Om Logistics Ltd., New Delhi V. ACIT, New Delhi

ITA 4304/DEL/2014

• Counselvise Citation: [2017] 128 COUNSELVISE.COM (IT) 2994 (ITAT-DELHI)
• Duration Of Justice: 2 year(s) 9 month(s) 23 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 31-05-2017
• Appeal Filed By: Assessee
• Order Result: Dismissed
• Bench Allotted: E
• Next Hearing Date: 13-04-2017
• Assessment Year: 2001-2002
• Appeal Filed On: 07-08-2014
• Result in Favour of: Revenue
• Court: TRIBUNAL
• Assessee Lawyers: ASHISH GOEL
• Keywords: Bogus Share capital; Income from undisclosed sources; Salary income; Share purchase agreement; Opportunity of being heard; Principle of natural justice; Opportunity of cross examination; Source of fund; Speculation loss; Corroborative evidences; Accommodation entries; Capital receipt
• Section: 143(3); 142(1); 133(6); 147; 131; 68

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL DELHI BENCH E, NEW DELHI BEFORE SH. N. K. SAINI , ACCOUNTANT MEMBER AND SMT. BEENA A. PILLAI, JUDICIAL MEMBER ITA NO. 4304/DEL/2014 (ASSESSMENT YEAR: 2001-02) OM LOGISTICS LTD. 130, TRANSPORT NAGAR, RING ROAD, PUNJABI BAGH NEW DELHI VS. ACIT CIRCLE-21 NEW DELHI PAN : AA A CO4716C (APPELLANT) (RESPONDENT) APPELLANT BY : SH. ASHISH GOEL, CA. RESPONDENT BY : SMT. RACHNA SINGH, CIT(DR) DATE OF HEARING : 15.05.2017 DATE OF PRONOUNCEMENT : 31.05.2017 O R D E R PER BEENA A. PILLAI, J.M : 1. THE PRESENT APPEAL HAS BEEN FILED BY ASSESSEE AGAI NST ORDER DATED 26.06.2014 PASSED BY LD. CIT(A)-II, NEW DELHI FOR ASSESSMENT YEAR 2001-02, FOLLOWING GROUNDS OF APPEA L: 1. ON THE FACTS AND CIRCUMSTANCES OF THE CASE, THE ORDER PASSED BY THE LEARNED COMMISSIONER OF INCOME TAX (APPEALS) [CIT(A] IS BAD, BOTH IN THE EYE OF LA W AND ON FACTS. 2. ON THE FACTS AND CIRCUMSTANCES OF THE CASE, THE LEARNED CIT(A) HAS ERRED IN PASSING THE ORDER WITHO UT GIVING ASSESSEE AN OPPORTUNITY OF BEING HEARD IN VIOLATION OF PRINCIPLE OF NATURAL JUSTICE. 3 (I) ON THE FACTS AND CIRCUMSTANCES OF THE CASE, THE LEARNED CIT(A) HAS ERRED, BOTH ON FACTS AD IN LAW, IN CONFIRMING THE ADDITION OF RS.42,50,000/- 2 ITA NO. 4304/DEL/2014 (A.Y. 2001-02) MADE BY THE AO AS INCOME FROM UNDISCLOSED SOURCES UNDER SECTION 68. (II) THAT THE ABOVE SAID ADDITION HAS BEEN CONFIRMED DESPITE THE SAME BEING MADE IGNORING THE MATERIAL AND EVIDENCES BROUGHT ON RECORD BY THE APPELLANT IN SUPPORT OF HIS CONTENTION AND BY INDULGING IN SURMISES AND CONJECTURE, (III) THAT THE ABOVE ADDITION WAS MADE DESPITE THE ASSESSEE BRINGING AL! THE MATERIAL AND EVIDENCES ON RECORD TO PROVE THE IDENTITY OF THE SHAREHOLDERS. 4. ON THE FACTS AND CIRCUMSTANCES OF THE CASE, THE LEARNED CIT(A) HAS ERRED, BOTH ON FACTS AD IN LAW, IN CONFIRMING THE ABOVE ADDITIONS DESPITE THE SAME BEI NG MADE IN CLEAR VIOLATION OF THE DIRECTION OF THE HON 'BLE ITAT. 5. ON THE FACTS AND CIRCUMSTANCES OF THE CASE, THE LEARNED CIT(A) HAS ERRED, BOTH ON FACTS AD IN LAW, IN REJECTING THE CONTENTION OF THE APPELLANT THAT THE AO HAS FAILED TO CARRY OUT THE INVESTIGATION AS ENVISA GED BY THE ITAT, PARTICULARLY VERIFICATION FROM THE ROC RECORD AND THE AO OF THESE SHAREHOLDERS, WHILE REMANDING THE MATTER BACK TO HIM. 6. ON THE FACTS AND CIRCUMSTANCES OF THE CASE, THE LEARNED CIT(A) HAS ERRED, BOTH ON FACTS AD IN