M/s Shree Hariyog Builders Pvt. Ltd, V. Assistant Commissioner Of Income Tax,

CO 55/JAB/2013

• Counselvise Citation: [2019] 117 COUNSELVISE.COM (IT) 1126 (ITAT-JABALPUR)
• Duration Of Justice: 5 year(s) 9 month(s) 4 day(s)
• Appeal Type: Income Tax (Search & Seizure) Appeal
• Pronouncement Date: 28-05-2019
• Appeal Filed By: Assessee
• Bench Allotted: DB
• Assessment Year: 2008-2009
• Appeal Filed On: 23-08-2013
• Court: TRIBUNAL
• Department Lawyers: V B SARGOR
• Assessee Lawyers: SUNIL NEMA ADVS
• Keywords: Unexplained cash credit; Bogus Share capital; Question of law
• Section: 133(6); 68

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL, JABALPUR BENCH, JABALPUR BEFORE SHRI D.T. GARASIA, J.M. AND SHRI B.C.MEENA, A.M. I.T(S.S.).A.NOS.61, 62 & 63/JAB/2013 A.YS. : 2006-07, 2008-09 & 2009-10 ACIT, CIRCLE SATNA VS M/S. SHREE HARIYOG BUILDERS PVT.LTD., SIRMOUR CHOURAHA, REWA APPELLANT RESPONDENT PAN NO. : AAECP3665M C.O. NOS.54, 55 & 56/JAB/2013 (ARISING OUT OF I.T(S.S.).A.NOS. 61, 62 & 63/JAB/20 13 A.YS. : 2006-07, 2008-09 & 2009-10 M/S.SHREE HARIYOG BUILDERS PVT.LTD., SIRMOUR CHOURAHA, REWA VS ACIT, CIRCLE SATNA CROSS OBJECTOR RESPONDENT -: 2: - 2 DEPARTMENT BY : SHRI V.B.SARGOR, DR ASSESSEE BY : SHRI K.P.DEWANI AND SHRI SUNIL NEMA, ADVS. DATE OF HEARING : 28.05.2015 DATE OF PRONOUNCEMENT : 25 .06.2015 O R D E R PER BENCH THESE THREE APPEALS OF THE REVENUE AND CROSS OBJECT IONS OF THE ASSESSEE ARE DIRECTED AGAINST THE SEPARATE O RDERS OF THE CIT-28, MUMBAI, ALL DATED 22.05.2015 AND RELATE TO ASSESSMENT YEARS 2006-07, 2008-09 & 2009-10. FOR TH E SAKE OF CONVENIENCE, WE ARE DISPOSING OF ALL THESE APPEA LS AND CROSS OBJECTIONS BY THIS COMMON ORDER. I.T.(SS).A.NO. 61/JAB/2013 : 2. THE ONLY GROUND TAKEN BY THE REVENUE IS THAT ON THE FACTS AND IN THE CIRCUMSTANCES OF THE CASE, THE LD. CIT(A) ERRED IN FACTS AND IN LAW IN DELETING THE ADDITION OF RS. 30,00,000/- -: 3: - 3 MADE BY THE ASSESSING OFFICER ON ACCOUNT OF UNEXPLA INED SHARE APPLICATION MONEY U/S 68 OF THE INCOME-TAX AC T, 1961. 3. THE ASSESSEE COMPANY IS WORKING AS BUILDER AND DEVELOPER. THE ASSESSEE HAS FILED SHARE APPLICATION AND SHARE CAPITAL ACCOUNT. THE ASSESSEE COMPANY HAS RECEIVED SHARE APPLICATION MONEY FROM THE FOLLOWING KOLKATA BASED SHAREHOLDERS :- S.NO. NAME AND ADDRESS OF THE SHAREHOLDER NO. OF SHARES AMOUNT RS. 1. BAKSHIRAM UDERAM HOLDINGS (P) LIMITED, 26, RAMLAL MUKHERJEE LANE, SALIKA, HOWRAH 700 001 10000 10,00,000 2. D.S.CONSULTANCY PVT.LTD. 40/4, STRAND ROAD, KOLKATA 10000 10,00,000 3. KHAITAN UNITED SALES PVT.LTD., 5/1, CLIVE ROW, 2 ND BLOCK, ROOM NO. 63, KOLKATA 700 007 10000 10,00,000 TOTAL 20000 30,00,000/ - -: 4: - 4 4. THE ASSESSEE COMPANY HAS FILED DETAILS OF SHAREHOLD ERS TO PROVE THE IDENTITY, CREDITWORTHINESS AND GENUINE NESS OF THE SHARE INVESTMENT MADE BY HIM. THE AO HAS TREATED TH E SHARE APPLICATION FROM UNDISCLOSED RECEIPTS ON THE GROUND THAT THESE COMPANIES ARE KOLKATA BASED COMPANIES AND AS PER TH E ASSESSMENT ORDER IN SUBSEQUENT YEARS, THE AO HAS AL LOWED. HOWEVER, THE REASONS RECORDED FOR ASSESSMENT YEAR 2 010-11, THE SHARE APPLICATION WAS TREATED AS UNEXPLAINED AN D SAME WAS ASSESSED TO THE INCOME TAX. 5. THE MATTER CARRIED TO LD. CIT(A). THE LD. CIT(A) DE LETED THE ADDITION OBSERVING AS UNDER :- 12. I HAVE CONSIDERED THE FACTS OF THE CASE. THE AO IN PARA-6 OF HIS ASSESSMENT ORDER HAS VERY CLEARLY MENTIONED THAT THE ASSESSEE HAD SUBMITTED DETAILS OF SHARE APPLICATION MONEY INCOME TAX RETURNS, BALANCE SHEET, BANK ACCOUNT AND CONFIRMATIONS FROM SUCH PARTIES TO PROVE THE IDENTITY AND THEIR CREDITWORTHINESS, AS ALSO THE GENUINENESS OF TRANSACTION. FURTHER, HE OBSERVED THAT HE IS ADDING THIS -: 5: - 5 AMOUNT IN VIEW OF HIS ASSESSMENT ORDER IN THE CASE OF THE ASSESSEE, FOR AY 2010-11. 