M/s Brahmaputra Finlease (P) Ltd., New Delhi V. DCIT, New Delhi

ITA 3333/DEL/2017

• Counselvise Citation: [2020] 111 COUNSELVISE.COM (IT) 8667 (ITAT-DELHI)
• Duration Of Justice: 2 year(s) 7 month(s) 19 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 15-01-2020
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: A
• Assessment Year: 2009-2010
• Appeal Filed On: 26-05-2017
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: SANJAY GOYAL
• Keywords: Share purchase agreement; Revenue expenditure
• Section: 143(3); 133(6); 251; 192; 48; 72; 13; 131; 68

Judgement Text

1 IN THE INCOME TAX APPELLATE TRIBUNAL, DELHI A BEN CH, NEW DELHI BEFORE SHRI BHAVNESH SAINI, JUDICIAL MEMBER, AND SHRI N.K. BILLAIYA, ACCOUNTANT MEMBER ITA NO. 3333/DEL/2017 [ASSESSMENT YEAR: 2009-10] & ITA NO. 3334/DEL/2017 [ASSESSMENT YEAR: 2010-11] M/S BRAHMAPUTRA FINLEASE PVT. LTD VS. THE DY. C.I.T. BRAHMAPUTRA HOUSE, A- 17, NH - 8 CENTRAL CIRCLE - 17 MAHIPALPUR CROSSING, MAHIPALPUR NEW DELHI NEW DELHI PAN: AAACK 3691 G [APPELLANT] [RESPONDENT] DATE OF HEARING : 09.01.2020 DATE OF PRONOUNCEMENT : 15.01.20 20 ASSESSEE BY : SHRI GAUTAM JAIN, ADV SHRI PIYUSH K. KAMAL, ADV REVENUE BY : SHRI SANJAY GOYAL, CIT-DR ORDER PER N.K. BILLAIYA, ACCOUNTANT MEMBER, THE ABOVE TWO CAPTIONED APPEALS BY THE ASSESSEE ARE PREFERRED AGAINST TWO SEPARATE ORDERS OF THE COMMISSIONER OF INCOME TAX 2 [APPEALS] - 35, NEW DELHI DATED 27.03.2017 PERTAINI NG TO ASSESSMENT YEARS 2009-10 AND 10-11. 2. THE QUARREL IS IN RESPECT OF ADDITIONS MADE U/S 68 OF THE INCOME TAX ACT, 1961 [HEREINAFTER REFERRED TO AS 'THE ACT' FOR SHORT] AMOUNTING TO RS. 2.30 CRORES IN A.Y 2009-10 AND RS. 5.15 CROR ES IN A.Y 2010-11 IN RESPECT OF SUMS RECEIVED FROM THE SHAREHOLDERS AS S HARE CAPITAL AND SHARE PREMIUM. 3. SINCE IT WAS AGREED UPON BY THE REPRESENTATIVES OF BOTH THE SIDES THAT THE UNDERLYING FACTS AND ISSUES IN AYS. 2009-1 0 AND 2010-11 ARE IDENTICAL, REPRESENTATIVES OF BOTH THE SIDES WERE H EARD AT LENGTH ON THE FACTS OF ITA NO. 3333/DEL/2017 FOR A.Y 2009-10 AND ON SUCH CONCESSION, WE HAVE CONSIDERED THE FACTS IN A.Y 200 9-10. 4. HAVING HEARD THE REPRESENTATIVES OF BOTH THE SID ES AT LENGTH, THE CASE RECORDS WERE CAREFULLY PERUSED AND WITH THE AS SISTANCE OF THE LD. COUNSEL, WE HAVE CONSIDERED THE RELEVANT MATERIAL E VIDENCES BROUGHT ON RECORD IN THE FORM OF PAPER BOOK IN LIGHT OF RUL E 18(6) OF ITAT RULES, 1962. 3 5. DURING THE COURSE OF SCRUTINY ASSESSMENT PROCEED INGS, FROM THE DETAILS SUBMITTED BY THE ASSESSEE AND MATERIAL AVAI LABLE WITH THE DEPARTMENT, THE ASSESSING OFFICER FOUND THAT DURING F.Y. 2008-09, THE ASSESSEE HAS RAISED SHARE CAPITAL MONEY TO THE TUNE OF RS. 2.30 CRORES AS FOLLOWS: SL. NO . NAME AND ADDRESS OF THE COMPANY NO. OF SHARES NOMINAL VALUE OF SHARE (RS.) PREMIUM PAID PER SHARE (RS.) DATED OF ALLOTMENT 1. M/S TOPLINE FINVEST PVT. LTD., 2, LAL BAZAR STREET, 107C, TODI CHAMBER, 1 ST FLOOR, KOLKATA-700 001 25,000L 2,50,000 (RS. 10 PER SHARE) 47,50,000 (RS. 190 PER SHARE) 30.03.2009 2. M/S SPARDAN VANIJYA PVT. LTD., 9/12, LAI BAZAR STREET, BLOCK E-, 4 ND FLOOR, KOLKATA - 700 001 25,000 2,50,000 (RS. 10 PER SHARE) 47,50,000 (RS. 190 PER SHARE) 30.03.2009 3. M/S MIDNIGHT AGENCIES PVT. LTD., 1, RAJ BALLAB SAHA LANE, HOWARH -711101 25,000 2,50,000 (RS. 10 PER SHARE) 47,50,000 (RS. 190 PER SHARE) 30.03.2009 4. M/S KOKILA EXPORTS PVT. LTD., 9/12, LAI BAZAR STREET, BLOCK E-, 2 ND FLOOR, KOLKATA-700 001 15,000 1,50,000 (RS 10 PER SHARE) 28,50,000 (RS. 190 PER SHARE) 30.03.2009 5. M/S BASUKINATH VANIJYA PVT. LTD., 9/12, LAI BAZAR STREET, BLOCK E-, 4 ND FLOOR, KOLKATA - 700 001 25,000 2,50,000 (RS. 10 PER SHARE) 47,50,000 (RS. 190 PER SHARE) 30.03.2009 6. ACCORDINGLY, A QUESTIONNAIRE DATED 31.08.2012 WA S ISSUED AND THE ASSESSEE WAS CONFRONTED WITH THE RESULT OF INVESTIG ATION MADE BY THE DEPARTMENT IN RESPECT OF SHARE CAPITAL. 4 7. IN RESPONSE TO THE AFOREMENTIONED QUESTIONNAIRE, THE ASSESSEE FILED CONFIRMATIONS, BANK STATEMENTS, COPIES OF ITR S, BALANCE SHEETS ETC. OF THE INVESTOR COMPANIES. 