ACIT, New Delhi V. M/s. NY Dox Services Ltd., New Delhi

ITA 4063/DEL/2014

• Counselvise Citation: [2017] 128 COUNSELVISE.COM (IT) 3657 (ITAT-DELHI)
• Duration Of Justice: 2 year(s) 8 month(s) 23 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 10-04-2017
• Appeal Filed By: Department
• Order Result: Allowed
• Bench Allotted: E
• Next Hearing Date: 21-02-2017
• Assessment Year: 2004-2005
• Appeal Filed On: 18-07-2014
• Result in Favour of: Revenue
• Court: TRIBUNAL
• Department Lawyers: NIRUPAMA KATRU
• Keywords: Income from undisclosed sources; Search and seizure; Share purchase agreement; Accommodation entries
• Section: 133A; 153A; 132; 68

Judgement Text

INCOME TAX APPELLATE TRIBUNAL DELHI BENCH E : NEW DELHI BEFORE SMT BEENA A PILLAI , JUDICIAL MEMBER AND SHRI PRASHANT MAHARISHI, ACCOUNTANT MEMBER ITA NO. 406 3 /DEL/2014 (ASSESSMENT YEAR: 2004 - 05 ) ACIT, CENTRAL CIRCLE - 19, NEW DELHI VS. NY DOX SERVICES LTD, 506, HEMKUNT TOWER, 98, NEHRU PLACE, NEW DELHI PAN: AAACN9378D (APPELLANT) (RESPONDENT) ITA NO. 4066/DEL/2014 (ASSESSMENT YEAR: 2007 - 08) ACIT, CENTRAL CIRCLE - 19, NEW DELHI VS. NY DOX SERVICES LTD, 506, HEMKUNT TOWER, 98, NEHRU PLACE, NEW DELHI PAN: AAACN9378D (APPELLANT) (RESPONDENT) REVENUE BY : MS. NIRUPAMA KATRU, CIT DR ASSESSEE BY: NONE DATE OF HEARING 21 /02/ 2017 DATE OF PRONOUNCEMENT 10 / 0 4 / 2017 O R D E R PER PRASHANT MAHARISHI, A. M. 1. THESE ARE THE TWO APPEALS FILED BY THE REVENUE AGAINST THE ORDER S OF THE LD CIT(A) - XII, NEW DELHI DATED 30.04.2014 FOR THE ASSESSMENT YEAR 2004 - 05 AND AY 2007 - 08 DELETING THE ADDITION OF RS. 23265000/ - AND RS 32123000 / - U/S 68 OF THE ACT HOLDING THAT NO ADDITIO N CAN BE MADE IN THE SEARCH ASSESSMENT UNDER THE PROVISIONS OF SECTION 153C/153A OF THE INCOME TAX ACT, 1961, WHERE NO INCRIMINATING MATERIAL RELATING TO THE ISSUE IS FOUND AND ALSO THE ONUS IS DISCHARGED BY THE ASSESSEE. AS IN THE CAPTIONED APPEAL, THE ISSUE INVOLVED IS COMMON THEREFORE; THEY ARE DISPOSED OFF BY THIS COMMON ORDER. 2. THE REVENUE HAS RAISED THE FOLLOWING GROUNDS OF APPEAL FOR AY 2004 - 05 : - 1. ON THE FACTS AND IN THE CIRCUMSTANCES OF THE CASE, THE LD CIT(A) HAS ERRED IN DELETING THE ADDITION OF RS. 23265000/ - MADE BY THE AO U/S 68 OF THE ACT, 1961. 2. ON THE FACTS AND IN THE CIRCUMSTANCES OF THE CASE, THE LD CIT(A) HAS ERRED IN HOLDING THAT NO ADDITION CAN BE MADE IN THE SEARCH ASSESSMENT UNDER THE PROVISIONS OF SECTION 153C/ 153A WHEN ON INC RIMINATING MATERIAL RELATING TO THE ISSUE IS FOUND. 3. THE ORDER OF THE LD CIT(A) IS ERRONEOUS AND IN NOT TENABLE ON FACTS AND IN LAW. 3. FOR AY 2007 - 08 THE FOLLOWING GROUNDS ARE RAISED: - PAGE 2 OF 22 1. ON THE FACTS AND IN THE CIRCUMSTANCES OF THE CASE, THE LD CIT(A) HAS ERRED IN DELETING THE ADDITION OF RS. 32126000/ - MADE BY THE AO U/S 68 OF THE ACT, 1961. 2. ON THE FACTS AND IN THE CIRCUMSTANCES OF THE CASE, THE LD CIT(A) HAS ERRED IN HOLDING THAT NO ADDITION CAN BE MADE IN THE SEARCH ASSESSMENT UNDER THE PROVISION S OF SECTION 153C/ 153A WHEN ON INCRIMINATING MATERIAL RELATING TO THE ISSUE IS FOUND. 3. THE ORDER OF THE LD CIT(A) IS ERRONEOUS AND IN NOT TENABLE ON FACTS AND IN LAW. 4. BRIEFLY STATED THE FACTS ARE THAT ASSESSEE IS ENGAGED IN THE BUSINESS OF PROVIDING MEDICAL TRANSCRIPTION SERVICES AND REMOTE ACCOUNTING BUSINESS FOR ITS OVERSEAS CUSTOMERS. DURING THE A Y 2004 - 05 THE ASSESSEE HAS SHOWN ADVANCE AGAINST SHARE CAPITAL OF RS. 119664000/ - AS ON 31.03.2004 COMPARED TO RS. 96399000/ - AS ON 31.03.2003. THE ASSE SSEE WAS ASKED TO EXPLAIN THE ONUS CAST UPON IT U/S 68 OF THE ACT. SIMILARLY FOR AY 2007 - 08 THE INCREASE IN SHARE CAPITAL IS OF RS 32123000/ - . THE LD ASSESSING OFFICER THEREAFTER, EXAMINED THE WHOLE ISSUE VIDE PAGE NO. 4 TO 17 OF HIS ORDER FOR AY 2004 - 05 AS UNDER: - FACTS OF THE PRESENT CASE: 3. TODAY GROUP IS ENGAGED IN THE REAL ESTATE AND HOSPITALITY BUSINESS ACTIVITIES IN NCR AND OTHER PARTS OF THE COUNTRY SINCE 2004. IN THE REAL ESTATE SEGMENT, THE GROUP HAS CONSTRUCTED AND IS CONSTRUCTING RESIDENTIAL UNITS AND COMMERCIAL PROJECTS. THE GROUP IS MAKING HUGE INVESTMENTS IN HOTEL PROJECTS ALSO. RECENTLY, IT HAS FORAYED INTO POWER SECTOR ALSO. THE KEY PERSONS BEHIND THE TODAY GROUP ARE SHRI G ULSHAN KUMAR SAMBHIR AND SHRI RAJENDER KUMAR FIAMBHIR. THE KEY COMPANIES IN WHICH BULK OF BUSINESS ACTIVITIES HAVE BEEN CARRIED OUT OR INVESTMENTS HAVE BEEN MADE ARE M/S TODAY HOMES AND INFRASTRUCTURE PRIVATE LIMITED; M/S TODAY HOTELS PRIVATE LIMITED; M/S TODAY HOTELS (NEW DELHI) PRIVATE LIMITED; M/S AERIAL E STATES PRIVATE LIMITED; M/S JAIMATA REALTORS PRIVATE LIMITED; M/S NV POX SERVICES LTD ETC. 3.1 THE FUNDS HAVE BEEN INFUSED IN THESE KEY COMPANIES IN THE FORM OF SHARE CAPITAL/ SHARE PREMIUM/SHARE APPLICATION MONEY/UNSECURED LOANS/ADVANCE AGAINST SHA RE CAPITAL; PROPERTIES OR PROJECTS ETC FROM THE VARIOUS PAPER/SHELL COMPANIES WHICH ARE IN TURN CONTROLLED BY 6AMBHIRS THROUGH THEIR TRUSTED PEOPLE/EMPLOYEES. THESE VARIOUS PAPER/SHELL COMPANIES FLOATED BY TODAY GROUP OR GAMBHRRS IN TURN RECEIVE ACCOMMODAT ION ENTRIES FROM VARIOUS ENTRY OPERATORS IN LIEU OF CASH GIVEN TO THEM THROUGH THE MEDIATORS AND THIS CASH IS NOTHING BUT THE UNACCOUNTED INCOME OF GAMBHIRS/TODAY GROUP 3.2 ON PERUSAL OF THE RECORDS, IT WAS SEEN THAT THE ASSESSEE IS A GROUP COMPANY O F M/S TODAY HOMES AND INFRASTRUCTURE PVT LTD AND DURING THE FINANCIAL YEAR 2003 - 04 RELEVANT TO THE ASSESSMENT YEAR 2004 - 05, IT HAS RECEIVED VARIOUS AMOUNTS FROM VARIOUS PAPER/SHELL COMPANIES AS ALREADY MENTIONED IN PARA 2.3 SUPRA, WHICH IN TURN ALSO BELONG TO TODAY GROUP OF CASES AND HAVE TRANSFERRED/GIVEN THIS MONEY TO THE ASSESSEE COMPANY DURING THE FINANCIAL YEAR 2003 - 04 RELEVANT TO THE ASSESSMENT YEAR 2004 - 05. 3.3 THE DISCUSSIONS/EVIDENCES IN SECTION 4 INFRA ESTABLISH BEYOND DOUBT THAT THESE ARE J UST ENTRY LEVEL PAPERS/SHELL COMPANIES OF TODAY GROUP WHO ARE/WERE NOT DOING ANY BUSINESS; HAVE NO BOOKS OF ACCOUNT AND HAVE JUST BEEN FLOATED AND CONTROLLED BY SAMBHIRS FOR INFUSION OF THEIR UNACCOUNTED MONEY IS THE KEY/FLAGSHIP COMPANIES OF TODAY GROUP. 4. EXISTENCE OF PAPER/SHELL COMPANIES WHICH ARE CONTROLLED BY GAMBHIRS: 4.1 PAGE 3 OF 22 THE VARIOUS PAPER/SHELL COMPANIES WHICH HAVE BEEN FLOATED BY GAMBHIRS AND HAVE BEEN USED AS A CONDUIT TO TRANSFER THEIR UNACCOUNTED MONEY INTO THE ASSESSEE COMPANY ARE AS UND ER: S. NO NAME ADDRESS DATE OF INCORPORATION STATUS AS PER ROC WEBSITE DIRECTORS 1. AFFLUENCE CONSTRUCTION PVT LTD 373, 2'' FLOOR, EAST OF KAILASH, NEW DELHI - 110065 29.11.2006 STRIKE OFF DEFAULTER IN FILING FORM 32 AS PER ROC SITE 2. CHINTAPURNI PROP. BUILD PVT LTD BG - 6/237D, PASCHIM VIHAR, NEW DELI - 110063 20.05.2006 STRIKE OFF JAGTARSING H ASHOK CHOPRA 3 - MEGA BUSINESS CENTRE PVT LTD 373, 2 ND FLOOR, EAST OF KAILASH, NEW DELHI - 110065 21.06.1995 STRIKE OFF SANJAYJATW ANI ASHOK CHOPRA 4, S. M. INFOTEL PVT LTD BG - 6/237D, PASCHIM VIHAR, NEW DELI - 110063 30.06.2004 ACTIVE IN PROGRESS (LAST AGM - NO DATE) JAGTAR SRNGH SANJAYJETW ANI 5. MOUNTAIN LAND DEVELOPERS PVT LTD 373, 2 ND FLOOR, EAST OF KAILASH, NEW DELHI - 110065 19.01.2007 STRIKE OFF VINAYSUBHI KHI SAURABH NIGAM 6. TRUTHFUL DEVELOPERS PVT LTD B - 44, 2 ND FLOOR, JANGPURA - B, NEW DELHI 10.07.2002 ACTIVE SANJAYJATW ANI ASHOK CHOPRA 7. MANU COMMUNICATION PVT LTD BG - 6/237D, PASCHIM VIHAR, NEW DELHI - 110063 11.12.1996 STRIKE OFF ASHOK ARORA GURMEET SINGH 8. PRESTIGE APARTMENTS PVT LTD HOUSE NO. 10, POCKET G - 20 SECTOR - 7, ROHINI, NEW DELHI 07.12.1994 STRIKE OFF SANJAY JETWANI GURMEET SINGH 9. PARMATAMA APARTMENTS PVT LTD BG - 6/237D, PASCHIM VIHAR, NEW DELI - 110063 26.12.1994 STRIKE OFF ASHOK ARORA 10. SANCHAY CHITS PVT LTD 373, 2 ND FLOOR, EAST OF KAILASH, NEW DELHI - 110065 25.3 - 1987 STRIKE OFF ASHOK ARORA VINAY SUBHIKHI 11. SAGAR PROMOTERS PVT LTD HOUSE NO. 10, POCKET G - 20 SECTOR - 7, ROHINI, NEW DELHI 17.01.1995 ACTIVE IN PROGRESS (LAST AGM - 13/09/2000) VINAYSUBHI KHI JAGTARSING H PAGE 4 OF 22 12. PUNEET EXIM (P) LTD 151 - 152, POCKET G - 20, SECTOR - 1, ROHINI, NEW DELHI - 110085 06.01.1994 DEFAULTER - FY 2008 - 09 TO 2009 - 10 ASHOK CHOPRA GURMEET SINGH 13. SATYA TECHNOBUILD PVT LTD LOTODARMAL LANE, 2'' FLOOR BENGALI MARKET, NEW DELHI 05.03.199? STRIKE OFF VINAY SUBHIKHI GURMEET SINGH 4.2 THE VARIOUS FACTS WHICH ARE APPARENT FROM ABOVE TABLE ARE; OUT OF 13 COMPANIES 10 COMPANIES HAVE BEEN STRIKE OFF AS PER THE ROC RECORDS AVAILABLE AT THE WEBSITE OF MINISTRY OF CORPORATE AFFAIRS WWW.MCA.QOV.IN . 