TMI Blog2023 (7) TMI 499X X X X Extracts X X X X X X X X Extracts X X X X ..... the reassessment proceedings. The assessment made in the case of Smt. Hansaben Manilal Patel wherein the sale of land has been duly taxed on substantive basis. Though the said order remained unchallenged by her (Smt. Hansaben Manilal Patel allegedly a missing person) by way of appeal or revision. Whereas in the case of Shri Rameshji Thakor that the alleged substantive additions made in his hands were also deleted by Ld. CIT(A) as the source was been clearly proved by the assessee. Thus we do not find any infirmity in the order passed by the Ld. CIT(A) who has deleted the protective addition made in the hands of the assessee herein. Decided in favour of assessee. - ITA No. 63/Ahd/2020 - - - Dated:- 5-7-2023 - Shri Waseem Ahmed, Accountant Member And Shri T.R. Senthil Kumar, Judicial Member For the Assessee : Ms. Nupur Shah, A.R. For the Revenue : Shri A.P. Singh, CIT-DR ORDER PER : T.R. SENTHIL KUMAR, JUDICIAL MEMBER:- This appeal is filed by the Revenue as against the Appellate order dated 24-10-2019 passed by the Commissioner of Income Tax (Appeals), Gandhinagar arising out of the assessment order passed under section 143(3) r.w.s. 147 of the Incom ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 529606 14 11.11.2009 4,75,00,000 Hansaben Manilal Patel 525878 15 12.11.2009 5,00,00,000 Hansaben Manilal Patel 525589 Total 28,68,50,000 2.1. The assessee company was having two directors namely Shri Deep Upendra Shah and Shri Kaushal Nayak who belonged to the JP Iscon group and they were introduced as directors. But the investigation carried out by the department revealed that they were dummy directors and name-givers only. The amount of Rs. 26.68 crores received by the assessee in its bank account remained unverified, since the assessee has not filed the Return of Income u/s. 139(1) of the Act. Therefore a notice u/s. 148 dated 27-03- 2017 was issued to the assessee after recording the reasons. The assessee objected to the issuance of notice, since the company name has already struck off by the Registrar of Companies w.e.f. 21-07-2011. The above objection was overruled following the Hon ble S ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... in the case of Capaxo Logistics Pvt. Ltd. is reproduced as under- 4.7 In view of the above, as the appellant has established identity, creditworthiness and genuineness of the share application money, the addition of share application money u/s. 68 is not justified Further, the Honourable Supreme Court in the case of Commissioner of Income-tax Vs. Lovely exports Pvt. Ltd., prior to amendment to proviso to section 68 w.e.f. A.Y.2013-14 has held that any addition of share application money is to be made in the hands of share applicants and not in the case of company. In the present case, the Assessing Officers of share applicants have made addition of all bank credits including the ones out of which share application money was made in the hands of appellant company, the ground of appeal is accordingly allowed. 6.6 Similarly, in case of M/s. Ambe Tradecorp Pvt. Ltd. the CIT(A-12, Ahmedabad has held as under:- 7.8 It is noted from the paper book filed in the case of Shri Asit Surendrabhai Shah(PAN AFUPS64490) for appeals in his case that the ld. CIT(A)-5, Ahmedabad also in the appellate order dated 13.03.2018 in the case of Surendra Mangaldas Shah HUF(PAN: AACHS6590R) a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... hakor are also relevant for deciding the issue at hand in the case of the appellant. .. 6.8 As observed in the case of Shri Ramesh G. Thakor while deciding the appeal in his case, the money were originated from the four persons to the appellant in that case who ultimately transferred the money to the appellant- company as per the chart drawn in the recent submission made on 11.10.2019 showing the names of Smt. Hansaben M. Patel who sold the lands situated at Sanathal, Tal. Sanand and also through Shri Rameshbhai G. Thakor who received the money from other three persons also. Since the source (Shri Ramesh G. Thakor) and his source i.e. Smt. Hansaben M. Patel for onward transmission has been held as proved, the additions made by the A.O. were