8. THE ASSESSING OFFICER EXAMINED THESE DOCUMENTS B UT WAS NOT SATISFIED IN AS MUCH AS THE ASSESSEE HAS FILED COPI ES OF THESE COMPANIES LEDGER ACCOUNTS APPEARING IN THE BOOKS O F THE ASSESSEE COMPANY DULY CONFIRMED BY THEM WHEREAS CONFIRMATION S WERE REQUIRED ON THE LEDGER ACCOUNT OF THE ASSESSEE IN THE BOOKS OF THE INVESTOR COMPANIES. 9. THE ASSESSING OFFICER FURTHER ANALYSED THE RETUR NED INCOME OF THE INVESTOR COMPANIES AND FOUND THAT THE RETURNED INCOMES WERE NEGLIGIBLE TO JUSTIFY THE AMOUNT PAID BY THEM TOWAR DS PURCHASE OF SHARES IN THE APPELLANT COMPANY. 10. A FINAL SHOW CAUSE NOTICE DATED 31.01.2013 WAS SERVED UPON THE ASSESSEE ONCE AGAIN ASKING THE ASSESSEE TO JUSTIFY THE PAYMENT TOWARDS SHARES PURCHASED BY THE FIVE COMPANIES MENTIONED EL SEWHERE. THE DETAILED QUESTIONNAIRE IS EXTRACTED BY THE ASSESSIN G OFFICER IN THE BODY OF THE ASSESSMENT ORDER. 5 11. THE ASSESSING OFFICER FURTHER FOUND THAT SHRI SAMPAT SHARMA HAS GIVEN A STATEMENT ON OATH ON 28.09.2010 AND THE ASS ESSING OFFICER WAS OF THE FIRM BELIEF THAT IN HIS STATEMENT, SHRI SHAR MA HAD CATEGORICALLY ADMITTED THAT HE WAS NOT AWARE WHEN THE SHARES WERE PURCHASED BY THE COMPANIES. THE ASSESSING OFFICER FURTHER FOUND THAT SHRI SHARMA HAD ADMITTED THAT HE WAS ONLY A DUMMY DIRECTOR AND KNEW NOTHING ABOUT THE SHARE TRANSACTIONS. 12. DURING THE COURSE OF ASSESSMENT PROCEEDINGS, TH E ASSESSING OFFICER SENT A LETTER TO THE ADIT, INV, UNIT III(3) , KOLKATA REQUESTING HIM TO SEND REPORT TO ENABLE THE ASSESSING OFFICER TO COMPLETE THE ASSESSMENT. IN ITS REPORT, THE INV WING STATED THA T MOST OF THE COMPANIES WERE FOUND TO BE NON-EXISTENT, THEREFORE, FURTHER INVESTIGATION DID NOT BRING ANY ADDITIONAL RESULT A ND STATUS OF THE REPORT REMAINS THE SAME. THE REPORT FURTHER STATED THAT THESE COMPANIES ARE JAMAKHARCHI COMPANIES OF KOLKATA, HAV ING NO REAL BUSINESS AND FORMED FOR THE PURPOSE OF PROVIDING AC COMMODATION ENTRY IN THE FORM OF SHARE CAPITAL AND UNSECURED LOANS MO STLY. 6 13. IN THE LIGHT OF THE AFORESTATED NOTINGS/OBSERVA TIONS, THE ASSESSING OFFICER MADE AN ADDITION OF RS. 2.30 CRORES IN A.Y 2009-10 AND RS. 5.15 IN A.Y 2010-11. 14. THE FINDINGS OF THE ASSESSING OFFICER CAN BE SU MMARISED AS UNDER: I) NOTICES U/S 133(6) WERE NOT SERVED. II) CONFIRMATIONS OF ALL THE PARTIES WERE NOT RECE IVED. III) COMPANIES WERE ASKED TO ATTEND THE PROCEEDINGS THROUGH THEIR DIRECTORS BUT ALL THE DIRECTORS DID NOT ATTEN D THE ASSESSMENT PROCEEDINGS. IV) STATEMENT OF SHRI SHARMA IS ADVERSE AS BEING DI RECTOR OF THE COMPANY, HE HAD NO KNOWLEDGE OF THE SHARES PURCHASE D BY THE INVESTOR COMPANIES. 15. WE FIND THAT VIDE REPLY FILED ON 22.02.2013, TH E ASSESSEE HAS FURNISHED CONFIRMATION OF ACCOUNTS, BANK STATEMENTS , INCOME TAX RETURNS AND AUDITED BALANCE SHEET OF THE INVESTOR C OMPANY, MEMORANDUM AND ARTICLES OF ASSOCIATION, LIST OF DIR ECTORS AND MASTER DATA OF THE INVESTOR COMPANY AS APPEARING THE REGIS TRAR OF COMPANIES, KOLKATA, SHARE ALLOTMENT ADVICE, CERTIFIED TRUE COP Y OF THE RESOLUTION OF INVESTEE COMPANY PASSED BY THE BOARD OF DIRECTOR S OF THE COMPANY 7 AND COPY OF THE RESOLUTION PASSED BY THE BOARD OF D IRECTORS OF INVESTOR COMPANY AND COPY OF ASSESSMENT ORDERS OF THE INVEST OR COMPANY WERE ALSO FILED. 16. VIDE REPLY DATED 19.03.2013, THE ASSESSEE ONCE AGAIN FILED ALL THE DOCUMENTS REQUISITIONED BY THE ASSESSING OFFICER. IN THE CASE OF FINVEST PVT LIMITED, SINCE ON THE EARLIER OCCASION, CONFIRMATION COULD NOT BE FILED, THE ASSESSEE FILED COPY OF THE ASSESS MENT ORDER U/S 143(3) OF THE ACT FOR A.Y 2006-07. 17. IN SO FAR AS THE SHARE CERTIFICATES ARE CONCERN ED, IT WAS EXPLAINED CLEARLY THAT THE APPELLANT COMPANY HAD ISSUED SHARE CERTIFICATES TO ALL THE SHARE APPLICANTS AND AT PRESENT THESE COMPANIES WERE NOT THEIR SHARE HOLDERS/MEMBERS AS THEY HAVE SOLD THEIR SHARE S. SINCE THE ASSESSEE HAD NO ACCESS TO THE SHARE CERTIFICATES, T HEREFORE, THE SAME COULD NOT BE FILED. 