1 OUT OF 3 REMAINING COMPANIES IS DEFAULTER IN FILING THE ANNUAL RETURN WITH THE ROC AND OTHER 2 COMPANIES ARE IN PROGRESS OF BEING STRIKE OFF. ALMOST ALL THE COMPANIES ARE DEFAULTER IN FILING THEIR RETURN OF INCOME WITH THE INCOME TAX DEPT DURING THE PERIOD OF THEIR EXISTENCE. MANY COMPANIES ARE DEFAULTER IN FILING FORM NUMBER 32 AS PER THE ROC RECORDS AVAILABLE AT THE WEBSITE OF MINISTRY OF CORPORATE AFFAIRS WWW.MCA.QOV.IN . ALMOST ALL OF THESE COMPANIES ARE HAVING THEIR REGISTERED OFFICES AT: A. 373 , 2ND FLOOR, SANT NAGAR, EAST OF KAILASH, NEW DELHI; B. B6 - 6/237D, PASCHIM VIHAR, NEW DELHI OR C. HOUSE NO.10 PKT (5 - 20, SECTOR - 7, ROHINI, NEW DELHI 4.3 TO FIND OUT THE EXISTENCE AS WELL AS THE DETAILS OF BUSINESS ACTIVITIES OF THESE CONCERNS/COMPAN IES OF TODAY GROUP, SURVEY U/S 133A WAS CONDUCTED ON 26.11.2009 AT ALL THE REGISTERED OFFICES OF THESE COMPANIES. THE PERSONS AVAILABLE AT THESE 3 REGISTERED OFFICES HAVE CATEGORICALLY STATED THAT NEITHER BOOKS OF ACCOUNTS ARE MAINTAINED NOR ANY BUSINESS A CTIVITIES ARE CARRIED OUT BY THESE COMPANIES FROM THOSE PREMISES. IT HAS BEEN STATED THAT ALL THESE COMPANIES ARE CONTROLLED BY TODAY 6ROUP OF COMPANIES HAVING OFFICE AT STATESMAN HOUSE, CONNAUGHT PLACE, NEW DELHI. 4.3.1 DURING THE COURSE OF SURVEYS, NO COMPANY WAS FOUND TO BE RUNNING FROM THE AFORESAID PREMISES AND NO RECORDS IN TERMS OF BOOKS OF ACCOUNT/SECRETARIAL RECORDS OF THESE COMPANIES LIKE SHAREHOLDER REGISTER, MINUTES REGISTER, SHARE TRANSFER REGISTER, CASH BOOK, BANK BOOK. JOURNAL BOOK ETC WERE FOUND. PERSONS PRESENT THERE HAVE DEPOSED ON OATH THAT THEY WERE DIRECTLY OR INDIRECTLY ACTING AT THE BEHEST OF TODAY 6ROUP. THE RELEVANT PORTIONS OF THESE STATEMENTS INDICATING THE ABOVE ARE REPRODUCED AS UNDER STATEMENT OF SH. JAGDISH PRASAD VOHRA AGED 58 YEARS 5/O LATE SH. KANHAIYA LAL VOHRA R/O 1878, S.FI.M. NAGAR, FARIDABAD RECORDED ON OATH/ SOLEMN AFFIRMATION ON 26/11/2009 AT 10.30 AM DURING THE COURSE OF SURVEY PROCEEDINGS AT 373. 2 ND FLOOR. SONT NAGAR. EAST OF KAMAS H. NEW DELHI. Q - 1 PLEASE IDENTIFY YOURSELF? ANS. I AM JAGDISH PRASAD VOHRA, AGED 58 YEARS SON OF LATE SHRI KANHAIYA LAL VOHRA R/O 1878, SAN/AY GANDHI MEMORIAL NAGAR, FARIDABAD. Q.2. IN WHAT CAPACITY YOU ARE WORKING HERE WILH WHOM AND SINCE WHEN WHAI IS YOUR PRESENT SALARY? ANS. I AM WORKING HERE AS OFFICE INCHARGE OFM/S TODAY HOME INFRASTRUCTURE PVL LTD., SINCE 2 YEARS. MY PRESENT SALARY IS NEAR ABOUT RS. 5000/ - PAGE 5 OF 22 Q.3 PLEASE STALE NAMES OF OTHER EMPLOYEES. WHAT IS THE NATURE OF DUTIES PERFORMED BY YOU? ANS. NO OTHER EMPLOYEE IS WORKING HERE. I ONLY COLLECT DAK RECEIVED AT THIS ADDRESS, INTIMATE THE SAME TO MAIN OFFICE AT STATESMAN HOUSE AND DELIVER SUCH DAK TO THE MESSENGER OF MAIN OFFICE WHENEVER HE VISITS THIS PREMISE I REPORT TO SH. ASHOK CHOPRA, IN THE MAIN OFFICE AT STATESMAN HOUSE. Q.4 WHO IS THE OWNER OF THIS PREMISE AND - WHAT RENT IS BEING PAID FOR THIS PREMISE? ANS. SH. AJMERSINGH IS THE OWNER OF THIS PREMISE. RENT OF THIS PREMISE IS RS. 3500/ - PLUS RS. 35Q/ - FOR ELECTRICITY/ WATER ETC. Q - 5. PLEASE STALE WHETHER ANY CASH TRANSACTION IS MADE BY YOU IN THIS OFFICE. ALSO STATE THE AMOUNT OF CASH AVAILABLE AT PRESENT IN THIS OFFICE? ANS. NO CASH TRANSACTION IS MADE FROM THIS OFFICE. NO AMOUNT OF CASH IS AVAILABLE AT PRESENT IN THIS OFFICE. Q.6. GIVE THE DETAILS OF COMPANIES/ BUSINESS CONCERNS RUN FROM THIS PREMISE OR IN WHOSE RESPECTS DAK IS RECEIVED BY YOU? ANS. AS STATED, NO OFFICE WORK IS DONE FROM THIS PREMISE. HOWEVER DAK IS RECEIVED AT THIS PREMISE IN RESPECT OF FOLLOWING COMPANIES/ BUSINESS CONCERNS AS PER THE DIRECTIONS OF MR. ASHOK CHONRA; - 1. CHEERFUL DEVELOPERS PVL. LTD. 2. LAZOR IMPEX PVT. LTD. 3. 1 AND E ADVERTISING PVT. LTD. 4, KALRAJAN FINVEST A LEASING PVT. LTD, 5. JASMINE SYSTEMS PVT. LTD. 6. VTTHAN IRTFOTECH PVT. LTD. 7. CHHAVI DEVELOPERS PVT. LTD. 8. PREFERENCE PROPERTIES PVT. LTD. 9. SAGARI SECFIN PVT. LTD. 10. HORIZON DISTRIBUTORS PVT. LTD. 11. CYBERAGE PROPERTIES PVT. LTD. 12. B. J. BUILDWEL! PVT. LTD. 13. MEGA BUSINESS PVT. LTD 14. GOLDEN TECHNO BUILD PVT. LTD. 15. SANGRAH BUILDTECH PVT. LTD. Q.7 BESIDES THE ABOVE STATED COMPANIES, RUBBER STAMPS IN RESPECT OF FOLLOWING COMPANIES ARE ALSO FOUND FROM YOUR PREMISE: - (I) ARUSHI STEELS & ALLOYS PVT. LTD. (II) JEET BUILD CAP PVT. LTD. (III) ARJIT STEELS & ALLOYS PVT. LTD, (IV) GOODWILL MERCHANTS PVT. LTD (V) NO VELTY EXPORTS PVT. LTD. (VI) VIKRAM CASTING PVT. LTD. (VII) SAGAR PROMOTERS PVT. LTD. PLEASE EXPLAIN WHY THE RUBBER STAMPS OF THESE COMPANIES ARE LYING HERE. WHO ARE THE EMPLOYEES OF ABOVE STATED COMPANIES AND - WHAT BUSINESS ACTIVITY IS BEING DONE BY THE ABOVE COMPANIES? ANS. I HAVE JOINED HERE ABOUT TWO YEARS BACK I DON 'T KNOW SINCE WHEN THESE RUBBER STAMPS ARE LYING HERE. THERE IS NO EMPLOYEE WORKING IN THIS OFFICE IN RESPECT OF ABOVE STATED COMPANIES. NO BUSINESS ACTIVITY IS DONE BY THE ABOVE COMPAN IES AT THIS PREMISE. Q.8. WHERE ARE THE BOOKS OF ACCOUNTS OF THE ABOVE STATED COMPANIES MENTIONED AT SERIAL NO. 6 AND 7? ANS. I DON 'T KNOW WHERE THE BOOKS OF ACCOUNTS OF THESE COMPANIES ARE MAINTAINED. HWEVER 1 CONFIRM THAT THE BOOKS OF ACCOUNTS OF THERE COMPANIES ARE NOT MAINTAINED HERE. Q - 9 WHO PAY THE SALARY AND RENT? WHETHER IT IS PAID IN CASH OR CHEQUE? ANS. SALARY AND RENT IS SENT BV THE OFFICE AT STATESMAN (TODAY HOMES AND INFRASTRUCTURE PVT. LTD.) IN CASH EVERY MONTH THROUGH SH. ASHOK PAGE 6 OF 22 CHOPRA. Q.IO. DO YOU ANY BANKING TRANSACTIONS ALSO ON BEHALF OF ANY OF THE BUSINESS CONCERN? ANS. NOT AT ALL. O.I I. WHO ARE THE DIRECTORS/PERSONS HAVING SUBSTANTIAL INTEREST IN THESE COMPANIES? ANS. AS STATED EARLIER. I HAVE BEEN KEPT ON SALARY BY M/S TODAY HOMES AND INFRASTRUCTURE PVT LTD. AND I REPORT TO SH. ASHOK CHODRA FIELD IN CHARGE AT TELEPHONE NO. 981 1589054. 1 HAVE NO INFORMATION WHATSOEVER M RESPECT OF DI RECTORS?' PERSONS HAVING SUBSTANTIAL INTERESTS IN THESE COMPANIES AND THEIR BUSINESS ACTIVITIES. MY JOB IS TO RECEIVE THE DAK AT THIS PREMISE I.E. ROOM NO. 4, 2 ND FLOOR OF 373, SANTNAGAR, EAST OF KAILASH, NEW DELHI. Q.I 5. WHO HAS KEPT YOU HERE ON EMPLOYMENT? ANS. SH. SUBHIKIHIII WHO SITS AT STATESMAN OFFICE OF TODAY HOMES AND INFRASTRUCTURE PVT, LTD. HAD TAKEN MY INTERVIEW ON THE RECOMMENDATION OFSH. SAURABH NIGAM, MANAGER AND DEPLOYED ME FOR THIS FOB. HE DIRECTED ME TO REPORT TO SH. ASHOK CHOPRA , FIE ID INCHARGE MY SALARY IS SENT BY THE MAIN OFFICE THROUGH SH. HARSHPAL PEON WHO RESIDES OUT FARTDABAD NEAR MY RESIDENCE. 