M/s Bahubali Dyes Ltd., New Delhi V. ACIT, New Delhi

CO 1/DEL/2014

• Counselvise Citation: [2014] 122 COUNSELVISE.COM (IT) 9704 (ITAT-DELHI)
• Duration Of Justice: 6 month(s) 22 day(s)
• Appeal Type: Cross Objection
• Pronouncement Date: 25-07-2014
• Appeal Filed By: Assessee
• Order Result: Dismissed
• Bench Allotted: A
• Next Hearing Date: 23-07-2014
• Assessment Year: 2008-2009
• Appeal Filed On: 03-01-2014
• Result in Favour of: Revenue
• Court: TRIBUNAL
• Department Lawyers: ANURADHA MISRA
• Assessee Lawyers: VED JAIN SMT RANO JAIN; VENKATESH CHARTERE
• Keywords: Unexplained cash credit; Share purchase agreement; Opportunity of being heard; Additional evidence; Corroborative evidences; Accommodation entries; Onus to prove; Reassessment proceedings
• Section: 143(3); 153A; 131; 68

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL IN THE INCOME TAX APPELLATE TRIBUNAL IN THE INCOME TAX APPELLATE TRIBUNAL IN THE INCOME TAX APPELLATE TRIBUNAL DELHI DELHI DELHI DELHI BENCH BENCH BENCH BENCH A AA A : NEW DELHI : NEW DELHI : NEW DELHI : NEW DELHI BEFORE SHRI G.D. AGRAWAL, VICE BEFORE SHRI G.D. AGRAWAL, VICE BEFORE SHRI G.D. AGRAWAL, VICE BEFORE SHRI G.D. AGRAWAL, VICE PRESIDENT AND PRESIDENT AND PRESIDENT AND PRESIDENT AND SHRI SHRI SHRI SHRI H.S. SIDHU, JUDICIAL H.S. SIDHU, JUDICIAL H.S. SIDHU, JUDICIAL H.S. SIDHU, JUDICIAL MEMBER MEMBER MEMBER MEMBER ITA NO ITA NO ITA NO ITA NO. .. .4980/DEL/2013 4980/DEL/2013 4980/DEL/2013 4980/DEL/2013 ASSESSMENT YEAR ASSESSMENT YEAR ASSESSMENT YEAR ASSESSMENT YEAR : : : : 2008 2008 2008 2008- -- -09 0909 09 ASSISTANT COMMISSIONER OF ASSISTANT COMMISSIONER OF ASSISTANT COMMISSIONER OF ASSISTANT COMMISSIONER OF INCOME TAX, INCOME TAX, INCOME TAX, INCOME TAX, CENTRAL CIRCLE CENTRAL CIRCLE CENTRAL CIRCLE CENTRAL CIRCLE- -- -17, 17, 17, 17, NE NENE NEW DELHI. W DELHI. W DELHI. W DELHI. VS. VS. VS. VS. M/S BAHUBALI DYES LIMITED, M/S BAHUBALI DYES LIMITED, M/S BAHUBALI DYES LIMITED, M/S BAHUBALI DYES LIMITED, B BB B- -- -82, DEFENCE COLONY, 82, DEFENCE COLONY, 82, DEFENCE COLONY, 82, DEFENCE COLONY, NEW DELHI. NEW DELHI. NEW DELHI. NEW DELHI. PAN : AAACB0751G. PAN : AAACB0751G. PAN : AAACB0751G. PAN : AAACB0751G. (APPELLANT) (RESPONDENT) CROSS OBJECTION NO.1/DEL/2014 CROSS OBJECTION NO.1/DEL/2014 CROSS OBJECTION NO.1/DEL/2014 CROSS OBJECTION NO.1/DEL/2014 ASSESSMENT YEAR : 2008 ASSESSMENT YEAR : 2008 ASSESSMENT YEAR : 2008 ASSESSMENT YEAR : 2008- -- -09 0909 09 M/S BAHUBALI DYES LIMITED, M/S BAHUBALI DYES LIMITED, M/S BAHUBALI DYES LIMITED, M/S BAHUBALI DYES LIMITED, B BB B- -- -82, DEFENCE COLONY, 82, DEFENCE COLONY, 82, DEFENCE COLONY, 82, DEFENCE COLONY, NEW DELHI. NEW DELHI. NEW DELHI. NEW DELHI. PAN PAN PAN PAN : AAACB0751G. : AAACB0751G. : AAACB0751G. : AAACB0751G. VS. VS. VS. VS. ASSISTANT COMMISSIONER OF ASSISTANT COMMISSIONER OF ASSISTANT COMMISSIONER OF ASSISTANT COMMISSIONER OF INCOME TAX, INCOME TAX, INCOME TAX, INCOME TAX, CENTRAL CIRCLE CENTRAL CIRCLE CENTRAL CIRCLE CENTRAL CIRCLE- -- -17, 17, 17, 17, NEW DELHI. NEW DELHI. NEW DELHI. NEW DELHI. (APPELLANT) (RESPONDENT) REVENUE BY : SMT. ANURADHA MISRA, CIT-DR. APPELLANT BY : SHRI VED JAIN, SMT. RANO JAIN AND SHRI VENKATESH, CHARTERED ACCOUNTANTS. ORDER ORDER ORDER ORDER PER G.D. AGRAWAL, VP PER G.D. AGRAWAL, VP PER G.D. AGRAWAL, VP PER G.D. AGRAWAL, VP : : : : ITA NO.4980/DEL/2013 : ITA NO.4980/DEL/2013 : ITA NO.4980/DEL/2013 : ITA NO.4980/DEL/2013 :- -- - THIS APPEAL BY THE REVENUE IS DIRECTED AGAINST THE O RDER OF LEARNED CIT(A)-III, NEW DELHI DATED 24 TH JUNE, 2013 FOR THE AY 2008-09. 2. THE REVENUE HAS RAISED THE FOLLOWING GROUNDS OF APP EAL:- 1. THAT THE COMMISSIONER OF INCOME TAX (APPEALS) ERRED IN LAW AND ON FACTS OF THE CASE IN DELETING TH E ADDITION OF RS.2.50 CR. MADE BY THE ASSESSING OFFICER ON ACCOUNT OF UNEXPLAINED CREDIT. ITA-4980/D/2013 & C.O.-1/D/2014 2 2. THAT THE COMMISSIONER OF INCOME TAX (APPEALS) ERRED IN ADMITTING ADDITIONAL EVIDENCE. 3. (A) THE ORDER OF THE CIT(A) IS ERRONEOUS AND NOT TENABLE IN LAW AND ON FACTS. (B) THE APPELLANT CRAVES LEAVE TO ADD, ALTER OR AMEND ANY/ALL OF THE GROUNDS OF APPEAL BEFORE OR DUR ING THE COURSE OF THE HEARING OF THE APPEAL. 3. AT THE TIME OF HEARING BEFORE US, IT IS SUBMITTED B Y THE LEARNED CIT-DR THAT DURING THE ACCOUNTING YEAR RELEVANT TO ASSESSMENT YEAR UNDER CONSIDERATION, THE ASSESSEE HAD RECEIVED `2.50 CRO RES FROM THE FOLLOWING SIX COMPANIES IN THE FORM OF SHARE CAPITAL A ND SHARE PREMIUM :- SL.NO. NAME OF THE COMPANY AMOUNT-RS. 1. BEETAL PLANTATION P.LTD. 30,00,000 2. M/S INTEGRATOR CONSULTANTS P.LTD. 50,00,000 3. M/S PARGATI PORTFOLIO FOODS P.LTD. 70,00,000 4. M/S PRAGATI FOODS P.LTD. 30,00,000 5. M/S TONE FINANCIAL SERVICES P.LTD. 50,00,000 6. M/S UNIT COMMERCIAL P.LTD. 20,00,000 TOTAL 2,50,00,000 4. THE ENQUIRIES CONDUCTED BY THE ASSESSING OFFICER IN T HE AFORESAID COMPANIES REVEAL THAT ALL THESE COMPANIES WERE NOT DOI NG ANY REAL BUSINESS BUT WERE ENGAGED IN THE BUSINESS OF PROVIDING ACCOMMODATION ENTRIES. THERE WAS NEGLIGIBLE PROFIT SH OWN BY THESE COMPANIES. HOWEVER, IN THE BALANCE SHEET, THEY HAVE SHOWN HUGE SHARE PREMIUM RESERVE ON ONE SIDE AND INVESTMENT IN UNQ UOTED SHARES ON THE OTHER SIDE. ON THE ENQUIRIES CONDUCTED THROUG H THE INSPECTOR OF INCOME TAX, NONE OF THESE COMPANIES WAS FOUND AT THE A VAILABLE ADDRESS. ON THESE FACTS, THE ASSESSING OFFICER RIGHTLY CON CLUDED THAT ITA-4980/D/2013 & C.O.