12.1 THE AO IN THE ASSESSMENT ORDER FOR ASSTT. YEAR 2010-11 HAS OBSERVED THAT PHYSICAL EXISTENCE OF SHARE APPLICANTS IS NOT ESTABLISHED. HOWEVER, THIS DOES NOT APPEAR TO BE CORRECT. THE APPELLANT HAS SUBMITTED DETAILS OF PAN OF EACH AND EVERY SHARE HOLDERS AND ACKNOWLEDGEMENT OF INCOME TAX RETURN CLEARLY INDICATING THE DETAIL OF WARD/CIRCLE WHETHER SHARE APPLICANT IS ASSESSED TO INCOME TAX WHICH IS PACED IN PAPER BOOK. IT IS SEEN THAT ALL THE SHARE APPLICANTS ARE ASSESSED TO INCOME TAX AND ARE MAKING REGULAR COMPLIANCE UNDER THE PROVISIONS OF I.T. ACT 1961. ON THE FACE OF ABOVE UNDISPUTED FACTUAL POSITION THE PHYSICAL EXISTENCE OF SHARE APPLICANTS CANNOT BE QUESTIONED. IN VIEW OF ABOVE, THE OBSERVATION OF AO THAT SHARE APPLIANCE HAS NO -: 6: - 6 PHYSICAL EXISTENCE OR CONTRIBUTION OF SHARE CAPITAL IS MERELY ACCOMMODATION ENTRY IS UNJUSTIFIED. IN FACT THIS ISSUE HAS BEEN EXAMINED BY THE A.O., AGAIN DURING THE REMAND PROCEEDINGS AND HAS SUBMITTED A DETAILED REPORT VIDE LETTER DATED 12.04.2013 WHICH IS REPRODUCED IN THE FOREGOING PARAGRAPHS, AND NO DOUBTS HAS BEEN RAISED BY A.O. ABOUT THE GENUINENESS OF THE ABOVE PERSONS OR ABOUT THE GENUINENESS OF THE TRANSACTIONS. 13. THE ASSESSEE IN THIS REGARD HAS PLACED RELIANCE IN THE CASE OF LOVELY EXPORTS PVT.LTD. IN WHICH THE HON'BLE APEX COURT HAS HELD AS UNDER:- IF THE SHARE APPLICATION MONEY IS RECEIVED BY THE ASSESSEE COMPANY FROM ALLEGED BOGUS SHAREHOLDERS, WHOSE NAMES ARE GIVEN TO THE ASSESSING OFFICER, THEN THE DEPARTMENT CAN ALWAYS PROCEED AGAINST -: 7: - 7 THEM AND IF NECESSARY REOPEN THEIR INDIVIDUAL ASSESSMENTS. 13.1 FURTHER IN CASE OF CREATIVE WORLD TELEFILMS LTD. BOMBAY HIGH COURT HELD AS UNDER :- 'IN THE CASE IN HAND, IT IS NOT DISPUTED THAT THE ASSESSEE HAD GIVEN THE DETAILS OF NAME AND ADDRESS OF THE SHAREHOLDER, THEIR PAN/ GIR NUMBER AND HAD ALSO GIVEN THE CHEQUE NUMBER, NAME OF THE BANK. IT WAS EXPECTED ON THE PART OF THE ASSESSING OFFICER TO MAKE PROPER INVESTIGATION AND REACH THE SHAREHOLDERS. THE ASSESSING OFFICER DID NOTHING EXCEPT ISSUING SUMMONS WHICH WERE ULTIMATELY RETURNED BACK WITH AN ENDORSEMENT 'NOT TRACEABLE'. IN OUR CONSIDERED VIEW, THE ASSESSING OFFICER OUGHT TO HAVE FOUND OUT THEIR DETAILS THROUGH PAN CARDS, BANK ACCOUNT DETAILS -: 8: - 8 OR FROM THEIR BANKERS SO AS TO REACH THE SHAREHOLDERS SINCE ALL THE RELEVANT MATERIAL DETAILS AND PARTICULARS WERE GIVEN BY THE ASSESSEE TO THE ASSESSING OFFICER. IN THE ABOVE CIRCUMSTANCES, THE VIEW TAKEN BY THE TRIBUNAL CANNOT BE FAULTED. NO SUBSTANTIAL QUESTION OF LAW IS INVOLVED IN THE APPEAL. IN THE RESULT, THE APPEAL IS DISMISSED IN LIMINI WITH NO ORDER AS TO COSTS' 14. THE ASSESSEE ALSO RELIED UPON THE JUDGMENT OF HON'BLE DELHI HIGH COURT IN THE CASE OF CIT VS DERBY OVERSEAS P. LTD AND CIT VS M/S NATRAJ ALBUM INDUSTRIES PVT. LTD., AS ALSO OTHER JUDGMENT AS UNDER:- CIT VS. J.J.JINDAL INFIN PVT.LTD., CIT VS. DWARKADHISH INVESTMENT PVT.LTD. DCIT VS. J.H. FINVEST PVT. LTD. ACIT VS. BARKHA SYNTHETICS LIMITED -: 9: - 9 ANU INDUSTRIES LIMITED VS. ACIT, CIT VS. INDOCON FINANCE & INVESTMENT LIMITED CIT VS. VALUE CAPITAL SERVICES PVT.LTD. CIT VS. GOA SPONGE & POWER LIMITED 15. I HAVE CONSIDERED THE FACTS OF THE CASE. THE SHARE CAPITAL OF RS. 30,00,000/- HAS BEEN INVESTED BY THE 4 COMPANIES, AS PER DETAILS AS UNDER :- S.NO. NAME ADDRESS PAN AMOUNT MODE OF PAYMENT 1. BAKSHIRAM UDERAM HOLDIGNS PVT.LTD. 26, RAMLAL MUKHERJEE LANE, SALKIA, HOWRAH AABCB0881C 1000000 CHEQUE 2. D.S.CONSULTANCY & HOLDINGS PVT.LTD. P-26, CIT ROAD, SCHEME VIM, KOLKATA AAACD9397A 1000000 CHEQUE 3. KHAITAN UNITED SALES PVT.LTD. 5/1, CLIVE ROW, 2 ND FLOOR, R.NO. 63, KOLKATA AACCK7369K 1000000 CHEQUE THEREFORE, IT CAN BE SAID THAT THE COMPANIES ARE ASSESSED TO TAX, HAVE DEFINITE ADDRESS AND PAYMENT HAS BEEN GIVEN THROUGH CHEQUE. 