LAW, IN REJECTING THE CONTENTION THAT THE OBSERVATION MADE BY THE AO THAT THE INSPECTOR HAS MADE VERIFICATION BY PERSONAL VISIT ON 19 [ ' DECEMBER, 2011 IN RESPECT OF ALL THESE 14 PARTIES IS PRACTICALLY IMPOSSIBLE AND AS S UCH THE SAME CANNOT BE RELIED UPON. 7. ON THE FACTS AND CIRCUMSTANCES OF THE CASE, THE LEARNED CIT(A) HAS ERRED, BOTH ON FACTS AD IN LAW, IN REJECTING THE CONTENTION OF THE ASSESSEE THAT THE ADDITIONS UNTENABLE IN THE EYE OF LAW, HAVING BEEN MADE ON THE BASIS OF THE MATERIAL COLLECTED AT THE BACK OF THE ASSESSEE WITHOUT PROVIDING COPY OF THE SAME AND PROVIDING OPPORTUNITY TO REBUT THE SAME. 8. THE APPELLANT CRAVES LEAVE TO ADD, AMEND OR ALTE R ANY OF THE GROUNDS OF APPEAL. 3 ITA NO. 4304/DEL/2014 (A.Y. 2001-02) 2. BRIEF FACTS OF CASE ARE AS UNDER: ASSESSMENT WAS COMPLETED UNDER SECTION 143(3) READ WITH SECTION 147 OF THE ACT ON 26.12.2011 AT INCOME OF RS. 1,96,40,090/- AS AGAINST RETURNED INCOME OF RS. 89, 19,090/-. ON AN APPEAL FILED BY ASSESSEE AS WELL AS REVENUE B EFORE THIS TRIBUNAL, THIS TRIBUNAL VIDE ORDER DATED 16.04.2010 ASKED IN ITA NO. 3197/DEL/2009 REMANDED CASE BACK TO FILE OF LD. AO WITH DIRECTION TO MAKE FURTHER INVESTIGATION IN REG ARD TO SHARE APPLICATION MONEY RECEIVED FROM FOLLOWING PARTIES D URING YEAR UNDER CONSIDERATION AND TO DECIDE MATTER AFRESH. S. NO. NAME OF THE PARTIES AMOUNT OF SHARE CAPITAL/ SHARE APPLICATION MONEY 1. WELCOME COIR INDUSTRIAL LTD. RS. 300 000 (SHARE CAPITAL) 2. SHIMMER MARKETING PVT, LTD. RS. 300000 3. MAA SHAKUMBHAN STORE CRUSHER P LTD. RS. 30000 0 4. SUMA FINANCE & INVESTMENT P LTD. RS. 2 00000 (SHARE CAPITAL) 5. ONYX EXIM & SALES PVT. LTD. RS. 300 000 6. HOPEWIN ADMARK & CONSULTANCY RS. 30000 0 SERVICE PVT. LTD. 7. UMESHNEH SECURITIES PVT. LTD. RS. 5000 00 (SHARE CAPITAL) 8. KIRAN BANSAL RS. 150000 9. SUBHASH GUPTA RS. 150000 10. VISHAL AGGARWAL RS. 200000 11. AMIT KURNAR SINGH RS. 150000 12. S.H. MALLICK RS. 200000 13. SHIWANI SOFTECH LTD. RS. 400000 14. RUBAL CHEMICAL PVT. LTD. RS. 500000 ( SHARE CAPITAL) 3. LD. AO ACCORDINGLY ISSUE NOTICE UNDER SECTION 143( 2) OF THE ACT ON 05.10.2011, ALONGWITH NOTICE UNDER SECTI ON 142(1) IS REQUIRING ASSESSEE TO FURNISH INFORMATION BEFORE ASSESSING OFFICER ON 14.10.2011, WITH SUPPORTING EVIDENCE IN REGARD TO ABOVE REFERRED SHARE APPLICANTS AND ALLEGED SHARE A PPLICATION 4 ITA NO. 4304/DEL/2014 (A.Y. 2001-02) MONEY/SHARE CAPITAL HAS BEEN RECEIVED DURING THE YE AR BY ASSESSEE. IT HAS BEEN RECORDED BY LD. AO THAT IN RE GARDS TO ADDRESSES OF COMPANIES/SHAREHOLDERS, ASSESSEE HAD SUBMITTED THAT, IT WAS NOT PRACTICALLY POSSIBLE TO SUBMIT THE LATEST ADDRESS OF PARTIES AS THEY WERE NO LONGER TH E SHARE HOLDERS OF ASSESSEE. ASSESSEE FURTHER SUBMITTED THA T INTEREST AND STATUS OF THE CORPORATE PARTIES WERE AVAILABLE ON ROC SITE WHICH WERE FILED BEFORE LD. AO. 4. LD. AO AS PER DIRECTIONS OF THIS TRIBUNAL VIDE ORD ER DATED 16.04.2010 CARRIED OUT CERTAIN AND INVESTIGATION TO ASSERTING TRUE FACTS OF IDENTITY, GENUINENESS AND CREDITWORTH INESS OF TRANSACTIONS MADE WITH ABOVE PARTIES AND ASSESSEE. LD. AO ACCORDINGLY ISSUED NOTICE DATED 16.12.2011 TO ALL P ARTIES ON LATEST ADDRESS PROVIDED BY ASSESSEE, ASKING THEM TO FURNISH FOLLOWING INFORMATION: A) YOUR INCOME TAX PARTICULARS INCLUDING