-1/D/2014 3 THE ASSESSEE HAS NOT BEEN ABLE TO DISCHARGE THE ONUS WHICH LAY UPON IT TO PROVE THE IDENTITY OF THE SHAREHOLDERS, CREDITWORT HINESS OF THE SHAREHOLDERS AND THE GENUINENESS OF THE TRANSACTIONS. TH EREFORE, THE ASSESSING OFFICER RIGHTLY ADDED THE SHARE CAPITAL/SHARE P REMIUM AS UNEXPLAINED AND MADE THE ADDITION OF `2.50 CRORES UN DER SECTION 68 OF THE INCOME-TAX ACT, 1961. THE CIT(A) ADMITTED THE ADDITIONAL EVIDENCE THOUGH THE SAME WAS OBJECTED BY THE ASSESSING OFFICER, WI THOUT PROPER JUSTIFICATION. THAT THE CIT(A) ALLOWED RELIEF TO TH E ASSESSEE ON THE BASIS OF THOSE ADDITIONAL EVIDENCES WHICH WERE NOT PRODUCED BEFORE THE ASSESSING OFFICER. SHE, THEREFORE, SUBMITTED THAT THE O RDER OF LEARNED CIT(A) SHOULD BE REVERSED AND THAT OF THE ASSESSING OFFIC ER MAY BE RESTORED, OR ALTERNATIVELY, MATTER MAY BE SET ASIDE TO THE FILE OF THE ASSESSING OFFICER FOR FRESH INVESTIGATION CONSIDERING THE ADDITIONAL EVIDENCE WHICH WAS PRODUCED BY THE ASSESSEE BEFORE THE L EARNED CIT(A) FOR THE FIRST TIME. 5. LEARNED COUNSEL FOR THE ASSESSEE, ON THE OTHER HAND, RELIED UPON THE ORDER OF THE CIT(A). HE STATED THAT THE ALLEGA TION OF THE ASSESSING OFFICER THAT THE SIX SHAREHOLDER COMPANIES ARE NOT DOI NG REAL BUSINESS AND ARE ENGAGED IN THE BUSINESS OF PROVIDING ACCOMMODA TION ENTRIES IS BASED UPON HIS PRESUMPTION AND SUSPICION. NO BASIS IN SUP PORT OF SUCH ALLEGATION IS MENTIONED IN THE ASSESSMENT ORDER OR FURNI SHED BEFORE THE CIT(A) OR THE ITAT. THE ABOVE OBSERVATION OF TH E ASSESSING OFFICER IS CONTRARY TO THE FACTS ON RECORD. HE POINTED OUT T HAT ALL THE SIX COMPANIES ARE REGISTERED WITH THE REGISTRAR OF COMPANI ES. THEY HAVE FURNISHED THEIR INCOME TAX RETURNS YEAR AFTER YEAR AN D ARE ASSESSED AS INDEPENDENT ENTITY. IN THE CASE OF MOST OF THE SHARE HOLDER COMPANIES, ASSESSMENTS HAVE BEEN COMPLETED UNDER SECTION 143(3). I N THE INCOME TAX ASSESSMENT OF THOSE COMPANIES, IT IS NOWHERE ALLEGED BY THE REVENUE THAT THOSE COMPANIES ARE PROVIDING ACCOM MODATION ENTRIES. WITH REGARD TO ADMISSION OF ADDITIONAL EVIDE NCE, THE LEARNED ITA-4980/D/2013 & C.O.-1/D/2014 4 COUNSEL POINTED OUT THAT THE ASSESSING OFFICER VIDE LETT ER DATED 14 TH DECEMBER, 2011 ASKED THE ASSESSEE TO PRODUCE EVIDENCE IN SUPPORT OF SHARE CAPITAL/SHARE PREMIUM OF `2.50 CRORES. THE CASE WAS FIXED FOR HEARING ON 19 TH DECEMBER, 2011. THUS, THE TIME OF ONLY FIVE DAYS W AS ALLOWED TO FURNISH NECESSARY EVIDENCE WITH REGARD TO SH ARE CAPITAL/SHARE PREMIUM. THE ASSESSEE FURNISHED THE REPLY ON 19 TH DECEMBER, 2011 IN WHICH THE ASSESSEE FILED THE COPY OF SHARE APPLICATION FORM, COPY OF INCOME TAX RETURN OF THE SHAREHOLDER, COPY OF BANK ACCOUNT AND CHEQUE NUMBER THROUGH WHICH SHARE A PPLICATION MONEY WAS RECEIVED, COPY OF SHARE CERTIFICATE ISSUED B Y THE ASSESSEE COMPANY FOR SHARES ALLOTTED TO THOSE SHAREHOLDERS AND CO PY OF ANNUAL RETURN IN FORM-2 FILED WITH THE REGISTRAR OF COMPANI ES. THEREAFTER, THE ASSESSING OFFICER, WITHOUT ALLOWING ANY FURTHER OPPORTU NITY, DISBELIEVED THE ASSESSEES EXPLANATION WITH REGARD TO SHARE CAPITAL/ SHARE PREMIUM AND MADE THE ADDITION OF `2.50 CRORES. THUS, IT IS E VIDENT THAT THE ASSESSING OFFICER ALLOWED MERELY FIVE DAYS TIME TO FURN ISH NECESSARY DETAILS WHICH, BY NO STRETCH OF IMAGINATION, CAN BE S AID TO BE ADEQUATE OPPORTUNITY OF BEING HEARD AND PRODUCING NECESSARY EV IDENCE. CONSIDERING THESE FACTS, LEARNED CIT(A) RIGHTLY ADMITT ED THE ADDITIONAL EVIDENCE. HE, THEREFORE, SUBMITTED THAT THE ORDER O F LEARNED CIT(A) SHOULD BE SUSTAINED AND THE REVENUES APPEAL MAY BE DISM ISSED. 6. WE HAVE CAREFULLY CONSIDERED THE SUBMISSIONS OF BOTH THE SIDES AND PERUSED RELEVANT MATERIAL PLACED BEFORE US. PARA GRAPH 2.1 OF THE ASSESSMENT ORDER READS AS UNDER:- 2.1 THE ENQUIRIES CONDUCTED IN THE CASE OF ABOVE COMPANIES IT IS FOUND THAT ALL THESE COMPANIES WERE NOT DOING REAL BUSINESS AND ARE ENGAGED IN THE BUSINESS OF PROVIDING ACCOMMODATION ENTRIES. ALL THESE COMPANIES ARE MAINTAINING THEIR BANK ACCOUNTS IN THE SAME AREA OF THE DARYAGUNJ. THERE IS NEGLIGIBLE PROFIT SHOWN BY THESE COMPANY THOUGH THEREON BALANCE SHEET ALSO SHOW HUGE ITA-4980/D/2013 & C.O.-1/D/2014 5 SHARE PREMIUM RESERVES ON ONE SIDE AND INVESTMENTS IN UNQUOTED SHARES ON THE OTHER SEARCH. THE SUMMARY DETAILS OF THEIR BALANCE SHEET OF SOME COMPANIES IS AS UNDER. PARTICULARS (AS ON 31.03.2008) M/S INTEGRATOR CONSULTANTS P.LTD. M/S PRAGATI PORTFOLIO P.LTD. M/S TONE FINANCIAL SERVICES P.LTD. ISSUED SUBSCRIBED AND PAID-UP CAPITAL 1,34,15,000 1,65,50,000 3,00,00,000 SHARE PREMIUM 14,60,85,000 9,34,50,000 00 PROFIT (LOSS) (11,187) 6,89,609 (19,045) QUOTED SHARES - - - UN-QUOTED SHARES 13,89,42,475 8,92,82,661 1,65,36,549 OTHER CURRENT ASSETS 2,04,89,251 1,90,47,450 1,34,26,615 7. FROM THE ABOVE, IT IS EVIDENT THAT IN THE ABOVE P ARAGRAPH, THE ASSESSING OFFICER ALLEGED :- (I) THE ENQUIRIES CONDUCTED IN THE CASE OF SHAREHOLDER COMPANIES REVEALED THAT THESE COMPANIES WERE NOT DOING REAL BUSINESS BUT ENGAGED IN THE BUSINESS OF PROVIDING ACCOMMODATION ENTRIES. (II) THESE COMPANIES HAVE NEGLIGIBLE PROFIT BUT THEIR BALA NCE SHEET SHOWS HUGE SHARE PREMIUM RESERVE ON ONE SIDE AND INVESTMENT IN UNSECURED SHARES ON THE OTHER SIDE. 8. WE HAVE CAREFULLY CONSIDERED BOTH THESE ALLEGATION S OF THE ASSESSING OFFICER IN THE LIGHT OF MATERIAL AVAILABLE WI TH US AND THE ARGUMENTS OF BOTH THE SIDES. SO FAR AS THE FIRST ALLEGA TION IS CONCERNED THAT THE SHAREHOLDER COMPANIES WERE NOT DOING ANY REA L BUSINESS BUT ENGAGED IN THE BUSINESS OF PROVIDING ACCOMMODATION EN TRIES, WE FIND NO MATERIAL HAVING BEEN POINTED OUT BY THE ASSESSING OF FICER IN THE ITA-4980/D/2013 & C.O.-1/D/2014 6 ASSESSMENT ORDER. THOUGH THE ASSESSING OFFICER HAS MENTIONE D ABOUT SOME ENQUIRIES BEING CONDUCTED IN THIS REGARD, BUT, HE HAS NOT MENTIONED WHAT WAS THE OUTCOME OF THOSE ENQUIRIES WHIC H LED HIM TO BELIEVE THAT THESE COMPANIES WERE ENGAGED IN PROVIDIN G ACCOMMODATION ENTRIES. ON THE OTHER HAND, THE EVIDE NCE PRODUCED BY THE ASSESSEE SHOWS THAT ALL THESE COMPANIES ARE REGULARLY ASSESSED TO INCOME TAX AND FILING THEIR INCOME TAX RETURNS YEAR AFTER YEAR. IN THE CASE OF FOUR COMPANIES VIZ., M/S BEETAL PLANTATION P.L TD., M/S INTEGRATOR CONSULTANTS P.LTD., M/S PRAGATI FOODS P.LTD. AND M/S UN IT COMMERCIAL P.LTD., ASSESSMENTS HAVE BEEN COMPLETED UNDER SECTION 1 43(3) AND IN THOSE ASSESSMENTS, THE ASSESSING OFFICER HAS NOT FOUND THAT TH ESE COMPANIES WERE IN THE BUSINESS OF PROVIDING ACCOMMODATI ON ENTRIES. THE ASSESSEE HAS ALSO FILED THE COPY OF BALANCE SHEET OF T HESE COMPANIES WHICH INDICATED THAT THESE COMPANIES ARE HA VING SUBSTANTIAL CAPITAL AND HAVE INVESTED IN THE SHARES OF V ARIOUS COMPANIES. THEREFORE, WE ARE OF THE OPINION THAT EV IDENCE ON RECORD PLACED BY THE ASSESSEE WHICH IS NOT CONTROVERTED BY THE REVENUE ESTABLISHES THAT ALL THE SIX COMPANIES WHICH INVESTED IN THE SHARES OF THE ASSESSEE COMPANY ARE GENUINE COMPANIES. 