16. THE HON'BLE APEX COURT IN THE CASE OF CIT VS LOVELY EXPORTS HAS HELD THAT -: 10: - 10 ONCE THE NAME OF SHARE HOLDERS ARE PROVIDED TO AO IT CANNOT BE REGARDED AS UNDISCLOSED INCOME UNDISCLOSED INCOME OF THE APPELLANT. THE RATIO AS LAID DOWN HAS BEEN FOLLOWED BY HON'BLE DELHI HIGH COURT IN THE CASE OF DWARKADISH INVESTMENT PVT. LTD. IN ITS JUDGMENT DATED 2 ND AUGUST 2010. IN THE AFORESAID JUDGMENT OF HON'BLE DELHI HIGH COURT IT HAS BEEN HELD THAT DECISION RENDERED BY APEX COURT IN THE CASE OF LOVELY EXPORTS IS A BINDING PRECEDENT AND APPELLANT HAVING ESTABLISHED IDENTITY OF SHAREHOLDERS NO ADDITION IN RESPECT TO SHARE CAPITAL CAN BE MADE AT THE HANDS OF COMPANY. IN THE CASE OF APPELLANT COMPANY IDENTITY, GENUINENESS AND CREDITWORTHINESS OF SHARE HOLDERS HAVING BEEN ESTABLISHED NO ADDITION IN RESPECT TO SHARE CAPITAL CONTRIBUTION CAN BE MADE BY AO AND IS SUSTAINABLE IN THE LIGHT -: 11: - 11 OF DECISION OF HON'BLE APEX COURT IN THE CASE OF LOVELY EXPORTS PVT. LTD. 17. IN VIEW OF THE ABOVE FACTS, I AM OF THE OPINION THAT IDENTITY, CREDITWORTHINESS AND GENUINENESS OF TRANSACTION STAND SATISFACTORILY EXPLAINED BY APPELLANT AND THERE IS NO JUSTIFICATION FOR MAKING ANY ADDITION IN THE CASE OF APPELLANT ON ACCOUNT OF SHARE CAPITAL CONTRIBUTION AS UNEXPLAINED CASH CREDIT. IN VIEW OF THE ABOVE DISCUSSION AND RESPECTFULLY FOLLOWING THE JUDGMENT OF HON'BLE SUPREME COURT IN THE CASE OF LOVELY EXPORTS PVT. LTD., AND THAT OF HON'BLE DELHI HIGH COURT IN THE CASE OF DWARKADISH INVESTMENTS PVT. LTD., AND VALUE CAPITAL SERVICES PVT. LTD., ADDITION OF RS. 30,00,000/- MADE AS UNEXPLAINED SHARE CAPITAL/SHARE APPLICATION MONEY IS ORDERED TO BE DELETED. THEREFORE, THE GROUND NO.2 -: 12: - 12 AND GROUND NO. 3 OF THE ASSESSEE ARE ALLOWED. 6. WE HAVE HEARD THE RIVAL CONTENTIONS OF BOTH THE PAR TIES. LOOKING TO THE FACTS AND CIRCUMSTANCES OF THE CASE, WE FIND THAT THE LD. CIT(A) HAS CALLED FOR THE REMAND REPOR T, THE ASSESSEE ESTABLISHED THE IDENTITY, GENUINENESS AND CREDITWORTHINESS OF SHAREHOLDERS AND SHARE CAPITAL WAS FULLY EXPLAINED. THEREFORE, THE LD. CIT(A) HAS DELETED TH E ADDITION. WE FIND THAT THE LD. CIT(A) HAS ALSO, HELD THAT THE ASSESSMENT ORDER IS FRAMED U/S 153C OF THE INCOME-TAX ACT, 196 1. THIS IS A SEARCH CASE, WHEREIN NO INCRIMINATING DOCUMENTS W ERE FOUND AGAINST THE ASSESSEE. THEREFORE, THE LD. CIT( A) HAS DELETED THE ADDITION ON ACCOUNT OF SECTION 143 READ WITH SECTION 153-C. THE LD. CIT(A) HAS ALSO HELD THAT TH E AO HAS NOT BROUGHT ANY EVIDENCE ON RECORD TO SHOW THAT FOR CONTRIBUTION OF SHARE MONEY HAD BEEN FLOWN FROM THE ASSESSEE COMPANY. THE ASSESSEES TAX HAS BEEN COMPUTED AS PE R BOOKS OF ACCOUNT IN RESPECT OF ACTIVITIES OF BUSINESS AND NO DEFECT OR MISTAKE HAS BEEN POINTED OUT IN THE BOOKS OF ACCOUN T OF THE -: 13: - 13 ASSESSEE. THERE WAS NO EVIDENCE TO SHOW THAT THE AS SESSEE HAD ANY OTHER INCOME EXCEPT SHOWN IN THE BOOKS OF A CCOUNT FROM HIS BUSINESS. BEFORE THE LD. CIT(A), THE SHARE CONTRIBUTION WAS ALSO DISCLOSED IN THE COMPANY IN HIS REGULAR RE TURN OF INCOME. THEREFORE, THE LD. CIT(A) HAS DELETED THE A DDITION. 7. DURING THE COURSE OF HEARING OF THE APPEAL, THE LD. SENIOR D.R. COULD NOT POINT OUT ANY INCRIMINATING M ATERIAL AGAINST THE FINDING OF THE LD. CIT(A). THEREFORE, W E DO NOT HAVE ANY ALTERNATIVE EXCEPT TO ENDORSE THE ACTION OF THE LD. CIT(A). 8. IN THE RESULT, THE DEPARTMENTAL APPEAL IS DISMISSED . 9. C.O.NO. 54/JAB/2013 FILED BY THE ASSESSEE IS MEREL Y IN SUPPORT OF THE APPEAL. THE CROSS OBJECTION IS DISMI SSED AS IT IS SUPPORTIVE TO ORDER. 10. IN THE RESULT, THE APPEAL OF THE REVENUE IS DISMISS ED AND CROSS OBJECTION IS ALSO DISMISSED. I.T.(SS).A.NO. 62/JAB/2013 : 11. IN THIS APPEAL, THE ASSESSEE COMPANY HAS SHOWN 8500 0 EQUITY SHARES TO FOUR KOLKATA BASED SHAREHOLDERS, N AMELY, DIMENSION HOLDINGS PVT. LTD. RS. 17,00,000/-, (II) GINNY TRADERS PVT.LTD. RS. 7,00,000/-, (III) MAANRAJ PVT. LTD. RS. -: 14: - 14 25,00,000/- AND (IV) MANUBHAWAN DISTRIBUTORS PVT.LT D. RS. 36,00,000/-, THE TOTAL VALUE BEING AT RS 85,00,000/ - EQUITY SHARES. THE ASSESSEE COMPANY HAS FILED DETAILS REGA RDING THE SHAREHOLDERS AND COPIES OF CONFIRMATIONS FROM THEM TO PROVE THE IDENTITY OF THE SAID PERSONS/SHAREHOLDERS, THEI R CREDITWORTHINESS AND GENUINENESS OF THE TRANSACTION S. THE AO HAS RELIED UPON THE DISCUSSION FOR ASSESSMENT YEAR 2010-11 AND ENTIRE SAID SHARE APPLICATION MONEY OF RS. 85,0 0,000/- FROM FOUR PERSONS WAS TREATED AS UNEXPLAINED. 