TMI Blog2016 (6) TMI 936X X X X Extracts X X X X X X X X Extracts X X X X ..... vour of assessee - ITA No. 6087/Del/2013 - - - Dated:- 3-6-2016 - Sh. N. K. Saini, AM And Smt. Beena Pillai, JM For the Assessee : Dr. Rakesh Gupta Sh. Somil Agarwal, Advs For the Revenue : Sh. P. Dam Kanunjna, Sr. DR ORDER Per N. K. Saini, AM This is an appeal by the assessee against the order dated 19.08.2013 of ld. CIT(A)-XVI, Delhi. 2. Following grounds have been raised in this appeal: 1. That having regard to the facts and circumstances of the case, Ld. CIT(A) has erred in law and on facts in confirming the action of Ld. AO in framing the impugned assessment order and that too without assuming jurisdiction as per law and without complying with the mandatory conditions as envisaged u/s 147 to 151 of Income Tax Act, 1961 and without recording valid reasons in the eyes of law and without taking requisite approval as per law. 2. That having regard to the facts and circumstances of the case, Ld. CIT(A) has erred in law and on facts in confirming the action of Ld. AO in making an aggregate addition of ₹ 7,50,000/- on account of share capital received from Sh. Vivek Aggarwal and M/s Globe Tech Solutions (P) Ltd. by treating it as unexpl ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... opy of reasons recorded u/s 148(2) of the Act. The AO did not find merit in the submissions of the assessee and framed the assessment u/s 143(3)/147 of the Act by making an addition of ₹ 7,65,000/- on account of share application money of ₹ 7,50,000/- and commission of ₹ 15,000/- paid out of undisclosed source. 5. Being aggrieved the assessee carried the matter to the ld. CIT(A) who did not find merit in the submissions of the assessee on legal issue pertaining to the issuance of notice u/s 148 of the Act dated 30.03.2010 by observing in paras 4.3 4.4 of the impugned order as under: 4.3 The submission of the AR is that no addition can be made as the share capital has not emanated from the coffers of the assessee company, as there was no income to the assessee company before it came in to existence. That the amount received before the beginning of the previous year cannot be brought to tax. The above submission of the A/R is without any merit, because the share application moneys were received by during the previous year relevant to AY 2003-04. Further, sufficiency of reasons for forming the belief is not a requirement. Hon'ble Supreme Court in the ca ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... appeal. The ld. Counsel for the assessee submitted that the AO alleged in the reasons recorded that the persons from whom the amount was received were entry operator who provided the entry to the assessee after receiving the amount in cash. It was contended that the AO did not apply his own mind and acted on the information of other persons and it was not brought on record, that the persons from whom loans were received were the entry operator and no report of the investigation was confronted to the assessee, therefore, the assessment reopened under presumption by the A.O. was not tenable. The reliance was placed on the order dated 8.10.2015 of the Hon ble Jurisdictional High Court in ITA no. 545/2015 in the case of Principal Commissioner of Income-tax vs. G G Pharma India Ltd. copy of the said order was furnished which is placed on the record. The reliance was also placed on the following case laws: M/s Banke Bihari Properties Pvt. Ltd. Vs ITO, Ward-4(1), ITA No. 5128/Del/2015 order dated 22.04.2016 Dhanuka Agritech Ltd. Vs ACIT, Circle-10(1), ITA No. 1003/Del/2014 order dated 11.05.2016 Vasundra Promoters Pvt. Ltd. Vs ACIT, CC-23, ITA No. 4014/Del/2014 order da ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... lowing specific details of transaction:- Beneficiary Bank Name Beneficiary Bank Branch Value of entry taken Instrument no. by which entry taken Date on which entry taken Name of account holder of entry giving account Bank from which entry giving Branch of entry giving bank A/C entry giving account SBI Neelam Bata Road, Faridabad 150,000 382034 25-Nov-02 Vivek Aggarwal Fed eral Bank Karolbagh 1468 SBI Neelam Bata Road, Faridabad 600,000 940690 25-Feb-03 Globe Tech Solutions Pvt . Ltd. KVB Karolbagh CA 332 The assessee has rec ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e also perused various materials and report from Investigation Wing and on that basis it is evident that the assessee company has introduced its own unaccounted money in its bank account by way of above accommodation entries. The above conclusion is unhelpful in understanding whether the AO applied his mind to the materials that he talks about particularly since he did not describe what those materials were. Once the date on which the so called accommodation entries were provided is known, it would not have been difficult for the AO, if he had in fact undertaken the exercise, to make a reference to the manner in which those very entries were provided in the accounts of the Assessee, which must have been tendered along with the return, which was filed on 14th November, 2004 and was processed under Section 143(3) of the Act. Without forming a prima facie opinion, on the basis of such material, it was not possible for the AO to have simply concluded: it is evident that the assessee company has introduced its own unaccounted money in its bank by way of accommodation entries . In the considered view of the Court, in light of the law explained with sufficient clarity by the Supreme Cour ..... X X X X Extracts X X X X X X X X Extracts X X X X
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