9. THE SECOND POINT MADE BY THE ASSESSING OFFICER WAS THA T THESE SHAREHOLDER COMPANIES WERE HAVING NEGLIGIBLE PROFIT B UT IN THE BALANCE SHEET, THEY HAVE SHOWN HUGE SHARE PREMIUM RESERVE. HO WEVER, THIS ASPECT NEEDS TO BE EXAMINED IN THE CASE OF THOSE COMPAN IES AND NOT IN THE CASE OF THE ASSESSEE COMPANY. AS WE HAVE ALREADY MENTIONED, ALL THESE COMPANIES ARE SEPARATELY ASSESSED TO INCOME TAX, THEY HAVE FILED THEIR INCOME TAX RETURNS ALONGWITH THEIR BALAN CE SHEET WHICH INDICATED THEIR SHARE CAPITAL AS WELL AS SHARE PREMIUM . THAT MERELY BECAUSE THEY HAVE SUBSTANTIAL SHARE CAPITAL OR SUBSTANTI AL SHARE PREMIUM, WOULD BE NO GROUND TO DOUBT EITHER THEIR I DENTITY OR THEIR CREDITWORTHINESS. ON THE OTHER HAND, SUBSTANTIAL SHARE CAPITAL/SHARE ITA-4980/D/2013 & C.O.-1/D/2014 7 PREMIUM WOULD ONLY SUPPORT THE CASE OF THE ASSESSEE THAT THESE COMPANIES HAVE SUBSTANTIAL WORTH TO INVEST IN THE SHAR ES OF THE ASSESSEE COMPANY. 10. IN PAGE 3, THE ASSESSING OFFICER HAS ALSO OBSERVED T HAT THE ENQUIRIES GOT CONDUCTED THROUGH THE INSPECTOR OF INCO ME TAX AND THESE COMPANIES WERE NOT FOUND PHYSICALLY OPERATING FR OM THE ADDRESSES GIVEN BY THE ASSESSEE. HOWEVER, IN THE SAME PARA GRAPH, THE ASSESSING OFFICER HAS MENTIONED THAT THE SUMMONS WERE ISSUED TO THOSE COMPANIES AND IN RESPONSE TO THE SUMMONS, THE COMPA NIES HAVE FURNISHED THE REPLY AND ALSO FORWARDED THE COPIE S OF ACCOUNT STATEMENT, BANK ACCOUNT AND INCOME TAX RETURNS. THAT THE ABOVE FINDING BY THE ASSESSING OFFICER ITSELF PROVES THAT THE SHAREHOLDER COMPANIES WERE EXISTING AT THE ADDRESS GIVEN BY THE ASSESSE E, OTHERWISE, HOW THE SUMMONS COULD BE SERVED UPON AND REP LY COULD BE SENT BY THOSE PARTIES. IN VIEW OF ABOVE, WE HOLD THAT ALL THE ALLEGATIONS MADE BY THE ASSESSING OFFICER FOR DOUBTING THE GENUINE NESS OF SHAREHOLDER COMPANIES ARE WITHOUT ANY BASIS AND CONTRAR Y TO THE FACTS ON RECORD. 11. NOW, WE COME TO THE GROUNDS OF APPEAL RAISED BY T HE REVENUE. BEFORE ADJUDICATING GROUND NO.1, IT WOULD BE NECESSAR Y TO DECIDE GROUND NO.2 OF THE REVENUE WHICH IS WITH REGARD TO A DMISSION OF ADDITIONAL EVIDENCE. 12. RULE 46A EMPOWERS THE CIT(A) TO ADMIT THE ADDITI ONAL EVIDENCE. IT READS AS UNDER:- [PRODUCTION OF ADDITIONAL EVIDENCE BEFORE THE PRODUCTION OF ADDITIONAL EVIDENCE BEFORE THE PRODUCTION OF ADDITIONAL EVIDENCE BEFORE THE PRODUCTION OF ADDITIONAL EVIDENCE BEFORE THE [DEPUT Y DEPUTY DEPUTY DEPUTY COMMISSIONER (APPEALS) COMMISSIONER (APPEALS) COMMISSIONER (APPEALS) COMMISSIONER (APPEALS)] [AND COMMISSIONER (APPEALS) AND COMMISSIONER (APPEALS) AND COMMISSIONER (APPEALS) AND COMMISSIONER (APPEALS)]. .. . ITA-4980/D/2013 & C.O.-1/D/2014 8 46A. 46A. 46A. 46A. (1) THE APPELLANT SHALL NOT BE ENTITLED TO PROD UCE BEFORE THE [DEPUTY COMMISSIONER (APPEALS)] [OR, AS THE CASE MAY BE, THE COMMISSIONER (APPEALS)], ANY EVIDENCE, WHETHER ORAL OR DOCUMENTARY, OTHER THAN THE EVIDENC E PRODUCED BY HIM DURING THE COURSE OF PROCEEDINGS BEFO RE THE [ASSESSING OFFICER], EXCEPT IN THE FOLLOWING CIRCUMSTANCES, NAMELY : ( A ) WHERE THE [ASSESSING OFFICER] HAS REFUSED TO ADMIT EVIDENCE WHICH OUGHT TO HAVE BEEN ADMITTED ; OR ( B ) WHERE THE APPELLANT WAS PREVENTED BY SUFFICIENT C AUSE FROM PRODUCING THE EVIDENCE WHICH HE WAS CALLED UPON TO PRODUCE BY THE [ASSESSING OFFICER] ; OR ( C ) WHERE THE APPELLANT WAS PREVENTED BY SUFFICIENT C AUSE FROM PRODUCING BEFORE THE [ASSESSING OFFICER] ANY EVIDE NCE WHICH IS RELEVANT TO ANY GROUND OF APPEAL ; OR ( D ) WHERE THE [ASSESSING OFFICER] HAS MADE THE ORDER APPEALED AGAINST WITHOUT GIVING SUFFICIENT OPPORTUNI TY TO THE APPELLANT TO ADDUCE EVIDENCE RELEVANT TO ANY GR OUND OF APPEAL. (2) NO EVIDENCE SHALL BE ADMITTED UNDER SUB-RULE (1) UNLESS THE [DEPUTY COMMISSIONER (APPEALS)] [OR, AS THE CASE MAY BE, THE COMMISSIONER (APPEALS)] RECORDS IN WRITING THE REASONS FOR ITS ADMISSION. (3) THE [DEPUTY COMMISSIONER (APPEALS)] [OR, AS THE CASE MAY BE, THE COMMISSIONER (APPEALS)] SHALL NOT TAKE INTO ACCOUNT ANY EVIDENCE PRODUCED UNDER SUB-RULE (1) UNL ESS THE [ASSESSING OFFICER] HAS BEEN ALLOWED A REASONABLE OPPORTUNITY ( A ) TO EXAMINE THE EVIDENCE OR DOCUMENT OR TO CROSS- EXAMINE THE WITNESS PRODUCED BY THE APPELLANT, OR ( B ) TO PRODUCE ANY EVIDENCE OR DOCUMENT OR ANY WITNE SS IN REBUTTAL OF THE ADDITIONAL EVIDENCE PRODUCED BY THE APPELLANT. (4) NOTHING CONTAINED IN THIS RULE SHALL AFFECT THE P OWER OF THE [DEPUTY COMMISSIONER (APPEALS)] [OR, AS THE CASE MAY BE, THE COMMISSIONER (APPEALS)] TO DIRECT THE PRODUCTI ON OF ANY DOCUMENT, OR THE EXAMINATION OF ANY WITNESS, TO ITA-4980/D/2013 & C.O.-1/D/2014 9 ENABLE HIM TO DISPOSE OF THE APPEAL, OR FOR ANY OTHE R SUBSTANTIAL CAUSE INCLUDING THE ENHANCEMENT OF THE ASSESSMENT OR PENALTY (WHETHER ON HIS OWN MOTION OR ON THE REQUEST OF THE [ASSESSING OFFICER]) UNDER CLAUSE ( A ) OF SUB-SECTION (1) OF SECTION 251 OR THE IMPOSITION OF PE NALTY UNDER SECTION 271.]. 