18. REGARDING PRODUCING THE SHAREHOLDER COMPANIES T HROUGH THEIR DIRECTORS/AUTHORISED REPRESENTATIVES FOR VERIFICATI ON OF GENUINENESS OF THE INVESTMENT, IT WAS EXPLAINED THAT TWO DIRECTORS , NAMELY SHRI SARAT AGARWAL AND SHRI VINAY KUMAR SHAH WERE PRODUCED FOR VERIFICATION 8 /EXAMINATION. IT WAS FURTHER BROUGHT TO THE NOTICE OF THE ASSESSING OFFICER THAT THE DIRECTORS WAITED FOR LONG HOURS AN D WHOLE DAY WAS SPENT IN RECORDING THE STATEMENT OF ONLY ONE DIRECT OR, NAMELY, SHRI AJIT KUMAR SINGH AND IT WAS REQUESTED THAT EXACT DATE AN D TIME MAY BE GIVEN TO PRODUCE THE INVESTOR COMPANIES THROUGH THE IR DIRECTORS/AUTHORISED REPRESENTATIVES FOR VERIFICATI ON OF GENUINENESS OF INVESTMENT IN SHARES BY THEM AS THE DIRECTORS HAD T O COME ALL THE WAY FROM KOLKATA/HOWRAH, 19. ALL THESE RELEVANT PARTS OF THE REPLY OF THE AS SESSEE ARE EXHIBITED AT PAGES 61 TO 68 OF THE PAPER BOOK. 20. IT APPEARS THAT THE ASSESSING OFFICER WAS HEAVI LY INFLUENCED BY THE STATEMENT OF SHRI SAMPAT SHARMA WHO ADMITTEDLY ACCEPTED THAT HE WAS ONLY A DUMMY DIRECTOR AND KNEW NOTHING ABOUT TH E SHARE ALLOTMENT TO THESE COMPANIES. HOWEVER, WE FIND THA T THE ASSESSING OFFICER DID NOTHING TO DO TO BRING ON RECORD WHO IS THE ULTIMATE BENEFICIARY OF THESE TRANSACTIONS. IF SHRI SAMPAT SHARMA CATEGORICALLY ADMITTED THAT HE IS A DUMMY DIRECTOR, NOTHING PREVE NTED THE ASSESSING OFFICER TO LIFT THE CORPORATE VEIL. HAVING FAILED TO LIFT THE CORPORATE 9 VEIL, WE HAVE TO LOOK AT THE TRANSACTIONS AND NOT T HROUGH THE TRANSACTIONS. 21. ANOTHER ADVERSE COMMENT MADE BY THE ASSESSING O FFICER IS IN RESPECT OF RETURNED INCOME OF THE INVESTOR COMPANIE S. IN OUR CONSIDERED OPINION, SUBSTANCE OVER FORM SHOULD PREV AIL. THE RETURNED INCOME MAY BE ONE OF THE FACTORS, BUT IT IS NOT BE ALL AND AND ALL. IF THE RETURNED INCOME IS NOT SUFFICIENT TO JUSTIFY TH E CREDIT WORTHINESS OF THE SHARE APPLICANTS, THEN THE MOST IMPORTANT FACTO R IS TO LOOK AT THE NET WORTH OF THE APPLICANT. 22. THE FIVE APPLICANT COMPANIES ARE NAMELY, I) BASUKINATH VANIJYA PVT LTD II) MIDNIGHT AGENCIES PVT LTD III) SPARDAN VANIJYA PVT LTD IV) TOPLINE FINVEST PVT LTD V) KOKILA EXPORT PVT LTD 10 23. THE NET WORTH OF THESE COMPANIES ARE AS UNDER: M/S MIDNIGHT AGENCIES (P) LTD ADDRESS : 1, RAJA BALLAV SAHA LANE HOWRAH, WEST BENGAL 7111 01 NO. OF SHARES : 25,000 PAN: AABCM6864G 1A, GRANT LANE, 1 ST FLOOR, KOLKATA 700012 25,000 AADCB2084K I) SR. NO. CHEQUE NO./ RTGS DATE AMOUNT (RS) I) RTGS 30.03.2009 50,00,000 TOTAL 50,00,000 RETURN FILED ON : 25.09.2009 AUDITORS OF COMPANY: DEBABRATA & ASSOCIATES NET WORTH OF THE COMPANY : SHARE CAPITAL _________ 53,86,200 42,82,200 10,09,29,025 7,99,52,678 RESERVE & SURPLUS & STOCK OF SHARES 8,25,30,300 7,85,85,000 CASH AND BANK BALANCE 1,65,3549 4,23,164 LOANS & ADVANCES 2,20,50,007 54,43,063 LIABILITIES 4,500 1,03,500 PROVISIONS 5,545 2,19,965 10,62,23,811 8,41,27,762 MISCELLANEOUS EXPENDITURE TO THE EXTENT NOT WRITTEN I OFF OR ADJUSTED _____________________________________________ 99,000 8,42,34,878 DEFERRED REVENUE EXPENDITURE 84,200 11 PROVISIONS 7,564 6763 11,828 11,026 24,01,43,311 111508019 38,000 16500 24,01,81,311 11524519 M/S SPANDAN VAN1JA (P) LTD ADDRESS : 9/12, LAL BAZAAR STREET? BLOCK E,2 ND FLOOR KOLKATA, WEST BENGAL 700001 NO. OF SHARES : 25,000 PAN: AAJCS5887K SR. NO. CHEQUE NO./ RTGS DATE AMOUNT (RS) I) 121780 13.08.2008 50,00,000 TOTAL 50,00,000 50,00,000 50,00,000 50,00,000 RETURN FILED ON : 25.09.2009 AUDITORS OF COMPANY: DEBABRATA & ASSOCIATES PARTICULARS AS ON 31.03.2009 31.03.2009 31.03.2009 31.03.2009 AS ON 31.03.2008 31.03.2008 31.03.2008 31.03.2008 SHAREHOLDERS FUND SHARE CAPITAL 1,77,50,000 1,13,17,500 RESERVE & SURPLUS 22,24,31,344 10,02,07,019 TOTAL 24,01,81,311 24,01,81,311 24,01,81,311 24,01,81,311 11,15,24,519 11,15,24,519 11,15,24,519 11,15,24,519 APPLICATION OF FUNDS ..... CURRENT ASSETS LOANS & ADVANCES STOCK OF SHARES 22,37,17,500 9,21,51,370 CASH AND BANK BALANCE 9,06,731 13,72,394 LOANS & ADVANCES 1,07,30,909 1,67,95,281 OTHER CURRENT ASSETS 48,00,000 12,00,000 LESS: CURRENT LIABILITIES & PROVISIONS LIABILITIES 4,264 4,263 TOTAL NET CURRENT ASSETS TOTAL SR. NO. CHEQUE NO./ RTGS DATE AMOUNT (RS) I) 121780 13.08.2008 50,00,000 TOTAL 50,00,000 RETURN FILED ON : 25.09.2009 AUDITORS OF COMPANY: MANABENDRA BHATTACHARYYA & CO 12 PARTICULARS AS ON 31.03.2009 AS ON 31.03.2008 SHAREHOLDERS FUND SHARE CAPITAL 85,02,500 16,55,000 RESERVE & SURPLUS 16,05,26,756 3,04,24,383 TOTAL 16,90,29,256 3,20,79,383 APPLICATION OF FUNDS CURRENT ASSETS