4.3.2 EXTRACTS OF THE STATEMENT OF SHRI HARSH TAIWAN S/O LATE SHNI RAJ KUMAR TAIWAN, AT B - 6/237 - 0. PASCHIM VIHAR. NEW DELHI 4.3.3 SURVEY U/S 133 A OF THE ACT WAS AUTHORIZED TO BE CONDUCTED ON 26.11.2009 AT THE REGISTERED OFFICE OF THE COMPANY CREATIVE PROPBUILD PVT LTD AND OTHERS AT HOUSE NO. 10 PKT 6 - 20 SECTOR 7, ROHRNI, NEW DELHI. HOWEVER, THE AUTHORISED OFFICER REPORTED TH AT THE OFFICE WAS FOUND LOCKED. THE SELF DECLARATION OF SH RAJESH GUPTA, OWNER OF HOUSE NO. 10 PKT G - 2Q, SECTOR, 7 ROHINI, NEW DELHI WAS OBTAINED BY THE AUTHORISED OFFICER. THE SCANNED COPIES OF THE SITE REPORT SUBMITTED BY THE AUTHORISED OFFICER AND SELF DECLARATION OF SHRI RAJESH 6UPTA ARE AS UNDER: - SEARCH AND SEIZURE ACTION U/S 132 OF THE INCOME TAX ACT, 1961 WAS CONDUCTED ON 26.11.2009 AT THE RESIDENTIAL PREMISES OF SOME OF THE DIRECTORS OF THE ABOVE MENTIONED ENTRY LEVEL PAPER/SHELL COMPANIES OF TODAY GROUP, NAMELY SHRI VINAY SUBHIKHI, SHRI ASHOK C HOPRA AND SHRI GURMEET SINGH. ALL THESE DIRECTORS AS WELL AS OTHER KEY PERSONS LIKE SH. D 1C RASTOGI (VP FINANCE OF TODAY HOTELS PVT LTD) HAVE ADMITTED IN THEIR STATEMENTS U/S 132(4) THAT ALL THE AFFAIRS OF THESE COMPANIES ARE CONTROLLED BY SHRI 6K 6AMBHIR AND SHRI RK (SAMBHIR. EXTRACTS OF THEIR STATEMENTS GIVEN UNDER OATH U/S 132(4) OF THE INCOME TAX ACT, 1961 ARE RE - PRODUCED AS UNDER: - 4.4.1 STATEMENT OF SHRI ASHOK CHOPRA (DIRECTOR) RECORDED ON 27.11.2009 AT 8 FLOOR. STATESMAN HOUSE, CP. NEW DELHI Q - 2 PLEASE GIVE DETAILS OF THE COMPANIES/FIRMS/CONCERNS IN WHICH YOUR ARE DIRECTORS/PARTNERS ETC. PAGE 7 OF 22 ANS. I AM DIRECTOR IN THE FOLLOWING COMPANIES OF TODAY HOTELS GROUP' - (]) M/S TRUTHFUL DEVELOPERS PVT, LID. (2) M/S COSMO REALTECH PVT. LTD. (3) M/S KHUSHBOO PROPERTIES PVT. LTD. (4) M/S GAY DEVELOPERS PVT. LTD. (5) M/S MEGHA BUSINESS CENTRE PVT. LTD. (6) M/S SINGH BWLDTECH PVT. LTD. (7) M/S SANGRAH BUILD TECH PVT. LTD. (8) M/S BRAVO COMPECT SYSTEMS PVT. LTD. (9) M/S ADHIR BUILDWELL PVT. LTD. (10} M/S VIJAY RATH PROPERTIES PVT. LTD. (I I) M/S GOLDY DEVELOPERS PVT. LID. (12) M/S AMBIKA BUILDCON PVT. LTD. (13) M/S VKPK PROPERTIES PVT. LTD. (14) M/S HIGH TIME PROPERTIES PVT. LTD. (I5) M/S AYUSH PORTFOLIO PVT. LID. 16) M/S PURE GOLD PROPERTIES PVT. LTD. (17) M/S AERIAL ESTATES PVT. LTD. Q - $. . PLEASE STATE SINCE WHEN YOU ARE DIRECTOR IN M/S TODAY HOTELS PVT. LTD, AND ALSO PROVIDE YOUR JOB PROFILE IN THIS CONCERN? ANS. 1 AM DIRECTOR IN THE ABOVE SAID COMPANY FOR THE LAST THREE YEARS. I AM WORKING AS FIELD OFFICER AND LIAISOMNG WITH THE INCOME TAX OFFICE, REGISTRAR OF COMPANIES. ODA AND OTHER WORK RELATING TO MARKET/BANK ASSIGNED BY MR. VMAY SUBHIKI, VICE PRESIDENT, TODAY HOTELS (P) LTD. 1 AM DRAWING A SALARY OF RS.25, OOO/ - PER MONTH AND NO OTHER PERKS ARE BEING PROVIDED BY T HE COMPANY. Q.6 PLEASE STATE/ GIVE THE DETAILS OF THE BOARD MEETING HELD IN THE PAST THREE YEARS OF M/S TODAY HOTELS PVT. LTD. AND ALSO GIVE DETAILS OF SITTING FEE AS RECEIVED BY YOU AS DIRECTION IN THE ABOVE SAID COMPANY? ANS. 1 HAVE NOT ATTENDED ANY BOARD MEETING EVER OR NOT RECEIVED ANY SITTING FEES, HOWEVER TO FULFILL THE REQUIREMENTS OF COMPANY ACT, 1956 FORMALITIES WERE COMPLETED. Q.7 YOUR REPLY TO ABOVE QUESTION SUGGESTS THAI YOU ARE MERELY FUNCTIONS AS PAPERS/DUMMY DIRECTION OF M/S TODAY HOTELS (P) LTD., PLEASE COMMENT? ANS. YES, I AM MERELV A PAOER/DUMMV DIRECTOR AND I HAVE SIENEA THE PAVERS WITH THE DIRECTIONS OFTNV SENIOR OFFICIALS LE. MR. YINAV SUBHIKL TATEMENT OF SHRI ASHOK CHOPRA (DIRECTOR} RESIDENCE GH - 9/425* PASCHIM VIHAR. NEW DELHI RECORDED ON 26.11.2009 AT HIS Q.13 PLEASE GIVE THE OFFICE ADDRESS OF M/S COSMO REAJTECHPVTLTD, ITS BUSINESS ACTIVITIES, ITS DIRECTOR AND WHERE THE BOOKS OF OF A/CS ARE KEPT OR MAINTAINED? ANS. THE REGISTERED OFFICE OF THIS COMPANY IS SITUATED AT BG - 6/237D, JANATA FLAT, PASCHIM VIHAR, NEW DELHI. IT IS A REAL ESTATE COMPANY AND IS INVOLVED IN PROPERTY BUSINESS. BOOKS OF A/CS ARE MAINTAINED AT 16TH FLOOR, STATESMEN HOUSE, BARAKHAMBA ROAD, NEW DELHI. THE OTHER DIRECTOR NAME I DO NOT REMEMBER. Q.I 4. PLEASE GIVE THE OFFICE ADDRESS OFM/S KHUSHBOO PROPERTIES FVT LTD, ITS BUSINESS ACTIVITIES, ITS DIRECTOR AND WHERE THE BOOKS O A/CS ARE KEPT OR MAINTAINED? ANS. I DO NOT REMEMBER THE OFFICE ADDRESS OF THIS COMPANY. HOWEVER, IT IS INVOLVED IN REAL ESTATE BUSINESS. BESIDES ME, THE OTHER DIRECTOR IS SHRI JAGTAR SINGH. THE BOOKS OF A/CS ARE MAINTAINED AT 16 TH FLOOR, STATESMEN HOUSE, BARAKHAMBA ROAD, NEW DELHI. PAGE 8 OF 22 Q.15. PLEASE GIVE THE OFFICE ADDRESS OF M/S SINGH BUILDTECH PVT. LTD M/S ADHIR BUILDWELL PVT LTD, M/S AMBIKA BUILDCON PVT LTD AND M/S VKPK. PROPERTIES PVT LTD? ANS. THE OFFICE ADDRESS IS BG - 6/237D, JANATA FLAT, PASCHIM VIHAR, NEW DELHI. Q.I 6. PLEASE STATE IN WHAT TYPE OF BUSINESS ACTIVITY ARE INVOLVED THE COMPANIES MENTIONED IN Q. NO. 15 ABOVE? PLEASE SPECIFY THE DIRECTORS. PLEASE ALSO STATE WHERE THE BOOKS OF A/CS ARE KEPT ON MAINTAINED? ANS ALL THE ABOVE COMPANIES ARE INVOLVED IN REAL ESTATE BUSINESS A ND BOOKS OF A/CS ARE MAINTAINED AT 16 TH FLOOR, STATESMEN HOUSE. BARAKHAMBA ROAD, NEW DELHI. BESIDE ARE THE OTHER DIRECTOR ARE: (I) SH GURMEET SINGH : SINGH BUILDTECH PVT LTD (II) SH GURMEET STNGH : ADHSR BUILDWILL PVT LTD (HI) SH JAGTAR SINGH : AMBIKA BUILDCON PVT LTD F FV) SH JAGTAR SINGH : VKPK PROPERTIES PVT LTD Q.I 7. YOU HAVE STATED IN REPLY TO Q. NO. 13 & 15 THAT OFFICE ADDRESS OF THE FOLLOWING COMPANIES IS BG - 6/237D. JANATA HATS, PASCHIM VIHAR, NEW DELHI: (I) M/S COSMO REALTECH PVT LTD (2) M/S SINGH BAILDTECH PVT LTD (3) M/S ADHIR BUILDWEIL PVT LTD (4) M/ S AMBIKA BUILDCON PVT LTD (5) M/S VK PK PROPERTIES PVT LTD PLEASE STATE, WHAT TYPE OF ACTIVITIES ARE TO BE HELD AT THE ABOVE OFFICE ADDRESS? PLEASE ALSO STATE WHETHER THE BOOKS OFA/C ARE KEPT OR MAINTAINED AT THE ABOVE ADDRESS ANS. WE ARE USIN % THE ABOVE OFFICE ADDRESS FOR ONLV NAME SAKE WE HAVE AVOOINTED ONLV ONE MAN NAMELV SH HARSH TAHVAR TO RECEIVE DAKS AND CORRESPONDENCE AND / PAID RS. 5.000/ - TO HIM AFTER SETTING THE SAME FROM MV OWNER SHRI RAIENDER GAMBHIR OTHER THEM RECEIVING DAKS, / NOTES / CORRESPONDENCES, NO BUSINESS ACTIVITIES ARE HELD AT BG - 6/237D, JANATA FLAT, PASCHIM VIHAR. NEW DELHI. THE BOOKS OFA/C ARE ONLV KEPT OR MAINTAINED AT /6 TH FLOOR, STATESMEN HOUSE. BARAKHAMBA ROAD, NEW DELHI. Q.I 8. PLEASE GIVE THE OFFICE ADDRESS OF THE FOLLOWING COMPANIES, THEIR BUSINESS ACTIVITIES, THEIR DIRECTORS AND NAME OF THE PLACE WHERE THE BOOKS OFA/CS ARE KEPT OR MAINTAINED: I) M/S GAY DEVELOPERS P LTD 2) M/S MEGA BUSINESS CENTRE P LID 3) M/S SANGRAH BUILD TECH P LID 4) M/S BRAVO COMPAQ SYSTEMS P LTD 5) M/S VIJAY RATH PROPERTIES P LTD 6) M/S GOLDY DEVELOPERS P LTD 7) M/S HIGH TIME PROPERTIES P LTD 8) M/S PURA GOLD PROPERTIES P LTD 9)M/S AYITSH PORTFOLIO P LTD ANS. THE OFFICE ADDRESS, THEIR DIRECTORS AND PLACE WHERE THE BOOKS OFA/CS ARE KEPT ARE ENUMERATED BELOW: - S. NO NAME OF THE CO. OFFICE ADDRESS OTHER DIRECTOR PLACED OF BOOKS OF SFS MAI NTAINED. 1. GAY DEVELOPERS IP) LTD 373, 2 FLOOR, EM I OF SANJAY JEIHWANI I6' 1 ' FLOOR. STATESMEN HOUSE, KAILASH, NEW DELHI BARAKHAMBA ROAD, NEW DELHI 2. MEGBA BUSINESS CENTRE (P) LID - DO - - DO - - DO - 3. SAFLGRAH BUILD TECH PVT LID DO NOT KNOW - DO - ~DO - V. BRAVO COMPAQ SYSTEMS PVT LTD DO NOT KNOW - DO - - DB - 5. V, IJAT RATH PROPERTIES PVT LTD 373, 7* FLOOR. EAST OF - DO - - DO - KAILASH, NSW DELHI 6. GOLDY DEVELOPERS PVT LTD 10, TODARMALL - PAGE 9 OF 22 ANE. BENGALI - DO - - DO - MARKET, NEW DELHI 7. HIGH TIME PROPERTIES PVT LID 373, 2' 1 FLOOR. EAST OF JAGTAR STNGH - DO - KAI/ASH, NEW DELHI S. PURE COLD PROPERTIES PVT LED 10. TODARMAL LANE, BENGALI - DO - - DO - MARKET, .VEW DELHI 9. AYVSH PORTFOLIOS PVT LTD B - T - F, 2 S1 FLOOR, JANGPURA, SAAJAY JETHWAM - DO - NEW DELHI Q - 19. PLEASE SLATE WHAT REMUNERATION IS PAID TO PERSONS MEANT FOR COLLECTING DAKS? WHETHER THEY ARE ON THE PAY - ROLE OF COMPANY M/S TODAY HOTELS PVT LTD OR NOT? ALSO GIVE DETAILS OF 'HEIR NAME IN RESPECT OF FOLLOWING OFFICES: (1) BG - 6/237D. JANATA FLAT, PASCHIM VIHAR, NEW DELHI. (2) 373, 2NDFLOOR, EAST OF KAILASH, NEW DELHI (3) JO, TODARMAL LANE, BEGALI MARKET. N EW DELHI (4) B - 44, 2ND FLOOR, JCMGPURA, NEW DELHI ANS. THE REMUNERATION OFRS. 5.000/ - EACH TO BE PAID MONTHLV BY ME AFTER EQUINE THE SAME FROM MY OWNER MR. RAIENDRA GAMBHIR CHAIRMAN - CUM - MANASINE DIRECTOR OF M/S TODAY HOTELS (P} LTD. ALL OF THEM ARE ON THE PAY - ROLE OF COMPANY I E. M/S TODAV HOTELS (P) LTD. THE NAMES ARE EIVEN BELOW; (1) BG - 6/237D, JANATA FIAT. PASCHIM VIHA R, FVEW DELHI. MR, HARSH TEHVAR (2) 373. 