13. FROM THE ABOVE, IT IS EVIDENT THAT THE ASSESSEE IS NO T PERMITTED TO PRODUCE ADDITIONAL EVIDENCE UNLESS THE CIRCUMSTANCE S SPECIFIED IN CLAUSES (A), (B), (C) & (D) OF RULE 46(1) EXIST. CLAU SE (D) OF RULE 46A(1) PERMITS AN ASSESSEE TO SUBMIT ADDITIONAL EVIDENCE WHEN TH E ASSESSING OFFICER COMPLETED THE ASSESSMENT WITHOUT GIVING SUFFICIE NT OPPORTUNITY TO THE APPELLANT TO ADDUCE EVIDENCE RELEVANT TO ANY GROUND OF APPEAL. THEREFORE, LET US EXAMINE WHETHER THE ASSESSING OFFICER ALLOWED ADEQUATE OPPORTUNITY TO THE ASSESSEE TO ADDUCE THE RELE VANT EVIDENCE. AT PAGE 53 OF THE ASSESSEES PAPER BOOK, THE ASSESSEE HAS GIV EN THE COPY OF SHOW CAUSE NOTICE DATED 14 TH DECEMBER, 2011 ISSUED BY THE ASSESSING OFFICER. BY THIS LETTER, THE ASSESSING OFFICER ASK ED THE ASSESSEE TO SHOW CAUSE WHY THE SHARE CAPITAL/SHARE PREMIUM OF `2.50 CRORES SHOULD NOT BE TREATED AS UNEXPLAINED AND ADDED TO THE TOTAL INCOME UNDER SECTION 68 OF THE ACT. THE ASSESSEE WAS DI RECTED TO FURNISH THE REPLY LATEST BY 19 TH DECEMBER, 2011. THUS, THE TIME OF MERE FIVE DAYS WAS ALLOWED. THE ASSESSEE DID FILE THE R EPLY ON 19 TH DECEMBER, 2011 ALONGWITH VARIOUS EVIDENCES WHICH INCL UDED SHARE APPLICATION FORM, INCOME TAX RETURNS OF THE SHAREHOLD ERS, COPY OF BANK ACCOUNT OF THE SHAREHOLDERS, DETAILS OF CHEQUE NUMBER THROUGH WHICH SHARE APPLICATION MONEY WAS RECEIVED, COPY OF SHARE C ERTIFICATE IN RESPECT OF SHARES ALLOTTED AND FORM OF ANNUAL RETURN F ILED WITH THE REGISTRAR OF COMPANIES SHOWING ALLOTMENT OF SHARES. THE REAFTER, THE ASSESSING OFFICER DID NOT ASK THE ASSESSEE TO PRODUCE ANY FU RTHER EVIDENCE AND COMPLETED THE ASSESSMENT MAKING THE ADDITI ON OF `2.50 CRORES. THEREFORE, THE MOOT QUESTION IS WHETHER THE T IME ALLOWED TO ITA-4980/D/2013 & C.O.-1/D/2014 10 THE ASSESSEE TO PRODUCE THE EVIDENCE IN SUPPORT OF SHARE APPLICATION AND SHARE PREMIUM CAN BE SAID TO BE SUFFICIENT TIME AS ENVISAGED BY RULE 46A(1)(D). IN OUR OPINION, CERTAINLY NOT. TH E TIME OF ONLY FIVE DAYS CANNOT BE SAID TO BE A SUFFICIENT TIME TO PRODUCE NECESSARY EVIDENCE. MOREOVER, WITHIN THOSE SHORT PERIOD OF FI VE DAYS, THE ASSESSEE FURNISHED THE DETAILS/EVIDENCES WHICH WERE AVAIL ABLE WITH HIM. IF THE ASSESSING OFFICER WAS NOT SATISFIED WITH THO SE DETAILS/EVIDENCES PRODUCED BY THE ASSESSEE, HE SHOULD HAV E ALLOWED FURTHER OPPORTUNITY TO THE ASSESSEE TO PRODUCE FURTHER EVIDENCE IN THIS REGARD BUT NO FURTHER OPPORTUNITY WAS ALLOWED BY TH E ASSESSING OFFICER. ON THESE FACTS, IN OUR OPINION, THE CIT(A) RIGHTLY AD MITTED THE ADDITIONAL EVIDENCE WITH THE FOLLOWING FINDING:- IN MY HUMBLE VIEW, THE TIME OF 5 DAYS GIVEN TO THE APPELLANT WAS TOO SHORT AND HAVING SAID THAT, I FIND THAT THE DOCUMENTS FILED DURING THE APPELLATE PROCEEDINGS ARE NOT IN THE NATURE OF ANY ADDITIONAL EVIDENCE PER SE RATH ER THEY ARE OF THE NATURE OF SUPPORTING EVIDENCES, THEY ARE T AKEN ON RECORD AND ARE ADMITTED AS EVIDENCES. THE ISSUE OF GENUINENESS, CREDITWORTHINESS AND IDENTITY OF SHAREHOLDE RS IS DECIDED KEEPING IN LIGHT THESE DOCUMENTS ALSO. 14. IN VIEW OF THE ABOVE, GROUND NO.2 OF THE REVENU ES APPEAL HAS NO MERIT AND THE SAME IS REJECTED. 15. NOW, WE COME TO THE MAIN QUESTION, I.E., WHETHER THE ASSESSEE HAS BEEN ABLE TO DISCHARGE THE ONUS OF PROVING THE CR EDIT OF `2.50 CRORES IN THE FORM OF SHARE CAPITAL/SHARE PREMIUM. AD MITTEDLY, THE ONUS IS UPON THE ASSESSEE TO DISCHARGE THIS ONUS AND TO DISC HARGE THE ONUS, THE ASSESSEE IS REQUIRED TO PROVE THE IDENTITY OF T HE SHAREHOLDER, CREDITWORTHINESS OF THE SHAREHOLDER AND THE GENUINENESS OF THE TRANSACTION. LET US EXAMINE THE FACTS OF THE ASSESSEES C ASE SO AS TO ARRIVE AT THE CONCLUSION THAT THE ASSESSEE HAS BEEN ABLE TO DISCHARGE ITA-4980/D/2013 & C.O.-1/D/2014 11 ITS ONUS. WE FIND THAT THE CIT(A) HAS EXAMINED THE FA CTS OF EACH AND EVERY SHAREHOLDER COMPANY IN DETAIL AND THEN ARRIVED AT THE FOLLOWING CONCLUSION:- 9.4 BEETAL PLANTATION PVT. LTD. BEETAL PLANTATION PVT. LTD. BEETAL PLANTATION PVT. LTD. BEETAL PLANTATION PVT. LTD. (RS.30,OO,OOO) (RS.30,OO,OOO) (RS.30,OO,OOO) (RS.30,OO,OOO) ON GOING THROUGH THE PAPER BOOK I FIND THAT THE MON EY HAS BEEN RECEIVED FROM BANK ACCOUNT OF BEETAL PLANTATIO N PVT. LTD. MAINTAINED WITH PUNJAB NATIONAL BANK, DARYA GA NJ, NEW DELHI AND THERE ARE NO DEPOSIT IN CASH IN THIS BAN K ACCOUNT BEFORE APPLYING FOR SHARES IN THE APPELLANT COMPANY AND PAYMENT HAS BEEN MADE OUT OF THE MONEY RECEIVED BY THE SHAREHOLDER COMPANY FROM SALINE STEE LS PVT.LTD. AND SHREE BALAJI TRADERS. I HAVE ALSO PERUSED THE BANK ACCOUNT OF THE SALINE STEELS PVT. LTD. AND SHRE E BALAJI TRADERS WHERE A SUM OF RS. 20 LAC AND RS. 10 LACS HAVE BEEN PAID TO THE SHAREHOLDER COMPANY ON 05.10.2007 A ND 12.10.2007 SALINE STEELS PVT. LTD. AND SHREE BALAJI TRADERS PVT. LTD. IT IS ALSO SEEN THAT BEETAL PLANTATION PVT. LTD. IS ASSESSED TO INCOME TAX AND SO IS THE CASE OF ALL THE COMPANIES FROM WHOM CREDIT HAS BEEN RECEIVED IN THEIR BANK ACCOUNT DURING THE YEAR UNDER CONSIDERATION. FU RTHER, THE BALANCE SHEET OF BEETAL PLANTATION PVT. LTD. SHO WS THE NET WORTH OF MORE THAN RS. 8.99 CRORE. BEETAL PLANTA TION PVT. LTD. HAS BEEN ASSESSED TO INCOME TAX UNDER SECTION 143(3) FOR THE ASSESSMENT YEAR 2007-08 VIDE ORDER DATED SO' NOVEMBER, 2009, NO ADVERSE INFERENCE HAS BEEN DRAWN AGAINST THIS COMPANY IN THE ASSESSMENT ORDER. FURTHER, THE AD IN HI S REPORT DATED 27.08.2012 HAS ALSO NOT CONTROVERTED ANY OF THE ABOVE FACTS. IN THE ASSESSMENT ORDER PASSED UNDER SECTION 153A/143(3), I FIND THAT THERE IS NO SPECIFIC ADVERSE FINDING BY THE AD ON THE BASIS OF WHICH THE AMOUNT RECEIVED F ROM BEETAL PLANTATION PVT. LTD. IS BEING CONSIDERED AS UNEXPLAINED CREDIT. THE AO IN THE ASSESSMENT ORDER HAS REFERRED TO THE ENQUIRIES CONDUCTED IN THE CASE OF A FEW COMPANIES BUT THE ASSESSMENT ORDER IS TOTALLY SILENT AS TO WHAT ENQUIRIES HAVE BEEN MADE ON THE STRENGTH OF WHIC H HE CAME TO THE CONCLUSION THAT THE INVESTMENT MADE BY BEETAL PLANTATION PVT. LTD. IS NOT A ITA-4980/D/2013 & C.O.-1/D/2014 12 GENUINE TRANSACTION. AS THE APPELLANT COMPANY HAS EXPLAINED ITS SOURCE AS WELL AS THE SOURCE OF ITS SHAREHOLDER, THEREFORE, IN VIEW OF THE ABOVE DISCUSSION APPELLANT COMPANY HAS ESTABLISH ED THE IDENTITY, CREDITWORTHINESS AND GENUINENESS OF THE TRANSACTION. 