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2015 (8) TMI 1032 - ITAT DELHI

2015 (8) TMI 1032 - ITAT DELHI - TMI - Bogus capital share introduction - accommodation entries - CIT(A) proceeded to partly accept some of the claims of the assessee and partly rejected and also restored the issue back to the file of the AO for verification on facts.Held that:- As far as the statutory mandate is concerned, section 250(6) of the Income Tax Act which sets out the procedure which the CIT(A) in appeal is required to follow it is seen that the statute does not permit the Ld. CIT(A) .....

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rived at it is seen is without considering the relevant material on record. Accordingly in view of the afore-mentioned 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 st .....

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ess 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 from dairy development and marketing of dairy products; real estate development, home loan finance; insurance agents and running a broadcast channel under the name of CNEB through various companies. The group is stated to b .....

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as per the assessment order was served upon the assessee. Return declaring a NIL income was filed on 20.07.2010 pursuant to this after issuance of notice and questionnaires issued as per the assessment order the assessee was represented. In the assessment proceedings the AO takes cognizance of the fact that the assessee company was incorporated on 26.06.2006 with the object of running a television news channel. He also took note of the fact that in the Audit Report of the assessee company for th .....

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to in paras 6 to 8 of the assessment order and the legal position on the issue the AO proceeded to consider the issue on the basis of seized material/material gathered during the search & seizure at HBN Group premises and survey operations at S.L. Makhanlal Singla & Co. Prop.M.L.Singla and conclude that despite providing the opportunity it was not availed of by the assessee. The following decisions of the Jurisdictional High Court were considered to be applicable on the issue:- (i)CIT vs .....

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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 .....

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ni HBN group CFO. 13.5. During the course of recording of the statement of Sh Harmender Singh Sran, HBN group Chairman, the factum of bogus share capital introduction in various HBN group companies was categorically admitted and undisclosed income was surrendered in various group companies. In the case of assessee company surrender was made for the assessment years 2008-09 & 2009-10. 14. The facts for the present case are not different from the facts of subsequent years. During the year unde .....

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ncome tax returns have also been filed. The details of such share capital contribution are as under; (i) Harmender Singh Sran ₹ 11,75,000/- (ii) Gurvir Kaur Sran ₹ 11,75,000/- (iii) Manjeet Kaur Sran ₹ 11,75,000/- (iv) Harmeet Kaur Sran ₹ 9,25,000/- That apart, it is also mentioned in the details that investment in share capital of the assessee company of an amount of ₹ 12,70,000/-was made by Sh. Amandeep Singh Sran and of ₹ 11,75,000/- was made by Ms. Brinder .....

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een filed for 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 .....

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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 partly accept some of the claims of the assessee and partly rejected the grounds of the assessee. Apart from that the CIT(A) also restored the issue back to the file of the AO for verification on facts. 6. Aggrieved by this order, both the assessee and the Revenue are in appeal before the Tribunal. Th .....

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aid amount of ₹ 1,51,40,000/-, when it was clearly evident from the records available before him that the funds for the aforesaid amount had flown from M/s HBN Dairies & Allied Limited out of its duly explained sources and is duly recorded in its books of accounts as investments in HBN Dairies & Allied Ltd 2. Under the facts and circumstances of the case, Ld. First Appellate Authority has grossly erred in directing the Ld. Assessing Authority to verify the investment to the extent .....

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Authority has grossly erred in not admitting under Rule - 46A of Income Tax Rules, 1962, additional evidence in the form of the confirmations from the five parties submitted by the appellant in respect of investment in shareholder s fund totaling to ₹ 34,60,000/- 4. Under the facts and circumstances of the case, Ld. First Appellate Authority has grossly erred in affirming the addition of balance amount of ₹ 90,05,000/- made by the Ld. Assessing Authority on account of unexplained in .....

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llied 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 .....

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nable on facts and in law. 5. The appellant craves leave to add, alter or amend any/ all of the grounds of appeal before or during the course of the hearing of the appeal. 8. In the above factual background, the ld. AR inviting attention to the synopsis filed in the Court submitted that the finding arrived at in the impugned order is vitiated as instead of giving a clear-cut finding as the statute mandates the CIT(A) as would be evident from page 14 of the impugned order has remitted the issues .....

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ed prayer of the assessee was that by allowing the appeal of the Revenue and that of the assessee, the entire issue may be restored to the CIT(A) with the direction to pass a speaking order after hearing the assessee. 10. Considering the prayer of the Ld. AR, the Ld. CIT DR had no objection if the entire order is set aside again to the CIT(A). 11. We have heard the rival submissions and perused the material available on record. On a consideration therefore, in the light of the submissions advanc .....

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btain a Remand Report and cannot remand the issue completely as considering the Remand Report a finding still has to be given by the CIT(A) himself. The relevant provisions read as under:- 250(1)………………………………………. (2)…………………………………………… (3)…………… .....

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ssioner (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 .....

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en in their assessment order. This claim was made before the assessing officer. This issue has been considered by the assessing officer in para 14.1 of the assessment order. The assessing officer has not given the relief on the ground that similar confirmation from family members for making investment in shares of the company was filed for A.Y. 2008-09. The assessing officer is directed to verify the share capital introduced during the year under consideration during the year under consideration .....

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