12. THE MATTER CARRIED TO LD. CIT(A). THE LD. CIT(A) AL LOWED THE APPEAL BY OBSERVING AS UNDER :- 12. I HAVE CONSIDERED THE FACTS OF THE CASE. THE AO IN PARA-6 OF HIS ASSESSMENT ORDER HAS VERY CLEARLY MENTIONED THAT THE ASSESSEE HAD SUBMITTED DETAILS OF SHARE APPLICATION MONEY AND CONFIRMATIONS FROM SUCH PARTIES TO PROVE THE IDENTITY AND THEIR CREDITWORTHINESS, AS ALSO THE GENUINENESS OF TRANSACTION. FURTHER, HE OBSERVED THAT HE IS ADDING THIS AMOUNT IN VIEW OF HIS ASSESSMENT ORDER IN THE CASE OF THE -: 15: - 15 ASSESSEE, FOR AY 2010-11. 12.1 THE AO IN THE ASSESSMENT ORDER FOR ASSTT. YEAR 2010-11 HAS OBSERVED THAT PHYSICAL EXISTENCE OF SHARE APPLICANTS IS NOT ESTABLISHED. HOWEVER, THIS DOES NOT APPEAR TO BE CORRECT. THE APPELLANT HAS SUBMITTED DETAILS OF PAN OF EACH AND EVERY SHARE HOLDERS AND ACKNOWLEDGEMENT OF INCOME TAX RETURN CLEARLY INDICATING THE DETAIL OF WARD/CIRCLE WHETHER SHARE APPLICANT IS ASSESSED TO INCOME TAX WHICH IS PACED IN PAPER BOOK. IT IS SEEN THAT ALL THE SHARE APPLICANTS ARE ASSESSED TO INCOME TAX AND ARE MAKING REGULAR COMPLIANCE UNDER THE PROVISIONS OF I.T. ACT 1961. ON THE FACE OF ABOVE UNDISPUTED FACTUAL POSITION THE PHYSICAL EXISTENCE OF SHARE APPLICANTS CANNOT BE QUESTIONED. IN VIEW OF ABOVE, THE OBSERVATION OF AO THAT SHARE APPLIANCE HAS NO PHYSICAL EXISTENCE OR CONTRIBUTION OF SHARE -: 16: - 16 CAPITAL IS MERELY ACCOMMODATION ENTRY IS UNJUSTIFIED. IN FACT THIS ISSUE HAS BEEN EXAMINED BY THE A.O., AGAIN DURING THE REMAND PROCEEDINGS AND HAS SUBMITTED A DETAILED REPORT VIDE LETTER DATED 12.04.2013 WHICH IS REPRODUCED IN THE FOREGOING PARAGRAPHS, AND NO DOUBTS HAS BEEN RAISED BY A.O. ABOUT THE GENUINENESS OF THE ABOVE PERSONS OR ABOUT THE GENUINENESS OF THE TRANSACTIONS. THE ASSESSEE IN THIS REGARD HAS PLACED RELIANCE IN THE CASE OF LOVELY EXPORTS PVT.LTD. IN WHICH THE HON'BLE APEX COURT HAS HELD AS UNDER:- IF THE SHARE APPLICATION MONEY IS RECEIVED BY THE ASSESSEE COMPANY FROM ALLEGED BOGUS SHAREHOLDERS, WHOSE NAMES ARE GIVEN TO THE ASSESSING OFFICER, THEN THE DEPARTMENT CAN ALWAYS PROCEED AGAINST THEM AND IF NECESSARY REOPEN THEIR -: 17: - 17 INDIVIDUAL ASSESSMENTS. FURTHER IN CASE OF CREATIVE WORLD TELEFILMS LIMITED, THE BOMBAY HIGH COURT HAS HELD AS UNDER :- 'IN THE CASE IN HAND, IT IS NOT DISPUTED THAT THE ASSESSEE HAD GIVEN THE DETAILS OF NAME AND ADDRESS OF THE SHAREHOLDER, THEIR PAN/ GIR NUMBER AND HAD ALSO GIVEN THE CHEQUE NUMBER, NAME OF THE BANK. IT WAS EXPECTED ON THE PART OF THE ASSESSING OFFICER TO MAKE PROPER INVESTIGATION AND REACH THE SHAREHOLDERS. THE ASSESSING OFFICER DID NOTHING EXCEPT ISSUING SUMMONS WHICH WERE ULTIMATELY RETURNED BACK WITH AN ENDORSEMENT 'NOT TRACEABLE'. IN OUR CONSIDERED VIEW, THE ASSESSING OFFICER OUGHT TO HAVE FOUND OUT THEIR DETAILS THROUGH PAN CARDS, BANK ACCOUNT DETAILS OR FROM THEIR BANKERS SO AS TO REACH THE SHAREHOLDERS SINCE ALL THE RELEVANT MATERIAL DETAILS AND -: 18: - 18 PARTICULARS WERE GIVEN BY THE ASSESSEE TO THE ASSESSING OFFICER. IN THE ABOVE CIRCUMSTANCES, THE VIEW TAKEN BY THE TRIBUNAL CANNOT BE FAULTED. NO SUBSTANTIAL QUESTION OF LAW IS INVOLVED IN THE APPEAL. IN THE RESULT, THE APPEAL IS DISMISSED IN LIMINI WITH NO ORDER AS TO COSTS' THE ASSESSEE ALSO RELIED UPON THE JUDGMENT OF HON'BLE DELHI HIGH COURT IN THE CASE OF CIT VS DERBY OVERSEAS P. LTD AND CIT VS M/S NATRAJ ALBUM INDUSTRIES PVT. LTD., AS ALSO OTHER JUDGMENT AS UNDER:- CIT VS. J.J.JINDAL INFIN PVT.LTD., CIT VS. DWARKADHISH INVESTMENT PVT.LTD. DCIT VS. J.H. FINVEST PVT. LTD. ACIT VS. BARKHA SYNTHETICS LIMITED ANU INDUSTRIES LIMITED VS. ACIT, CIT