TMI Blog2018 (2) TMI 1207X X X X Extracts X X X X X X X X Extracts X X X X ..... sent these details to Kolkata for examination as the share applicants are based in Kolkata. Now, examining such persons in Kolkata at the back of the assessee would be a clear violation of the principles of the natural justice. In these circumstances, keeping in mind the principles of natural justice, the issues in this appeal are restored to the file of the AO for re-adjudication. - Appeal filed by the assessee is partly allowed for statistical purposes. - ITA No.2601/Chny/2017 - - - Dated:- 12-2-2018 - SHRI GEORGE MATHAN, JUDICIAL MEMBER AND SHRI S. JAYARAMAN, ACCOUNTANT MEMBER For The Appellant : Mr.T.Pramodkumar Chopda, Adv. For The Respondent : Mr. S. Nataraja, JCIT ORDER PER GEORGE MATHAN, JUDICIAL MEMBER: ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Kolkata, who had reported that M/s.NextGen Health Solution Pvt. Ltd., and M/s.LemonGrass Investment Consultants Pvt. Ltd., had not responded to the notices issued u/s.131(1) and the notices could not be served on M/s.Parasmani Planning and Development Pvt. Ltd., as the address was wrong. It was a submission that the assessee had produced the IT Returns filed by the companies and their bank statements were furnished to establish the identity and genuineness of the transactions. It was a submission that the shares had been issued to the Pvt. Ltd. companies, the shares subscribed through cross-cheques with valid Share Application Form, Memorandum Association and Board Resolutions. It was a submission that as the first two companies had not re ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Alloys Ltd., were prior to the amendment being the insertion of the first proviso to Sec.68 by the Finance Act, 2012. It was a further submission that though the assessee has given the evidences in the form of copies of the IT Returns filed and their bank statements, when the same was sent for verification, the companies did not respond and the third company was also not found at the address specified. It was a submission that the Inspector from the Office of the DDIT (Investigation), Unit 2(1), Kolkata, had also attempted to serve the notices personally in the case of M/s.Parasmani Planning and Development Pvt. Ltd., but the said company did not exist at the address given by the assessee. It was also a submission that the said three compa ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Interestingly, the share applicant companies having such huge fund availability does not have a proper letter head. Each letter head is different from the earlier one. The fresh evidences, more so, the additional evidence representing the downloaded details from the ROC Website shows that in none of the cases the PAN of the Directors are available and only the DIN is available. A perusal of the balance sheet in the three companies shows that they have no business transactions specifically and they have no fixed assets. However, the shareholder s funds are substantial along with the reserve surplus representing nearly 10 times the face value of their share capital. The financial statement as filed with the ROC also does not show any share a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... opportunity to rebut the same. The assessee shall co-operate in the set aside proceedings and produce the Directors of the share applicants companies for examination along with all such evidences as required to prove the genuineness. This view of ours, find support from the decision of the principles laid down by the Co-ordinate Bench of this Tribunal in the case of M/s.Bisakha Sales (P) Ltd. reported in [2015] 152 ITD 750 (Kolkata-Trib.). The assessee is granted all liberty to produce such evidences as required to prove the claim of the share application money received. The decision relied upon by the Ld.AR in the case of M/s.Lalitha Jewellery Mart Pvt. Ltd., as also the decision in the case of M/s.Kamdhenu Steel and Alloys Ltd., referred ..... X X X X Extracts X X X X X X X X Extracts X X X X
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