9.5 INTEGRATOR CONSU INTEGRATOR CONSU INTEGRATOR CONSU INTEGRATOR CONSULTANTS P. LTD. (RS. 50,00,000) LTANTS P. LTD. (RS. 50,00,000) LTANTS P. LTD. (RS. 50,00,000) LTANTS P. LTD. (RS. 50,00,000) ON GOING THROUGH THE PAPER BOOK, IT IS SEEN THAT THE AMOUNT HAS BEEN RECEIVED BY CHEQUE FROM THE BANK ACCOUNT OF INTEGRATOR CONSULTANTS P. LTD. AND THERE A RE NO CASH DEPOSIT IN THIS BANK ACCOUNT BEFORE APPLYING FOR SHARES IN THE APPELLANT COMPANY. THIS MONEY HAS BEEN PAID OUT OF THE MONEY RECEIVED BY IT FROM DIFFERENT ENTITIES. THE DETAILS ABOUT SUCH ENTITIES, ITS IDENTITY, INCOME T AX PARTICULARS HAVE ALSO BEEN FILED BY THE APPELLANT. IT IS FURTHER SEEN THAT, INTEGRATOR CONSULTANTS P. LTD. IS A INCOME TAX ASSESSEE AND THE BALANCE SHEET SHOWS THE NET WORTH O F RS. 15.94 CRORE AND A SUM OF RS. 50,00,000 HAS BEEN SHOWN AS INVESTMENT IN THE NAME OF THE APPELLANT COMPANY. FURTHER, THE AO IN THE REMAND REPORT DATED 27.08.2012 HAS NOT CONTROVERTED ANY OF THESE FACTS. TH E AO IN THE ASSESSMENT ORDER HAS REFERRED TO THE ENQUIRIE S CONDUCTED IN THE CASE OF A FEW COMPANIES BUT THE ASSESSMENT ORDER IS TOTALLY SILENT AS TO WHAT ENQUIRIES HA VE BEEN MADE ON THE STRENGTH OF WHICH HE CAME TO THE CONCLUSION THAT THE INVESTMENT MADE BY INTEGRATOR CONSULTANTS P. LTD. IS NOT A GENUINE TRANSACTION. ON TH E CONTRARY, I FIND THAT THE APPELLANT HAS PLACED EVIDE NCES {PAPER BOOK PAGE 136} THAT THIS COMPANY HAS CONFIRMED TO ADIT REGARDING ITS INVESTMENT WITH THE APPELLANT COMPANY DURING THE POST SEARCH INVESTIGATION. AS THE APPELLANT COMPANY HAS EXPLAINED ITS SOURCE AS WELL AS THE SOURCE OF ITS SHAREHOLDER, THEREFORE, IN VIEW OF THE ABOVE DISCUSSION APPELLANT COMPANY HAS ESTABLISH ED THE IDENTITY, CREDITWORTHINESS AND GENUINENESS OF THE TRANSACTION. 9.6 PRAGATI PORTFOL PRAGATI PORTFOL PRAGATI PORTFOL PRAGATI PORTFOLIO FOODS ~ LTD. (RS. 70,00,000) IO FOODS ~ LTD. (RS. 70,00,000) IO FOODS ~ LTD. (RS. 70,00,000) IO FOODS ~ LTD. (RS. 70,00,000) ON GOING THROUGH THE PAPER BOOK I FIND THAT THE MONEY HAS BEEN RECEIVED FROM BANK ACCOUNT OF PRAGATI PORTFOLIO FOODS {P} LTD. MAINTAINED WITH ORIENTAL BA NK OF ITA-4980/D/2013 & C.O.-1/D/2014 13 COMMERCE, DARYA GANJ, NEW DELHI AND THERE IS NO DEPO SIT IN CASH IN THIS BANK ACCOUNT BEFORE APPLYING FOR SHARE S IN THE APPELLANT COMPANY AND PAYMENT HAS BEEN MADE OUT OF THE MONEY RECEIVED BY THE SHAREHOLDER COMPANY FROM SHREE BALAJI TRADERS, PARADISE COMMERCIAL PVT. LTD., ROYAL TRADERS LTD., P. CHAND JEWELLERS PVT. LTD., SHREYA PORTFOLIO PVT. LTD. AND VIKAS HOLDING PVT. LTD. IT IS ALSO SEEN THAT PRAGATI PORTFOLIO FOODS (P) LTD. I S ASSESSED TO INCOME TAX AND SO IS THE CASE OF ALL THE COMPANIES FROM WHOM CREDIT HAS BEEN RECEIVED IN THEIR BANK ACCOUNT DURING THE YEAR UNDER CONSIDERATION. FURTHER, IN THE BALANCE SHEET OF PRAGATI PORTFOLIO F OODS (P) LTD. THAT THEY HAVE SHOWS NET WORTH OF MORE THAN RS.11 .01 CRORE AND SALES AND PURCHASES OF RS.4.77 CRORES AND RS.7.27 CRORES RESPECTIVELY AND A SUM OF RS.70,00,000 HA S BEEN SHOWN AS INVESTMENT IN THE NAME OF THE APPELLANT COMPANY. FURTHER, THE AD IN HIS REPORT DATED 27.08. 2012 HAS ALSO NOT CONTROVERTED ANY OF THE ABOVE FACTS. IN THE ASSESSMENT ORDER PASSED UNDER SECTION 153A/143(3), I FIND THAT THERE IS NO ADVERSE FINDING BY THE AO ON THE BASIS OF WHICH THE AMOUNT RECEIVED FROM PRA GATI PORTFOLIO FOODS (P) LTD. IS BEING CONSIDERED AS UNEXPLA INED CREDIT. THE AO IN THE ASSESSMENT ORDER HAS REFERRED TO T HE ENQUIRIES CONDUCTED IN THE CASE OF A FEW COMPANIES BUT THE ASSESSMENT ORDER IS TOTALLY SILENT AS TO WHAT ENQUIRIE S HAVE BEEN MADE ON THE STRENGTH OF WHICH HE CAME TO T HE CONCLUSION THAT THE INVESTMENT MADE BY PRAGATI PORTFO LIO FOODS (P) LTD. IS NOT A GENUINE TRANSACTION. ON THE CONTRARY, I FIND THAT THE APPELLANT HAS PLACED EVIDE NCES (PAPER BOOK PAGE 160) THAT THIS COMPANY HAS CONFIRME D TO ADIT REGARDING ITS INVESTMENT WITH THE APPELLANT COMP ANY DURING THE POST SEARCH INVESTIGATION. AS THE APPELLANT COMPANY HAS EXPLAINED ITS SOURCE AS WELL AS THE SOURCE OF ITS SHAREHOLDER, THEREFORE, IN VIEW OF THE ABOVE DISCUSSION APPELLANT COMPANY HAS ESTABLISH ED THE IDENTITY, CREDITWORTHINESS AND GENUINENESS OF THE TRANSACTION. 9.7 PRAGATI PRAGATI PRAGATI PRAGATI FOODS PVT. LTD. (RS. 30,00,000) FOODS PVT. LTD. (RS. 30,00,000) FOODS PVT. LTD. (RS. 30,00,000) FOODS PVT. LTD. (RS. 30,00,000) A SUM OF RS. 30,00,000 HAS BEEN RECEIVED FROM THE BANK ACCOUNT OF PRAGATI FOODS PVT. LTD. AND I NOTICE THAT ITA-4980/D/2013 & C.O.-1/D/2014 14 THERE ARE NO IMMEDIATE CASH DEPOSIT IN THIS BANK ACCOU NT BEFORE APPLYING FOR SHARES OF APPELLANT COMPANY AND T HIS MONEY HAS BEEN PAID OUT OF THE MONEY RECEIVED BY THE SHAREHOLDER COMPANY FROM BONANZA PORTFOLIO (P) LTD. FURTHER, IT IS SEEN THAT PRAGATI FOODS PVT. LTD. IS ALSO ASSESSED TO INCOME TAX AND ITS ASSESSMENT FOR THE YEAR 2005-06 HAS BEEN COMPLETED UNDER SECTION 143(3) OF T HE ACT VIDE ORDER DATED 14TH DECEMBER, 2007 AND THERE IS NO ADVERSE FINDING OR COMMENT REGARDING ITS FINANCIALS. THE BALANCE SHEET AND PROFIT AND LOSS ACCOUNT OF THE PRAGATI FOODS PVT. LTD. SHOWS ASSETS OF RS. 11.38 CRORE AN D SALES AND PURCHASE OF RS. 4.22 CRORE AND RS.48 LACS RESPECTIVELY AND A SUM OF RS.30,OO,OOO HAS BEEN SHOWN AS INVESTMENT IN THE NAME OF THE APPELLANT COMPANY. FURTHER, THE AO IN THE ASSESSMENT ORDER HAS REFERRED TO THE ENQUIRIES CONDUCTED IN THE CASE OF A FEW COMPANIES BUT THE ASSESSMENT ORDER IS TOTALLY SILENT AS TO WHAT ENQUIRIES HAVE BEEN MADE ON THE STRENGTH OF WHIC H HE CAME TO THE CONCLUSION THAT THE INVESTMENT MADE BY PRAGATI FOODS PVT. LTD. IS NOT A GENUINE TRANSACTION. ALL THESE ISSUES WERE RAISED BY THE APPELLANT IN THE WRITTEN SUBMISSIONS AND THE AO IN THE REMAND REPORT DA TED 27.08.2012 HAS NOT BEEN ABLE TO REBUT OR CONTROVERT ANY OF THESE FACTS. AS THE APPELLANT COMPANY HAS EXPLAINED ITS SOURCE AS WELL AS THE SOURCE OF ITS SHAREHOLDER, THEREFORE, IN VIEW OF THE ABOVE DISCUSSION APPELLANT COMPANY HAS ESTABLISH ED THE IDENTITY, CREDITWORTHINESS AND GENUINENESS OF THE TRANSACTION. 