VS. INDOCON FINANCE & INVESTMENT LIMITED -: 19: - 19 CIT VS. VALUE CAPITAL SERVICES PVT.LTD. CIT VS. GOA SPONGE & POWER LIMITED 13. I HAVE CONSIDERED THE FACTS OF THE CASE. THE SHARE CAPITAL OF RS. 85,00,000/- HAS BEEN INVESTED BY THE 4 COMPANIES, AS PER DETAILS AS .UNDER :- S.NO. NAME ADDRESS PAN AMOUNT MODE OF PAYMENT 1. DIMENSION HOLDING PVT.LTD. 3, DIGAMBER JAIN TEMPLE ROAD, 1 ST FLOOR, R.NO. 53, KOLKATA- 700 007 AABCD280IL 1700000 CHEQUE 2. GINNY TRADERS PVT..LTD. 1, CROOKED LANE, GROUND FLOOR, ROOM NO. G-2, KOLKATA 700 069 AABCG1532B 70000 CHEQUE 3. MAANRAJ MERCHANTS PVT.LTD. 71, BIPALABI RASH BIHARI BOSE ROAD, 5 TH FLOOR, BLOCK-B, R.NO.504, KOLKATA 700001 AABCM6873H 2500000 CHEQUE 4. MANUBHAWAN DISTRIBUTORS PVT.LTD. 7, GANESH CHANDRA AVENUE, KOLKATA-700 013 AABCM7038 3600000 CHEQUE THEREFORE, IT CAN BE SAID THAT THE COMPANIES ARE ASSESSED TO TAX, HAVE DEFINITE ADDRESS AND PAYMENT HAS BEEN GIVEN THROUGH CHEQUE. 14. THE HON'BLE APEX COURT IN THE CASE -: 20: - 20 OF CIT VS LOVELY EXPORTS HAS HELD THAT ONCE THE NAME OF SHARE HOLDERS ARE PROVIDED TO AO IT CANNOT BE REGARDED AS UNDISCLOSED INCOME UNDISCLOSED INCOME OF THE APPELLANT. THE RATIO AS LAID DOWN HAS BEEN FOLLOWED BY HON'BLE DELHI HIGH COURT IN THE CASE OF DWARKADISH INVESTMENT PVT. LTD. IN ITS JUDGMENT DATED 2 ND AUGUST 2010. IN THE AFORESAID JUDGMENT OF HON'BLE DELHI HIGH COURT IT HAS BEEN HELD THAT DECISION RENDERED BY APEX COURT IN THE CASE OF LOVELY EXPORTS IS A BINDING PRECEDENT AND APPELLANT HAVING ESTABLISHED IDENTITY OF SHAREHOLDERS NO ADDITION IN RESPECT TO SHARE CAPITAL CAN BE MADE AT THE HANDS OF COMPANY. IN THE CASE OF APPELLANT COMPANY IDENTITY, GENUINENESS AND CREDITWORTHINESS OF SHARE HOLDERS HAVING BEEN ESTABLISHED NO ADDITION IN RESPECT TO SHARE CAPITAL CONTRIBUTION CAN BE -: 21: - 21 MADE BY AO AND IS SUSTAINABLE IN THE LIGHT OF DECISION OF HON'BLE APEX COURT IN THE CASE OF LOVELY EXPORTS PVT. LTD. 15. IN VIEW OF THE ABOVE FACTS, I AM OF THE OPINION THAT IDENTITY, CREDITWORTHINESS AND GENUINENESS OF TRANSACTION STAND SATISFACTORILY EXPLAINED BY APPELLANT AND THERE IS NO JUSTIFICATION FOR MAKING ANY ADDITION IN THE CASE OF APPELLANT ON ACCOUNT OF SHARE CAPITAL CONTRIBUTION AS UNEXPLAINED CASH CREDIT. IN VIEW OF THE ABOVE DISCUSSION AND RESPECTFULLY FOLLOWING THE JUDGMENT OF HON'BLE SUPREME COURT IN THE CASE OF LOVELY EXPORTS PVT. LTD., AND THAT OF HON'BLE DELHI HIGH COURT IN THE CASE OF DWARKADISH INVESTMENTS PVT. LTD., AND VALUE CAPITAL SERVICES PVT. LTD., ADDITION OF RS. 85,00,000/- MADE AS UNEXPLAINED SHARE CAPITAL/SHARE APPLICATION MONEY IS ORDERED TO BE DELETED. THEREFORE, THE GROUND NO.2 -: 22: - 22 AND GROUND NO. 3 OF THE ASSESSEE ARE ALLOWED. 13. WE HAVE HEARD THE RIVAL CONTENTIONS OF BOTH THE PAR TIES. WE FIND THAT THE LD. CIT(A) HAS HELD THAT AS PER A SSESSMENT YEAR 2010-11, THE PHYSICAL EXISTENCE OF SHARE APPLI CATION IS NOT ESTABLISHED. HOWEVER, THIS FACT DOES NOT APPEAR TO BE CORRECT. THE ASSESSEE FILED THE DETAILS OF PAN OF EACH AND EVERY SHAREHOLDER AND ACKNOWLEDGEMENT OF INCOME TAX RETURNS CLEARLY INDICATING THE WARD AND CIRCLE WHERE APPLIC ANTS ARE ASSESSED TO INCOME TAX. AL THE APPLICANTS ARE ASSES SED TO INCOME TAX AND THEY ARE MAKING THE REGULAR COMPLIAN CE OF PROVISIONS OF INCOME TAX. DURING THE REMAND PROCEED INGS, THE ASSESSEE HAS EXPLAINED AS TO HOW THE SHARE APPLICAT IONS WERE RECEIVED BY THE ASSESSEE AND THE LD. CIT(A) RELYING UPON THE DECISION OF LOVELY EXPORTS OF HON'BLE SUPREME COURT , HAS DELETED THE ADDITION. THE LD. CIT(A) HAS CONSIDERED ALL THESE FOUR APPLICANTS IN PARA 15 OF HIS ORDER, WHICH CLEA RLY ESTABLISH THAT THESE COMPANIES ARE ASSESSED TO TAX AND THEIR DEFINITE ADDRESS AND THEIR PAYMENTS HAVE BEEN HAVE BEEN GIVE N -: 23: - 23 THROUGH CHEQUES. THE DETAILS OF ALL THE FOUR APPLIC ANTS AS DETAILED IN CIT(A)S ORDER IN PARA 15 READ AS UNDER :- S.NO. NAME ADDRESS PAN AMOUNT MODE OF PAYMENT 