PAN, ASSESSING OFFICER/WARD/CIRCLE WHERE BEING ASSESSEE TO TAX WITH COPY OF ACKNOWLEDGEMENT OF LATEST RETUR N OF THE INCOME FILED BY YOU. B) A NOTE ON NATURE OF TRANSACTIONS HELD WITH THE AB OVE MENTIONED COMPANY/FIRM DURING THE PERIOD FROM 01.04.2000 TO 31.03.2001 GIVING DETAILS OF PAYMENT RECEIVED/MADE, MODE OF PAYMENT AND DATE OF PAYMENT. C) FURNISH CERTIFIED COPY OF LEDGER A/C OF M/S OM LOGISTICS LTD. (AFORESAID) FOR A.Y. 2001-02 AS IT APPEARS THAT IN YOUR BOOKS OF ACCOUNT FOR THE RELEV ANT PERIOD. DETAILS OF TAX DEDUCTED AT SOURCE, IF ANY. D) FILE COPY OF BALANCE SHEET AND PROFIT AND LOSS ACCOUNT FOR A.Y. 2001-02 WITH RELEVANT SCHEDULES/ANNEXURE IN WHICH SUCH TRANSACTION IS REFLECTED. 5 ITA NO. 4304/DEL/2014 (A.Y. 2001-02) E) FIFE COPY OF BANK STATEMENT HIGHLIGHTING THE RE LEVANT TRANSACTIONS. 5. IT HAS BEEN FURTHER RECORDED BY LD. AO THAT ALL NO TICES ISSUED WERE RECEIVED BACK UNSERVED WITH REMARKS OF POSTAL AUTHORITY, NO SUCH PERSON ON ADDRESS OR LEFT WITHOUT ADDRESS . LD. AO APPOINTED INSPECTOR TO MAKE AND DOOR-TO- DOOR LOCAL ENQUIRIES, TO FIND OUT AVAILABILITY OF COMPANIES/PERSONAL IS AND THEIR DIRECTORS. INSPECTO R VISITED THE GIVEN ADDRESSES OF SHAREHOLDERS WHICH INCLUDES COMPANIES AS WELL AS INDIVIDUALS FOR SERVICE OF NOTICE UNDER SECTION 133(6) ON 15.12.2011, TO INTIMATE HEARING BEING FIXED ON 2 0.12.2011 AT 11:30 AM. THE INSPECTOR WHILE THIS REPORT DATED 20.12.2011 REPORTED AS UNDER: AS PER DIRECTION OF ACIT, CENTRAL CIRCLE 21, NEW DELHI, I VISITED THE ABOVE ADDRESSES ON 19/12/11 FO R SERVICE OF THE ABOVE NOTICES. I FOUND THAT NO SUCH COMPANY/PERSON EXISTED AT THE ADDRESSES MENTIONED ABOVE. 6. LD. AO FURTHER GAVE ANOTHER OPPORTUNITY TO ASSESSE E ON 22.12.2011 WHICH WAS INTIMATED VIDE OFFICE LETTER D ATED 21.12.2011 TO PRODUCE ALL AUTHORISED PERSONS OF COMPANY/DIRECTORS FOR CROSS EXAMINATION BEFORE LD. AO ON 23.12.2011 TO JUSTIFY THEIR IDENTITY, CREDITWORTHIN ESS, GENUINENESS AND THEIR EXISTENCE. HOWEVER, ON 23.12. 2011 ASSESSEE FILED SAME SUBMISSION AS WAS FILED VIDE IT S LETTER DATED 14.11.2011, WITHOUT THERE BEING ANY NEW INFOR MATION. 7. BASED ON WHICH LD. AO RECORDED ITS OBSERVATION FRO M DOCUMENTS SUBMITTED BY ASSESSEE AND MADE ADDITION O F RS. 1,32,40,090/- IN THE HANDS OF ASSESSEE. 6 ITA NO. 4304/DEL/2014 (A.Y. 2001-02) 8. AGGRIEVED BY ORDER OF LD. AO ASSESSEE PREFERRED AN APPEAL BEFORE LD. CIT(A), WHO CONFIRMED ADDITION MA DE BY LD. AO. 9. AGGRIEVED BY ORDER OF LD. CIT(A) ASSESSEE IS IN AP PEAL BEFORE US NOW. 10. LD. AR SUBMITTED BEFORE US THAT ASSESSEE HAS PROVI DED NECESSARY DOCUMENTS/EVIDENCES BEFORE LD. AO WIDE LE TTER DATED 14.11.2011 WHICH INCLUDED IT PARTICULARS, NAT URE OF TRANSACTION, DETAILS OF PAYMENT, COPY OF LEDGER ACC OUNT, BANK STATEMENT, BALANCE SHEET AND PROFIT AND LOSS ACCOUN T. IT WAS SUBMITTED THAT SINCE THOSE PARTIES WERE NOT NO LONG ER SHAREHOLDERS OF ASSESSEE, DETAILS ONLY IN RESPECT O F 7 PARTIES BEING, WELCOME COIR INDUSTRIES LTD., SHIMMER MARKET ING, ONYX EXIM, HOPEWIN ADMARK , MAA SHAKUMBHARI, SHIVAM SOFTECH, RUBAL CHEMICALS, AS AVAILABLE WITH ROC COU LD BE FILED BEFORE LD. AO. LD. AR SUBMITTED REFERRED TO S UMA FINANCE & INVESTMENTS WHERE REFUND FOR AY 2010-11 H AS BEEN ISSUED BY LD. AO ON 23.12.2011 AND LATEST ADDRESS O F MAA SHAKUMBHARI WAS ALSO FILED ON 26.12.2011. 