2ND FLOOR, EAST OF KAILASH, NEW DELHI : MR.J.P. VEHRA (3) 10, TODARMAL LANE, BENGALI MARKET, NEW DELHI MR. SANA, PEON (4) B - 44, 2ND FLOOR, JANGPVRA , NEW DELHI MR. DHARAM PAL Q.20 PLEASE STATE WHERE THE STATUTORY BOOKS OF ALL THE ABOVE MENTIONED COMPANIES ARE MAINTAINED OR KEPT? ANS. ALL BOOKS ARE MAINTAINED AT IFF 1 FLOOR, STATESMAN HOUSE, BARAKHAMBA ROAD. CONNAUEHT PLACE. NEW DELHI 4.4.2 STATEMENT OF SHRI D K RASTOGI (V P FINANCE). RECORDED ON 26/11/2009 AT 16 TH FLOOR. STATESMAN HOUSE, CP, NEW DELHI PLEASE GIVE THE DETAILS OF THE ENTIRE CONCERN/ COMPANIES OR ANY OTHER BUSINESS ENTITY IN WHICH YOU ARE HAVING ANY INTEREST (TODMHOTELS). _ THE CONCERN NAME OF THE COMPANY ARE AS UNDER: (1) TODAY HOTELS (CHANDIGARH) PVT LTD (2) TODAY HOTELS (KARNATAKA) PVT L TD (3) TODAY HOTELS (MAHARASHTRA) PVT LTD (4) TODAY HOTELS (NEW DELHI) PVT LTD (5) TODAY HOTELS (NOIDA) PVT LTD (6) TODAY HOTELS (PUNJAB) PVT LID (7) TODAY HOTELS PVI LTD. ______ Q.11 PLEASE GIVE THE DETAILS OF COYS GAMBHIRJAMIH? ANS APART FROM TODAY HOTELS CROUP, TO THE BEST MY KNOWLEDGE FOLLOWING ARE IHE GROUP COYS OF GMABHIR GROUP (1) TODAY HOMES D INFRASTRUCTURE PVT LTD (REGD OFFICE S'' FLOOR, STATESMEN HOUSE) (2)__NOVA IRON &STEELS.T4 (CORPORATEOFFICE NEHRU PLACE NEW Q12. IN RESPONSE TO Q. NO - 11 YOU HAVE STATED TWO MORE COYS OF GAMBHIR FAMILY APART FROM TODAY HOTEL GROUP HOWEVER IN THIS PREMISES SEVERAL DOCUMENTS PAGE 10 OF 22 PERTAINING TO OTHER COYS HAVE BEEN FOUND, PLEASE CONSIDER YOUR THOUGHT AND GIVE THE DETAIL OF COMPANY'S DIRECTL Y & INDIRECTLY CONTROL BY GAMBHIR FAMILY? AS EVIDENT FROM DOCUMENTS A - 1. FOLLOWING ARE OTHER GROUP COY (TODAY HOTELS PVT. LTD GROUP AND GAMBHIR FAMILY ALSO) AS UNDER: (1) PARAGON TRAVELS & TOURS PVT LID (2) PARAGON OVERSEAS PVT LTD (3J SAMANH CRAFT S PVT LTD (4) HORIZON DISTRIBUTORS PVT LTD (5) CITRON TRADERS PVT LTD (6) SAVOY CONSULTANT PVT LTD (7) EPSON SYSTEMS PVT LTD (8) JASMINE SYSTEMS PVT LTD (9) NOVELTY CONSULTANTS PVT LTD (10) ANJALI OVERSEAS PVT LTD (11) UTILITY SYSTEMS PVT LI D (12) LAZOR IMPEX PVT LTD (13) PUNEET PROPERTIES PVT LTD (14) BLUE CHIP PORTFOLIOS PVT LTD (15) HERITAGE COLLECTIONS PVI LTD (16) PREFERENCE PROPERTIES PVT LTD (17) HERRY POULTRIES PVT LTD (18) S.M. INFOTEL PVT LID (19) S. K. S. PROPERTIES PVT LTD (20) BALANCE BUILD TECH PVT LTD (21) BELIEVE BUILD TECH PVT LTD (22) SINGH BUILDTECH PVT LTD (23) MANU COMMUNICATIONS PVT LTD (24) MEGHA BUSINESS CENTRE PVT LTD (25) KALRAJAN FINVEST AND LEASING PVT LTD (26) AYUSH PORTFOLIOS PVT LTD (27) APJCONSTRUCTION PVT LTD (28) CHERFUL DEVELOPERS PVT LTD (29) ERAWAT INFOTECH PVT LTD (30) ADHIR BUIDTECH PVI LTD (31) VIKHYAI PROPERTIES PVT LTD (32) SATYA TECHNOBUILD PVT LTD (33) SAGAR PROMOTERS PVT LTD (34) PUNEET EXIM PVT LTD (35) SANCHAY CHITS PVT LTD (36) GAY DEVELOPERS PV I LTD (37) PARMATMA APARTMENTS PVI LTD (38) B. J. BUILDWELL PVT LTD (39) PRESTIGE APARTMENTS PVT LTD (40) SPARK BUILDTECH PVT LID (41) ,VC BUILD TECH PVT LTD (42) SANGRAH BUILDTECH PVI LTD (43) FASAL AGRIFM PVT LTD (44) S. K. G. BUILDERS PVT LID (45) SIM EXPORTS PVT LTD (46) V K P K PROPERTIES PVT LTD (47) PURE GOLD PROPERTIES PVT LID (48) PERFECTION REALTORS PVT LTD (49) GOLDY DEVELOPERS PVT LID (50) VTHAN INFORTEL PVT LTD (51) GOLDEN TECHNOBUITD PVT LTD (52) PALLASH PORTFOLIOS PVT LID. 4.4.3 STATEMENT OF SHR1 ARVN NAYYAR (DIRECTOR)RECORDED ON 27JL2009 AT 8 FLOOR, STA TESMSIN HOUSE, CP T NEW DELHI PAGE 11 OF 22 Q. PLEASE GIVE DETAILS OF COMPANIES/ FIRMS AND PROPRIETARY CONCERNS IN WHICH YOU ARE DIRECTOR/ PARTNER? I. TODAY HOMES A INFRASTRUCTURE P. LTD. II. TODAY ENERGY P. LTD. III. TODAY POWER P. LTD IV. TODAY INFRAVENTURE P. LTD. V. TODAY ASSOCIATES P. LID. VI. VINTAGE BUILDMARI P. LTD. VII. VINTAGE INFRACON P. LTD, VIII. TODAY HOTELS P. LTD. IX. TODAY HOTELS (NEW DELHI} P. LTD. X. TODAY HOTELS (ANDHRA) P. LTD. XI. TODAY HOTELS (MAHARASHTRA) P. LTD. XII. TODAY HOTELS (KARNATAKA) P. LTD. XIII. TODAY HOTELS (CHANDIGARH) P. LTD. NAIDA PVT..TD. XIV. TODAY HOMES NOIDA PVT. LTD Q3. I AM SHOWING YOU PAGE NO. 160 OF ANNEX A - 1 FOUND & SEIZED FROM THE OFFICE OF THE TODAY HOMES & INFRASTRUCTURE P. LTD.. 8TH FLOOR, STATESMAN HOUSE. BARAKHAMBA ROAD, NEW DELHI WHEREIN RS. 3,00,00, 000/ - (THREE CRORES) HAVE BEEN PAID TO SH. MORDHWAJ SINGH S/O SH.CHATURBHUJ IN CASH BY THE AFORESAID COMPANY. PLEASE EXPLAIN THE SOURCE OF CASH PAID. ANS: I DO NOT KNOW ANYTHING ABOUT THIS THING OR DEAL, ONLY MR. G.K, GAMBHIR OR ASHOK ARORA, G.M. CAN TELL ABOUT THIS TRANSACTION MR. GK GAMBHIR WAS DIRECTOR IN THIS COMPANY SINCE ITS INCEPTION I.E. 2004. Q.4 I AM SHOWING YOU PAGE NO. 159 OF ANNEX A - 1 FOUND & SEIZED FROM THE OFFICE OF THE TODAY HOMES & INFRASTRUCTURE P. LTD. WHEREIN A PAYMENT OF RS. 1,36, 78,000/ - HAVE BEEN PAID IN CASH TO SH. RAM NARAYAN SINGH S/O SH. CHATURBUJ. PLEASE EXPLAIN THE SOURCE OF CASH PAID OR DD? ANS: I HAVE NO IDEA OF THIS TRANSAC TION ONLY GK GAMBHIR AND ASHOK ARORA CAN TELL ABOUT THIS. Q. 10 YOUR REPLY TO ABOVE QUERIES SUGGEST THAT YOU MERELY JUNCTION AS PAPER/DUMMY DIRECTOR OF M/S TODAY HOMES & INFRASTRUCTURE PVT LTD Q.12 PLEASE STATE EXACT NATURE OF WORKING IN THJPL? ANS. ANS: I AM BASICALLY IIAISONING WITH GOVT. AGENCIES LIKE DDA, MCD, ENVIRONMENTAL MINISTRIES TO GET A'OCSFOR THE PROJECTS IN DELHI. 4.4.4 STATEMENT OF SHR1 GVRMEET SINGH (DIRECTOR) RECORDED ON 26.11.2009 AT HIS RESIDENCE 221/255. GALI NO.7. YISHNU GARDEN, NEW DELHI Q - 2. IN WHICH COMPANY YOU ARE PRESENTLY WORKING AND IN WHAT CAPACITY? ANS. ! AM WORKING IN TODAY 'S HOMES & INFRASTRUCTURE PVT. LTD. (GROUP OF COMPANIES). I AM NOT ATTENDED TO ANY PARTICULAR COMPANY OF THE GROUP BUT WORK FOR THE TODAY'S GROUP OF COMPANIES. I WORK, TO SAY, AS FIELD SUPERVISOR. PREVIOUSLY ) WAS ATTACHED WITH MJS TODAY HOMES PVT. LTD. IN THE CAPAC ITY OF COMMERCIAL OFFICER, LOOKING AFTER OUTSIDE WORK. Q.3, ARE YOU DIRECTOR IN ANY COMPANY OF TODAY 'S GROUP QF COMPANIES? ANS. I EXACTLY DON 'T REMEMBER THE NAMES OF THE COMPANIES OF TODAY 'S GROUP IN WHICH I AM DIRECTOR BUT AS FAR AS 1 KNOW, I AM DIRECTOR IN SOME OF THE COMPANIES, SINCE I SIGN SOME OF THE PAPERS OF THE COMPANIES WHENEVER I AM TOLD TO SIGN. Q.8. IN YOUR ANSWER TO QUESTION NO. 3, YOU HAVE STATED THAT YOU WERE DIRECTOR IN SOME OF THE COMPANIES IN TODAY 'S GROUP OF COMPANIES, KINDLY STATE ON WHOSE DIRECTION/INSTRUCTION; YOU HAVE BECOME DIRECTORS PAGE 12 OF 22 IN THE COMPANIES OF TODAY 'S GROUP? ANS. I HAVE BECOME DIRECTOR AND SIGNED THE PAPERS RELATED TO BECOMING DIRECTOR OF THE COMPANY OF TODAY 'S GROUP ON THE DIRECTION/ INSTRUCTION OF SH. VINAY KUMAR SUBHIKHI WHO IS WORKING AS GENERAL MANAGER AS FAR AS I KNOW). WHEN I RAISED QUERIES/ DOUBTS FOR MAKI NG DIRECTOR IN THE COMPANY IN TODAY 'S GROUP OF COMPANIES, MR. SUBHIKHI TOLD THAT HE HAD ALREADY TALKED TO THE OWNERS OF THE COMPANY, MR. GULSHAN KUMAR GAMBHIR AND SH. RAJENDER KUMAR GAMBHIR AND HENCE YOU NEED NOT WORRY. Q.9. ON WHOSE INSTRUCTION, YOU GIVE DAY - TO - DAY PAPERS RELATED TO THE COMPANIES IN WHICH YOU ARE DIRECTORS OF TODAY'S GROUP AND DO YOU RECEIVE ANY FEES FOR ANY MEETINGS REGARDING DIRECTORS ' MEET? ANS. I SIGN ALL THE PAPERS