9.8 TONE FINANCIAL SERVICES TONE FINANCIAL SERVICES TONE FINANCIAL SERVICES TONE FINANCIAL SERVICES (P) (P)(P) (P) LTD. LTD. LTD. LTD. (RS. 50,00,000) (RS. 50,00,000) (RS. 50,00,000) (RS. 50,00,000) ON GOING THROUGH THE PAPER BOOK I FIND THAT THE MONEY HAS BEEN RECEIVED FROM BANK ACCOUNT OF TONE FINANCIAL SERVICES (P) LTD. MAINTAINED WITH ORIENTAL BANK OF COMMERCE, DARYA GANJ, NEW DELHI AND THERE IS NO DEPO SIT IN CASH IN THIS BANK ACCOUNT BEFORE APPLYING FOR SHARE S IN THE APPELLANT COMPANY AND PAYMENT HAS BEEN MADE OUT OF THE MONEY RECEIVED BY THE SHAREHOLDER COMPANY FROM SALINE STEELS PVT. LTD. AND BLOOM FIELD PROPERTIES AN D HOLDINGS PVT. LTD. FURTHER, THE BALANCE SHEET OF TONE FINANCIAL SERVIC ES (P) ITA-4980/D/2013 & C.O.-1/D/2014 15 LTD. SHOWS NET WORTH OF MORE THAN RS. 3.00 CRORE AND SA LES AND PURCHASES OF RS. 27.52 LACS AND RS. 58.00 LACS RESPECTIVELY AND A SUM OF RS.50,00,000 HAS BEEN SHOWN AS INVESTMENT IN THE NAME OF THE APPELLANT COMPANY. FUR THER, THE AD IN HIS REPORT DATED 27.08.2012 HAS ALSO NOT CONTROVERTED ANY OF THE ABOVE FACTS. IN THE ASSESSMENT ORDER PASSED UNDER SECTION 153A/143(3), I FIND THAT THERE IS NO ADVERSE FINDING BY THE AD ON THE BASIS OF WHICH THE AMOUNT RECEIVED FROM TON E FINANCIAL SERVICES (P) LTD. IS BEING CONSIDERED AS UNEXPLAINED CREDIT. THE AO IN THE ASSESSMENT ORDER HAS REFERRED TO THE ENQUIRIES CONDUCTED IN THE CASE OF A FEW COMPANIES BUT THE ASSESSMENT ORDER IS TOTALLY SILENT AS TO WHAT ENQUIRIES HAVE BEEN MADE ON THE STRENGTH OF WHICH HE CAME TO THE CONCLUSION THAT THE INVESTMENT MADE BY TONE FINANCIAL SERVICES (P) LTD. IS NOT A GENUINE TRANSACTION. ON THE CONTRARY, I FIND THAT THE APPELLANT HAS PLACE D EVIDENCES (PAPER BOOK PAGE 253) THAT THIS COMPANY HAS CONFIRMED TO ADIT REGARDING ITS INVESTMENT WITH THE APPELLANT COMPANY DURING THE POST SEARCH INVESTIGATION . AS THE APPELLANT COMPANY HAS EXPLAINED ITS SOURCE AS WELL AS THE SOURCE OF ITS SHAREHOLDER, THEREFORE, IN VIEW OF THE ABOVE DISCUSSION APPELLANT COMPANY HAS ESTABLISH ED THE IDENTITY, CREDITWORTHINESS AND GENUINENESS OF THE TRANSACTION. 9.9 UNIT COMMERCIAL P. LTD UNIT COMMERCIAL P. LTD UNIT COMMERCIAL P. LTD UNIT COMMERCIAL P. LTD. (RS. 20,00,000) . (RS. 20,00,000) . (RS. 20,00,000) . (RS. 20,00,000) ON GOING THROUGH THE PAPER BOOK I FIND THAT THE MONEY HAS BEEN RECEIVED FROM BANK ACCOUNT OF UNIT COMMERCIAL PVT. LTD. MAINTAINED WITH ORIENTAL BANK OF COMMERCE, DARYA GANJ, NEW DELHI AND THERE IS NO DEPO SIT IN CASH IN THIS BANK ACCOUNT BEFORE APPLYING FOR SHARE S IN THE APPELLANT COMPANY AND PAYMENT HAS BEEN MADE OUT OF THE MONEY RECEIVED BY THE SHAREHOLDER COMPANY FROM PRECIOUS COMMERCIAL PVT. LTD. IT IS ALSO SEEN THAT UNIT COMMERCIAL PVT. LTD. IS ASSESSED TO INCOME TAX AND SO IS THE CASE OF THE COMPANY FROM WHOM CREDIT HAS BEEN RECEIVED IN THEIR BANK ACC OUNT DURING THE YEAR UNDER CONSIDERATION. FURTHER, IN THE BALANCE SHEET OF TONE FINANCIAL SERVICES (P) LTD. TH AT THEY ITA-4980/D/2013 & C.O.-1/D/2014 16 HAVE SHOWS NET WORTH OF MORE THAN RS.26.4 CRORE AND SALES AND PURCHASES OF RS. 4.96 CRORES AND RS. 1.99 CRORES RESPECTIVELY AND A SUM OF RS.20,00,000 HAS BEEN SHOWN AS INVESTMENT IN THE NAME OF THE APPELLANT COMPANY. NO ADVERSE INFERENCE HAS BEEN DRAWN AGAINST THIS COMPANY IN THE ASSESSMENT ORDER. FURTHER, THE AO IN HIS REPORT DATED 27.08.2012 HAS ALSO NOT CONTROVERTED ANY OF THE ABOVE FACTS. IN THE ASSESSMENT ORDER PASSED UNDER SECTION 153A/143(3), I FIND THAT THERE IS NO ADVERSE FINDING BY THE AO ON THE BASIS OF WHICH THE AMOUNT RECEIVED FROM UNI T COMMERCIAL PVT. LTD. IS BEING CONSIDERED AS UNEXPLAINE D CREDIT. THE AO IN THE ASSESSMENT ORDER HAS REFERRED TO T HE ENQUIRIES CONDUCTED IN THE CASE OF A FEW COMPANIES BUT THE ASSESSMENT ORDER IS TOTALLY SILENT AS TO WHAT ENQUIRIE S HAVE BEEN MADE ON THE STRENGTH OF WHICH HE CAME TO T HE CONCLUSION THAT THE INVESTMENT MADE BY UNIT COMMERCIAL PVT.LTD. IS NOT A GENUINE TRANSACTION. AS THE APPELLANT COMPANY HAS EXPLAINED ITS SOURCE AS WELL AS THE SOURCE OF ITS SHAREHOLDER, THEREFORE, IN VIEW OF THE ABOVE DISCUSSION APPELLANT COMPANY HAS ESTABLISHED THE IDENTITY, CREDITWORTHINESS AND GENUINENESS OF THE TRANSACTION. 9.10 THUS IN ALL THE ABOVE 6 SHAREHOLDERS THE APPELL ANT HAS PLACED ON RECORD SUBSTANTIAL EVIDENCES TO PROVE THE IDENTITY, CREDITWORTHINESS AND GENUINENESS OF THE TRANSACTIONS. THE APPELLANT HAS NOT ONLY PROVED THE IDENTITY BUT HAS ALSO GONE TO THE EXTENT OF ESTABLISHING THE IDENTITY AS WELL AS AND CREDITWORTHINESS BUT HAVE EVEN GIVEN THE SOURCE OF IMMEDIATE CREDIT AS WELL AS THE SOURCE OF SUCH CREDI T IN THE HANDS OF THE SHAREHOLDER COMPANY. IT IS ALSO SEEN THAT NO ENQUIRY WAS CONDUCTED TO EXAMINE THE CONTENTS OF THE INFORMATION FILED BY THE APPELLANT BEFORE THE AO AT THE ASSESSMENT STAGE AND NO ADVERSE FINDING HAS BEEN REPORTED BY THE AO AS WELL IN THE REMAND REPORT STAGE EXCEPT THE GENERAL FINDINGS VIZ . THAT THE AMOUNTS ARE IN ROUND FIGURES, THE BOARD RESOLUTION HAS NOT BEEN FILED, ALL THE SHAREHOLDERS ARE TRADING IN UNLISTED COMPANIES ETC. ETC. IN MY VIEW, THE SE GENERAL REMARKS CANNOT BE THE SOLE CRITERIA FOR HOLDI NG THAT SHARE TRANSACTION IS NOT A GENUINE ONE. WHAT IS ITA-4980/D/2013 & C.O.-1/D/2014 17 IMPORTANT IS THE SOURCE OF CREDIT WHILE MAKING ADDI TION UNDER SECTION 68. HERE IS A CASE WHERE APPELLANT HAS GIVEN SUFFICIENT EVIDENCE TO EXPLAIN THE SOURCE AND FURTHER NO INQUIRIES HAVE BEEN CONDUCTED BY THE AO TO REBUT THE EVIDENCES FILED BY THE APPELLANT BOTH AT THE ASSESSMENT STAGE AS WELL AS AT THE REMAND REPORT STAGE. 