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TMI Blog2017 (8) TMI 1659X X X X Extracts X X X X X X X X Extracts X X X X ..... 007-08 and 2008-09, whereby the Department has challenged the only common ground in both the appeals that the ld. CIT(A) has erred in deleting the addition made under section 68 of the Income Tax Act, 1961 ["Act" in short] by rejecting the assessment made under section 153A/153C of the Act. 2. Brief facts of the case are that the assessee is engaged in the business of trading in iron & steel products and minerals. Original assessments for both the above assessment years were completed accepting the returned income. A search and seizure operations under section 132 of the Act at the business premises of the assessee company's group was conducted on 18.12.2012. Subsequently, notices under section 153C of the Act were issued on 06.02.2015 and ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... uld be set aside and directed to adjudicate the issue on merits for both the assessment years. 5. Per contra, the ld. Counsel for the assessee strongly supported the order passed by the ld. CIT(A). 6. We have heard both the sides, perused the materials available on record and gone through the orders of authorities below. The original assessments for both the above assessment years were completed accepting the returned income. A search and seizure operations under section 132 of the Act at the business premises of the assessee company's group was conducted on 18.12.2012. Subsequently, notices under section 153C of the Act were issued on 06.02.2015. Further information from the Investigation Wing of the Income Tax Department, Mumbai has bee ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... admission of Shri Pravin Jain made in his statement was reproduced in the assessment order under para 6.5. Subsequently, Shri Pravin Jain and his associates retracted the statement made under section 132(4) of the Act, which were not found acceptable by the Assessing Officer and his observations are reproduced as under: When all the affidavits are read together, several contradictions emerge, which go to establish that it is a planned move made by the assessee to thwart the process of investigation in the case of beneficiaries of his accommodation entries: a) All the stamp papers which have been used to file the affidavits are brought from the same vendor and on a specific date i.e., 25.04.2014. b) All affidavits have been notarized by ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... The Assessing Officer asked the assessee to furnish details of allotment of shares, present holding of the shares, and the benefit if any extended by the assessee to the above shares holders towards their investments. However, the assessee could not file any details before the Assessing Officer. In view of the above, the Assessing Officer has observed that no prudent businessmen will invest such huge money without any benefit. The various companies mentioned in para 6.1 of the assessment order has invested and they still holding the shares of the company without any benefit for 8 years. The companies do not seems to be so cash rich. The creditworthiness of the companies has not been proved. The action of investing without any benefit was a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ential findings in the case of the Shri Praveen Kumar Jain was no way related to the case of the assessee and the assessee has no transaction whatsoever with the said Shri Praveen Jain. If so, what prevented the assessee to furnish the details of allotment of shares, present holding of the shares and the benefit, if any, extended by the assessee to the above shares holders towards their investment, before the Assessing Officer, when the same were specifically called for. Upon notice under section 133(6) of the Act issued to the eight companies, on the basis of replies, records available and data available in public domain, the Assessing Officer has observed that all the companies involved are basically investment companies existing only in ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ITR 169 has expressed disapproval on retraction of a statement after a considerable time lag. In the case on hand, the retraction has been made after 7-8 months by way of mostly common affidavits containing various factual inaccuracies furnished by the associates working under the control of Shri Praveen Kumar Jain and the statements have been signed by them without correlating the contents with the facts of their own cases. 6.4 Moreover, since the assessee could not proved the genuineness, creditworthiness and identity of the companies, as these companies might have been existing on papers or in real sense at the time of registration, but were specifically found to be non-existence, we are of the considered opinion that the Assessing Offi ..... X X X X Extracts X X X X X X X X Extracts X X X X
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