LOANS & ADVANCES LESS: CURRENT LIABILITIES & PROVISIONS 4,00,344 4,00,714 TOTAL NET CURRENT ASSETS 31,200 6,650 3,20,79,383 16,90,29,256 M/S TOPLINE FINVEST (PI LTD ADDRESS NO. OF SHARES PAN: PAYMENTS MADE VIA 13 SR. NO. CHEQUE NO./ RTGS DATE AMOUNT (RS) 0 RTGS 30.03.2009 50,00,000 TOTAL 50,00,000 RETURN FILED ON 24.09.2009 AUDITORS OF COMPANY: PAWAN MAUN A & CO PARTICULARS AS ON 31.03.2009 AS ON 31.03.2008 SHAREHOLDERS FUND SHARE CAPITAL 2,29,31,000 1,60,93,500 RESERVE & SURPLUS 22,78,93,579 9,79,58,325 TOTAL 25,08,24,579 11,40,51,825 APPLICATION OF FUNDS CURRENT ASSETS LOANS & ADVANCES STOCK OF SHARES 21,61,06,516 8,92,31,400 CASH AND BANK BALANCE 19,35,218 1220148 LOANS & ADVANCES 1,95,87,189 2,08,98,545 OTHER CURRENT ASSETS 1,31,70,875 27,00,000 LESS: CURRENT LIABILITIES & PROVISIONS LIABILITIES 2,021 2,020 PROVISIONS 7,998 7,548 TOTAL 10,019 9,568 NET CURRENT ASSETS 25,07,89,779 11,40,40,525 DEFERRED REVENUE EXPENDITURE 34,800 11,300 TOTAL 25,08,24,579 11,40,51,825 MTSLCOKILA EXPORTS PRIVATE LIMITED ADDRESS : 9/12, LAL BAZAAR STREET, KOLKATA, WEST BENGAL 700001 NO. OF SHARES : 15,000 PAN: AABCK1178G PAYMENTS MADE VIA SR. NO. CHEQUE NO./ RTGS DATE AMOUNT (RS) I) 129093 16.06.2008 30,00,000 TOTAL 30,00,000 24. A PERUSAL OF THE AFOREMENTIONED STATEMENTS GIVI NG TOTAL NET WORTH OF SHARE APPLICANT COMPANIES SPEAKS FOR THEIR CREDIT WORTHINESS. IN SO FAR AS KOKILA EXPORTS IS CONCERNED, ITS DIREC TOR SHRI AJAY KUMAR 50,00,000 14 SINGH APPEARED BEFORE THE ASSESSING OFFICER WHO EXA MINED HIM BUT DID NOT PUT ANY QUESTION TOWARDS NET WORTH OF THE COMPA NY NOR ASKED THE DIRECTOR TO FURNISH ITS FINANCIAL DETAILS. ONCE THE COMPANY WAS REPRESENTED THROUGH ITS DIRECTORS, IT WAS INCUMBENT UPON THE ASSESSING OFFICER TO SPECIFY HIS QUERIES AND THE ASSESSEE CAN NOT BE HELD RESPONSIBLE ONCE HE HAS ESTABLISHED THE SOURCE. 25. IN OUR CONSIDERED OPINION, WHETHER THE ASSESSEE HAS DISCHARGED THE INITIAL BURDEN CAST UPON HIM BY PROVISIONS OF S ECTION 68 OF THE ACT OR NOT, IS PURELY A QUESTION OF FACT AND THE FACTS ON RECORD, AS DISCUSSED HEREINABOVE, CLEARLY DEMONSTRATE THAT THE ASSESSEE HAS PRIMA FACIE DISCHARGED THE INITIAL ONUS CAST UPON I T BY PROVISIONS OF SECTION 68 OF THE ACT. 26. AS MENTIONED ELSEWHERE, THE ASSESSING OFFICER H AS OBSERVED THAT THESE SHARE APPLICANT COMPANIES ARE NON-EXISTENT AN D THIS OBSERVATION WAS BASED UPON THE REPORT OF THE INV WING, KOLKATA. WE FAIL TO UNDERSTAND THAT IF THESE SHARE APPLICANT COMPANIES WERE NON-EXISTENT, THEN HOW COME THEY WERE ASSESSED TO INCOME TAX, WHI CH IS EVIDENT FROM THEIR ASSESSMENT ORDERS PLACED IN THE PAPER BO OK. 15 27. IT WOULD BE PERTINENT TO MENTION HERE THAT THE APPLICANTS PREMISES WERE SEARCHED AND NOT A SINGLE DOCUMENT WA S FOUND DURING THE COURSE OF SEARCH PROCEEDINGS WHICH COULD SUGGES T THAT THE ASSESSEE HAS PURCHASED CHEQUES BY WAY OF CASH FROM THESE SHA RE APPLICANT COMPANIES. EACH OF THE SHAREHOLDERS FROM WHOM SHAR E CAPITAL WAS RAISED/RECEIVED ARE DULY IDENTIFIABLE CORPORATE ENT ITIES AND ASSESSED TO TAX AS WELL. THE ENTIRE SHARE CAPITAL HAS BEEN SUBS CRIBED THROUGH BANKING CHANNELS AND THERE WAS NO MATERIAL FOUND DU RING THE SEARCH WHICH PROVES THAT THE MONEY CAME FROM THE COFFERS O F THE APPELLANT COMPANY. FINANCIAL STATEMENTS OF EACH SHARE HOLDER COMPANY EXCEEDS ITS NET WORTH, THEREBY ESTABLISHING THE CREDIT WORT HINESS OF THE SHARE APPLICANT COMPANIES TO MAKE INVESTMENT IN SHARES OF THE APPLICANT COMPANY. FURTHER, EACH SHARE HOLDER HAS INDEPENDEN TLY CONFIRMED THEIR INVESTMENT IN RESPONSE TO NOTICES U/S 133(6) OF THE ACT. 28. IN OUR CONSIDERED OPINION, SUSPICION CAN BE NO BASIS TO MAKE ADDITION. MOREOVER, THE REVENUE IN THE CASE OF SHA REHOLDER COMPANIES HAS ACCEPTED THEIR INDEPENDENT IDENTITY, SOURCE OF INCOME AND CARRYING ON BUSINESS OF INVESTMENTS AND DISINVESTME NTS. THEREFORE, THE RATIO LAID DOWN BY THE HON'BLE SUPREME COURT IN THE CASE OF LOVELY EXPORTS PVT LTD 319 ITR 5 SQUARELY APPLIES ON THE F ACTS OF THE CASE IN 16 HAND. IN FACT, IN THE CASE OF STELLAR INVESTMENTS LTD 251 ITR 263 WHEREIN THE DECISION OF THE HON'BLE HIGH COURT OF D ELHI IN 192 ITR 287 WAS UPHELD WHEREIN IT WAS HELD THAT IN THE CASE OF A COMPANY, EVEN IF THE SUBSCRIBERS TO THE SHARE CAPITAL ARE NOT GENUIN E, THEN TOO, IT WOULD NOT BE REGARDED AS UNDISCLOSED INCOME OF THE ASSESS EE COMPANY. 