11. LD. AR CONTENDS THAT DESPITE THESE DETAILS PROVIDE D BY ASSESSEE, PROCEEDINGS WERE COMPLETED MECHANICALLY A ND LD. AO SIMPLY ISSUED NOTICE UNDER SECTION 133(6) TO 14 PARTIES UPON WHICH RED NOTICE WAS RETURNED UNSERVED WITH VA RIOUS REMARKS OF PARTIES NOT BEING AVAILABLE AT THE GIVEN ADDRESS. LD. AR SUBMITTED THAT ASSESSING OFFICER WAS AWARE A BOUT FACT THAT THESE PARTIES WERE NOT IN CONTACT WITH ASSESSE E ANYMORE AS IT WAS CATEGORICALLY STATED BY ASSESSEE IN THE L ETTER DATED 7 ITA NO. 4304/DEL/2014 (A.Y. 2001-02) 14.11.2011 THAT THEY WERE NO MORE SHAREHOLDERS OF A SSESSEE AS ON DATE. 12. LD. AR ALLEGED THAT ASSESSMENT ORDER HAS BEEN PASS ED WITHOUT CONDUCTING PROPER ENQUIRY, INVESTIGATION AS DIRECTED BY THIS TRIBUNAL VIDE ORDER DATED 16.04.2010. IT HA S BEEN VEHEMENTLY ARGUED BY HIM THAT ASSESSEE DISCHARGED I TS ONUS IN THE ORIGINAL PROCEEDING ITSELF AND THAT EARLIER ASSESSMENT ORDER HAS BEEN SET ASIDE NOT BECAUSE ASSESSEE FAILE D TO DISCHARGE ITS ONUS BUT BECAUSE ON BENCH OF THIS TRI BUNAL WAS SATISFIED THAT ENQUIRIES/INVESTIGATION CONDUCTED BY LD. AO WAS NOT SUFFICIENT TO PROVE THAT MONEY RECEIVED FRO M 14 PARTIES WERE THE UNACCOUNTED MONEY OF ASSESSEE COMP ANY. HE PLACED RELIANCE UPON FOLLOWING DECISIONS: DECISION OF HONBLE DELHI HIGH COURT IN THE CASE OF CIT VS. RAKAM MONEY MATTERS PVT,LTD. IN ITA NO. 778 OF 2015 DATED 13.10.2015; DECISION OF HONBLE DELHI HIGH COURT IN THE CASE OF CIT VS. VICTOR ELECTRODES LTD. REPORTED IN (2010) 329 ITR 27 1; DECISION OF HONBLE DELHI HIGH COURT IN THE CASE OF CIT VS. FAIR FINVEST LTD., REPORTED IN (2013) 357 ITR 146 DECISION OF HONBLE DELHI HIGH COURT IN THE CASE OF CIT VS. VIRENDAVAN FARMS (P) LTD., IN ITA NO. 71, 72, 85/20 15 VIDE ORDER DATED 12.08.2015; DECISION OF DELHI ITAT IN THE CASE OF ITO VS. SOFTLI NE CREATIONS PVT.LTD IN ITA NO. 744/DEL/2012 DATED 10/02/15 WHICH BEEN UPHELD BY HONBLE DELHI HIGH CO URT IN THE CASE OF ITA NO. 504/2016 VIDE ORDER DATED 31.08.2016 13. HE HAS ALSO PLACED RELIANCE UPON FOLLOWING DECISIO NS WHICH HAS BEEN FILED BEFORE US AT THE TIME OF HEARI NG: DECISION OF HONBLE DELHI HIGH COURT CIT VS SMC SHA RE BROKERS LTD., REPORTED IN (2007) 288 ITR 345 8 ITA NO. 4304/DEL/2014 (A.Y. 2001-02) CIT VS OASIS HOSPITALITIES PVT.LTD., IS AND UP BONE MILLS INDIA LTD REPORTED IN (2011 333 ITR 119; SHIVANK UDYOG LTD VS ITO REPORTED IN (2011) (10) TM I 667; ITO VS TUBECON INDIA LTD REPORTED IN 2015 (11) TMI 292 IT VERSUS NEELKANTH FINBUILD PVT.LTD., IN ITA NO. 1932/DEL/2009 WIDE ORDER DATED 01.04.2015 14. THE SUM AND SUBSTANCE OF THE ABOVE DECISIONS, RELI ED UPON BY ASSESSEE ARE THAT, IF ASSESSEE PRODUCED SUF FICIENT DOCUMENTATION DISCHARGING ITS INITIAL ONUS OF SHOWI NG GENUINENESS AND CREDITWORTHINESS OF SHARE APPLICANT S, IT WAS INCUMBENT UPON ASSESSING OFFICER TO HAVE UNDERTAKEN SOME ENQUIRY AND INVESTIGATION BEFORE COMING TO A CONCLU SION ON ISSUE OF CREDITWORTHINESS. HE ALSO CAN VAST PROPOSI TION THAT IS THEIR ASSESSEE HAD FILED DOCUMENTS FROM SITE OF MIN ISTRY OF CORPORATE AFFAIRS IN RESPECT OF SHARE APPLICANTS IT HAD DISCHARGED REQUIREMENT OF PROVIDING DETAILS/EVIDENC ES OF CREDITORS. 