REGARDING DAY - TO - DAY WORK, BOARD'S MEETING, DIRECTOR'S MEETING ETC. OF TODAY GROUP OF COMPANIES ON THE INSTRUCTIONS OF SHRI VTNAV KUMAR SUBHIKHI I DO NOT RECEIVE ANY TYPE OF FEES FOR THE COMPANY FOR SIGNING ANY PUFFERS AS A DIRECTOR. I ONLY RECEIVE MONTHLY SALARY OF RS. 12000/ - PLUS FUEL EXPENSES, AS CONVEYANCE INCURRED ON THE RUNNING OF MOTOR CYCLE WHICH IS PROVIDED BY THE COMPANY Q.1O WHAT ARE VEHICLES OWNED BY YOU OTHER THAN THE VEHICLE PROVIDED BY THE COMPANY? ANS. 1 DO NOT OWN ANY VEHICLE OTHER THAN MOTOR CYCLE, BAJAJ DISCOVER PROVIDED BY THE COMPANY. HOWEVER MY FATHER OWNS A SCOOTER, LML Q. 17 DO YOU KNOW ABOUT THE FOLLOWING COMPANIES: - 1 - M/S COSMO REALTECH PVT. LTD. 2. M/S CHARACTER CONSTRUCTIONS PVT. LID 3. M/S CREATIVE PROP - BUILD PVT. LTD. 4. M/S CHEERFUL DEVELOPERS PVT. LTD. 5. M/S N. Y. DOX SERVICES LID. IF SO IN WHAT CAPACITY? ANS I AM NOT AWARE OF THE ABOVE NAMED COMPANIES. I SIGN THE PAPERS IN HURRY AS DIRECTED BY MR. VINAY KUMAR SUBHIKHI WITHOUT KNOW ING FOR WHICH COMPANY I AM SIGNING THE PAPERS. ___________________________ STATEMENT OF SHRL GURMEET SJNGFF (DIRECTOR) RECORDED ON 18.01 .2010 AT BANK OF RAJASTHAN, JANPA TH. A T THE TIME OF OPERA TJON OF BANK LOCKER NEW DELHI Q - 21. ARE YOU A DIRECTOR IN ANY COMPANY? ANS. YES, LAMA DIRECTOR IN THE PVT. LTD. COMPANIES. HOWEVER 1 DO NOT REMEMBER NAME OF THE COMPANIES. Q.22. PLEASE EXPLAIN UNDER WHAT CIRCUMSTANCES YOU ARE NOT DISCLOSING NAME OF THE COMPANIES IN WHICH YOU CLAIM TO BE ONE OF THE DIRECTORS? ANS. I DO NOT REMEMBER THE NAME OF THE COMPANIES IN WHICH I AM ONE OF THE DIRECTORS. Q.23. ARE YOU AWARE THAT YOU ARE GIVING THIS STATEMENT ON OATH & YOU WILL SPEAK TRUTH? I AM ONCE AGAIN EXPLAINING YOU PROVISIONS OFLPC T4 /. TAX ACTS & MAKING YOU AWARE OF THE FACT THAT ANY FALSE OR UNTRUE STATEMENT GIVEN BY YOU SHALL MAKE YOU LIABLE TO PROSECUT ION. UNDER THE INDIAN PENAL CODE OF THE I. TAX ACT. J961. ANS. YES, I AM AWARE OF THIS FACT Q.24. DO YOU KNOW ABOUT THE FOLLOWING COMPANIES: - A. M/S COSMO REALTECH PVT. LTD. B. M/S CHARACTER CONSTRUCTION PVT. LTD. C. M/S CREATIVE PRO - BUILD PVT. LTD. D. M/S CHEERFUL DEVELOPERS PVT. LTD. E. M/SN. Y. DOX SERVICES LTD. IF SO, THEN UNDER WHAT CAPACITY, YOU ARE SIGNING THE PAPERS? PAGE 13 OF 22 ANS. 1 AM NOT AWARE OF THE ABOVE NAMED COMPANIES. ! RECEIVED THE PAPERS AT M/S NORTH GATE SHOPPING MALL, GUJRAMVALA TOWN, NEW DELHI. GET IT SIGNED. 1 DO NOT KNOW WHO SENDS THE PAPER TO ME NEITHER / KNOW THE NAME OF PERSONS WHO BRINGS THE PAPER. Q.25. IN ANSW ER TO QUESTION NO. 24, YOU HAD STATED THAT SIGNED THE PAPERS AT NORTH GATE SHOPPING MALL, GUJRANWALA TOWN, DELHI. YOU HAD FURTHER STATED THAT YOU DO NOT KNOW THE NAME OF PERSON WHO BRINGS THE PAPER & WHO SENDS THE PAPER TO YOU FOR SIGNING THE DOCUMENTS WHE REAS THE STATEMENT RECORDED ON DATED 26.11.2009 DURING THE COURSE OF SEARCH & SEIZURE OPERATION YOU HAD STATED THAT YOU SIGNED THE PAPERS ON THE DIRECTION OF VINAY' KUMAR SUBHIKHI. PLEASE EXPLAIN THE CONTRADICTION? ANS. NOW I REMEMBER THAT SH, VLNAY KUMAR SUBHIKHI SEND ME THE OAUER FOR SIGNING THE DOCUMENTS. I WAS ONLY BEINY A DUMMV DIRECTOR. 4.4.5 STATEMENT OF SHRL VINAY SUBHIKHI (DIRECTOR) RECORDED ON 27.LL.20Q9 AT 8 FLOOR, STATESMAN HOUSE, CP, NEW DELHI Q.3 OTHER THAN THE ABOVE FOSINORI HELD BY YOU, PLEASETATE WHETHER YOU ARE DIRECTOR/PARTNER IN ANY OF THE COMPANIES/FIRMS? ANS: I AM DIRECTOR MS. PALES VERDES ESTATE PVT. LTD., RANCHO PLACE ESTATES PVT. LTD., MISSION VIEJO AGRO PVT. LTD.. TAKSHILA DISTRIBUTOR PVT. LTD. AND ALSO FEW OTHER COMPANIES AS OFFHAND. I DO NOT REMEMBER THE NAMES WHICH WILL BE PROVIDED IN DUE COURSE OF TIME. Q - 4 PLEASE ELABORATE THE BUSINESS CARRIED ON BY THE ABOVE COMPANIES AND ALSO SPECIFY YOUR JOB PROFILE AS A DIRECTOR IN THE ABOVE COMPANIES? ALSO, PROVIDE THE CORPORATE OF REGISTERED ADDRESSES OF THE ABOVE COMPANIES. ANS. THESE COMPANIES HAVE NOT DOING ANY BUSINESS. THESE COMPANIES JOINTLY HOLD THE ASSETS NAMELY HOUSE NO.48, FRIENDS COLONY, NEW DELHI WHICH IS USED BY MR. G.FC. GAMBHIR AND MR. R.K. GAMBHIR FOR THEIR RESIDENTIAL PURPOSES. THIS ASSET WAS PURCHASED IN THE YEAR 1994. 1 HAVE NO ROLE TO PLAY IN THESE COMPANIES AND THE WHOLE AFFAIRS ARE MANAGED BY MR. O.K. GAMBHIR AND MR. R.K. GAMBHIR THEMSELVES, I DUMMY EREC TOR IN THESE COMPANIES. THE CORPORATE AND REGISTERED OFFICE ADDRESS IS HOUSE NO - 48, FRIENDS COLONY, NEW DELHI OF THE ABOVE COMPANIES. THESE COMPANIES DERIVE RENTAL INCOME FROM M/S. TODAY HOMES & INFRASTRUCTURE PVT. LTD. & M/S. TODAY HOTELS(P) LTD. Q.23. YOU ARE DIRECTOR IN M/S BALANCE BUILD TECH PVT LTD. PLEASE STATE WHERE THE BOOKS OF ACCOUNTS ARE KEPT OR MAINTAINED AND WHERE THT'.SHAREHOLDERS REGISTER IN KEPT OR MAINTAINED? ANS. Q.24. ALSO, YOU ARE DIRECTOR IN M/S APJ CONSTRUCTIONS (P) LTD. PLEASE STATE WHERE THE BOOKS OF ACCOUNTS ARE KEPT OR MAINTAINED AND WHERE THE SHAREHOLDER REGISTER IS KEPT OR MAINTAINED ANS. MR.G,K. MR. GK GAMBHIR CAN ONLY TELL THE DETAILS AS ASKED FOR. STATEMENT OF SHRL YINAY SUBHIKHI (DIRECTOR) RECORDED ON 14/01/2010 AT HI S RESIDENCE R - 8. NEW PRASAD NAGAR, DELHI Q.15 KINDLY STATE WHERE ARE THE BOOKS OFA/C OFAUTHECOMPANIESINWHICHYOU ARE DIRECTOR ARE KEPT. ANS. MR. GULSHANKURNAT GAMBHIR, OWNER OF TODAY GROUP OF COMPANIES ABOUT THIS. I DO NOT KNOW ABOUT THE BOOKS OF A/C OF THE COMPANIES WHICH I AM DIRECTOR Q.17. VIDE QUESTION NO. 15 OF THIS STATEMENT YOU HAD ANSWERED ABOUT THE BOOKS OF A/C OF THE COMPANIES IN WHICH YOU ARE DIRECTOR THAT YOU ARE NOT AWARE WHERE IHE BOOKS OF A/C OF THESE COMPANIES ARE BEING MAINTAINED. HOW IS IT PAGE 14 OF 22 POSSIBLE FOR A PERSON WHO IS COMPANY SECRETARYBY PROFESSION[TO NOT AWAREBOUNHE BOOH: OF'A/C OF'THE COMPANIES IRIVHICH HE TS DIRECTOR K.MDLYXPIAIN ANS. BECAUSE I AM A DUMMY DIRECTOR IN THESE COMPANIES WHICH ARE MAINLY CONTROLLED BY MR. CULSHAN KUMAR GAM BHIR 48. FRIENDS COLONY EAST, NEW DELHI 4.4.6 STATEMENT OF SHR1 GULSHAN KVMAR GAMBHIR RECOREDED ON 27.11.2009 AT 8 FLOOR, STATESMAN HOUSE. CP, NEW DELHI Q.8 ANS. IN WHICH CAPACITY YOU ARE INVOLVED IN M. - X TODAY HOMES & INFRASTRUCTURE PVT LTD AND US GROUP COMPANIES? ANS: I AM CEO & THE M/S TODAY HOMES 4 INFRASTRUCTURE PVT LTD AND I AM NOT WORKING IN ANY OTHER COMPANY. Q.9. WHO ARE THE DIRECTORS OF M/S TODAY HOMES & INFRASTRUCTURE PVT LID AND ALSO GIVE THE NAME OF OTHER GROUP COMPANIES AND WHO ARE T HE DIRECTORS IN SUCH GROUP COMPANIES? ANS. AS ON DATE SH AJAY SOOD AND SH UMESH SHARMA ARE THE OTHER DIRECTOR IN M/S TODAY HOMES & INFRASTRUCTURE PVT LTD AND OTHER GROUP COMPANIES NAMES AS PER MY KNOWLEDGE ARE AS UNDER: M/S GPS PROPERTIES PVT LTD M/S M.N . SECURITIES PVT LTD M/S P R INFRASTRUCTURE PVT LTD M/S AERIAL ESTATE PVI LTD M/SJAI MATA REALTORS PVT LTD THESE ARE THE NAME AS I KNOW AT THIS TIME AND ALSO THESE ARE OTHER COMPANIES IN THE GROUP. I DO NOT REMEMBER THE NAMES OF THE DIRECTORS INHE ABOVE COMPANIES. Q.IO. WHEN YOU CAN PRODUCE THE NAME OF DIRECTORS IN THE ABOVE COMPANIES? ANS. THE DETAILS OF DIRECTOR WILL BE PROVIDED TO YOU AT THE EARLIEST Q.11 PLEASE STATE WHERE THE ROC RECORDS, SHARE APPLICATION FORMS, COUNTER FOIL OF SHARE CERTIFICATES AND OTHER RELEVANT DOCUMENTS ARE KEPT INRESPECTOF OTHER GROUP COMPANIES. ANS. THE SAID RECORDS SHOULD BE KEPT AT THE REGISTERED OFFICE OF RESPECTIVE COMPANIES PLEASE EXPLAIN THAT THE REGISTERED THE FOLLOWING COMPANIES AS 8 IFL FLOOR, STATESMEN HOUSE. BK RAOD AND WHERE THE ROC RECORDS, SHARE APPLICATION FORMS, COUNTERFOIL OF SHARE CERTIFICATES AND RELEVANT DOCUMENTS KEPT AND PRODUCE THE SOURCE: M/S GPS PROPERTIES PVT LTD M/S M - N. SECURITIES PVT LTD M/S P R INFRASTRUCTURE PVT LID M/S AERIAL ESTATE PVI LTD M/S JAI MALA REALTORS PVT LTD SH VINAY