29. THE LD. DR PLACED HEAVY RELIANCE ON THE DECISIO N IN THE CASE OF NRA IRON AND STEEL 103 TAXMANN.COM 48 WHEREIN THE H ON'BLE SUPREME COURT HAS REVERSED THE ORDER OF THE LOWER AUTHORITI ES HOLDING THAT WHERE THERE WAS FAILURE ON THE PART OF THE ASSESSEE TO ESTABLISH CREDIT WORTHINESS OF INVESTOR COMPANIES, THEN MERELY BECAU SE THE ASSESSEE COMPANY HAD FILED ALL THE PRIMARY EVIDENCES, IT WOU LD NOT SUFFICE AND THE ONUS UPON THE ASSESSEE IS NOT DISCHARGED 30. WE HAVE EXPLAINED THE FACTS OF THE CASE IN HAND AND HAVE ALSO EXTRACTED THE NET WORTH OF THE SHARE APPLICANT COMP ANIES. THEREFORE, THE FACTS OF THE CASE IN HAND ARE CLEARLY DISTINGUI SHABLE FROM THE FACTS OF THE CASE IN NRA IRON AND STEEL [SUPRA] IN AS MUC H AS IN THAT CASE, THE ASSESSEE FAILED TO EXPLAIN THE NET WORTH OF SHA RE APPLICANTS. 17 31. SIMILARLY, THE FACTS OF NDR PROMOTERS PVT LTD [ 2019]-TIOL172- HIGH COURT-DEL-IT, PREM CASTINGS [P] LTD 88 TAXMANN .COM 189 AND NAVODAYA CASTLE P. LTD 367 ITR 306 ARE CLEARLY DIST INGUISHABLE FROM THE FACTS OF THE CASE IN HAND AS EXPLAINED ELSEWHERE. 32. IN THE CASE OF NAVODAYA CASTLE [SUPRA], THE AS SESSEE WAS UNABLE TO PRODUCE THE DIRECTORS AND PRINCIPAL OFFICERS OF THE SHARE HOLDER COMPANIES AND THERE WERE ADVERSE REMARKS IN RESPECT OF THE BANK ACCOUNT, WHICH RAISED DOUBT ON THE IDENTITY AND CRE DIT WORTHINESS OF THE SHARE HOLDERS. AS MENTIONED ELSEWHERE, THE ASS ESSEE DID PRODUCE SOME DIRECTORS OF THE SHARE APPLICANT COMPANIES BUT THE ASSESSING OFFICER COULD RECORD STATEMENT OF ONLY ONE DIRECTOR . THEREAFTER, THE ASSESSING OFFICER DID NOT ASK THE ASSESSEE NOR FORC ED THE ATTENDANCE OF THE DIRECTORS OF THE SHARE APPLICANT COMPANIES AND THERE ARE NO ADVERSE FINDINGS IN SO FAR AS THE BANK ACCOUNTS ARE CONCERNED. 33. SIMILARLY, IN THE CASE OF NR PORTFOLIO PVT LTD 42 TAXMANN.COM 339, THE HON'BLE HIGH COURT OF DELHI OBSERVED THAT IF THE ASSESSING OFFICER DOUBTS THE DOCUMENTS PRODUCED BY THE ASSESS EE, THE ONUS SHIFTS ON THE ASSESSEE TO FURTHER SUBSTANTIATE THE FACTS. IN THE CASE IN HAND, THE ASSESSEE DID FILE NET WORTH OF ALL THE SH ARE APPLICANT 18 COMPANIES AND FURTHER CORROBORATED THE SHARE TRANSA CTIONS WITH MASTER DATA FILED WITH REGISTRAR OF COMPANIES. 34. THE OTHER DECISIONS RELIED UPON BY THE LD. DR A RE ALSO DISTINGUISHABLE ON FACTS OF THE CASE IN HAND. 35. AS MENTIONED AT THE BEGINNING THAT THE UNDERLYI NG FACTS IN ISSUES IN A.Y 2010-11 ARE IDENTICAL TO THOSE OF A.Y 2009-1 0, FOR THE SAKE OF COMPLETENESS WE WILL EXTRACT THE NETWORTH OF SHARE APPLICANT COMPANIES FOR A.Y 2010-11 AS UNDER: SI. NO. NAME AND ADDRESS OF THE COMPANY NO. OF SHARES NOMINAL VALUE OF SHARE (RS.) PREMIUM PAID PER SHARE (RS.) DATED OF ALLOTMENT 1. M/S KOKILA EXPORTS PVT. LTD., 9/12, LAI BAZAR STREET, BLOCK E-, 2 ND FLOOR, KOLKATA - 700 001 12,500 1,25,000 (RS. 10 PER SHARE) 23,75,000 (RS. 190 PER SHARE) 30.03.2009 2. M/S ABHILASHA EXPORTS PVT. LTD., SAKLAT PALACE, KOLKATA - 72 25,000 2,50,000 (RS. 10 PER SHARE) 47,50,000 (RS. 190 PER SHARE) 30.03.2009 3. M/S AMBIKA VIMCOM PVT. LTD., 1, MAHINDRA NATH ROY BYE LANE, HOWRAH - 711101 10,000 1,00,000 (RS. 10 PER SHARE) 19,00,000 (RS. 190 PER SHARE) 30.03.2009 4. M/S DEESHA TIE UP PVT. LTD., 1, RAJ BALLAB SAHA LANE, HOWARH - 711.101 15,000 1,50,000 (RS. 10 PER SHARE) 28,50,000 (RS. 190 PER SHARE) 30.03.2009 5. M/S MADAM AGENCIES PVT. LTD., 9/12, LAI BAZAR STREET, BLOCK E-, 2 ND FLOOR, KOLKATA - 700 001 25,000 2,50,000 (RS. 10 PER SHARE) 47,50,000 (RS. 190 PER SHARE) 30.03.2009 6. M/S PUSPADANT INFRASTRUCTURE LTD., 52, WESTON STREET, 4 TH FLOOR, KOLKATA - 13 50,000 5,00,000 (RS. 10 PER SHARE) 95,00,000 (RS. 190 PER SHARE) 19 7. M/S PUSHPANJALI COMMOTRADE PVT. LTD., 3, SAKLAT PALACE, KOLKATA-72 25,000 2,50,000 (RS. 10 PER SHARE) 47,50,000 (RS. 190 PER SHARE) 8, M/S RANISATI STOCKIST PVT. LTD., 1A, GRAND LANE, 1ST FLOOR, KOLKATA-700 012 12,500 1,25,000 (RS. 10 PER SHARE) 23,75,000 (RS. 190 PER SHARE) 9. M/S SAHEJ TIE UP PVT. LTD., 9/12, LAI BAZAR STREET, BLOCK E-, 