deleted. Since the assessment made in the case of Smt. Hansaben M. Patel remained unchallenged by her (allegedly a missing person) through any appeal or revision before the A concerned authorities, it has to be concluded that the source of source (Smt. Hansaben) has been duly taxed on substantive basis for which the copies of the assessment orders in the case of Smt. Hansaben and Shri Mukesh J. Shah have been placed on record i ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ve Assessing Officer. More particularly, the provisions of Section 68 of the Act as stood prior to its amendment w.e.f. 01-04-2013 wherein assessee is required to establish and explain the source of the credit in the books of accounts and do not require to prove the source of the source for the Assessment Year 2010-11. The assessee has proved the source of the loan are from Shri Rameshji Thakor and Smt. Hansaben Manilal Patel. It is proved beyond doubt Smt. Hansaben Manilal Patel sold immovable property of Rs. 102.93 crores and paid Rs. 18.925 crores to Shri Rameshji Thakor and this was paid to the assessee company. 6.1. In the case of M/s. Capaxo Logistics Pvt. Ltd. and Ambe Tradecorp Pvt. Ltd. wherein funds were received from the above two parties namely Shri Rameshji Thakor and Smt. Hansaben Manilal Patel. When the additions made by the Assessing Officer were deleted by Ld. CIT(A) which are now confirmed by the Co-ordinate Bench of this Tribunal in ITA No. 1264/Ahd/2019 and ITA No. 1235/Ahd/2019 observing as follows: In the case of M/s. Capaxo Logistics Pvt. Ltd (in ITA No. 1264/Ahd/2019 14. We have heard the rival contentions of both the parties and perused th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ion. Likewise, there cannot be addition of one item in the hands of two different persons. 9.3 Nevertheless, the assessee has submitted PAN, address, ledger confirmation, own bank statement and bank statement of M/s Rachna Finelease Pvt. showing amount received through banking channel. The assessee also claimed before the learned CIT (A) that M/s Rachna Finelease Pvt. has received money from Smt. Hansaben Patel and Shri Ramesh Thakor which can be verified from the bank statement of M/s Rachna Finelease Pvt. and also from the finding of the AO in paragraph 6.1.3 which reads as under: On verification of the bank book of Rachna Fine lease Pvt. Ltd. it is found that the fund have travelled within minutes of being credited from the bank account of Hansaben H. Patel and Rameshbhai Thakor and immediately the funds have landed in the bank account of JP Fincorp Services Pvt. Ltd.(Renamed as Ambe Tradecorp Pvt. Ltd.). 9.4 Smt. Hansaben Patel sold immovable property for Rs. 102.93 crores and paid due taxes in the assessment framed under section 147 r.w.s. 144 of the Act. Going through all these document it is established that identity, genuineness of transaction and credit wort ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... essments can be made in respect of the same income on two different persons. The assessee right from the beginning of the reassessment proceedings submitted that the source of the funds from the creditors and their source (i.e. source on source) is also proved by the assessee. Therefore the Assessing Officer made a protective addition of Rs. 28.68 crores as unexplained money in the hand of the assessee. The Co-ordinate Bench of this Tribunal in the case of M/s. Capaxo Logistics Pvt. Ltd. and M/s. Ambe Tradecorp Pvt. Ltd. are on identical additions deleted the same observing identity, creditworthiness and genuineness of the transactions are clearly established by the assessee. The Assessing Officer has not pointed out any deficiency in these documentary evidences submitted by the assessee and also not brought on record any contrary evidences in the reassessment proceedings. 8.1. It is seen from the appellate record, the assessment made in the case of Smt. Hansaben Manilal Patel wherein the sale of land has been duly taxed on substantive basis. Though the said order remained unchallenged by her (Smt. Hansaben Manilal Patel allegedly a missing person) by way of appeal or revision. ..... X X X X Extracts X X X X X X X X Extracts X X X X
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