TMI Blog2015 (10) TMI 12X X X X Extracts X X X X X X X X Extracts X X X X ..... i Manish Agarwal (CA) Shri Javed Khan ( Adv. ) ORDER Per T. R. Meena, AM. This is an appeal by revenue emanating from the order of ld. CIT (A)-I, Jaipur dated 22.05.2012 for the assessment year 2008-09. The solitary ground raised in the appeal is against deleting the addition of ₹ 80,00,000/- made by the AO wherein Directors of the assessee company categorically admitted in their statements that the same represented the unaccounted share transactions of the assessee company. 2. The assessee is in the business of trading of shares and stock broking. The assessee files its return of income on 30.9.2008 declaring total income of ₹ 6,21,87,380/-. The case was scrutinized under section 143(3) of the IT Act. On 19/07/2007 survey under section 133A of the IT Act, 1961 was carried out at the business premises of the assessee company and M/s. Maverick Commodity Brokers Pvt. Ltd. During the course of survey proceedings, statement of Shri Mukut Behari Agarwal, Director in the assessee company was recorded. In the statement so recorded, in answer to question nos. 41 42 Shri Mukut Behari Agarwal, Director stated that the assessee company's transactions for cur ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... bank accounts of M/s. Sandeep Stock Pvt. Ltd. wherein the payments were debited/credited. Since all the transactions were entered into by the assessee company for and on behalf of M/s. Sandeep Stock Pvt. Ltd. in the capacity as Member Broker of BSE and NSE and acting as Agent, thus the interest of the assessee company is limited to the brokerage income earned on such transaction. After the conclusion of survey proceedings and at the time of filing of the return, the assessee company had verified all the transactions stated in the accounts of M/s. Sandeep Stock Pvt. Ltd. and as none of the transactions is in any manner related to the assessee company, thus no income on this account was offered by the assessee company in its return of income filed. Further, the fund involved in such transactions are owned by M/s. Sandeep Stock Pvt. Ltd., the appellant company cannot be fastened with any liability on the income generated on such transactions except the brokerage earned on such transactions which duly accounted for in the regular books of account based on the income was computed and declared in the return of income filed for the year under consideration. 3. After considering the rep ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ppellant company. 4) All the transactions were conducted by M/s. Sandeep Stock Pvt. Ltd. through its bank accounts. 5) The books of accounts maintained by M/s. Sandeep Stocks Pvt. Ltd. were verified subsequently by the AO as per her remand report wherein she has observed that all the transactions in M/s. Sandeep Stock Pvt. Ltd. were verifiable and corresponded with its ledger a/c maintained in the books of the appellant company. 6) M/s. Sandeep Stock Pvt. Ltd. is an independent entity and an assessee who has reflected the income from these transactions in its return of income. 4.6. In view of the above facts and the verification done by the AO as per her remand report there appears to be no justification for the addition of ₹ 80,00,000/- to the income of the assessee merely on the basis of the statements made by the director of the appellant company during the course of survey operations, particularly as this surrender is not substantiated by any evidence gathered during the course of survey proceedings, assessment proceedings or the verification done while preparing the remand report. Therefore, this addition of ₹ 80,00,000/- does not appear to be j ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... done by it in the account of M/s. Sandeep Stock Pvt. Ltd. merely by relying upon the statement obtained during the course of survey. Nevertheless, during the course of appellate proceedings before ld. CIT (A), all these facts along with relevant evidences (already submitted before ld. AO) were again submitted who called for a report from the ld. AO directing him to make necessary verification of record in the matter. Accordingly, the ld. AO submitted a remand report dated 02.02.2012 wherein the ld. AO has admitted following facts :- 1) In compliance with the summons u/s 131, Sh. Sandeep Sharma Smt. Sunita Sharma, directors of M/s. Sandeep Stock Pvt. Ltd.., necessary documents in the shape of ledgers pertaining to the period 01.04.2007 to 31.03.2008 were submitted before ld. AO. 2) Assessee had made purchase of ₹ 2,08,48,49,137.34 and sale of ₹ 2,45,04,24,562.13 on behalf of the company M/s. Sandee4p Stocks P. Ltd. and the transactions were duly reflected in the statements of accounts of HDFC Bank furnished by M/s. Sandeep Stock P. Ltd. 3) After cross verification through the ledger accounts, it was gathered that one to one entries of debit/credit of M/ ..... X X X X Extracts X X X X X X X X Extracts X X X X
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