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M/s. Oswal Pumps Pvt. Ltd. Versus ITO, Ward 13 (4) , New Delhi

2015 (3) TMI 1209 - ITAT DELHI

Reopening of the assessment - Held that:- The notice u/s 148 issued on 25.03.2011 was duly served on the assessee well within the limitation prescribed by the Act. The assessee has responded to the notice and submitted that return filed earlier should be treated as the return filed u/s 147 and the copy of the said return was also enclosed. The assessee has sought copy of reasons recorded u/s 147. The assessee company was provided reasons for reopening vide letter dated 28.09.2011 and these objec .....

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be any occasion to generate unaccounted funds which can be routed back to the assessee company in the form of share application money. The assessee has submitted all the relevant papers before the Assessing Officer which include share application forms, confirmations, affidavits, balance sheets, certificate issued to the Board Resolution, confirmations from the party, bank statements of the parties, Copy of ITRs, balance sheets and profit & loss account, copy of certificate of incorporation and .....

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ank account details. The money has been received through the regular bank accounts of these companies. All these companies have shown name of the assessee company in their ‘schedule’ of investment. Once adequate evidence and material given by the assessee, which would prima facie discharge the burden of the assessee in proving the identity of shareholders, genuineness of the transaction and creditworthiness of the shareholders, thereafter, in case such evidence is to be discarded or it is proved .....

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DVOCATE REVENUE BY : SHRI P. DAM KANUNJHA, SENIOR DR ORDER PER B.C. MEENA, ACCOUNTANT MEMBER : The appeal filed by the assessee emanates from the order of the CIT (Appeals)-XVI, Delhi dated 22.01.2013. 2. In this case, the original return of income was filed on 29.10.2004 declaring income of ₹ 58,120/-. A notice u/s 148 of the Income-tax Act, 1961 was issued on 25.03.2011. The assessment u/s 147/143(3) was finalized on 26.12.2011 at an income of ₹ 62,71,870/-. The action of the Asses .....

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reassessment order are bad both on facts and in law and liable to be quashed as the statutory conditions and procedure prescribed under the statute have not been complied with. 3. On the facts and circumstances of the case, the learned CIT(A) has erred both on facts and in law in rejecting the contention of the assessee that the reassessment order passed by the A.O. is bad and liable to be quashed as the same has been reopened on the basis of the reasons which are vague and has been recorded wi .....

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d both on facts & in law in confirming the addition of ₹ 62, 13,750/- on account of share capital and share application money received by the assessee. (ii) On the facts and circumstances of the case, the learned CIT(A) has erred both on facts and in law in confirming the above addition despite the assessee bringing all material and evidences on record to prove the identity, genuineness of the share applicants. 6. That the above-said additions are otherwise untenable in the eye of law, .....

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heard both the sides on the issue. The notice u/s 148 issued on 25.03.2011 was duly served on the assessee well within the limitation prescribed by the Act. The assessee has responded to the notice and submitted that return filed earlier should be treated as the return filed u/s 147 and the copy of the said return was also enclosed. The assessee has sought copy of reasons recorded u/s 147. The assessee company was provided reasons for reopening vide letter dated 28.09.2011 and these objections w .....

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challenged the addition of ₹ 62,13,750/- on account of share capital and share application money received by the assessee. 7. We have heard both the sides on the issue. The assessee has shown receipt of share application money from four entities as under :- S.No. Name Amount (Rs.) 1. Fair N Square Exports Pvt. Ltd. 20,04,000/- 2. Tashi Contractors (P) Ltd. 15,03,000/- 3. Satwant Singh Sodhi Const. (P) Ltd. 2,03,000/- 4. Rabik Exports Ltd. 25,03,750/- Total : 62,13,750/- The assessee has s .....

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ation (xi) Copy of Memorandum of Association & Articles of Association - M/s. Tashi Contractors (P) Ltd. (i) Copy of share application form (ii) Copy of affidavit (iii) Copy of certificate issued at the end of year by the party (iv) Copy of confirmation from party (v) Copy of Board Resolution (vi) Copy of bank statement (vii) Copy of acknowledgement of ITR (viii) Copy of balance sheet and P&L account (ix) Details of PAN (x) Copy of appointment of and changes among Director (xi) Copy of C .....

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(xi) Copy of Certificate of Incorporation (xii) Copy of Memorandum of Association & Articles of Association - M/s. Fair N Square Exports (P) Ltd. (i) Copy of share application form (ii) Copy of affidavit (iii) Copy of certificate issued at the end of year by the party (iv) Copy of confirmation from party (v) Copy of Board Resolution (vi) Copy of bank statement (vii) Copy of acknowledgement of ITR (viii) Copy of balance sheet and P&L account (ix) Details of PAN (x) Copy of appointment of .....

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s during the year there cannot be any occasion to generate unaccounted funds which can be routed back to the assessee company in the form of share application money. The assessee has submitted all the relevant papers before the Assessing Officer which include share application forms, confirmations, affidavits, balance sheets, certificate issued to the Board Resolution, confirmations from the party, bank statements of the parties, Copy of ITRs, balance sheets and profit & loss account, copy o .....

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e Assessing Officer s details and bank account details. The money has been received through the regular bank accounts of these companies. All these companies have shown name of the assessee company in their schedule of investment. In the case of CIT vs. Value Capital Services Pvt. Ltd. - 307 ITR 334, the Hon ble jurisdictional High Court has held as under:- In any case, what is clinching is the additional burden on the Revenue. It must show that even if the applicant does not have the means to m .....

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