on various grounds. Considering the arguments the CIT(A) proceeded to par ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... w. 5. The appellant prays for leave to add, amend, alter or withdraw any grounds of appeal. 7. The Revenue s grounds in I.T. A .No.-4577/Del/2013 read as under:- 1. On the facts and in the circumstances of the case, the CIT (A) has erred in giving relief to the assessee company on account of unexplained investment in share capital / premium by family members of Sh. H.S. Saran and M/s HBN Dairies Allied Ltd. though it was clearly established that it were bogus share capital introduction. 2. On the facts and in the circumstances of the ease, the CIT (A) has erred in allowing relief to the assessee company on account of share capital / premium introduction by M/s HBN Dairies Allied Ltd. when there is no mention in the assessment records that the assessee company has claimed such investment during the assessment proceedings. 3. On the facts and in the circumstances of the case, the CIT (A) has erred in allowing relief to the assessee company on account of share capital / premium introduction in the name of family members and M/s HBN Dairies Allied Ltd. when it was clearly established by the findings of CIT(A) itself that neither during assessment proceedi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... vant provisions read as under:- 250(1) . (2) (3) (4).The Commissioner (Appeals) may, before disposing of any appeal, make such further inquiry as he thinks fit, or may direct the Assessing Officer to make further inquiry and report the result of the same to the Commissioner (Appeals). (5) (6) The order of the Commissioner (Appeals) disposing of the appeal shall be in writing and shall state the points for determination, the decision thereon and the reason for the decision. (6A) . (7) 12. In the light of the above legal mandate, we are called upon to consider whether the assessee s request which has not been opposed by the Revenue on facts can be accepted or not. For the said purpose, we reproduce hereunder the relevant extract from the impugned order at page 14:- The next argument of Ld. AR is that part of the share capital were received by the appellant company from family members of Sh. H.S. Sran chairman of the HBN group in whose hand assessments were made u/s 153 A/153C for respective assessment years and no adverse inference was take ..... X X X X Extracts X X X X X X X X Extracts X X X X
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