16. WE HAVE ALSO EXAMINED THE FACTS RELATING TO ALL THE SIX COMPANIES WHO INVESTED IN THE SHARE CAPITAL OF THE ASSESSE E. WE FIND THAT THE ASSESSEE HAS PRODUCED THE COPY OF SHARE APPLIC ATION FORM SUBMITTED BY THOSE COMPANIES BEFORE THE ASSESSING OFFICER. COPY OF THE SHARE APPLICATION FORM SHOWS THE NAME AND ADDRESS OF THE COMPANY WHO APPLIED FOR SHARES, NUMBER OF SHARES APPL IED, AMOUNT, DATE AND CHEQUE NUMBER BY WHICH PAYMENT IS MADE, NAM E OF THE BANK ON WHICH CHEQUE WAS DRAWN AND THE PERMANENT ACCOUNT NUMBER OF THE COMPANY. NO DISCREPANCY IN ANY OF THESE DETAILS IS POI NTED OUT. 17. ALL THE SHAREHOLDER COMPANIES ARE ASSESSED TO INCOM E TAX AND THE ACKNOWLEDGEMENTS OF FILING OF THEIR INCOME TAX R ETURNS BY THOSE COMPANIES WERE FURNISHED. THAT THE BALANCE SHEET OF A LL THOSE COMPANIES WERE FURNISHED AND THE BALANCE SHEET SHOWS SUBST ANTIAL SHARE CAPITAL AND RESERVE OF THE RELEVANT COMPANIES. IT WOULD BE APPROPRIATE TO GIVE THE DETAILS OF THE SHARE CAPITAL AND RESERVE OF THE COMPANIES AND THE AMOUNT INVESTED BY THOSE COMPANIES IN THE SHARES OF THE ASSESSEE WHICH IS AS UNDER:- SL.NO. NAME OF THE COMPANY SHARE CAPITAL AND RESERVES & SURPLUS AMOUNT INVESTED WITH THE ASSESSEE COMPANY 1. M/S BEETAL PLANTATION P.LTD. 8,98,80,569 30,00,0 00 2. M/S INTEGRATOR CONSULTANTS P.LTD. 15,94,31,726 50,00,000 3. M/S PARGATI PORTFOLIO FOODS P.LTD. 11,01,42,376 70,00,000 ITA-4980/D/2013 & C.O.-1/D/2014 18 4. M/S PRAGATI FOODS P.LTD. 11,00,00,000 30,00,000 5. M/S TONE FINANCIAL SERVICES P.LTD. 3,00,00,000 50,00,000 6. M/S UNIT COMMERCIAL P.LTD. 26,39,99,900 20,00,00 0 18. FROM THE ABOVE, IT IS EVIDENT THAT THE SHARE CAPI TAL INCLUDING RESERVES AND SURPLUS OF ALL THE SIX COMPANIES WHO APPLIED IN THE SHARES OF THE ASSESSEE COMPANY IS SEVERAL TIMES MORE THAN THE IN VESTMENT MADE BY THEM IN THE SHARES OF THE ASSESSEE COMPANY. THE ASSESSEE HAS ALSO FURNISHED THE COPY OF THE ASSESSMENT ORDER PASSED U NDER SECTION 143(3) IN THE CASE OF FOUR COMPANIES, VIZ., M/S BEETAL PLANTATION P.LTD., M/S INTEGRATOR CONSULTANTS P.LTD. , M/S PRAGATI FOODS P.LTD. AND M/S UNIT COMMERCIAL P.LTD. THE ASSESSEE HAS P RODUCED CERTIFICATE OF INCORPORATION ISSUED BY THE REGISTRAR O F COMPANIES IN THE CASE OF ALL COMPANIES. COPY OF BANK ACCOUNT OF ALL T HE COMPANIES IS PRODUCED WHICH SHOWS THE AMOUNT DEBITED FOR ACQUIRING THE SHARES IN THE ASSESSEE COMPANY. ON THE BASIS OF ABOVE EVIDENCE, WE HAVE NO HESITATION TO HOLD THAT THE IDENTITY OF ALL THE SIX SH AREHOLDER COMPANIES IS DULY ESTABLISHED, ALL THE COMPANIES ARE REGISTERED WI TH THE REGISTRAR OF COMPANIES, THEY ARE ASSESSED TO INCOME TAX AND THEY H AVE ALSO RESPONDED IN RESPONSE TO THE SUMMONS ISSUED BY THE ASSESSING OFFICER. THEREFORE, IDENTITY OF THESE COMPANIES CANN OT BE DISPUTED. SO FAR AS CREDITWORTHINESS IS CONCERNED, WE FIND THAT THE SHARE CAPITAL AS WELL AS SHARE PREMIUM/RESERVE OF ALL THE COMPANIES IS SEV ERAL TIMES MORE THAN THE AMOUNT INVESTED BY THEM IN THE SHARE CA PITAL OF THE ASSESSEE COMPANY. ALL THE COMPANIES ARE ASSESSED TO INCOME TAX, THEREFORE, IN OUR OPINION, THE CREDITWORTHINESS OF TH ESE COMPANIES CANNOT BE DISPUTED. SO FAR AS GENUINENESS OF THE TRAN SACTION IS CONCERNED, WE FIND THAT THE AMOUNT HAS COME BY CHEQU E, THE ASSESSEE HAS FURNISHED THE COPY OF THE BANK ACCOUNT OF THE CO MPANY FROM WHERE THE CHEQUE WAS ISSUED, THE AMOUNT INVESTED IN THE SHARES OF THE ITA-4980/D/2013 & C.O.-1/D/2014 19 ASSESSEE COMPANY HAS BEEN DISCLOSED IN THE SCHEDULES OF INVE STMENT ATTACHED WITH THE BALANCE SHEET OF EACH COMPANY. EA CH COMPANY IS ASSESSED TO INCOME TAX AND THE SHARES WERE ALLOTTED TO EA CH COMPANY ON THE BASIS OF THE SHARE APPLICATION FORM. THEREFOR E, IN OUR OPINION, THE GENUINENESS OF THE TRANSACTION IS ALSO DULY ESTABLISH ED. THE ASSESSING OFFICER DOUBTED THE CREDITWORTHINESS OR THE GEN UINENESS OF THE TRANSACTION ON THE BASIS OF MERE PRESUMPTION AND SUSP ICION WITHOUT PROPERLY APPRECIATING THE EVIDENCES ON RECOR D. IN VIEW OF THE ABOVE, WE ENTIRELY AGREE WITH THE ABOVE FINDING OF THE LEARNED CIT(A). 19. BEFORE WE PART WITH THE MATTER, WE WOULD LIKE T O MENTION THAT THE LEARNED CIT(A) WHILE GIVING RELIEF HAS ALSO RELIE D UPON THE DECISION OF HONBLE APEX COURT IN THE CASE OF CIT, ORISSA VS. OR ISSA CORPORATION P.LTD. [1986] 159 ITR 78. THAT IN THE SAID CASE, IN THE ACCOUNTS OF THE ASSESSEE COMPANY, THERE WAS CREDIT IN THE NAME OF TH REE INDIVIDUALS. THE ASSESSEE PRODUCED BEFORE THE ASSESSING OFF ICER THE LETTER OF CONFIRMATION OF THE CREDITOR, THE DISCHARG ED HUNDIS AND GAVE THE INCOME TAX PARTICULARS OF THOSE CREDITORS. SINCE THE ASSESSEE WAS UNABLE TO PRODUCE THE CREDITORS BEFORE THE INCOME TA X OFFICER, ON THE ASSESSEES REQUEST, SUMMONS WERE ISSUED UNDER SECTION 131 OF THE INCOME-TAX ACT. HOWEVER, THE SUMMONS WERE RETURNED U NSERVED BY THE POSTAL AUTHORITIES WITH THE REMARK LEFT. THERE FORE, THE ASSESSING OFFICER MADE THE ADDITION OF ` 1,50,000/- FOR UNEXPLAINED CREDIT. ON APPEAL, THE TRIBUNAL DELETED THE ADDITION ON THE GR OUND THAT THE ASSESSEE HAD DISCHARGED THE ONUS TO PROVE THE CREDIT. TH E HONBLE HIGH COURT REJECTED THE APPLICATION OF THE DEPARTME NT FOR REFERENCE. ON APPEAL TO HON'BLE SUPREME COURT, THEIR LORDSHIPS H ELD AS UNDER:- THAT IN THIS CASE THE RESPONDENT HAD GIVEN THE NAMES AND ADDRESSES OF THE ALLEGED CREDITORS. IT WAS IN THE KNOWL EDGE OF THE REVENUE THAT THE SAID CREDITORS WERE INCOME-TA X ASSESSEES. THEIR INDEX NUMBERS WERE IN THE FILE OF THE ITA-4980/D/2013 & C.O.