1. DIMENSION HOLDING PVT.LTD. 3, DIGAMBER JAIN TEMPLE ROAD, 1 ST FLOOR, R.NO. 53, KOLKATA- 700 007 AABCD280IL 1700000 CHEQUE 2. GINNY TRADERS PVT..LTD. 1, CROOKED LANE, GROUND FLOOR, ROOM NO. G-2, KOLKATA 700 069 AABCG1532B 70000 CHEQUE 3. MAANRAJ MERCHANTS PVT.LTD. 71, BIPALABI RASH BIHARI BOSE ROAD, 5 TH FLOOR, BLOCK-B, R.NO.504, KOLKATA 700001 AABCM6873H 2500000 CHEQUE 4. MANUBHAWAN DISTRIBUTORS PVT.LTD. 7, GANESH CHANDRA AVENUE, KOLKATA-700 013 AABCM7038 3600000 CHEQUE 14. DURING THE COURSE OF HEARING, THE LD. D.R. COULD NO T BRING ANY CONTRARY MATERIAL AGAINST THE FINDING OF CIT(A). THEREFORE, WE HAVE NO ALTERNATIVE EXCEPT TO ENDORSE THE ACTION OF THE LD. CIT(A). 15. IN THE RESULT, THE DEPARTMENTAL APPEAL IS DISMISSED . 16. C.O.NO. 55/JAB/2013 FILED BY THE ASSESSEE IS MEREL Y IN SUPPORT OF THE APPEAL. THE CROSS OBJECTION IS DISMI SSED AS IT IS SUPPORTIVE TO ORDER. -: 24: - 24 17. IN THE RESULT, THE APPEAL OF THE REVENUE IS DISMISS ED AND CROSS OBJECTION IS ALSO DISMISSED. I.T.(SS).A.NO. 63/JAB/2013 : 18. THE SHORT FACTS OF THE CASE ARE THAT THE ASSESSEE C OMPANY HAS RECEIVED SHARE APPLICATION OF 7,50,000 EQUITY S HARES OF RS. 100/- EACH VALUED AT RS. 7,50,00,000/- OUT OF WHICH 6,50,610/- EQUITY SHARES OF RS. 100 ARE FULLY PAID UP AND THE TOTAL SHARE CAPITAL COMES TO RS. 7,22,61,000/- AS A GAINST RS. 6,58,61,000/- OF LAST YEAR WITH AN INCREASE OF SHAR E CAPITAL OF RS. 72,00,000/- WHICH IS INCLUSIVE OF SHARE APPLICA TION MONEY RECEIVED LAST YEAR AT RS. 8,00,000/- FROM MAANRAJ M ERCHANTS PVT.LTD., KOLKATA. THE DETAILS OF THE SHARE APPLICA TION MONEY WHICH ARE SHOWN IN PARA 5 OF THE ASSESSMENT ORDER I S REPRODUCED AS UNDER :- S.NO. NAME OF THE SHAREHOLDER AND ADDRESS PAN DATE OF APPLICATION NO. OF SHARE AMOUNT 1. ANNEELA VINIMAL PVT.LTD., 32, ACR AVENUE, KOLKATA 700012 AACCA2542E 07.12.2008 6000 6,00,000 2. MAANRAJ MERCHANTS PVT.LTD., 71, BIPLABI RASH BIHARI BOSE ROAD, 5 TH FLOOR BLOCK, B, ROOM NO.504, KOLKATA AABCM6873H 07.12.2008 8000 8,00,000 3. MANUBHAWAN DISTRIBUTORS PVT.LTD., 27, BRABOURNE ROAD, 3 RD FLOOR, ROOM NO. 305, KOLKATA AABCM7038G 07.12.2008 11000 11,00,000 4. RIGHT CHOICE TRADE LINK LIMITED, AADCR3655G 07.12.2008 6000 6,00,000 -: 25: - 25 132/1, M. R. ROAD, 4 TH FLOOR, ROOM NO. 305, KOLKATA 700 001 5. SUBH LABH TIE UP PVT.LTD., 27, BRABOURNE ROAD, 3 RD FLOOR, ROOM NO.305, KOLKATA 700 001 AALCS2109J 07.12.2008 15000 15,00,000 6. SURAKSHA DEALCOM PVT.LTD., 45, COLLEGE STREET, STREET NO.11, 1 ST FLOOR, KOLKATA AALCS9722 P 07.12.2008 26000 26,00,000 19. DURING THE COURSE OF ASSESSMENT PROCEEDINGS, THE ASSESSEE COMPANY WAS SPECIFICALLY REQUIRED TO FURNI SH COMPLETE DETAILS OF THE SHAREHOLDERS ADDRESSES, PA N NUMBER, WARD, COPIES OF ACKNOWLEDGEMENTS AND RETURNS, BANK STATEMENTS ETC. THE ASSESSEE COMPANY ALONGWITH THE WRITTEN REPLY FILED THE COPIES OF LETTERS FORWARDING INFORM ATION U/S 133(6) FOR ABOVE SAID COMPANIES. THE COPIES OF BALA NCE SHEET, COPIES OF BANK STATEMENTS HAVE BEEN FILED, BUT MOST OF THE PARTIES ARE NOT TRACEABLE, THEREFORE, FOR THE REASO NS TAKEN FOR ASSESSMENT YEAR 2010-11, THE ENTIRE CAPITAL OF RS. 64 LAKHS OF THE KOLKATA BASED COMPANIES WAS TREATED AS UNEXPLAI NED. 20. THE MATTER CARRIED TO LD. CIT(A) AND THE LD. CIT(A) ALLOWED THE APPEAL OF THE ASSESSEE BY OBSERVING AS UNDER :- -: 26: - 26 12. I HAVE CONSIDERED THE FACTS OF THE CASE. THE AO IN PARA-6 OF HIS ASSESSMENT ORDER HAS VERY CLEARLY MENTIONED THAT THE ASSESSEE HAD SUBMITTED DETAILS OF SHARE APPLICATION MONEY AND CONFIRMATIONS FROM SUCH PARTIES TO PROVE THE IDENTITY AND THEIR CREDITWORTHINESS, AS ALSO THE GENUINENESS OF TRANSACTION. FURTHER, HE OBSERVED THAT HE IS ADDING THIS AMOUNT IN VIEW OF HIS ASSESSMENT ORDER IN THE CASE OF THE ASSESSEE, FOR AY 2010-11. 