15. PER CONTRA LD. CIT(DR) SUBMITTED THAT ASSESSEE HAS NOT DISCHARGED ITS INITIAL ONUS REQUIRED UNDER SECTION 68 OF THE ACT. SHE SUBMITTED THAT THREE INGREDIENTS REQUIRED TO BE ESTABLISHED BY ASSESSEE BEING IDENTITY, CREDITWORTH INESS AND MOST IMPORTANTLY GENUINENESS OF TRANSACTION HAS NOT BEEN ESTABLISHED BY ASSESSEE, EITHER IN FIRST ROUND OF B EFORE LD. AO PROCEEDINGS OR IN SUBSEQUENT PROCEEDINGS, WHEN MATT ER WAS REMANDED BY THIS TRIBUNAL TO ASSESSING OFFICER. SHE SUBMITTED THAT UNLESS ASSESSEE PROVIDES WITH CORRECT DETAILS OF ALLEGED CREDITORS ASSESSING OFFICER CANNOT UNDERTAKE ANY IN VESTIGATION IN RESPECT OF SAME. 9 ITA NO. 4304/DEL/2014 (A.Y. 2001-02) 16. LD. CIT DR SUBMITTED THAT ASSESSMENT AT INITIAL ST AGE WAS REOPENED IN THE CASE OF ASSESSEE, AS THERE WAS INFORMATION RECEIVED FROM INVESTIGATION WING REGARD ING VARIOUS COMPANIES WHO WERE CARRYING ON THE ACTIVITY OF PROV IDING ACCOMMODATION ENTRIES. SHE SUBMITTED THAT THESE COM PANIES HAD INVESTED BY WAY OF SHARE CAPITAL WITH ASSESSEE. LD. CIT(DR) DEMONSTRATED TAKING US THROUGH THE DETAILS SUBMITTED BY ASSESSEE IN RESPECT OF SOME ALLEGED CR EDITORS TO PROVE THAT DOCUMENTS WERE BOGUS AND THERE HAS BEEN NO ACTIVITY THAT WAS CARRIED ON BY ALLEGED CREDITORS. SHE THEM ON STATED THAT THERE WAS A PATTERN OF INVESTMENT THAT WAS FOLLOWED BY ALL ALLEGED CREDITORS, WHICH WAS EVIDEN T FROM BANK STATEMENTS SUBMITTED BY THESE ALLEGED CREDITORS PLA CED IN THE PAPER BOOK. SHE HAS SUBMITTED THAT NO DOUBT THESE APPLICATIONS DO HAVE FILED RETURNS, HOWEVER IT DOES NOT SHOW ACTUAL STATE OF AFFAIRS. 17. LD. CIT. DR SUBMITTED THAT ENTIRE BANK STATEMENTS OF ALLEGED APPLICANTS HAS NOT BEEN FILED. LD. CIT. DR SUBMITTED THAT IT IS IN THE SECOND ROUND OF ASSESSMENT THAT, ASSESSEE IS CLAIMING INABILITY TO PROVIDE CORRECT DETAILS OF TH ESE ALLEGED CREDITORS, AS THEY WERE NO LONGER SHAREHOLDERS OF A SSESSEE. HOWEVER, SHE SUBMITTED THAT EVEN DURING ORIGINAL AS SESSMENT PROCEEDINGS, ASSESSEE DID NOT PRODUCE THESE CREDITO RS AND HAD EXPRESSED ITS INABILITY/UNWILLINGNESS. SHE SUBMITTE D THAT ASSESSING OFFICER DURING ORIGINAL ASSESSMENT PROCEE DINGS HAD ISSUED SUMMONS UNDER SECTION 131 TO THESE PARTIES U NDER CONSIDERATION, AND REQUIRED THEM TO APPEAR IN PERSO N, AND 10 ITA NO. 4304/DEL/2014 (A.Y. 2001-02) PRODUCE VARIOUS DETAILS LIKE, THEIR BANK STATEMENT FOR FINANCIAL YEAR 2000-01, BOOKS OF ACCOUNTS FOR ASSESSMENT YEAR 2001- 02, COPY OF SHARE CERTIFICATES ALLOTTED BY ASSESSEE , SOURCE OF INVESTMENT ETC. SHE SUBMITTED THAT LD. AO EVEN DURI NG ORIGINAL ASSESSMENT PROCEEDINGS HAD DEPUTED AN INSP ECTOR TO VISIT GIVEN ADDRESSES OF ALLEGED CREDITORS, WHO HAD REPORTED THAT THESE PARTIES WERE NOT AVAILABLE AT ADDRESS GI VEN BY ASSESSEE. 18. LD. CIT(DR) SUBMITTED THAT ASSESSEE HAD A GAIN SUBMITTED RECORDS OF THESE ALLEGED CREDITORS AS PER ROC, AND HAD REQUESTED TO ISSUE FRESH SUMMONS AT NEW ADDRESS ES FOUND THEREIN. IN VIEW OF REQUEST BY ASSESSEE AN IN SPECTOR WAS AGAIN DEPUTED TO SERVE SUMMONS TO PARTIES. BUT IT W AS INFORMED THAT NONE OF PARTIES WERE AVAILABLE AT GIV EN ADDRESSES, AS WELL BY THE INSPECTOR. LD. AO THEN IN FORMED ASSESSEE REGARDING SAME VIDE ORDER SHEET ENTRY DATE D 14.12.2007 WHEREIN ASSESSEE SUBMITTED THAT AS THESE COMPANIES ARE AVOIDING AND NOT COOPERATING TO DEPAR TMENT TO RECEIVE SUMMONS SENT THROUGH INSPECTOR, NOTICE UNDE R SECTION 131 OF THE ACT MAY BE SERVED THROUGH REGISTERED POS T. 19. LD. CIT DR SUBMITTED THAT ALL THESE PROVE THAT ASS ESSEE WAS NEVER PERSONALLY INTERESTED IN PROVIDING DETAIL S OF CREDITWORTHINESS OF THESE PARTIES AND GENUINENESS O F TRANSACTIONS. 