2ND FLOOR, KOLKATA-700 001 10,000 1,00,000 (RS. 10 PER SHARE) 19,00,000 (RS 190 PER SHARE) 10. M/S SANKAT MOJCHAN VINIMAY PVT. LTD., 9/12, LAI BAZAR STREET, BLOCK E-, 2ND FLOOR, KOLKATA - 700 001 12,500 1,25,000 (RS. 10 PER SHARE) 23,75,000 (RS. 190 PER SHARE) 11. M/S SHREE SUDARSHAN CASTING PVT. LTD., 9/12, LAI BAZAR STREET, BLOCK E - , 2ND FLOOR, KOLKATA - 700 001 25,000 2,50,000 (RS. 10 PER SHARE) 47,50,000 (RS. 190 PER SHARE) 12. M/S SKYLIGHT DISTRIBUTORS PVT. LTD., 3, SAKLAT PALACE, KOLKATA- 700 072 25,000 2,50,000 (RS. 10 PER SHARE) 47,50,000 (RS. 190 PER SHARE) 13. M/S TARAKESHWAR COMMERCIAL PVT. LTD., 9/12, LAI BAZAR STREET, BLOCK E-, 2ND FLOOR, KOLKATA - 700 001 10,000 1,00,000 (RS. 10 PER SHARE) 19,00,000 (RS. 190 PER SHARE) M/S RANISATI STOCKISTS PR IVATE LIMITED ADDRESS: 1A, GRANT LANE KOLKAT-72 NO. OF SHARES: 12,500 PAN NO. AAECR1291D PAYMENTS MADE VIA SR. NO. CHEQUE NO./ RTGS DATE AMOUNT (RS) I) 893862 23.09.2009 25,00,000 TOTAL 25,00,000 BANK NAME: SYNDICATE BANK WARD: ITO WD 39(3)/WBG/W/139/3 RETURN FILED ON: 17.09.2010 AUDITORS OF THE COMPANY: PAWAN MAURYA & CO. 1 20 M S SAHAJ TIE UP PRIVATE LIMITED ADDRESS: D/12, LAI BAZAR STREET, BLOCK E, 2 ND FLOOR KOLKATA-700001 NO OF SHARES: 10,000 PAN NO. AAECR1291D PAVMENTS MADE VIA PARTICULARS AS ON 31.03.2010 AS ON 31.03.2009 SHAREHOLDERS FUND SHARE CAPITAL 57,60,000 57,60,000 10,75,40,000 10,75,40,000 TOTAL 11,33,00,000 11,33,00,000 APPLICATION OF FUNDS CURRENT ASSETS LOANS & ADVANCES STOCK OF SHARES 9,98,50,000 11,30,00,000 CASH AND BANK BALANCE 1,84,461 1,80,531.66 LOANS & ADVANCES 1,60,25,554 - -- - OTHER CURRENT ASSETS 1,00,000 - -- - LESS: CURRENT LIABILITIES & PROVISIONS 29,54,835.77 1,000 NET CURRENT ASSETS 11,32,05,179.23 11,31,79,531.66 PRELIMINARY EXPENDITURE TO THE EXTENT NOT WRITTEN OFF OR ADJUSTED 5,320.20 7,093.60 DEFERRED REVENUE EXPENDITURE 65,400 87,200 PROFIT & LOSS ACCOUNT 24,100.57 26,174.74 TOTAL 11,33,00,000 11,33,00,000 SR. NO. CHEQUE NO./ RTGS DATE AMOUNT (RS) I) RTGS 05.09.2009 20,00,000 TOTAL 20,00,000 BANK NAME: AXIS BANK AUDITORS OF THE COMPANY: AGRAWAL SINGHANIA & CO. 21 LOANS & ADVANCES 13,64,702 1,94,74,476 OTHER CURRENT ASSETS 1688804 1,58,93,117 LESS: CURRENT LIABILITIES & PROVISIONS 1201899 99,81,815 NET CURRENT ASSETS PRELIMINARY EXPENDITURE DEFERRED REVENUE EXPENDITURE 30,000 51998 PROFIT & LOSS ACCOUNT 21,135.54 16,342 TOTAL 24,63,68,263 24,63,68,263 MS SANK AT MQCHAN VINIMAY PRIVATE LIMITED ADDRESS: 9/12, LAL BAZAR STREET, BLOCK E 4 TH FLOOR, KOLKATA NO. OF SHARES: 12,500 PAN NO. AAECR1291D SR. NO. CHEQUE NO./ RTGS DATE AMOUNT (RS) I) 894016 23.09.2009 25,00,000 TOTAL 25,00,000 AUDITORS OF THE COMPANY: H.K. SAHA & CO. PARTICULARS AS ON 31.03.2010 AS ON 31.03.2009 SHAREHOLDERS FUND SHARE CAPITAL 1,38,15,000 1,38,15,000 RESERVE & SURPLUS 23,25,53,263 23,25,53,263 TOTAL 24,63,68,263 24,63,68,263 APPLICATION OF FUNDS INVESTMENT 24,03,00,000 - CURRENT ASSETS LOANS & ADVANCES STOCK OF SHARES 21,96,50,000 CASH AND BANK BALANCE 41,65,522 12,64,145 22 PARTICULARS AS ON 31.03.2010 AS ON 31.03.2009 SHAREHOLDERS FUND SHARE CAPITAL 41,55,000 41,55,000 RESERVE & SURPLUS 77,045,000 77,045,000 TOTAL 8,12,00,000 8,12,00,000 APPLICATION OF FUNDS CURRENT ASSETS LOANS & ADVANCES STOCK OF SHARES 6,85,72,600 9,65,10,000 CASH AND BANK BALANCE 279,188.23 1,00,039.66 LOANS & ADVANCES 1,17,71,297 - OTHER CURRENT ASSETS 5,00,000 - LESS: CURRENT LIABILITIES & PROVISIONS 3,073 1,55,12,000 NET CURRENT ASSETS 8,11,20,012.23 8,10,98,039.66 PRELIMINARV EXPENDITURE TO THE EXTENT NOT WRITTEN OFF OR ADJUSTED 5,320.20 7,093.60 DEFERRED REVENUE EXPENDITURE 53,400 71,200 PROFIT & LOSS ACCOUNT 21,267.57 23,666.74 TOTAL 8,12,00,000 8,12,00,000 M/S SKYLIGHT DISTRIBUTORS PVT LTD BANK NAME: SYNDICATE BANK WARD: ITO WARD 1(4) PARTICULARS AS ON 31.03.2010 AS ON 31.03.2009 SHAREHOLDERS FUND SHARE CAPITAL 41,55,000 41,55,000 RESERVE & SURPLUS 77,045,000 77,045,000 ADDRESS 9/12, LAL BAZAR STREET, BLOCK E 4 TH FLOOR, KOLKATA NO. OF SHARES: 12,500 PAN NO. AAECR1291D PAYMENTS MADE VIA 23 SR. NO. CHEQUE NO./ RTGS DATE AMOUNT (RS) I) 197440 04.03.2010 50,00,000 TOTAL 50,00,000 NET WORTH OF THE COMPANY PARTICULARS