12.1 THE AO IN THE ASSESSMENT ORDER FOR ASSTT. YEAR 2010-11 HAS OBSERVED THAT PHYSICAL EXISTENCE OF SHARE APPLICANTS IS NOT ESTABLISHED. HOWEVER, THIS DOES NOT APPEAR TO BE CORRECT. THE APPELLANT HAS SUBMITTED DETAILS OF PAN OF EACH AND EVERY SHARE HOLDERS AND ACKNOWLEDGEMENT OF INCOME TAX RETURN CLEARLY INDICATING THE DETAIL OF WARD/CIRCLE WHETHER SHARE APPLICANT IS ASSESSED TO INCOME TAX WHICH IS PACED IN -: 27: - 27 PAPER BOOK. IT IS SEEN THAT ALL THE SHARE APPLICANTS ARE ASSESSED TO INCOME TAX AND ARE MAKING REGULAR COMPLIANCE UNDER THE PROVISIONS OF I.T. ACT 1961. ON THE FACE OF ABOVE UNDISPUTED FACTUAL POSITION THE PHYSICAL EXISTENCE OF SHARE APPLICANTS CANNOT BE QUESTIONED. IN VIEW OF ABOVE, THE OBSERVATION OF AO THAT SHARE APPLIANCE HAS NO PHYSICAL EXISTENCE OR CONTRIBUTION OF SHARE CAPITAL IS MERELY ACCOMMODATION ENTRY IS UNJUSTIFIED. IN FACT THIS ISSUE HAS BEEN EXAMINED BY THE A.O., AGAIN DURING THE REMAND PROCEEDINGS AND HAS SUBMITTED A DETAILED REPORT VIDE LETTER DATED 12.04.2013 WHICH IS REPRODUCED IN THE FOREGOING PARAGRAPHS, AND NO DOUBTS HAS BEEN RAISED BY A.O. ABOUT THE GENUINENESS OF THE ABOVE PERSONS OR ABOUT THE GENUINENESS OF THE TRANSACTIONS. 13. THE ASSESSEE IN THIS REGARD HAS PLACED -: 28: - 28 RELIANCE IN THE CASE OF LOVELY EXPORTS PVT.LTD. IN WHICH THE HON'BLE APEX COURT HAS HELD AS UNDER:- IF THE SHARE APPLICATION MONEY IS RECEIVED BY THE ASSESSEE COMPANY FROM ALLEGED BOGUS SHAREHOLDERS, WHOSE NAMES ARE GIVEN TO THE ASSESSING OFFICER, THEN THE DEPARTMENT CAN ALWAYS PROCEED AGAINST THEM AND IF NECESSARY REOPEN THEIR INDIVIDUAL ASSESSMENTS. 13.1 FURTHER IN CASE OF CREATIVE WORLD TELEFILMS LIMITED, THE BOMBAY HIGH COURT HAS HELD AS UNDER :- 'IN THE CASE IN HAND, IT IS NOT DISPUTED THAT THE ASSESSEE HAD GIVEN THE DETAILS OF NAME AND ADDRESS OF THE SHAREHOLDER, THEIR PAN/ GIR NUMBER AND HAD ALSO GIVEN THE CHEQUE NUMBER, NAME OF THE BANK. IT WAS EXPECTED ON THE PART OF THE ASSESSING OFFICER TO MAKE -: 29: - 29 PROPER INVESTIGATION AND REACH THE SHAREHOLDERS. THE ASSESSING OFFICER DID NOTHING EXCEPT ISSUING SUMMONS WHICH WERE ULTIMATELY RETURNED BACK WITH AN ENDORSEMENT 'NOT TRACEABLE'. IN OUR CONSIDERED VIEW, THE ASSESSING OFFICER OUGHT TO HAVE FOUND OUT THEIR DETAILS THROUGH PAN CARDS, BANK ACCOUNT DETAILS OR FROM THEIR BANKERS SO AS TO REACH THE SHAREHOLDERS SINCE ALL THE RELEVANT MATERIAL DETAILS AND PARTICULARS WERE GIVEN BY THE ASSESSEE TO THE ASSESSING OFFICER. IN THE ABOVE CIRCUMSTANCES, THE VIEW TAKEN BY THE TRIBUNAL CANNOT BE FAULTED. NO SUBSTANTIAL QUESTION OF LAW IS INVOLVED IN THE APPEAL. IN THE RESULT, THE APPEAL IS DISMISSED IN LIMINI WITH NO ORDER AS TO COSTS' 14. THE ASSESSEE ALSO RELIED UPON THE JUDGMENT OF HON'BLE DELHI HIGH COURT IN THE CASE OF CIT VS DERBY OVERSEAS P. LTD AND CIT VS -: 30: - 30 M/S NATRAJ ALBUM INDUSTRIES PVT. LTD., AS ALSO OTHER JUDGMENT AS UNDER:- CIT VS. J.J.JINDAL INFIN PVT.LTD., CIT VS. DWARKADHISH INVESTMENT PVT.LTD. DCIT VS. J.H. FINVEST PVT. LTD. ACIT VS. BARKHA SYNTHETICS LIMITED ANU INDUSTRIES LIMITED VS. ACIT, CIT VS. INDOCON FINANCE & INVESTMENT LIMITED CIT VS. VALUE CAPITAL SERVICES PVT.LTD. CIT VS. GOA SPONGE & POWER LIMITED 15. I HAVE CONSIDERED THE FACTS OF THE CASE. THE SHARE CAPITAL OF RS. 64,00,000/- HAS BEEN INVESTED BY THE 4 COMPANIES, AS PER DETAILS AS UNDER :- S.NO. NAME ADDRESS PAN AMOUNT MODE OF PAYMENT 1. MANUBHAWAN DISTRIBUTORS PVT.LTD., 7, GANESH CHANDRA AVENUE, KOLKATA AABCM7038G 11,00,000 CHEQUE 2. RIGHT CHOICE TRADE LINK LIMITED, 9, LAL BAZAR STREE, 3 RD FLOOR, BLOCK- A, KOLKATA AADCR3655G 6,00,000 CHEQUE 3. SUBH LABH TIE UP PVT.LTD. 9, LAL BAZAR STREE, 3 RD AALCS2109J 15,00,000 CHEQUE -: 31: - 31 FLOOR, BLOCK- A, KOLKATA 4. SURAKSHA DEALCOM PVT.LTD. 113B, MANOHAR DAS STREET, SHOP NO. 250, 1 ST FLOOR, KOLKATA AALCS9722P 26,00,000 CHEUQE 5. ANNLEELA VINIMAY PVT.LTD. 32A, C. R. AVENUE, KOLKATA AACCA2542E 6,00,000 CHEUQE THEREFORE, IT CAN BE SAID THAT THE COMPANIES ARE ASSESSED TO TAX, HAVE DEFINITE ADDRESS AND PAYMENT HAS BEEN GIVEN THROUGH CHEQUE. 