SUBHIKI, VICE PRESIDENT FOR CORPORATE AFFAIRS IN HIS STATEMENT RECORDED THE AS STATED THAT THESE RECORDS ARE NOT BEING MAI NTAINED ANS. I CANNOT COMMENT WHAT STATEMENT SH SUBHIKI HAD GIVEN AND IN WHAT CONTEXT. I SHALL ORGANIZE AND PRODUCE THE RELEVANT RECORDS TO YOUR GOODSELF, Q.13. DURING THE COURSE OF SEARCH & SEIZURE OPERATION CARRIED OUT AT THE REGD. OFFICE OF THESE COM PANIES I.E. 8' FLOOR STATESMEN HOUSE, B. K, ROOD, NEW DELHI. ON 26* & 27* NOV, 2009 NO SUCH RECORDS AR FOUND. PLEASE IDENTITY SUCH RECORDS AND ANS. IT MAY NOT BE POSSIBLE LO IDENTITY QNDPRODU.CE THE SAID RECORD RIGHT NOW. HOWEVE WE SHALL PRODUCE THE SAID RECORD TO YOUR EOODSELF AT THE EARLIEST Q.I 4. AS THE RECORDS ARE NOT FOUND DURING THE COURSE OF SEARCH. PLEASE STATE WHERE FROM YOU WILL PROVIDE SUCH RECORDS AT THE EARLIEST. PAGE 15 OF 22 ANS. IT CANNOT COMMENT WHY YOU COULD NOT FIND THE RECORD. Q.15 AS PER EXTRACT OF THE BOOKS OF ACCOUNTS TAKEN FROM THE ACCOUNTING SECTION, THE SHARE CAPITAL AS ON 29/0}/2008 AT TODAY HOMES INFRASTRUCTURE PVT LTD (THIPL)STAND AT 23,69.47,000/ - AND THE, SHARE PREMIER A/C AS ON 2J/01/2Q08 AT RS 2,12,26,23,QQO/FURTHER, SHARE, CAP ITAL IN M/S GPS PROPERTIES PVT LTD AS ON 28/03/2005 STANDS AT RS. 4,9,94,0001 - AND SHARE PREMIUM AS ON 28/03/2005 STANDS AS 43JO,46,000/ - . PLEASE EXPLAIN SOURCE AND MANNER OF ACQUISITION OF THE SHARE CAPITAL AND SHARE PREMIUM A/C IS THESE TWO COMPANIES. AN A. THE ABOVE SAID SHARE CAPITAL AND SHARE PREMIUM HAS COME FROMJD$ERENT/ VARIOUS PVT INVESTMENT COMPANIES. Q.17 AS PER YOUR REPLY TO Q NO.15 YOU HAVE STATED THAT THE ABOVE TWO COMPANIES WERE IN RECEIPT OF SHARE CAPITAL AND SHARE PREMIUM FROM VARIOUS PVT I NVESTMENT COMPANIES. PLEASE EXPLAIN WHITHER YOU HAVE APPROACHED THESE COMPANIES FOR INVESTING IN ABOVE 2 COMPARAES AS THESE COMPANIES HAD APPROACHED YOU ANS. VARIOUS PERSONS ON DIFFERENT OCCASIONS APPROACHED IN ON BEHALF OF THE ABOVE SAID COMPANIES TO MA KE THE INVESTMENT IN OUR TWO COMPANIES. Q.I 8. PLEASE SPECIFY THE ABOVE PERSONS AND JIRODUCETHE SHARERE APPLICATION FORMJTFTHG ABOVE COMPANIES ALONGWITH COUNTERFOIL OF SHARE CERTIFICATE ISSUED TO THESEOMPANIES. ANS. I SHALL PROVIDE THE ABOVE SAID BOTH DE TAILS TO THE DEPARTMENT AT THE EARLIEST. Q.24 I AM SHOWING YOU STATEMENT RECORDED UNDER OATH OF SH ASHOK CHOPRA, ARUN NAYYAR, AJAY SOOD, VMESH SHARMA & SH. GUMEETSINGH. PLEASE GO THROUGH THEM WHEREIN ALL THE SO CALLED DIRECTORS HAVE SUBMITTED THAT ENTIRE ACTIVITY OF THE TODAY CROUP, ITS ASSOCIATES COMPANY AND ALL THE COMPANIES IN WHICH THEY ARE DIRECTORS ARE DIRECTLY CONTROLLED BY YOU AND ALL THE SIGNIFICANT DIRECTIONS ARE MADE BY YOU AND ALL THE DECISION TAKEN BY YOU WITH RESPECT TO ENTIRE FUNCTIONING OF THESE COMPANIES. ALL THESE DIRECTORS ARE ALSO PRESENT HERE. PLEASE SUBSTANTIAL? YOUR SOLE, FUNCTIONING AND CONTROL WITH RESPECT TO ABOVE MENTIONED DIRECTORS AND THE COMPANIES IN WHICH THEY ARE DIRECTORS. PLEASE CONSULT ALL OF THEM PRESENT AFTER GOING THRO UGH THEIR STATEMENT AND SUBSTANTIATE YOUR ANSWER' ANS. OUT OF MOST OF THE ABOVE COMPANIES MAIN FLAGSHIP COMPANY, IS M/S. TODAY HOMES & INFRASTRUCTURE PVT. LTD. I AGREE THAT ALL THE MAJOR DECISION WITH REGARD TO DAY TO DAY OPERATIONS OF M/S. THIPL ARE TAK EN BY ME. WITH REGARDS TO THE OPERATIONS TO THE ALL THE COMPANIES RELATED TO OUR DIVISION 1 ALONGWITH OTHERS SENIOR OFFICERS TAKEN THE DECISIONS WITH REGARD TO DAY TO DAY OPERATIONS Q.25 I AM SHOWING YOU THE STATEMENT OF VINAY SUBHKI . VP RECORDED AT THIS PREMISES, WHO HAS ALSO STATED IN HIS STATEMENT THAT ALL THE DECISION IN THE COMPANIES IN WHICH SH. VINAY SUBHIKI IS DIRECTOR ARE ALSO TAKEN BY YOU. PLEASE GO THROUGH THE STATEMENT AND SUBSTANTIATE YOUR ANSWER PARTICULARLY IN REFERENCE TO STATUS OF THE RESIDENCE 48. FRIENDS COLONY (EAST). NEW DELHI? ANS: 1 REQUESTED YOU FOR COPY OF ALL THE STATEMENTS INCLUDING SH. VINAY SUBHIKI. BUT THE SAME CANNOT BE GIVEN AT THIS TIME BY YOU. THIS REPLY WITH REGARDS TO THE QUESTION ABOUT RESIDENTS I.E . 48. FRIENDS COLONY (EAST), NEW DELHI HAS ALREADY BEEN EXPLAINED BY ME IN THE STATEMENT RECORDED AT MY RESIDENCE ON 26JL2009 4.5 FURTHER, PAGE NO. 135 AND 143 OF ANNEXURE A - L, PARTY H - 2 SEIZED FROM THE OFFICE AT 8 TH FLOOR, STATESMAN HOUSE, BARAKHAMB A ROAD, NEW DELHI, WHICH IS THE REGISTERED OFFICE OF M/S TODAY HOMES AND INFRASTRUCTURE PVT LTD, ARE WITH RESPECT TO DIN NO. AND DIGITAL SIGNATURES ALONGWITH PASSWORD OF VARIOUS PERSONS THROUGH WHOM THE ASSESSEE GROUP HAS FLOATED AND CONTROLLED VARIOUS PAP ER/SHELL PAGE 16 OF 22 COMPANIES BY APPOINTING THEM AS DIRECTOR ETC. THE SCANNED COPY OF PAGE NO. 135 OF ANNEXURE A - L, PARTY H - 2 IS AS UNDER: SL NO. DIGITAL SIGNATURE PASSWORD 1. MR. VINAY SUBHIKHI 12345678 2 ANIL NARULA 1234567 3 SANJAY JATWANI 12345678 4 BALJEET SINEH 12345678 5 NAND KISHORE 12345678 6 ASHOK CHOPRA 04082007 7. RK RATTAN RAJ 1234 8. ASHOK ARORA 12345678 9 BHIM ARORA 12345678 10 ANM NAYYAR 12345678 II SAWABH NIGAM 12345678 12 JAGTAR SINGH NOI KNOWN 13 AJAY SOOD 12345678 14 GURRAEET SINGH 12345678 15 GKGAMBHIR PASSWORD WITH THE HELP OF DIGITAL SIGNATURES, MOST OF THE STATUTORY COMPLIANCES INCLUDING FILING OF INCOME TAX RETURNS, FILING PAPERS BEFORE THE ROC, ETC. CAN BE MADE BY ANY PERSON IN THE NAME OF THE PERSON WHOSE DIGITAL SIGNATURES THE OTHER PERSON IS AWARE OF. AVAILABILITY OF THESE DOCUMENTS IN THE OFFICE OF M/S TODAY HOMES AND INFRASTRUCTURE PVT LTD FURTHER STRENGTHENS THE FACT THAT THE DIRECTORS OF THE ABOVE MENTIONED COMPANIES ARE MERELY EMPLOY EES OF TODAY GROUP OR ARE NAMESAKE/DUMMY DIRECTORS UNDER THE CONTROL OF GAMBHIRS. THE AVAILABILITY OF DIGITAL SIGNATURES WITH SAMBHIRS FURTHER CLEARLY INDICATES THAT THEY WERE THE MAIN PERSONS CONTROLLING THESE COMPANIES. 4.6 TO SUMMARISE , ALL THE FACTS AND EVIDENCES POINT TOWARDS ONLY ONE THING ONLY THAT ALL THE COMPANIES MENTIONED IS PARA - 4.1 SUPRA ARE PAPER OR SHELL COMPANIES WHICH ARE NOT DOING ANY BUSINESS, DO NOT MAINTAIN ANY BOOKS OF ACCOUNT, ARE DEFAULTERS IN FILING INCOME TAX RETU RNS AS WELL AS ANNUAL RETURNS WITH THE ROC AND ARE BEING CONTROLLED BY 6AMBHIRS/TODAY GROUP THROUGH DUMMY DIRECTORS. THESE COMPANIES IN TURN ARE USED AS CONDUITS TO TRANSFER THE UNACCOUNTED MONEY RECEIVED IN THE FORM OF ACCOMMODATION ENTRIES FROM VARIOUS E NTRY OPERATORS INTO THE MAIN COMPANIES INCLUDING THE ASSESSEE COMPANY, NAMELY M/S NY DOX SERVICES LTD. LEGAL DISCUSSION: 5. IT IS WELL ESTABLISHED LAW THAT, IN VIEW OF SECTION 68 OF THE ACT, WHERE ANY SUM IS FOUND CREDITED IN THE BOOKS OF THE ASSE SSEE IN ANY PREVIOUS YEAR, THE SAME MAY BE CHARGED TO INCOME TAX AS INCOME OF THE ASSESSEE OF THAT PREVIOUS YEAR, IF THE EXPLANATION OFFERED BY THE ASSESSEE ABOUT THE SOURCE AND NATURE THEREOF IS, IN THE OPINION OF THE ASSESSING OFFICER, NOT SATISFACTORY I .E. IN RESPECT OF CREDIT ENTRIES IN ITS BOOKS OF ACCOUNT THE BURDEN IS ON THE ASSESSEE TO PROVE THE SOURCE OF THE RECEIPT. WHERE THE NATURE AND SOURCE OF THE RECEIPT CANNOT BE SATISFACTORILY EXPLAINED BY THE ASSESSEE, IT IS OPEN TO THE REVENUE TO HOLD THAT IT PAGE 17 OF 22 IS THE INCOME OF THE ASSESSEE AND NO FURTHER BURDEN LIES ON THE REVENUE TO SHOW THAT THE INCOME IS FROM ANY PARTICULAR SOURCE 5.1 NOW LET US DISCUSS THE LEGAL POSITION AND VARIOUS JUDICIAL PRONOUNCEMENTS OF VARIOUS COURTS, IN RESPECT OF CREDITS IN THE BOOKS OF ACCOUNTS OF THE ASSESSEE INCLUDING IN THE FORM OF SHARE CAPITAL/SHARE APPLICATION MONEY/SHARE OR SECURITIES PREMIUM ETC, THE SHELTER OF WHICH, THE ASSESSEE MIGHT TAKE DURING THE APPELLATE PROCEEDINGS. 5.1.1 IN THE CASE OF CIT ORISSA VS. ORISSA CORPORATION LTD. 159 ITR 78 (SC) (1986), THE BOOKS OF ACCOUNT OF THE ASSESSEE CONTAINED THREE CASH CREDITS AGGREGATING ? 