TMI Blog2019 (11) TMI 867X X X X Extracts X X X X X X X X Extracts X X X X ..... :- 15-11-2019 - Shri P.M. Jagtap, Vice-President And Shri Satbeer Singh Godara, Judicial Member For the Appellant : Shri Somnath Ghosh, Advocate For the Respondent : Shri A.K. Nayak, CIT (D.R.) ORDER PER SHRI P.M. JAGTAP, VICE-PRESIDENT:- These two appeals filed by the assessee are directed against two separate orders passed by the ld. Commissioner of Income Tax (Appeals) 21, Kolkata, both dated 27.07.2018 for assessment years 2010-11 2011 12 and since the issues involved therein are common, the same have been heard together and are being disposed of by a single consolidated order for the sake of convenience. 2. The solitary common issue involved in both these appeals relates to the addition made by the Assessing Officer and confirmed by the ld. CIT(Appeals) on account of share application money received by the assessee during the years under consideration by treating the same as unexplained cash credit under section 68 of the Income Tax Act, 1961. 2. The assessee in the present case is a Company, which belongs to Bhalotia Group. A search and seizure action un ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... acia, may appear genuine. But one should have to understand the motive behind such transactions. (ii) The assessee company had no business or income generation activity in the year under consideration as well as the preceding years. (iii) No answer has been given by the assessee to the question why the subscribers have paid money for the equities of a closely held company that had little income generation activity and that too at a premium of up to ₹ 90/- per share. (iv) The share subscribers have also failed to reply why they had invested in the equities of the assessee company at a high premium of up to ₹ 90/- per share. (v) No prudent person would put his money at stake in the equities of a closely held company which had little business activity and from which he would get no return. (vi) In such cases, the agreement about real transactions takes place in secret and direct evidence about such direct transaction/agreement would not be available to the department in normal circumstances. (vii) The result of these transactions are designed in a way that unac ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s. Toplake Commercial Pvt. Ltd. and M/s. Yash Commosales Pvt. Ltd. have been identified us shell companies by the Investigation Wing of the Department . For the reasons given above, the Assessing Officer held that the share application money of ₹ 1,55,00,000/- and ₹ 1,00,00,000/- received during the years under consideration was not satisfactorily explained by the assessee in terms of section 68 and additions to that extent were made by him to the total income of the assessee by treating the share application money as unexplained cash credit in the assessments completed under section 153A/143(3) of the Act vide an order dated 27.12.2017. 3. Against the orders passed by the Assessing Officer under section 153A/143(3), appeals were filed by the assessee before the ld. CIT(Appeals) and since the submissions made by the assessee in support of its case that the additions made by the Assessing Officer under section 68 were not sustainable, were not found acceptable by the ld. CIT(Appeals), he proceeded to confirm the additions made by the assessing Officer under section 68, inter alia, for the following identical reasons given in his impugne ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... IT(SS)A No. 91/KOL/2018, the Coordinate Bench of this Tribunal deleted the similar addition made by the Assessing Officer and confirmed by the ld. CIT(Appeals) by treating the share application money as unexplained cash credit under section 68 after discussing and deliberating upon the arguments raised by both the sides and the relevant case laws cited in support in paragraphs no. 5 to 7 of its order, which are extracted below:- 5. The ld. D.R., on the other hand, contended that the Bank accounts found during the course of search revealed the share application money received by the assessee during the year under consideration and since the impugned addition by treating the share application money as unexplained cash credit under section 68 was made by the Assessing Officer on the basis of the said Bank accounts found during the course of search, the same is very much within the scope of assessment made under section 153A. He contended that the assessee could not establish the identity and capacity of the concerned applicants as well as also failed to establish the genuineness of the relevant transactions inspite of sufficient opportunity afforded by the Assessing ..... X X X X Extracts X X X X X X X X Extracts X X X X
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