TMI Blog2017 (6) TMI 130X X X X Extracts X X X X X X X X Extracts X X X X ..... t investor will park his funds at such a high premium without the expected return commensurate with the investment. When all the facts and circumstances are seen in entirety, it becomes evident that the assertion of Shri Surender Kumar Jain group (entry operator) about providing accommodation entries to the assessee was correct as the assessee could not prove the genuineness of transactions. CIT(A) was justified in sustaining the addition. - Decided against assessee. - ITA No.4955/Del/2016 - - - Dated:- 31-5-2017 - SHRI R.S. SYAL, VICE-PRESIDENT For The Appellant : Shri Rajiv Sachdeva, CA For The Respondent : Ms Bedobani, DR ORDER This appeal by the assessee is directed against the order passed by the CIT(A) on 08.07. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... per share against the face value of ₹ 10/- from the following five companies:- i) Euro-Asia Mercantile Pvt. Ltd. ii) Mega Top Promoters Pvt. Ltd., iii) Shalini Holding Ltd., iv) Apporva Leasing Finance Investment Pvt. Ltd. v) Ad-fin Capital Services India Pvt. Ltd. 5. Shri Surender Kumar Jain group (entry operator), who was subjected to search/survey admitted to have issued accommodation entries to various beneficiaries including the assessee. The assessee, on the other hand, claimed genuineness of the transactions on the basis of documents including the identity of the companies, their permanent account numbers and dates of incorporations etc. 6. Section 68 provides that where any sum is found credited in the bo ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... credit worthiness of share applicants and genuineness of transactions. Similar view has been taken by the Hon'ble jurisdictional High Court in CIT vs. Ultra Modern Exports Pvt. Ltd. (2013) 40 taxmann.com 458 (Del). In this case also, the Assessing Officer noticed that the assessee received share application money from nine applicants. Upon enquiry, five out of nine notices issued to share applicants u/s 133 (6) were returned unserved. Further material indicated that applicants had very meager income. The Assessing Officer invoked section 68 and made addition. The Tribunal, relying on documentary evidence such as PAN, particulars of addresses, accounts and bank statements of share applicants, etc., came to hold that credit worthiness o ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the Assessing Officer has not conducted proper enquiry, the addition cannot be deleted simply on the ground that the Assessing Officer failed to conduct enquiry. In such circumstances, a duty has been cast upon the appellate authorities to consider the evidence as to whether the addition was rightly called for or not. The Hon'ble jurisdictional High Court in a recent decision in Paramount Intercontinental Pvt. Ltd. vs. ITO (2017) 392 ITR 505 (Del) dealt with almost similar facts in which all details such as prices, confirmation letters, PAN and bank details, etc. were produced, but, the addition made on the basis of information received from the Investigation Wing of the Department that the assessee was a beneficiary of accommodation en ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... come and profit on sale of investment. The value of assets as on 31.03.2008 is ₹ 1,248,730,000/-. Clearly the value of the assets is hugely disproportionate to the return income of the company, which clearly indicates that the company is only functioning for purposes of provided entries. iv) Apporva Leasing Finance Investment Pvt. Ltd. On going through the Income Tax Return for A.Y. 2008-09, the total income has been returned at NIL. As per the profit and loss account, the income shown is from Income from operation amounting to ₹ 1,32,150/-. The loss for the year has been shown at ₹ 2,23,666/-. The value in the Balance Sheet has been shown at ₹ 148,625,000/-. These financial statistics clearly indicate ..... X X X X Extracts X X X X X X X X Extracts X X X X
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