TMI Blog2021 (7) TMI 56X X X X Extracts X X X X X X X X Extracts X X X X ..... order in deleting addition. Remaining eleven persons i.e. individuals and corporate entities - we find the AO basically made the addition on the ground that in absence of reply to notice u/s 133(6) of the Act, he could not verify the information/documents filed by the assessee in respect of amount received on account of share capital - as per assessee that all those details were available with the assessee on 31st March, 2015 and the Authorized Representatives of the assessee went to the AO for filing of the same but the AO refused to accept for which those documents were sent by speed post on 31st March, 2015 itself. Although the learned CIT(A) has given a finding that all these concerns are promoters of the assessee company and have sufficient funds available with them and are regular taxpayers, however, due to non receipt of the information u/s 133(6) of the Act, the AO could not verify these details. We deem it proper to restore the issue relating to the remaining 11 parties to the file of the AO with a direction to conduct such enquiries as he deems fit pursuant to the notice u/s 133(6)The grounds raised by the Revenue are partly allowed for statistical purposes. - IT ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... M. L. Singhi Associates Pvt. Ltd. 4,04,25,000 Total 10,38,25,000 4. Vide letter dated 11.11.2014, he asked the assessee to furnish the details of share capital, share premium and share application money along with confirmations and evidences for addition made to the share capital, share premium and share application money with copies of relevant bank accounts. Vide letter dated 30.03.2015, the assessee filed required details. For making independent enquiries, the AO issued notices u/s 133(6) of the Act in the forms of letters to the above mentioned parties. The notices issued u/s 133(6) of the Act dated 17.03.2015 fixing the compliances on 23.03.2015 were received undelivered with the remarks of Postal Authority Not Known in case of the following parties:- 1. M/s Barak Agro Pvt. Ltd. 2. M/s Barak Ispat Pvt. Ltd. 3. M/s Golden Plantations Pvt. Ltd. 4. M/s Shivam Entrade (India) Pvt. Ltd. 5. No reply of notice issued u/s 133(6) of the Act of the remaining parties were received on the stipulated date on or before 23.03.2015. Even till i.e. 31.03.2015, no re ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d found that the claim of the assessee is correct. He observed from the record that details of investment as on 31st March 2012, are available at page-45 of the assessment record, wherein, the investment by M/s M.L. Singhi Associates Private Limited was clearly recorded at ₹ 4,00,20,750/-. He therefore accepted the investment of ₹ 4,04,25,000/- by M/s M.L Singhi Associates P. Ltd. in the shares of the assessee company as explained and directed the AO to delete the same. 9. So far as other investors are concerned, the learned CIT(A) observed that all those investors had sufficient funds available with them. They are basically the promoters of the assessee company as individuals. He gave a finding that the funds available with each investor are again received from entities from the same group being firm/corporate. All these investors are taxpaying entities and have been filing income tax returns on regular basis and funds available with them have been independently assessed as such. He did not find any dubious transaction in the hands of the investors company. Accordingly, he deleted the addition made by the AO in respect of other companies also. 10. Ag ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ven before the AO of M/s M.L. Singhi Associates Private Limited for which he had accepted the same in the order passed u/s 143(3) of the Act and who incidentally is the AO of the assessee also, therefore, the learned CIT(A) was fully justified in deleting the amount of ₹ 4,04,25,000/-. 13. So far as the other concerns are concerned, he submitted that all these individuals and private companies are promoters of the assessee company as individuals. Every company is having huge share capital/reserves and are income tax payee and have filed tax return on regular basis and the funds available with them have been independently assessed as such. Therefore, the learned CIT(A) was fully justified in deleting the addition made by the AO. 14. So far as the non receipt of reply of notice u/s 133(6) of the Act is concerned, he submitted that due to very little time given by the AO i.e. from the date of the issue and till the date of compliance being very little and the investor companies are located at Guwahati, the information could not reach the AO within the stipulated time. However, it is a matter of fact that all the concerns have replied to such notice u/s 133(6) of the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... concerns M/s M.L. Singhi Associates Private Limited was assessed by the same AO who has passed order u/s 143(3) of the Act accepting the investment made by the M/s M.L. Singhi Associates Private Limited in the shares of the assessee company. So far as the other persons are concerned, the learned CIT(A) has deleted the addition on the ground that these are basically promoters of the assessee company and they have sufficient funds available with them for investment in shares of the assessee company. Further, all these investors are taxpaying entities and are filing return on regular basis. 18. From the various details furnished by the assessee, we find the learned CIT(A) called for the assessment rcord from M/s M.L. Singhi Associates Private Limited for AY 2012-13 and found that the AO has completed the assessment u/s 143(3) of the Act for AY 2012-13. From the said assessment record he also found that detailed questionnaire was issued by the AO, who examined the source of funds available with the same entity for investment in shares of the assessee company and after being satisfied accepted the claim of the assessee company. It is the settled proposition of law that powers ..... 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