16. THE HON'BLE APEX COURT IN THE CASE OF CIT VS LOVELY EXPORTS HAS HELD THAT ONCE THE NAME OF SHARE HOLDERS ARE PROVIDED TO AO IT CANNOT BE REGARDED AS UNDISCLOSED INCOME UNDISCLOSED INCOME OF THE APPELLANT. THE RATIO AS LAID DOWN HAS BEEN FOLLOWED BY HON'BLE DELHI HIGH COURT IN THE CASE OF DWARKADISH INVESTMENT PVT. LTD. IN ITS JUDGMENT DATED 2 ND AUGUST 2010. IN THE AFORESAID JUDGMENT OF HON'BLE DELHI HIGH COURT IT HAS BEEN HELD THAT DECISION RENDERED BY APEX COURT IN THE CASE OF LOVELY EXPORTS IS A -: 32: - 32 BINDING PRECEDENT AND APPELLANT HAVING ESTABLISHED IDENTITY OF SHAREHOLDERS NO ADDITION IN RESPECT TO SHARE CAPITAL CAN BE MADE AT THE HANDS OF COMPANY. IN THE CASE OF APPELLANT COMPANY IDENTITY, GENUINENESS AND CREDITWORTHINESS OF SHARE HOLDERS HAVING BEEN ESTABLISHED NO ADDITION IN RESPECT TO SHARE CAPITAL CONTRIBUTION CAN BE MADE BY AO AND IS SUSTAINABLE IN THE LIGHT OF DECISION OF HON'BLE APEX COURT IN THE CASE OF LOVELY EXPORTS PVT. LTD. 17. IN VIEW OF THE ABOVE FACTS, I AM OF THE OPINION THAT IDENTITY, CREDITWORTHINESS AND GENUINENESS OF TRANSACTION STAND SATISFACTORILY EXPLAINED BY APPELLANT AND THERE IS NO JUSTIFICATION FOR MAKING ANY ADDITION IN THE CASE OF APPELLANT ON ACCOUNT OF SHARE CAPITAL CONTRIBUTION AS UNEXPLAINED CASH CREDIT. IN VIEW OF THE ABOVE DISCUSSION AND RESPECTFULLY FOLLOWING THE JUDGMENT OF -: 33: - 33 HON'BLE SUPREME COURT IN THE CASE OF LOVELY EXPORTS PVT. LTD., AND THAT OF HON'BLE DELHI HIGH COURT IN THE CASE OF DWARKADISH INVESTMENTS PVT. LTD., AND VALUE CAPITAL SERVICES PVT. LTD., ADDITION OF RS. 64,00,000/- MADE AS UNEXPLAINED SHARE CAPITAL/SHARE APPLICATION MONEY IS ORDERED TO BE DELETED. THEREFORE, THE GROUND NO.2 AND GROUND NO. 3 OF THE ASSESSEE ARE ALLOWED. 21. WE HAVE HEARD THE RIVAL CONTENTIONS OF BOTH THE PARTIES. LOOKING TO THE FACTS AND CIRCUMSTANCES OF THE CASE, WE FIND THAT THE AO HAS MADE THE ADDITION ON THE GR OUND THAT THE SHAREHOLDERS ARE NOT IN EXISTENCE. BEFORE THE C IT(A), THE ASSESSEE HAS ESTABLISHED THE IDENTITY, GENUINENESS AND CREDITWORTHINESS OF THE SHAREHOLDERS AND SHARE CAPI TAL WAS FULLY EXPLAINED AND THE LD. CIT(A) HAS DELETED. DUR ING THE COURSE OF SEARCH, NO INCRIMINATING DOCUMENT WAS FOU ND IN THE HANDS OF THE ASSESSEE. THE ASSESSEE HAS RECEIVED TH E SHARE -: 34: - 34 CAPITAL THROUGH BANKING CHANNEL, IDENTITY OF THE SH AREHOLDERS ARE ESTABLISHED. THE SHAREHOLDERS ARE ASSESSED TO T AX AND THEY HAVE SUBMITTED THE RETURN OF INCOME WITH THE INCOME TAX DEPARTMENT. THE ASSESSEE HAS PRODUCED ALL THE EVIDE NCE BEFORE US BY WAY OF PAPER BOOK AND IN THE PAPER BOO K, THE ASSESSEE HAS SUBMITTED ALL THE DETAILS LIKE REPLY O F NOTICE U/S 133(6), ACKNOWLEDGEMENT OF RETURNS FOR ASSESSMENT Y EAR 2009- 10, AUDITED BALANCE SHEET, COPY OF BANK STATEMENTS, COPY OF COMPANIES MUSTER DETAILS, SHARE CAPITAL, RESERVES A ND SURPLUS AND REPLY TO NOTICE U/S 133(6) IN RESPECT OF M/S . MANUBHAWAN DISTRIBUTORS PVT.LTD., RIGHT CHOICE TRADELINK PRIVA TE LIMITED, SUBH LABH TIEUP PVT.LTD., SURAKSHA DEALCOM PVT.LTD . AND ANNLEELA VINIMAY PVT.LIMITED. ALL THE DETAILS HAV E BEEN FILED AND IT WAS VERIFIED BY THE LD. CIT(A) AND LD. CIT(A ) HAS DELETED THIS ADDITION. 22. DURING THE COURSE OF HEARING OF THE APPEAL, THE LD. DR COULD NOT BRING ANY CONTRARY MATERIAL BEFORE US TO DEVIATE THE DECISION OF LD. CIT(A). THEREFORE, WE ENDORSE THE A CTION OF THE LD. CIT(A) AND DEPARTMENTAL APPEAL IS DISMISSED. -: 35: - 35 23. C.O.NO. 56/JAB/2013 FILED BY THE ASSESSEE IS MERE LY IN SUPPORT OF THE APPEAL. THE CROSS OBJECTION IS DI SMISSED AS IT IS SUPPORTIVE TO ORDER. 24. IN THE RESULT, THE APPEAL OF THE REVENUE IS DISMISS ED AND CROSS OBJECTION IS ALSO DISMISSED. THIS ORDER IS PRONOUNCED IN ACCORDANCE WITH RULE 34(4) OF I.T.A.T. RULES, BY PUTTING THE COPY OF THE SAME ON NOTICE BOARD ON 25 TH JUNE, 2015. SD/- (B. C. MEENA) ACCOUNTANT MEMBER SD/- ( D.T.GARASIA) JUDICIAL MEMBER DATED : 25 TH JUNE, 2015. CPU* 16246