AS ON 31.03.2010 AS ON 31.03.2009 SHAREHOLDERS FUND SHARE CAPITAL 1,54,44,290 41,00,000 RESERVE & SURPLUS 48,51,15,879 15,60,00,000 TOTAL 50,05,60,169 16,01,00,000 APPLICATION OF FUNDS CURRENT ASSETS LOANS & ADVANCES STOCK OF SHARES 40,53,48,000 14,00,00,000 CASH AND BANK BALANCE 3,07,03,679 - LOANS & ADVANCES 65,552 2,00,93,380 OTHER CURRENT ASSETS 6,44,27,648 - LESS: CURRENT LIABILITIES & PROVISIONS 1,32,920 87,001 NET CURRENT ASSETS 50,04,11,959 16,00,06,379 MISCELLANEOUS EXPENDITURE PRELIMINARY EXPENSES 1,48,210 93,330 PROFIT & LOSS ACCOUNT - 291 TOTAL 50,05,60,169 16,01,00,000 M/S TARKESHWAR COMMERCIAL PRIVATE LIMITED ADDRESS: 9/12, LAI BAZAR STREET, E BLOCK, 4 TH FLOOR, KOLKATA- 700001 NO. OF SHARES: 10,000 PAN NO. AADCT0358A PAYMENTS MADE VIA SR. NO. CHEQUE NO./ RTGS DATE AMOUNT (RS) I) 894086 24.09.2009 2,000,000 BANK NAME: SYNDICATE BANK AUDITORS OF THE COMPANY: PAWAN MAURYA & CO. 24 NET WORTH OF THE COMPANY PARTICULARS AS ON 31.03.2010 AS ON 31.03.2009 SHAREHOLDERS FUND SHARE CAPITAL 5,810,000 5,810,000 RESERVE & SURPLUS 108,490,000 108,490,000 TOTAL 114,300,000 114,300,000 APPLICATION OF FUNDS CURRENT ASSETS LOANS & ADVANCES STOCK OF SHARES 90,470,000 101,000,000 CASH & BANK BALANCE 277,900.36 180,526 LOANS & ADVANCES 16,412,027 13,000,000 OTHER CURRENT ASSETS 7,950,000 TOTAL 115,109,927.36 114,180,526 LESS: CURRENT LIABILITIES & PROVISIONS LIABILITIES 902,000 1,000 PROVISION 1,492 - TOTAL 903,492 1,000 NET CURRENT ASSETS 114,206,435.36 114,179,526 PRELIMINARY EXPENDITURE (TO THE EXTENT NOT WRITTEN OFF OR ADJUSTED) 5,320.20 7,093.60 DEFERRED REVENUE EXPENDITURE 65,400 87,200' PROFIT & LOSS 22,844.44 26,180.40 TOTAL 114,300,000 114,300,000 M/S ABH1LASHA EXPORTS PRIVATE LIMITED ADDRESS: 95A C R AVENUE, KOLKATA, WEST BENGAL 700073 NO. OF SHARES: 25,000 PAN NO. AAHCA5909J PARTICULARS AS ON 31.03.2010 AS ON 31.03.2009 SHAREHOLDERS FUND SHARE CAPITAL 3626,460 100,000 RESERVE & SURPLUS 172,956,542.15 TOTAL 176,583,002.15 100,000 APPLICATION OF FUNDS SR. NO. CHEQUE NO./ RTGS DATE AMOUNT (RS) I) 894086 24.09.2009 50,00,000 TOTAL 50,00,000 25 CURRENT ASSETS LOANS & && & ADVANCES STOCK-IN-TRADE 124,650,000 - SUNDRY DEBTORS 1,104,666 - CASH & BANK BALANCES 10,106,506.65 81,437 LOANS & ADVANCES 41,210,007 - TOTAL 177,071,179.65 81,437 LESS: CURRENT LIABILITIES & && & PROVISIONS NET CURRENT ASSETS 559,937.50 501 176,511,242.15 80,936 MISCELLANEOUS EXPENDITURE (TO THE EXTENT NOT WRITTEN OFF OR ADJUSTED) PRELIMINARY EXPENDITURE 71,760 15,930 PROFIT & LOSS - 3,134 TOTAL 176,583,002.15 100,000 M/S AMBIKA VINCOM PRIVATE LIMITED ADDRESS: 1, MAHENDRA NATH ROY BYE LANE, HOWRAH, WEST BENGAL - 711101 NO. OF SHARES: 10,000 PAN NO. AAHCA3091P PARTICULARS AS ON 31.03.2010 AS ON 31.03.2009 SHAREHOLDERS FUND SHARE CAPITAL 8,760,000 8,760,000 RESERVE & SURPLUS 164,547,063.02 164,540,698.64 TOTAL 173,307,063.02 ' 173,300,698.60 APPLICATION OF FUNDS CURRENT ASSETS LOANS & ADVANCES STOCK OF SHARES 140,460,000 159,900,000 CASH & BANK BALANCES 221,920.82 157,866 LOANS & ADVANCES 32,541,982 13,127,021 TOTAL 173,223,902.82 173,184,887 LESS: CURRENT LIABILITIES & PROVISIONS LIABILITY 2,000 1,000 PROVISION 3,560 1,482 TOTAL 5,560 2,482 SR. NO. CHEQUE NO./RTGS DATE AMOUNT (RS) I) 894086 24.09.2009 20,00,000 TOTAL 20,00,000 BANK NAME: SYNDICATE BANK AUDITORS OF THE COMPANY: PAWAN MAURYA & CO. 26 NET CURRENT ASSETS 173,218,342.82 173,182,405 PRELIMINARY EXPENDITURE (TO THE EXTENT NOT WRITTEN OFF OR ADJUSTED) 5,320.20 7,093.60 DEFERRE D REVENUE EXPENDITURE 83400 111 200 TOTAL 173,307,063.02 173,307,063.02 M/S DEESHA TIE PVT LTD ADDRESS: 1, RAJ BALLAV SAHA LANE, HOWRAH, WEST BENGAL - 711101 NO. OF SHARES: 15000 PAN NO. AABCD7985M SR. NO. CHEQUE NO./RTGS DATE AMOUNT (RS) I) 894086 05.09.2009 30,00,000 TOTAL 30,00,000 BANK NAME:AXIS BANK AUDITORS OF THE COMPANY: AGRAWAL SINGHANIA & CO. PARTICULARS AS ON 31.03.2010 AS ON 31.03.2009 SHAREHOLDERS FUND SHARE CAPITAL 24,908,500 24,908,500 RESERVE & SURPLUS 443,501,525.39 443,496,297.59 TOTAL 468,410,025.39 468,404,797.59 APPLICATION OF FUNDS CURRENT ASSETS LOANS & ADVANCES STOCK OF SHARES 444,282,971.97 442,261,455 CASH & BANK BALANCES 