1,50,OOOA ALLEGEDLY RECEIVED AS LOANS FROM THREE INDIVIDUAL CREDITORS UNDER HUNDIS. LETTERS OF CONFIRMATION AS WELL AS THE D ISCHARGED HUNDIS WERE PRODUCED BY THE ASSESSEE TO THE AO BUT NOTICES/ SUMMONS SENT TO THEM REMAINED UNSERVED BECAUSE THEY HAD REPORTEDLY 'LEFT' THAT ADDRESS AND THEREFORE THE AO TREATED THE AMOUNT AS UNDISCLOSED INCOME OF THE ASSESSEE U/S 68 OF THE ACT. TH E VIEW OF THE TRIBUNAL WAS THAT MERELY BECAUSE THE ASSESSEE COULD NOT PRODUCE THESE THREE PARTIES, THERE WAS NEVERTHELESS NO JUSTIFICATION TO DRAW AN ADVERSE INFERENCE. THIS APPROACH AS ACCORDED APPROVAL BY THE HON'BLE SUPREME COURT IN THESE WORDS: 5. CONSEQ UENTLY, AFTER DISCUSSION OF VARIOUS LEGAL PROPOSITION AN ADDITION OF RS. 23265000/ - WAS MADE U/S 68 OF THE ACT. THE ASSESSMENT U/S 143(3)/ 1 53C/ 153A OF THE INCOME TAX ACT, 1961 WAS MADE ON 27.12.2011 AT RS. 26955615/ - AND FOR AY 2007 - 08 THE ASSESSMENT WA S FRAMED AT RS 32123000/ - ON EVEN DATE . 6. THE ASSESSEE AGGRIEVED WITH THE ORDER OF THE AO HAS PREFERRED APPEAL BEFORE THE LD CIT(A), WHO HELD THAT THE ADDITION HAS BEEN MADE WITHOUT REFERENCE TO ANY MATERIAL HAVING BEING FOUND DURING THE COURSE OF SEARCH AND THEREFORE IS CLEARLY OUTSIDE THE SCOPE OF PROCEEDINGS U/S 153C OF THE ACT. FURTHER, ON THE MERITS HE HELD THAT THE APPELLANT FURNISHED DETAILS SUCH AS SIGN CONFIRMATION, PAN, COPIES OF THE AUDITED FINANCIAL STATEMENTS AND BANK STATEMENTS TO SUBSTANTIATE T HE GENUINENESS OF THE TRANSACTION AND CREDITWORTHINESS AND THE LD ASSESSING OFFICER HAS NOT PRODUCED ANY ADVERSE MATERIAL TO REPUDIATE THE VERACITY AND GENUINENESS OF THE TRANSACTION. THE ONUS CAST UPON THE ASSESSEE STOOD DISCHARGE AND HENCE, THE ADDITION U/S 68 WAS DELETED. 7. AGGRIEVED BY THE ORDER OF THE LD CIT(A), THE REVENUE IS IN APPEAL BEFORE US. 8. WE TAKE UP FIRST APPEAL FOR AY 2007 - 08 . 9. THE LD CIT DR VEHEMENTLY ARGUED THAT THE LD CIT(A) HAS NOT CONSIDERED THAT THE ASSESSEE PERTAINS TO TODAY GROUPS CONTROLLED BY SHRI GULSHAN KR. GAMBHIR AND SH. RAJENDRA KR. GAMBHIR . THE REVENUE HAS CONDUCTED SURVEY ON 26.11.2009 AT THE REGISTERED OFFICE ALL THESE COMPANIES WHERE THE PERSON AVAILABLE HAS STATED THAT NO BUSINESS ACTIVITIES ARE CARRIED OUT BY THESE COMP ANIES FROM THE STATED PREMISES. SIMILARLY, SEARCH AND SEIZURE U/S 138 WAS ALSO CONDUCTED ON 26.11.2009 AT THE RESIDENCE OF SOME OF THE DIRECTORS AND THE STATEMENT U/S 132(4) WAS OBTAINED. DURING THE COURSE OF SEARCH AND SURVEY, IT WAS FOUND THAT THESE ARE THE PAPER COMPANIES AND THROUGH THEM UNACCOUNTED MONEY RECEIVED IN THE FORM OF ACCOMMODATION ENTRIES ARE TRANSFERRED TO THE COMPANIES LIKE ASSESSEE. SHE THEREFORE, SUBMITTED THAT STATEMENT OF CONTROLLING PERSONS OF THE DEPOSITOR COMPANIES SAYING THAT THESE ARE THE BOGUS COMPANIES ITSELF SHOWS THAT THERE IS INCRIMINATING MATERIAL UNEARTH DURING THE COURSE OF PAGE 18 OF 22 SEARCH. SHE REFERRED THAT AFFLUENCE CONSTRUCTION PVT. LTD WHO HAS DEPOSITED RS. 1.25 LAKHS IS ALSO A COMPANY FORMED BY THE GAMBHIR GROUP . LIKEWISE, SHE ALSO REFERRED THAT ALL THE OTHER THREE COMPANIES NAMELY M/S. CHINTAPURNI PROPRIETOR BUILD PVT. LTD, MEGA BUSINESS CENTRE PVT. LTD, AND SM INFOTELL ARE ALL COMPANIES BELONGING TO THAT GROUP. SHE THEREFORE, SUBMITTED THAT THERE IS AN INCRIMINATING MATERIAL U NEARTH DURING THE COURSE OF SEARCH. SHE FURTHER SUB MITTED THAT IT IS NOT NECESSARY ALWAYS THAT THERE HAS TO BE CONCLUSIVE PROOF UNEARTH DURING THE COURSE OF SEARCH BUT THE STATEMENTS GIVEN BY THIRD PARTIES BASED ON WHICH THE INVESTIGATION WING OF THE REVE NUE PREPARES THE REPORT IS ALSO INCRIMINATING MATERIAL . SHE RELIED UPON THE DECISION OF THE HON'BLE DELHI HIGH COURT IN CASE OF DAYAWANTI 390 ITR 496 (DEL) WHEREIN, THE DECISION OF THE HON'BLE DELHI HIGH COURT IN CASE OF KABUL CHAWLA VS. CIT AND ANIL BHATI A WERE CONSIDERED. WITH RESPECT TO THE CASH CREDIT SHE SUBMITTED THAT MERE FURNISHING THE ADDRESS AND PAN NO CANNOT PROVE THE IDENTITY AND CREDITWORTHINESS OF THE DEPOSITORS. SHE FURTHER SUBMITTED THAT THE COPIES OF RETURN OF THE DEPOSITORS WERE FURNISHED FOR AY 2008 - 09 AND 2009 - 10 WHEREAS THE MONEY IS DEPOSITED IN AY 2007 - 08. THEREFORE, THE ONUS HAS NOT BEEN DISCHARGED BY THE ASSESSEE. SHE VEHEMENTLY SUPPORTED THE ORDER OF THE LD ASSESSING OFFICER. 10. DESPITE NOTICE NONE APPEARED ON BEHALF OF THE ASSESSEE IN RESPONSE TO NOTICE ISSUED ON 07.01.2017 FIXING DATE OF HEARING ON 23.02.2017 THEREFORE NOW THE ISSUE IS DECIDED ON MERIT. 11. WE HAVE CAREFULLY CONSIDERED THE RIVAL CONTENTIONS. THE FIRST GROUND OF APP EAL OF THE REVENUE IS AGAINST DELETION OF ADDITION OF RS. 3.21 CRORES U/S 68 WITH RESPECT TO INCREASE IN SHARE CAPITAL ISSUED TO FOLLOWING PARTIES FOR AY 2007 - 08 . S. NO. NAME AMOUNT RECEIVED FY 2006 - 07 (IN RS.) 1. AFFLUENCE CONSTRUCTION PVT. LTD 12500000/ - 2. CHINTAPURNI PROP BUILD PVT. LTD 15000000 3. MEGA BUSINESS CENTRE PVT. LTD 400000 4. SM INFOTEL PVT. LTD 4223000 GRAND TOTAL 32123000 12. THE ASSESSEE SUBMITTED THE ADDRESS, PAN, COPIES OF RETURNS AND FINANCIAL STATEMENTS OF PARTIES FOR ASSESSMENT YEAR 2008 - 09 AND 2009 - 10. FROM THE ABOVE IT IS APPARENT THAT FOR RESPECTIVE ASSESSMENT YEARS I.E. AY 2007 - 08 THE ASSESSEE DID NOT SUBMIT ANY INFORMATION ABOUT THE SOURCE OF THE FUNDS AVAILABLE WITH THESE COMPANIES FOR DEPOSITING WITH THE ASSESSEE . THE CONTENTION OF THE ASSESSEE IS THAT ALL THESE COMPANIES HAVE BEEN DISSOLVED AS THE NAMES OF THESE COMPANIES HAVE BEEN STRUCK OFF BY THE REGISTRAR OF COMPANIES FOR NON FILING OF THEIR ANNUAL RETURNS. THIS ARGUMENT OF THE ASSESSEE DOES NOT HOLD WATER AS THE SEARCH TOOK PLACE ON 26.11.2009 AND FURTHER THE NOTICE U/S 153C/ PAGE 19 OF 22 153A WAS ISSUED ON 25.05.2011. AT THAT PARTICULAR TIME ALL THE COMPANIES WERE IN EXISTENCE. FURTHERMORE, THE NAMES OF THE COMPANIES HAVE BEEN STRUCK OFF FOR NON FILING OF RETURNS WITH THE REGISTRAR OF COMPANIES. HOWEVER, SUCH AS ACT DOES NOT HAVE ANY IMPLICATIONS IN THE INCOME TAX PROCEEDINGS WHERE THE COMPANIES HAVE MADE INVESTMENT. IF THE ARGUMENT OF THE LD AR BEFORE THE LD CIT(A) IS TO BE BELIEVED THEN WHEN THE NAME OF THE DEPOSITOR COMPANY STRUCK OFF THE INVESTMENT MADE BY THEM IN THE COMPANY ALSO BECOMES SHARE ISSUED IN THE HANDS OF NON EXISTING PERSON. IN ANY WAY THAT IS NOT THE CASE OF THE ASSESSEE. WITH RESPECT TO ALL THE FOUR CREDITORS THE ASSESSEE HAS NOT PRODUCED THEIR RETURN OF INCOME, THEIR BALANCE SHEETS, AND EVEN THE CONFIRMATION AND THE BANK STATEMENTS. IN ABSENCE OF ALL THESE THINGS IT IS NOT CORRECT ON THE PART OF THE LD CIT(A) TO DELETE THE ADDITION U/S 68 WITH RESPECT TO THE ABOVE FOUR COMPANIES AMOUNTING TO RS. 32123000/ - . THEREFORE, WE SET ASIDE THE WHOLE ISSUE OF ADDITION U/S 68 WITH RESPECT TO ABOVE FOUR COMPANIES AMOUNTING TO RS. 3.21 CRORES BACK TO THE FILE OF T HE LD AO WITH A DIRECTION TO GRANT ONE MORE OPPORTUNITY TO THE ASSESSEE TO PROVE THE IDENTITY, CREDITWORTHINESS AND GENUINENESS OF THE ABOVE TRANSACTION AFTER GRANTING ASSESSEE PROPER OPPORTUNITY OF HEARING. IN THE RESULT GROUND NO. 1 OF THE APPEAL OF THE REVENUE IS ALLOWED WITH ABOVE DIRECTION. 