20. IN SUPPORT OF HER ARGUMENTS LD. CIT(DR), PLACED RE LIANCE UPON FOLLOWING DECISIONS: 11 ITA NO. 4304/DEL/2014 (A.Y. 2001-02) CIT VS. DURGA PRASAD MORE REPORTED IN (1971) 82 ITR 540 (SC) CITVS. PRECESSION FINANCE PVT/LTD., REPORTED IN 208 ITR 465 (CAL) CIT VS. UNITED COMMERCIAL AND INDUSTRIES CO. PVT. L TD., REPORTED IN 187 ITR 596 (CAL) CIT VS. NOVA PROMOTERS AND FINLEASE PVT.LTD., REPOR TED IN 342 ITR 169 (DELHI) MUKESH SHAW VS. ITO REPORTED IN 204 TAXMAN 615 (JHARKHAND) CIT VS. N R PORTFOLIO PVT. LTD., REPORTED IN 29 TAXM AAN.COM 291 (DELHI) CIT VS. FOCUS EXPORTS PVT. LTD., REPORTED IN 2 TO 8 TAXMANN 88 (DELHI) DECISION OF DELHI ITAT IN THE CASE OF MATCHLESS GLAS S SERVICES PVT.LTD VS. ACIT IN ITA NO. 31 TO 2/DEL/2012 VIDE ORDER DATED 27.02.2017. 21. LD. CIT(DR) SUBMITTED THAT UNDER SECTION 68 OF THE ACT, ASSESSEE HAS TO OFFER AN EXPLANATION IN REGARD TO A NY SUM CREDITED IN THE BOOKS OF ACCOUNTS SHE SUBMITTED THA T THIS COULD BE ANY SUM WHETHER IN THE FORM OF SALE PROCEE DS OR RECEIPT OF SHARE CAPITAL MONEY OR SHARE PREMIUM ETC . THEREAFTER, LD. AO IS TO INQUIRE THAT EXPLANATION O FFERED BY ASSESSEE IS SATISFACTORY OR NOT. LD. CIT DR VEHEMEN TLY ARGUED THAT ASSESSEE HAS NOT ESTABLISHED IDENTITY, CREDITW ORTHINESS AND MOST IMPORTANTLY GENUINENESS OF TRANSACTION EIT HER IN 1 ST ROUND OF ASSESSMENT PROCEEDINGS OR IN THE 2 ND ROUND OF ASSESSMENT PROCEEDINGS. SHE SUBMITTED THAT DECISION S RELIED UPON BY LD. AR (EVEN THOUGH THEY ARE RECENT DECISIO NS), DO NOT SUPPORT CASE OF ASSESSEE AS THOSE ARE DISTINGUI SHABLE ON FACTS. THE PRINCIPLES LAID DOWN BY VARIOUS DECISION S RELIED 12 ITA NO. 4304/DEL/2014 (A.Y. 2001-02) UPON BY REVENUE HAS NOT BEEN SATISFACTORILY EXPLAIN ED BY ASSESSEE TO COME OUT OF THE PRIMARY ONUS. UNLESS AS SESSEE ESTABLISHES INGREDIENTS UNDER SECTION 68 IN RESPECT OF CREDITORS KNOW ENQUIRY CAN BE TAKEN UP BY ASSESSING OFFICER AS IT WOULD NOT REACH TO ANY CONCLUSION. 22. SHE SUPPORTED ORDERS PASSED BY AUTHORITIES BELOW A ND SUBMITTED THAT ADDITION MAY BE CONFIRMED. 23. WE HAVE PERUSED ARGUMENTS ADVANCED BY BOTH SIDE IN THE LIGHT OF RECORDS AND JUDICIAL PRECEDENTS RELIED UPON BY THEM PLACED BEFORE US. 24. BEFORE PROCEEDING TO DISCUSS ISSUE BEFORE US, IT I S PERTINENT TO MENTION THAT WE ARE CONCERNED WITH THE ALLEGED SHARE APPLICANTS LISTED HEREIN BELOW: M/S SHIVAM SOFTEK LTD M/S MAA SHAKUMBHARI STONE CRUSHERS PVT.LTD M/S WELCOME COIR INDUSTRIES LTD., M/S SHIMMER MARKETING PVT.LTD M/S HOPEWIN ADARK AND CONSULTANCY PVT.LTD M/S SUMA FINANCE AND INVESTMENTS PVT.LTD M/S ONYX EXEMPT AND SALES PVT.LTD M/S UMESH SECURITIES PVT.LTD M/S RUBAL CHEMICALS PVT.LTD MS KIRAN BANSAL SH. VISHAL AGARWAL SH. AMIT KUMAR SINGH SH. SH MALLICK SH. SUBHASH GUPTA 25. LET US EXAMINE THE DIRECTIONS PASSED BY THIS TRIBU NAL VIDE ORDER DATED 16.04.2010 IN RESPECT OF 14 ALLEGE D CREDITORS. LD. AR VEHEMENTLY ARGUED THAT ASSESSING OFFICER HAS NOT FOLLOWED DIRECTIONS OF THIS TRIBUNAL. FOR THE SAKE OF 13 ITA NO. 4304/DEL/2014 (A.Y. 2001-02) CONVENIENCE