346,431.92 892,722.41 LOANS & ADVANCES 10,578,339 20,804,524 TOTAL CURRENT LIABILITIES & PROVISIONS 5,190,691.82 502,264.50 LIABILITY 11,212 6,453 PROVISION TOTAL 468,256,797.59 468,299,025.39 NET CURRENT ASSETS MISCELLANEOUS EXPENDITURE (TO THE EXTENT NOT WRITTEN OFF OR ADJUSTED) _________________________ 111,000 DEFERRED REVENUE EXPENDITURE TOTAL 27 M/S PUSHPADANT INFRASTRUCTURE LIMITED ADDRESS: 10A, HOSPITAL STREET, 2 ND FLOOR, ROOM NO. 205, KOLKATA, WEST BENGAL 700072 NO. OF SHARES: 50000 PAN NO. AAFCP1441G SR. NO. CHEQUE NO./ RTGS DATE AMOUNT (RS) I) 190442 25.02.2010 50,00,000 II) 09.03.2010 50,00,000 TOTAL 100,00,000 BANK NAME: AXIS BANK AUDITORS OF THE COMPANY: S. SADHU & ASSCIATES NET WORTH OF THE COMPANY PARTICULARS SHAREHOLDERS FUND 750 , 847 , 864.15 TOTAL APPLICATION OF FUNDS CURRENT ASSETS LOANS & ADVANCES 905 , 180 , 980.15 TOTAL LESS: CURRENT LIABILITIES & PROVISIONS 750 , 681 , 184.15 NET CURRENT ASSETS MISCELLANEOUS EXPENDITURE (TO THE EXTENT NOT WRITTEN OFF OR ADJUSTED) ______________________ PRELIMINARY EXPENSES 166,680 PROFIT & LOSS ACCOUNT TOTAL 750 , 847 , 864.15 M/S PUSHPANJALI COMMQ TRADE PRIVATE LIMITED ADDRESS: NO. OF SHARES: PAN NO. 28 SR. NO. CHEQUE NO./RTGS DATE AMOUNT (RS) I) 198364 09.03.2010 50,00,000 TOTAL 50,00,000 SR. NO. CHEQUE NO./ RTGS DATE AMOUNT (RS) I) 17.04.2009 25,00,000 TOTAL 25,00,000 SHAREHOLDERS FUND 100,000 10 , 100,000 500,195,030 TOTAL APPLICATION OF FUNDS CURRENT ASSETS LOANS & ADVANCES 505,926,645 81,414 TOTAL LESS: CURRENT LIABILITIES & PROVISIONS 500,052,620 NET CURRENT ASSETS 80,913 MISCELLANEOUS EXPENDITURE (TO THE EXTENT NOT WRITTEN OFF OR ADJUSTED) ______ _______________ PRELIMINARY EXPENSES 142,410 15,930 3,157 PROFIT & LOSS ACCOUNT TOTAL 500,195,030 100,000 BANK NAME: AXIS BANK AUDITORS OF THE COMPANY: H.K. SAHA & CO. NET WORTH OF THE COMPANY 11 M/S KQKILA EXPORTS (PI LTD ADDRESS: NO. OF SHARES: PAN NO. 29 M/S SLDHARSHAN CASTING TPL LTD ADDRESS: 9/12, LAI BAZAR STREET, BLOCK-E, 2 ND FLOOR, KOLKATA 70000 NO. OF SHARES: 25000 PAN NO. AADCS9429B 36. IT CAN BE SEEN FROM THE AFOREMENTIONED NET WORT H OF THE SHARE APPLICANT COMPANIES, ONLY NET WORTH OF THREE COMPAN IES IS NOT AVAILABLE, NAMELY, KOKILA EXPORTS, M/S MADSAN AGENC IES P. LTD AND M/S SUDHARSHAN CASTING [P] LTD. HOWEVER, WE FIND THAT THE DIRECTORS OF THESE COMPANIES, NAMELY, SHRI AJIT SINGH FOR KOKILA EXPORTS AND SHRI VINAY KUMAR SHAH FOR MADSAN AGENCIES AND SUDHARSHAN CASTING APPEARED BEFORE THE DIRECTORS INCOMPLIANCE TO SUMMO NS U/S 131 OF THE ACT. WE ARE OF THE CONSIDERED VIEW THAT THE ASSESS EE HAS PRIMA FACIE DISCHARGED THE INITIAL ONUS CAST UPON IT SUCCESSFUL LY. 12 ND M/S MADSAN AGENCIES (P) LTD ADDRESS: 9/12, LAI BAZAR STREET, BLOCK-E, 2 NO. OF SHARES: 25000 PAN NO. AACCM059K SR. NO. CHEQUE NO./ RTGS DATE AMOUNT (RS) I) 08.07.2009 50,00,000 TOTAL 50,00,000 SR. NO. CHEQUE NO./ RTGS DATE AMOUNT (RS) I) 08.07.2009 50,00,000 TOTAL 50,00,000 30 37. CONSIDERING THE FACTS OF THE CASE AS EXPLAINED HEREINABOVE, WE ARE OF THE CONSIDERED OPINION THAT THE ASSESSEE HAS SUCCESSFULLY DISCHARGED THE INITIAL ONUS CAST UPON IT BY PROVISI ONS OF SECTION 68 OF THE ACT. 38. IN THE RESULT, BOTH THE APPEALS FILED BY THE AS SESSEE IN ITA NOS. 3333 & 3334/DEL/2017 ARE ALLOWED. THE ORDER IS PRONOUNCED IN THE OPEN COURT ON 15.01 .2020. SD/- SD/- (BHAVNESH SAINI) (N. K. BILLAIYA) JUDICIAL MEMBER ACCOUNTANT MEMBER DATED: 15 TH JANUARY, 2020. VL/ COPY FORWARDED TO: 1. APPELLANT 2. RESPONDENT 3. CIT ASST. REGISTRAR 4. CIT(A) ITAT, NEW DELHI 5. DR 31 DATE OF DICTATION DATE ON WHICH THE TYPED DRAFT IS PLACED BEFORE THE DICTATING MEMBER DATE ON WHICH THE TYPED DRAFT IS PLACED BEFORE THE OTHER MEMBER DATE ON WHICH THE APPROVED DRAFT COMES TO THE SR.PS /PS DATE ON WHICH THE FAIR ORDER IS PLACED BEFORE THE DICTATING MEMBER FOR PRONOUNCEMENT DATE ON WHICH THE FAIR ORDER COMES BACK TO THE SR.P S/PS DATE ON WHICH THE FINAL ORDER IS UPLOADED ON THE WE BSITE OF ITAT DATE ON WHICH THE FILE GOES TO THE BENCH CLERK DATE ON WHICH THE FILE GOES TO THE HEAD CLERK THE DATE ON WHICH THE FILE GOES TO THE ASSISTANT RE GISTRAR FOR SIGNATURE ON THE ORDER DATE OF DISPATCH OF THE ORDER