13. COMING TO THE GROUND NO. 2 OF THE APPEAL OF THE REVENUE WHEREIN IT HAS BEEN HELD BY THE LD CIT(A) THAT NO ADDITION CAN BE MADE WHEN NO INCRIMINATING MATERIAL IS FOUND. THERE CANNOT BE ANY QUARREL ON THE LEGAL PROPO SITION THAT ANY ADDITION TO BE MADE IN THE COURSE OF ASSESSMENT U/S 153A AND 153C OF THE ACT THE ADDITION HAS TO BE BASED ON INCRIMINATING MATERIAL UNEARTH DURING THE COURSE OF SEARCH. THE ABOVE PROPOSITION HAS BEEN LAID DOWN BY THE HON'BLE DELHI HIGH CO URT IN CIT VS. KABUL CHAWLA AT 380 ITR 573 WHEREIN WHILE SUMMARIZING THE LEGAL POSITION IN PARA NO. 37 HON'BLE HIGH COURT HELD SO. IN PARA NO. 37 (IV) HON'BLE HIGH COURT SAID THAT ALTHOUGH SECTION 153A DOES NOT SAY THAT ADDITION SHOULD BE STRICTLY MADE ON THE BASIS OF EVIDENCE FOUND IN THE COURSE OF SEARCH OR OTHER POST SEARCH MATERIAL OR INFORMATION AVAILABLE WITH THE AO WHICH CAN BE RELATED TO THE EVIDENCE FOUND, IT DOES NOT MEAN THAT THAT THE ASSESSMENT CAN BE ARBITRARY OR MADE WITHOUT ANY RELEVANCE OR N EXUS WITH THE SEIZED MATERIAL. OBVIOUSLY, AN ASSESSMENT HAS TO BE MADE UNDER THIS SECTION ONLY ON THE BASIS OF SEIZED MATERIAL. FURTHER HON'BLE DELHI HIGH COURT CONSIDERING THE ABOVE CASE IN DAYAWANTI VS. CIT (SUPRA) IN PARA NO. 16 HAS HELD THAT SECTION 15 3A WHICH PROVIDES FOR AN ASSESSMENT IN CASE OF SEARCH AND WAS INTRODUCED BY THE FINANCE ACT, 2003 W.E.F 01.06.2003 DOES NOT PROVIDE THAT THE SEARCH ASSESSMENT HAS TO BE MADE STRICTLY ON THE BASIS OF EVIDENCE FOUND AS A RESULT OF SEARCH OR OTHER DOCUMENTS A ND SUCH OTHER MATERIALS OR INFORMATION AS ARE AVAILABLE WITH THE AO AND RELATABLE TO THE EVIDENCE FOUND. IN THAT PARTICULAR CASE THE ASSESSMENT U/S 153A WAS MADE . WE HAVE ALSO PERUSED THE FINDING GIVEN BY THE LD CIT(A) AT PAGE NO. 100 TO 101 OF HIS ORDER W HEREIN WITHOUT REFERRING ANY OF THE MATERIAL FOUND DURING THE COURSE OF SEARCH IN PARA NO. 1.6 HE HAS HELD AS UNDER: - 1.6 APPLYING THE AFORESAID LEGAL POSITION, ADDITION HAS BEEN MADE WITHOUT REFERENCE TO ANY MATERIAL HAVING BEEN FOUND DURING THE COURSE O F SEARCH AND PAGE 20 OF 22 THEREFORE IS CLEARLY OUTSIDE THE SCOPE OF PROCEEDINGS UNDER SECTION 153C OF THE ACT. 14. HOWEVER, ON PERUSAL OF THE PARA NO. 1 ITSELF THE LD ASSESSING OFFICER HELD AS UNDER: - A SEARCH AND SEIZURE OPERATION WAS CARRIED OUT AT THE VARIOUS PREMISES OF M/S. TODAY HOMES AND INFRASTRUCTURE PVT. LTD AND ITS GROUP CONCERNS AND ASSOCIATED PERSONS (HEREINAFTER CALLED TODAY GROUP OF CASES) ON 26.11.2009 AND WAS FINALLY CONCLUDED ON 25.01. 2010. THE ASSESSEE IS ONE OF THE ASSOCIATED/ GROUP CONCERNS OF TODAY GROUP OF CASES. DURING THE COURSE OF SEARCH AND SEIZURE OPERATION AT THE VARIOUS PREMISES OF TODAY GROUP OF CASES MANY BOOKS OF ACCOUNTS OR DOCUMENTS BELONGING TO THE ASSESSEE COMPANY WER E FOUND AND SEIZED AND HENCE, PREREQUISITE CONDITION TO INITIATE PROCEEDINGS U/S 153C OF THE INCOME TAX ACT (HEREIN AFTER THE ACT) WAS FULFILLED. 15. THE ORDER OF THE LD CIT(A) BEFORE HOLDING THAT ADDITION HAS BEEN MADE WITHOUT REFERENCE TO ANY MATERIAL HA VING BEEN FOUND DURING THE COURSE OF SEARCH IS A FINDING WHICH HAS BEEN GIVEN WITHOUT LOOKING AT THE DOCUMENTS FOUND FROM THE OFFICE OF TODAY HOME PERTAINING TO THE ASSESSEE. THERE WAS ALSO CERTAIN HARD DISK OF COMPUTERS HAVE BEEN ALSO IMPOUNDED AND SEIZED . FURTHER, ACTION TAKEN ON THE SAME DATE U/S 133 OF THE ACT ALL THE INVESTOR COMPANIES RESULTED INTO STATEMENT RECORDED OF SEVERAL PERSONS WHICH ITSELF SHOWS THAT NO BUSINESS IS CARRIED ON BY THIS COMPANIES AT THE GIVEN ADDRESSES. SUCH DOCUMENTS HAVE BEEN ENUMERATED BY THE LD ASSESSING OFFICER FROM PAGE NO. 4 TO 17 OF HIS ORDER WHICH HAVE BEEN REPRODUCED ABOVE. ALL THESE EVIDENCES GATHER ED DURING THE COURSE OF SEARCH COUPLED WITH THE AVAILABILITY OF THE BOOKS OF ACCOUNTS OF THE ASSESSEE ALONG WITH OTHER DO CUMENTS AT THE OFFICE OF TODAY GROUP AND CO RRO BORATED BY STATEMENT OF SEVERAL PERSONS DURING THE COURSE OF THE SURVEY AT THE ADDRESS OF THE INVESTOR COMPANY WERE NOT AT ALL APPRECIATED BY THE LD CIT (A) , IN FACT THESE ARE THE MATERIAL WHICH HAS SHOWN A LINK TO THE LD AO TO MAKE ADDITION ON ACCOUNT OF ISSUE OF SHARE CAPITAL U/S 68 OF THE ACT. THEREFORE WE FIND THAT THE ORDER OF THE LD CIT (A) HAS NOT APPRECIATED THE EVIDENCES AND THEIR GRAVITY AND HAS HELD THAT THE ADDITION HAS BEEN M ADE WITHOUT THE EVIDENCES UNEARTHED DURING THE COURSE OF SEARCH IN SPITE OF THE FACTS THAT LD AO HAS POINTED OUT ALL THESE MATERIALS SUCH AS BOOKS OF ACCOUNTS, OTHER DOCUMENTS, STATEMENTS OF VARIOUS PERSONS, SURVEY REPORT ON THE INVESTOR COMPANIES, INCL UDING THE PRE SEARCH INQUIRES AND POST SEARCH INQUIRES CONDUCTED BY REVENUE OVER AND ABOVE THE MODUS OPERANDI OF THE GROUP DISCUSSED , WHICH SHOULD HAVE BEEN CONSIDERED IN PROPER PERSPECTIVE. THE LD AO HAS DEVOTED SUBSTANTIAL PORTION OF HIS ASSESSMENT ORDER ON THAT INCRIMINATING MATERIAL ONLY, WHICH HAS NOT BEEN APPRECIATED BY THE LD CIT (A). IN VIEW OF THIS WE SET ASIDE THIS GROUND OF APPEAL ALSO BEFORE THE LD CIT (A) WITH A DIRECTION TO EXAMINE THE MATERIAL UNEARTHED DURING THE COURSE OF SEARCH ON THE GROUP LOOKING AT THE PANCAHNAMA INCLUDING THE STATEMENTS OF VARIOUS PERSONS ,SURVEY REPORTS ON INVESTING COMPANIES AND THEN DECIDE THE ISSUE THAT WHETHER THE ADDITION HAS BEEN MADE BY THE LD AO BASED ON THE INCRIMINATING MATERIAL FOUND DURING THE COURSE OF SEARCH OR NOT. IN THE RESULT GROUND NO 2 OF THE APPEAL OF THE REVENUE IS ALLOWED WITH ABOVE DIRECTION. 16. GROUND NO 3 & 4 ARE GENERAL IN N ATURE AND THEREFORE SAME ARE DISMISSED. PAGE 21 OF 22 17. IN THE RESULT APPEAL OF THE REVENUE FOR AY 2007 - 08 IS ALLOWED FOR STATISTICAL PURPOSES. 18. FOR AY 2004 - 05 THE FACTS ARE SIMILAR THE ASSESSEE HAS RECEIVED SHARE CAPITAL OF RS. 23265000/ - FROM VARIOUS CONCERNS. DUR ING ASSESSMENT PROCEEDINGS ASSESSEE FILED THEIR RETURN OF INCOME FOR AY 2008 - 09 AND 2009 - 10 AND COPIES OF BALANCE SHEET ALSO FOR AY 2008 - 09 AND 2009 - 10 NOT FOR AY 2004 - 05 I.E. THE YEAR IN WHICH AMOUNT IS CREDITED IN THE BOOKS OF THE ASSESSEE. AS PER P ARA NO 2.3 OF THE ASSESSMENT ORDER EVEN THE CONFIRMATIONS WERE NOT FILED AS WELL AS NO BANK STATEMENTS OF THE DEPOSITORS WERE PRODUCE. THEREFORE THE ASSESSEE COULD NOT DISCHARGE EVEN THE INITIAL ONUS CAST UP ON IT. THEREFORE THE LD AO ON SIMILAR LINES M ADE THE ADDITION OF RS 23265000/ - U/S 68 OF THE ACT WHICH WAS DELETED BY THE LD CIT (A) ON SIMILAR LINES OF AY 2007 - 08. THE LD CIT DR SUBMITTED THAT THE ISSUE IS SIMILAR EXCEPT THE NAMES OF THE DEPOSITOR AS WELL AS THE AMOUNT. 19. WE HAVE CAREFULLY PERUSE D THE CONTENTIONS OF THE REVENUE AS WELL AS THE ORDERS OF THE LOWER AUTHORITIES. AS WE HAVE ALREADY DECIDED THE APPEAL OF THE ASSESSEE FOR AY 2007 - 08 WHICH IS ON IDENTICAL GROUNDS, THEREFORE WE ALSO DECIDE THE ISSUES IN APPEAL WITH SIMILAR DIRECTION S AS UNDER : - A. THEREFORE, WE SET ASIDE THE WHOLE ISSUE OF ADDITION U/S 68 WITH RESPECT TO ABOVE FOUR COMPANIES AMOUNTING TO RS. 23265000 BACK TO THE FILE OF THE LD AO WITH A DIRECTION TO GRANT ONE MORE OPPORTUNITY TO THE ASSESSEE TO PROVE THE IDENTITY, CR EDITWORTHINESS AND GENUINENESS OF THE ABOVE TRANSACTION AFTER GRANTING ASSESSEE PROPER OPPORTUNITY OF HEARING. IN THE RESULT GROUND NO. 1 OF THE APPEAL OF THE REVENUE IS ALLOWED WITH ABOVE DIRECTION. B. W E SET ASIDE THIS GROUND OF APPEAL ALSO BEFORE THE L D CIT (A) WITH A DIRECTION TO EXAMINE THE MATERIAL UNEARTHED DURING THE COURSE OF SEARCH ON THE GROUP LOOKING AT THE PANCAHNAMA INCLUDING THE STATEMENTS OF VARIOUS PERSONS ,SURVEY REPORTS ON INVESTING COMPANIES AND THEN DECIDE THE ISSUE THAT WHETH ER THE ADDITION HAS BEEN MADE BY THE LD AO BASED ON THE INCRIMINATING MATERIAL FOUND DURING THE COURSE OF SEARCH OR NOT. IN THE RESULT GROUND NO 2 OF THE APPEAL OF THE REVENUE IS ALLOWED WITH ABOVE DIRECTION. 20. IN THE RESULT APPEAL OF THE REVENUE FOR AY 20 04 - 05 IS ALLOWED FOR STATISTICAL PURPOSES. 21. IN THE RESULT APPEAL OF THE REVENUE FOR AY 2007 - 08 & 2004 - 05 IS ALLOWED FOR STATISTICAL PURPOSES. ORDER PR ONO UNCED IN THE OPEN COURT ON 1 0 / 0 4 / 2017 . - S D / - - S D / - ( BEENA A PILLAI ) (PRASHANT MAHARISHI) JUDICIAL MEMBER ACCOUNTANT MEMBER DATED: 1 0 / 0 4 / 2017 A K KEOT COPY FORWARDED TO 1. APPLICANT 2. RESPONDENT PAGE 22 OF 22 3. CIT 4. CIT (A) 5. DR:ITAT ASSISTANT REGISTRAR ITAT, NEW DELHI