RELEVANT PORTION OF ORDER IS REPRODUCED HEREIN BELOW: 30. COMING TO THE ADDITION ON ACCOUNT OF UNEXPLAINED SHARE CAPITAL/SHARE APPLICATION MONEY RECEIVED FROM 12 PARTIES (NAMES OF 12 PARTIES HAVE ALREADY BEEN GIVEN IN PARA 5 OF OUR ORDER) IN RESPECT OF WHICH THE AO RECEIVED INFORMATION FROM THE INVESTIGATION WING THAT THEY WERE ENGAGED IN THE BUSINESS OF PROVIDING ACCOMMODATION ENTRIES, WE FIND THAT THE AO HAD ISSUED SUMMONS U/S. 131 TO 10 PARTIES OUT OF 12 PARTIES WITH A VIEW TO EXAMINE AND VERIFY THE GENUINENESS OF THE TRANSACTION, BUT THE SUMMONS SO ISSUED BY THE AO COULD NOT BE SERVED ON THOSE PERSONS OR PARTIES AS THEY WERE NOT FOUND AVAILABLE AT THE GIVEN ADDRESS. THEREFORE, IT IS NOT THE CASE WHERE THE AO HAS FAILED TO MAKE ANY ENQUIRY TO ASCERTAIN THE FACTS CAME TO LIGHT FROM THE INVESTIGATION CONDUCTED BY THE INVESTIGATION WING. SINCE ALL THE 12 PERSONS, WHOM NOTICES U/S. 131 WERE ISSUED BY THE AO, HAVE NOT APPEARED BEFORE THE AO FOR HIS EXAMINATION AND VERIFICATION, IT WAS TOTALLY IMPRACTICABLE ON THE PART OF THE AO TO PROVIDE AN OPPORTUNITY TO CROSS EXAMINE THEM BY THE ASSESSEE. IT IS NOT THE CASE WHERE THESE PERSONS WERE EXAMINED BY THE AO AND THEIR STATEMENT WERE RECORDED BY HIM, AND THE AO THEN FAILED TO PROVIDE AN OPPORTUNITY TO THE ASSESSEE TO CROSS EXAMINE THEM. THE STAGE OF PROVIDING OPPORTUNITIES TO THE ASSESSEE TO CROSS EXAMINE THE PERSON DID NOT ARISE AT ALL IN AS MUCH, APPEARANCE OF ALL THOSE PERSONS EVEN BEFORE THE AO COULD NOT BE PROCURED, DESPITE BEST EFFORTS MADE BY THE AO BY ISSUING SUMMONS U/S. 131 AND DEPUTING THE INSPECTOR TO SERVE THE SUMMONS ON THEM AT THE ADDRESSES 14 ITA NO. 4304/DEL/2014 (A.Y. 2001-02) GIVEN. THEREFORE, IN THE LIGHT OF THESE PECULIAR CIRCUMSTANCES OF THE CASE, THE CIT(A) WAS UNJUSTIFIED IN DELETING THE ADDITION IN RESPECT OF SHARE CAPITAL OR SHARE APPLICATION MONEY RECEIVED FROM 12 PARTIES ON THE GROUND THAT THE ASSESSEE WAS DEPRIVED FROM THE OPPORTUNITY TO CROSS EXAMINE THE CONCERNED PERSONS. THE FACT THAT THESE PERSONS WERE NOT FOUND AVAILABLE AT THE ADDRESSES GIVEN BY THE ASSESSEE WAS ALSO BROUGHT TO THE NOTICE OF THE ASSESSEE. THE ASSESSEE HAS NOT BROUGHT ANY MATERIAL TO PROVE THE ACTUAL PHYSICAL EXISTENCE OF THE SHARE APPLICANTS EXCEPT PROVING THEIR EXISTENCE ON PAPERS. WHEN ON AN ENQUIRY, CONDUCTED BY THE INVESTIGATION WING, IT WAS FOUND THAT ALL THESE PERSONS WERE ENGAGED IN THE BUSINESS OF PROVIDING ACCOMMODATION ENTRIES, VARIOUS DOCUMENTS IN THE NATURE OF CONFIRMATION LETTERS AND OTHER DETAILS SUBMITTED BY THE ASSESSEE CANNOT BE ACCEPTED ON THEIR FACE VALUE. THE CIT(A) HAS, THEREFORE, FAILED TO TAKE THE NOTE OF THIS FACT THAT WHEN THE SHARE APPLICANTS WERE NOT FOUND AVAILABLE AT THE ADDRESSES GIVEN AND WERE NOT AVAILABLE FOR AOS EXAMINATION, HOW MERELY ON THE BASIS OF PAPERS THE EXISTENCE OF SHARE APPLICANTS CAN BE ACCEPTED OR HOW IT CAN BE SAID THAT THE AO HAS FAILED TO PROVIDE THE OPPORTUNITY TO THE ASSESSEE TO CROSS EXAMINED THEM. IN THE PRESENT CASE, THE AO HAS NOT MERELY RELIED UPON THE INFORMATION RECEIVED FROM THE INVESTIGATION WING, BUT HAS ALSO TRIED TO FIND OUT WHETHER THE SHARE APPLICANTS ACTUALLY EXIST OR NOT OR WHETHER THEY ARE ENGAGED IN THE BUSINESS OF PROVIDING ACCOMMODATION ENTRIES TO THE