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2019 (4) TMI 283

of section 147 as against 153(C) - HELD THAT:- AO in the instant case, after obtaining the report of the investigation wing has applied his mind and taken one approval of the higher authorities. He has also disposed of the objections. Since, the rereopening was based on specific information. No notice u/s 153C is also required. The various arguments advanced by the Ld. Counsel for the assessee in the instant case are without any merit and therefore, the legal ground raised by the assessee challenging the validity of the reassessment proceedings is dismissed. - So far as the merit of the case is concerned find from the copy of the Assessment Order framed u/s 153C/153A in the case of M/s. VIP Leasing & Finance Private Limited, that the assessment in that case has been completed u/s. 153C and 153A. The address of the assessee has been given at 209, 2nd Floor, Sunder Kiran Building, WEA, Karol Bagh, New Delhi with PAN No. AAACV0475F. The audited accounts and the paper book in the case of M/s. VIP Leasing & Finance Private Limited disclosed the name of the assessee in the schedule of investment at Sr. No. 132 according to which an amount of ₹ 30 lacs has been invested in share .....

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147 of the IT Act , 1961 by recording reasons and after obtaining sanction of the competent authority u/s 151 of the IT Act. The notice u/s 148 of the Act was issued on 11.03.2016. The assessee vide letter dated 11.04.2016 submitted that the return already filed be treated as return in response to notice u/s. 148. d 3. The Assessing Officer during the course of assessment proceedings observed that the assessee has received an amount of ₹ 30 lacs from M/s. VIP Leasing & Finance Pvt. Ltd. He deputed his Inspector to serve summon u/s 131 of the IT Act dated 12.12.2016 to the directors of the company at the addresses available on record. The Inspector reported that the addresses given by the company was fake and no such company actually exists and it is just a paper company involved in providing accommodation entry. The Assessing Officer observed from the balancesheet of the assessee that it has received share application money of ₹ 2,25,000/- in the previous year i.e. year ending 31.03.2008 and in the current year i.e. 31.03.2009 it has received ₹ 30 lacs as share application money. The assessee has not filed any P & L Account for the financial year 2008-09. .....

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dings. He further upheld the addition made by the Assessing Officer u/s 68 of the IT Act on merit. 7. Aggrieved with such order of the CIT(A), the assessee is in appeal before the Tribunal by raising following grounds of appeal:- 1. That the Ld. CIT(A) erred in law and on facts in holding that the initiation of reassessment proceedings u/s 147/148 of the IT Act by the A. O. was valid in the facts and circumstances of the case. 2. That the Ld. CIT(A) erred in law and on facts in holding that the assessee failed to fulfil the requirements of section 68 of the Act as per settled law in the facts and circumstances of the case. 3. That the Ld. CIT(A) erred in law and on facts in confirming the addition of ₹ 3000000/- to the income of the assessee made by the A.O. u/s 68 of the Act in the facts and circumstances of the case. 4. The appellant craves leave to amend or alter all or any of the aforesaid grounds of appeal and add any other ground of appeal . 8. The Ld. Counsel for the asseessee at the outset strongly challenged the order of the CIT(A) upholding the action of the Assessing Officer in reopening the assessment. He submitted that assessee filed his objections to the notice .....

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investment of ₹ 30 lacs in the shares of the assessee company. Referring to paper book pages from 108 to 126 he submitted that the said company has duly disclosed in its balancesheet regarding the investment in the assessee company and the assessment has been framed u/s 153 C by the ACIT, CC-23, New Delhi and no addition has been made. Therefore, when the investor is identifiable since assessment has been framed u/.s 153 C and 153 A of the IT Act, 1961 and said investor has duly disclosed in its balancesheet regarding investment in the assessee company alongwith so many other companies and no adverse inference has been drawn in the hands of the investor company and since the amount has been received through banking channels, therefore, addition cannot be made in the hands of the assessee u/s 68 of the IT Act. He submitted that although these documents were very much available before the lower authorities, however, these were completely ignored and addition has been made which is not justified. 11. The Ld. DR on the other hand heavily relied on the orders of the Assessing Officer and CIT(A). He submitted that information was received in the instant case from the investigation .....

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538 (SC) 20. ACIT Vs. Rajesh Jhaveri Stock Brokers (P.) Ltd. [2007] 161 Taxman 316 (SC) / [2007] 291 ITR 500 (SC)/[2007] 210 CTR 30 (SC) 21. Yuvraj Vs. Union of India [315 ITR 84] (SC) 22. Ankit Financial Services Ltd. Vs. DCIT [2017] 78 taxmann.com 58 (Gujarat). 13. I have considered the rival arguments made by both the sides and perused the orders of the authorities below. I have also considered the various decisions cited before me. I find the case of the assesssee was reopened on the basis of the report of the investigation wing that the name of the assessee appears in the list of beneficiaries who have obtained accommodation entries from companies controlled by Sh. S. K. Jain group of cases who are basically engaged in providing accommodation entries for commission. Since the assessee according to the assessing officer could not satisfy him regarding the identity and credit worthiness of the share applicant and genuine of the transactions, the Assessing Officer made addition of ₹ 30 lacs to the total income of the assessee company being the amount received for share application money by the assessee company from M/s. VIP Leasing & Finance Private Limited. I find the .....

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