-1/D/2014 20 REVENUE. THE REVENUE, APART FROM ISSUING NOTICES UND ER SECTION 131 AT THE INSTANCE OF THE RESPONDENT, DID NOT PURSUE THE MATTER FURTHER. THE REVENUE DID NOT EXAM INE THE SOURCE OF INCOME OF THE SAID ALLEGED CREDITORS TO FIND OUT WHETHER THEY WERE CREDITWORTHY. THERE WAS NO EF FORT MADE TO PURSUE THE SO-CALLED ALLEGED CREDITORS. IN TH OSE CIRCUMSTANCES, THE RESPONDENT COULD NOT DO ANYTHING FURTHER. IN THE PREMISES, IF THE TRIBUNAL CAME TO TH E CONCLUSION THAT THE RESPONDENT HAD DISCHARGED THE BURD EN THAT LAY ON IT, THEN IT COULD NOT BE SAID THAT SUCH A CONCLUSION WAS UNREASONABLE OR PERVERSE OR BASED ON NO EVIDENCE. IF THE CONCLUSION WAS BASED ON SOME EVIDENCE ON WHICH A CONCLUSION COULD BE ARRIVED AT, NO QUESTIO N OF LAW AS SUCH AROSE. THE HIGH COURT WAS RIGHT IN REFUSIN G TO STATE A CASE. 20. THAT THE FACTS OF THE ASSESSEES CASE ARE MUCH BETTER THAN THE FACTS IN THE CASE OF ORISSA CORPORATION P.LTD. (SUPRA). IN THE AFORESAID CASE, THE SUMMONS ISSUED UNDER SECTION 131 TO THE CREDIT OR WERE RETURNED UNSERVED BY THE POSTAL AUTHORITIES WITH THE R EMARK LEFT. WHILE, IN THE CASE OF THE ASSESSEE, SUMMONS ISSUED BY THE ASSE SSING OFFICER TO THE SHAREHOLDER COMPANIES WERE DULY SERVED UPON THEM AND THE SHAREHOLDER COMPANIES RESPONDED TO THE ASSESSING OFFIC ER BY AFFIRMING THE INVESTMENT MADE BY THEM IN THE SHARES OF THE ASSESSEE COMPANY AND ALSO PRODUCED THE NECESSARY EVIDENCE IN SUP PORT OF SUCH INVESTMENT. THE ASSESSEE HAS PRODUCED COPY OF ACKNOWLED GEMENT OF FILING OF INCOME TAX RETURNS BY ALL THE COMPANIES, CO PY OF THEIR BANK ACCOUNTS IN WHICH AMOUNT PAID TO THE ASSESSEE IS DEBITED, THEIR BALANCE SHEET WHICH SHOWS SUBSTANTIAL SHARE CAPITAL, AN D IN THE SCHEDULE FORMING PART OF THE BALANCE SHEET, THE INVEST MENT MADE IN THE SHARES OF THE ASSESSEE COMPANY WAS DULY DISCLOSED. NONE OF THESE EVIDENCES WAS REBUTTED BY THE REVENUE. IN VIEW OF TH E ABOVE, WE ARE OF THE OPINION THAT THE ABOVE DECISION OF HONBLE AP EX COURT WOULD CERTAINLY SUPPORT THE CASE OF THE ASSESSEE. NO CONTRARY DECISION IS BROUGHT TO OUR KNOWLEDGE. IN VIEW OF THE ABOVE, WE , RESPECTFULLY RELYING UPON THE ABOVE DECISION OF HONBLE APEX COUR T AS WELL AS THE ITA-4980/D/2013 & C.O.-1/D/2014 21 FACTS OF THE ASSESSEES CASE AS DISCUSSED EARLIER, FIND NO JUS TIFICATION TO INTERFERE WITH THE ORDER OF LEARNED CIT(A). THE SAM E IS SUSTAINED AND REVENUES APPEAL IS DISMISSED. CROSS CROSS CROSS CROSS- -- -OBJECTION NO.1/DEL/2014 : OBJECTION NO.1/DEL/2014 : OBJECTION NO.1/DEL/2014 : OBJECTION NO.1/DEL/2014 :- -- - 21. IN THE CROSS-OBJECTION, THE ASSESSEE HAS RAISED THE FO LLOWING GROUNDS:- 1. ON THE FACTS AND CIRCUMSTANCES OF THE CASE, LD. COMMISSIONER OF INCOME TAX (APPEALS) [CIT(A)] HAS ERRED BOTH ON FACTS & IN LAW IN REJECTING THE CONTENTION O F THE ASSESSEE THAT THE PROCEEDINGS INITIATED UNDER SECTION 15 3A AND ORDER PASSED BY THE LEARNED ASSESSING OFFICER (AO) UNDER SECTION 153A/143(3) IS WITHOUT JURISDICTION. 2. ON THE FACTS AND CIRCUMSTANCES OF THE CASE, LD. COMMISSIONER OF INCOME TAX (APPEALS) [CIT(A)] HAS ERRED BOTH ON FACTS & IN LAW IN REJECTING THE CONTENTION O F THE ASSESSEE THAT THE ORDER PASSED BY THE LEARNED AO UNDER SECTION 153A IS BAD AND LIABLE TO BE QUASHED AS THE SAM E HAS BEEN FRAMED CONSEQUENT TO A SEARCH WHICH ITSELF WAS UNLAWFUL AND INVALID IN THE EYE OF LAW. 3. ON THE FACTS AND CIRCUMSTANCES OF THE CASE, LD. COMMISSIONER OF INCOME TAX (APPEALS) [CIT(A)] HAS ERRED BOTH ON FACTS & IN LAW IN REJECTING THE CONTENTION O F THE ASSESSEE THAT THE PROCEEDINGS INITIATED UNDER SECTION 15 3A ARE BAD IN LAW IN THE ABSENCE OF ANY INCRIMINATING M ATERIAL BELONGING TO THE ASSESSEE BEING FOUND DURING THE COURSE OF THE SEARCH. 4. ON THE FACTS AND CIRCUMSTANCES OF THE CASE THE LEARNED CIT(A) HAS ERRED BOTH ON FACTS & IN LAW IN G OING AHEAD WITH THE REASSESSMENT ORDER AND NOT CLOSING THE REASSESSMENT PROCEEDINGS, DESPITE THE FACT THAT NO INCRIMINATING MATERIAL BELONGING TO THE ASSESSEE WAS FOU ND AND HAS BEEN SUBJECT MATTER OF ADDITION IN ANY OF TH E REASSESSMENT UNDER SECTION 153A FOR ALL THE SIX YEARS. 5. ON THE FACTS AND CIRCUMSTANCES OF THE CASE THE LEARNED CIT(A) HAS ERRED BOTH ON FACTS & IN LAW IN IG NORING THE FACT THAT THE ADDITION OF RS.2,50,00,000/- MADE BY THE ITA-4980/D/2013 & C.O.-1/D/2014 22 AO ARE OTHERWISE UNTENABLE SINCE THE SAME IS NOT ARISING FROM THE ANY INCRIMINATING MATERIAL SEIZED DURING TH E COURSE OF SEARCH AND REASSESSMENT UNDER SECTION 153A/153A CONSEQUENT TO SEARCH IS TO BE CONFINED ONLY TO THE INCRIMINATING MATERIAL BELONGING TO THE ASSESSEE FO UND DURING THE COURSE OF THE SEARCH. 6. THE RESPONDENT CRAVES LEAVE TO ADD, AMEND OR ALTER ANY OF THE GROUNDS OF CROSS OBJECTIONS. 22. HOWEVER, WE FIND THAT IN THE ASSESSMENT ORDER PASSED UNDER SECTION 143(3) AGAINST WHICH THESE PROCEEDINGS HAVE EM ANATED, THE ONLY ADDITION MADE WAS WITH REGARD TO THE SHARE CAPIT AL AND SHARE PREMIUM AMOUNTING TO ` 2.50 CRORES. SUCH ADDITION WAS DELETED BY THE CIT(A) AND HIS ORDER IS UPHELD BY US BY DISMISSING REVENU ES APPEAL. THEREFORE, BY THE CROSS-OBJECTION, THE ASSESSEE IS NOT SE EKING ANY FURTHER RELIEF. ACCORDINGLY, THE CROSS-OBJECTION IS R ENDERED INFRUCTUOUS. WE, THEREFORE, TREAT THE CROSS-OBJECTION AS INFRUCTUO US AND REJECT AS SUCH. 23. IN THE RESULT, THE APPEAL OF THE REVENUE AS WELL AS THE CROSS- OBJECTION OF THE ASSESSEE IS DISMISSED. DECISION PRONOUNCED IN THE OPEN COURT ON 25 TH JULY, 2014. SD/- SD/- ( (( (H.S. SIDHU H.S. SIDHU H.S. SIDHU H.S. SIDHU) )) ) (G.D. AGRAWAL (G.D. AGRAWAL (G.D. AGRAWAL (G.D. AGRAWAL) )) ) JUDICIAL MEMBER JUDICIAL MEMBER JUDICIAL MEMBER JUDICIAL MEMBER VICE PRESIDENT VICE PRESIDENT VICE PRESIDENT VICE PRESIDENT DATED : 25.07.2014 VK. ITA-4980/D/2013 & C.O.-1/D/2014 23 COPY FORWARDED TO: - 1. APPELLANT : ASSISTANT COMMISSIONER OF INCOME TAX, ASSISTANT COMMISSIONER OF INCOME TAX, ASSISTANT COMMISSIONER OF INCOME TAX, ASSISTANT COMMISSIONER OF INCOME TAX, CENTRAL CIRCLE CENTRAL CIRCLE CENTRAL CIRCLE CENTRAL CIRCLE- -- -17, 17, 17, 17, NEW DELHI. NEW DELHI. NEW DELHI. NEW DELHI. 2. RESPONDENT : M/S BAHUBALI DYES LIMITED, M/S BAHUBALI DYES LIMITED, M/S BAHUBALI DYES LIMITED, M/S BAHUBALI DYES LIMITED, B BB B- -- -82, DEFENCE COLONY, 82, DEFENCE COLONY, 82, DEFENCE COLONY, 82, DEFENCE COLONY, NEW DELHI. NEW DELHI. NEW DELHI. NEW DELHI. 3. CIT 4. CIT(A) 5. DR, ITAT ASSISTANT REGISTRAR