TMI Blog2017 (9) TMI 839X X X X Extracts X X X X X X X X Extracts X X X X ..... against the assessee. - TAX APPEAL NO. 650 of 2017 With TAX APPEAL NO. 651 of 2017 - - - Dated:- 12-9-2017 - MR. AKIL KURESHI AND MR. BIREN VAISHNAV, JJ. For The Appellant : MR VIJAY S RANJAN, ADVOCATE ORAL ORDER ( PER : HONOURABLE MR.JUSTICE AKIL KURESHI) 1. The original order of assessment passed by the Assessing Officer dated 23.3.1999 is taken on record. 2. These appeals involve similar questions in similar background involving the same assessee. We may notice facts from Tax Appeal No.650/2017. 3. The appeal is filed by Gopal Iron and Steel Co. Ltd., the assessee, to challenge the judgment of ITAT dated 7.3.2017 raising the following question for our consideration : Whether on the facts and in the circumstances of the case, the Tribunal was right in law in restoring the order of the Assessing Officer and confirming the addition under section 69 of the Incometax Act, 1961? 4. The appeal concerns the assessment year 1996-1997. The assessee company had filed return of income declaring a loss of ₹ 9,919/. The return was taken in scrutiny by the Assessing Officer who passed the order of assessment determining the total income of the asses ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... . Patel 689704 5.5.95 25000 At Kherva, Tal. Patadi, 04 Jivanbhai L. Patel 689705 5.5.95 25000 At Kherva, Tal. Patadi, 05 Hargovindbhai C. Patel 689706 5.5.95 25000 At Kherva, Tal. Patadi 06 Baldevbhai P. Patel 689707 5.5.95 25000 At Kherva, Tal. Patadi, 07 Chamanlal V. Patel 689708 5.5.95 25000 At Kherva, Tal. Patadi, 08 Ramanbhai V. Patel 689709 5.5.95 25000 At Nana Ankevaliya, 09 Jasamatbhai N. Patel 689710 5.5.95 25000 At Nana Ankevaliya, 10 Madhavji J Patel 689711 5.5.95 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... jibhai A. Patel 689770 28.6.95 25000 At Kherva, Tal. Patadi, 26 Manshukh A Patel 689771 28.6.95 25000 At Nana Ankevaliya,SNR 27 Mahadevbhai M. Patel 689772 2 8.6.95 25000 At Nana Ankevaliya,SNR 28 Popatbhai M. Patel 689773 28.6.95 25000 At Nana Ankevaliya,SNR 29 Ghanpatbhai Patel 689774 28.6.95 25000 At Nana Ankevaliya,SNR 30 Prahladbhai M. Patel 689775 28.6.95 25000 At Nana Ankevaliya,SNR 31 Baldevbhai G. Patel 689776 28.6.95 25000 At Nana Ankevaliya,SNR 32 Hargovindbhai C. Patel 689777 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 03 Gangarambhai K Patel 242756 12.12.95 40000 At Talodgam TA Pratij Dist.SK 04 Ravjibhai N Patel 242757 12.12.95 45000 At. Vakrapur TA Pratij Dist SK 05 Dashrath N Raval 452984 20.10.95 17000 rf. Sr. 11 06 Ramasingh Magansingh Rathod 452985 20.10.95 15000 rf. Sr. 11 07 Dashrath N Raval 452986 20.10.95 8000 rf. Sr. 11 08 Dilipsingh J Makwana 452987 20.10.95 15000 At Talodgam TA Pratij Dist.SK 09 Arunkumar R Patel 452988 20.10.95 17000 rf.Sr. 11 10 Ramansingh Magansingh Rathod 4 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... applicant where as writing in the applications is of one person. iii) 12 application slips are signed by the applicants who have applied for the shares, but the signature of the applicant in the bank slip defers with the signature in the application form. However, out of 12, 8 slips are signed by one person named Rameshbhai. Photocopies of these 12 share application forms and bank slipls for DD are enclosed annexed to the order. iv) In all the 32 applications, break up of cash is not given which indicates that one person has handed over total amount to the banker for taking drafts in different names. v) All the demand drafts are issued by Wadhwan city Bracnh of SNR Dist Co. Op Bank Ltd whereas the applicants are living in different places like Kherwa, Patdi, Nana Ankleshwar, Dhudhapura, Hirapur, Wadhwan city, etc. and all have approached to the same bank on a specific date at the same time to get demand drafts in favour of assessee company for share application. This facts can also be viewed from the demand drafts serielly issued. Considering the above facts, modus operandi of the assessee company, share capital of ₹ 10735900 is divided into following three parts ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rrect. Subject to the above discussion, the unexplained credit in the form of share capital of ₹ 4692900 (1682900 + 3010000) are held as income chargeable to tax in the hands of the assessee company u/s. 68 of the IT Act during the year under consideration. 6. Matter then travelled before the CIT (Appeals) and thereafter, before the Tribunal. The Tribunal by the impugned order confirmed the view of the Assessing Officer. 7. From the above discussion, it can be seen that the entire issue is based on appreciation of evidence and material on record. The Assessing Officer having given detailed reasons which were confirmed by the Tribunal, we do not see any question of law arising. The Assessing Officer noticed that payment of identical amount of ₹ 25,000/was made to as many as 32 parties through demand drafts issued by the same bank i.e. the Gujarat State Co.Op Bank Ltd., Ahmedabad. In majority of such share applicants, the demand drafts were issued on 5.5.1995 with demand draft numbers which were sequential and in continuous order. He also noted that such demand drafts were obtained by payment of cash. 20 of such demand drafts were not signed by the applicant. Th ..... X X X X Extracts X X X X X X X X Extracts X X X X
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