TMI Blog2018 (10) TMI 1497X X X X Extracts X X X X X X X X Extracts X X X X ..... ted:- 24-9-2018 - SHRI VIJAY PAL RAO, JM AND SHRI VIKRAM SINGH YADAV, AM Revenue by : Shri A.K. Rawat (JCIT) Assessee by : Shri Manish Agarwal (CA) ORDER PER VIJAY PAL RAO, JM : These two cross appeals are directed against the order dated 18th November, 2016 of ld. CIT (A)-5, Jaipur for the assessment year 2012-13. The assessee is a private limited company and engaged in the business of real estate development and share trading during the year under consideration. The assessee filed the return of income electronically on 30th September, 2012 declaring loss of ₹ 83,670/-. The case of the assessee was taken up for scrutiny and during the scrutiny assessment the AO noted that the assessee has issued shares at a premium of ₹ 390/- per share of ₹ 10/- each to three parties as under :- S.No. Name address of the shareholder No. of share Rate of share allotted at premium Total amount 01. M/s. Diamention Mercantiles Pvt. Ltd., 85,Netaji Subhas Road, Dal house, Kolkata- 700001. 6250 390/- ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ppeals are as under :- ITA No. 91/JP/2017 (REVENUE) : (i) On the facts and in the circumstances of the case, the CIT (A) has erred in deleting the addition u/s 68 of ₹ 39,00,000/- without the assessee proving the creditworthiness of share subscribers and genuineness of the transactions. (ii) The appellant craves leave to add, alter, amend, withdraw or insert any ground or grounds of appeal before or at the time of hearing of the appeal. ITA No. 99/JP/2017 (ASSESSEE) : 1) That on the facts and in the circumstances of the case and in law, the ld. CIT (A) has erred in law in confirming the addition of ₹ 10,00,000.00 made by ld. AO on account of receipt of share application money from N R Vincom Pvt Ltd merely on the ground that Notice sent to share applicant company was returned unserved. 2) That on the facts and in the circumstances of the case and in law, the ld. CIT (A) was not justified in confirming the addition of ₹ 10,00,000.00 made by ld. AO on account of receipt of share application money from N R Vincom Pvt. Ltd. when the Appellant had discharged the onus cast by law on it by proving identity of share applicant company, their creditw ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... (A) in respect of the share application money of ₹ 10,00,000/- received from M/s. N.R. Vincom Pvt. Ltd. The ld. A/R of the assessee has submitted that though the AO made the addition in respect of the share application money received from M/s. N.R. Vincom Pvt. Ltd. only to the extent of ₹ 9,75,000/- being the premium component, however, the ld. CIT (A) has enhanced the said addition by making a disallowance of entire amount of ₹ 10,00,000/-. He has further submitted that the only ground of sustaining the addition by the ld. CIT (A) is that the notice issued by the AO under section 133(6) was returned back unserved as the party was not available at the address whereas the said notice was issued by the AO at the incorrect address. The ld. A/R has submitted that the AO issued the notice under section 133(6) to M/s. N.R. Vincom Pvt. Ltd., O-8, Ganesh Chandra Avenue, 1st Floor, Chandani Chowk, Kolkata-700013 whereas the correct address of the said party is : O-8, Ganesh Chandra Avenue, 1st Floor, Saha Court, Kolkata-700013. The ld. A/R has also referred to the assessee s letter dated 12.03.2015 at page 66 of the Paper Book and submitted that the assessee had duly brou ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of M/s. N.R. Vincom Pvt. Ltd. is mentioned in the said table of the assessment order reproduced in the foregoing part of this order, the said address has been stated to be not a correct address. The assessee vide letter dated 12th March, 2015 has furnished the correct address of the said company as under :- M/s. N.R. Vincom Pvt. Ltd., 08, Ganesh Chandra Avenue, 1st Floor, Saha Court, Kolkatta-700013. We further note that the address which is furnished by the assessee vide letter dated 12th March, 2015 was also available in the other records filed by the assessee during the assessment proceedings which includes the copy of Board Resolution of the assessee, copy of application form and the certificate of Incorporation of said company M/s. N.R. Vincom Pvt. Ltd. Though the AO has noted this address based on the particulars furnished by the assessee, however, when the assessee has subsequently provided the correct address of the said company then the notice was required to be issued at the correct address to verify the genuineness of the transaction as well as the creditworthiness of the share applicant. The ld. CIT (A) has confirmed the addition made by the AO in para 3 ..... X X X X Extracts X X X X X X X X Extracts X X X X
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