TMI Blog2016 (5) TMI 1599X X X X Extracts X X X X X X X X Extracts X X X X ..... s made with that of cash deposit and also cash sales made during the period 02.04.2005 to 28.05.2005. Assessee has filed complete summary of cash withdrawals and cash deposit and cash sales which is co-related to the cash deposit with the bank account and/or treated as undisclosed. CIT(A) has deleted the addition based on the remand report of the AO, who admitted that these cash deposits are explained by the assessee in remand proceedings. Decided against revenue. - I.T.A No. 515/Kol/2012 & C.O. No. 43/Kol/2013 In I.T.A No.515/Kol/2012 - - - Dated:- 4-5-2016 - SHRI MAHAVIR SINGH, JM AND SHRI M. BALAGANESH, AM For the Revenue : Shri Sallong Yaden, Addl. CIT, Sr. DR For the Assessee : Shri S. K. Tulsiyan, Advocate ORDER Per Shri Mahavir Singh, JM: This appeal by revenue and Cross Objections by assessee are arising out of order of CIT(A)-I, Kolkata vide Appeal No. 374/CIT(A)-I/Wd-3(4)/08-09 dated 09.01.2012. Assessment was framed by ITO, Wd-3(4), Kolkata u/s. 143(3) of the Income Tax Act, 1961 (hereinafter referred to as the Act ) for Assessment Year 2006-07 vide his order dated 26.12.2008. 2. The two inter-connected issues in this appeal of revenue i ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... sessee has now submitted the copy of Form No.-2 as was filed to the ROC which is verified by this office from the ROC website (MCA21) as well. Further, the Inspector attached to this office have been directed to make certain physical enquiries at the addresses of the relevant share applicants to find their existences, nature of business activities, etc. The learned authorized representative was requested to clarify with reference to the document filed earlier and Form no. 2 and annual return filed now. As said, physical verification is made by the inspector attached to this office for the following companies to find out their existence, activities mode of payments made to assessee etc., as far as possible. 1. Shivpujan Commodities Pvt. Ltd, 2. Vishnupriya Properties Pvt. Ltd. 3. Jai Matadi Advisory Pvt. Ltd. 4. Reward Sales Promotion Pvt. Ltd. 5. Gunjan Agency Pvt. Ltd. 6. Angels India Pvt. Ltd. 7. Neminath Vyapaar Pvt Ltd. 8. Medhavi Goods Pvt. Ltd. 9. Dherar Textile Pvt. Ltd. 10. JPS Enterprises Pvt. Ltd. The inspector made enquiries from time to time and submitted his report of his finding which is satisfactory, as apparent, nothing adverse re ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Capital of Rs.63,40,000/- and Share Premium of Rs.96,00,000/- (minus Rs.10,00,000/- as the A.O. has received the reply). The addition was made as the notices u/s 133(6) could not be served on the shareholders and thus the A.O. could not verified the physical existence, genuineness of the transactions as well as creditworthiness of the share applicants. During the appellate proceedings, the appellant has furnished the detailed submissions, copy of which was given to A.O also. A remand report was called for from the A.O. The A.O. has submitted the remand report. The relevant portion of the remand report dt.04.01.2012 as under: ''Finally, as verified now from the online submission of the Form No-2 and the corresponding entries in Assessee's bank A/C in support of the share application money received from all 16(sixteen) concerns, appears to be correct, as far as the share application money claimed to have been received. Thus the A.O. has examined the share application money received from all concerned and submitted that it is correct. In view of the factual report submitted by the A.O. and in view of the detailed submissions made by the appellant, the appellant g ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... on different dates. For this, assessee filed bank statement in its paper book. The assessee also filed a statement of deposit of cash and bank and source of deposits and withdrawals. When these documents were remanded back to the AO, he filed his remand report, which is reproduced in para 6.3 of the order of CIT(A), which reads as under: It is now that the AR on behalf of the assessee clarified the issue with certain documented evidence and marking the transactions. A statement of the concerned Bank A/C of the assessee, No. (CA-5865) held with Federal Bank Ltd., R N Mukherjee Road Branch, Kolkata, however, already furnished but was not cross checked due to a fact that the corresponding ledger of cash sale was not made available to this office by the Ld. AR, in course of the assessment proceedings, as it appears. However, it is now that the assessee has furnished the copy of the ledger A/C concerned in support of the cash sales to different retail customers for a total amount of Rs.24,22,505/- in the year vide the last such cash memo No.-CM/135/05-06 dt. 28.05.2005. Cash memos are also furnished and produced. It is noted that the cash sale were made during the period from 02 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... hus, the A.O. has stated that here is no dispute of the amount total of Rs.63,84,400/- as the date of deposit of cash withdrawal from the bank and date of cash sale do support the source. Thus, the A.O. is directed to delete the amount of Rs.75,05,400/- in view of the factual remand report dt.04.01.2012. 7. In view of the above, we find that the assessee has co-related the withdrawals made with that of cash deposit and also cash sales made during the period 02.04.2005 to 28.05.2005. The assessee has filed complete summary of cash withdrawals and cash deposit and cash sales which is co-related to the cash deposit with the bank account and/or treated as undisclosed. We find that the CIT(A) has deleted the addition based on the remand report of the AO, who admitted that these cash deposits are explained by the assessee in remand proceedings. In view of the above facts and circumstances, we confirm the order of CIT(A) and this issue of revenue s appeal is dismissed. 8. Cross Objection of assessee is dismissed as withdrawn. 9. In the result, both the appeal of revenue and cross objection of assessee is dismissed. Order is pronounced in the open court on 04.05.2016 - - T ..... X X X X Extracts X X X X X X X X Extracts X X X X
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