PRESENT ASSESSEE. IT IS BEYOND THE AOS CONTROL TO PROVE THAT THE MONEY ACTUALLY EMANATED FROM THE COFFERS OF THE ASSESSEE COMPANY, UNLESS CONCERNED SHARE APPLICANTS ARE EXAMINED BY HIM. THEREFORE, IN THE PRESENT CASE, MERELY ON THE BASIS OF CERTAIN 15 ITA NO. 4304/DEL/2014 (A.Y. 2001-02) DOCUMENTS SUBMITTED BY THE ASSESSEE IN RESPECT OF 12 PARTIES, IT CANNOT BE PROVED AND ESTABLISHED THAT THE SHARE APPLICANTS ARE IN EXISTENCE AND IT IS A NORMAL TRANSACTION OF RAISING SHARE CAPITAL MONEY FROM THE ALLEGED SHARE APPLICANTS. HOWEVER, AT THE SAME TIME IT IS TRUE THAT INFORMATION RECEIVED FROM THE INVESTIGATION WING IS ALSO NOT SUFFICIENT TO PROVE AND ESTABLISH THAT THE ALLEGED SHARE CAPITAL OR SHARE APPLICATION MONEY HAS ACTUALLY EMANATED FROM THE COFFERS OF THE PRESENT ASSESSEE COMPANY. IN ORDER TO DECIDE THIS ISSUE AS TO WHETHER THE SHARE CAPITAL OR SHARE APPLICATION MONEY RECEIVED FROM TWELVE PARTIES REFERRED TO IN THE REPORT OF INVESTIGATION WING, IS UNACCOUNTED MONEY OF THE ASSESSEE COMPANY OR ANY OTHER PERSON, IT IS NECESSARY TO MAKE FURTHER ENQUIRY AND VERIFICATION BY EXAMINING THE CONCERNED PARTIES AS WELL AS BY TAKING INTO ACCOUNT OTHER SURROUNDING CIRCUMSTANTIAL EVIDENCES. WE, THEREFORE, RESTORE THE ISSUE LIMITED TO THE ADDITION ON ACCOUNT OF SHARE CAPITAL/SHARE APPLICATION MONEY RECEIVED FROM 12 PARTIES, TO THE FILE OF THE AO FOR HIS FURTHER EXAMINATION AND VERIFICATION. THE AO SHALL MAKE SUCH FURTHER ENQUIRIES AND INVESTIGATION AS HE MAY THINKS FIT AND PROPER. THE AO MAY ALSO MAKE ENQUIRY FROM THE REGISTRAR OF COMPANIES OR FROM THE RESPECTIVE AO ASSESSING THOSE 12 PARTIES IN ORDER TO FIND OUT AS TO WHETHER THESE PARTIES WERE ACTUALLY CARRYING ON ANY BUSINESS ACTIVITY AS CLAIMED BY THEM EITHER IN THE RETURN OF INCOME FILED BEFORE THE INCOME TAX DEPARTMENT OR IN THE RETURN FILED BEFORE THE ROC. NEEDLESS TO MENTION THAT THE AO SHALL PROVIDE REASONABLE OPPORTUNITY OF BEING HEARD TO THE ASSESSEE BY PUTTING ALL THE MATERIALS OR INFORMATION THAT MAY BE GATHERED BY THE AO TO THE ASSESSEE FOR ASSESSEES COMMENTS AND EXPLANATION. IN CASE ANY PERSON IS EXAMINED BY 16 ITA NO. 4304/DEL/2014 (A.Y. 2001-02) THE AO, AND HIS STATEMENT IS INTEND TO BE USED BY THE AO AGAINST THE ASSESSEE, THE AO SHALL PROVIDE THE OPPORTUNITY OF CROSS EXAMINATION TO THE ASSESSEE. THE ASSESSEE SHALL BE AT LIBERTY TO PLACE OR FURNISH ANY OTHER EVIDENCE OR MATERIAL BEFORE THE AO SO AS TO JUSTIFY THE IDENTITY AND EXISTENCE OF THE SHARE APPLICANTS AND THE GENUINENESS OF THE SHARE TRANSACTION. WE ORDER ACCORDINGLY. 31. SIMILARLY, THE ISSUE WITH REGARD TO THE ADDITION IN RESPECT OF TWO PARTIES VIZ., (I) M/S. SHIVAM SOFTECH LTD. AND (II) M/S. RUBAL CHEMICALS (P) LTD., WHOM SUMMONS WERE ISSUED BY THE AO BUT COULD NOT BE SERVED AS THEY WERE NOT FOUND AVAILABLE, IS ALSO RESTORED BACK TO THE FILE OF THE AO FOR HIS FRESH ADJUDICATION. THE AO SHALL MAKE SUCH ENQUIRIES AND INVESTIGATION AS NOTED ABOVE. 32. THE VIEW WE HAVE TAKEN ABOVE BY RESTORING THE MATTER BACK TO THE FILE OF THE AO TO EXAMINE THE NATURE OF CREDIT OF SHARE APPLICATION MONEY RECEIVED FROM 12 PARTIES IN RESPECT OF WHICH AN INFORMATION WAS RECEIVED FROM INVESTIGATION WING THAT THESE 12 PARTIES WERE ENGAGED IN THE BUSINESS OF PROVIDING ACCOMMODATION ENTRIES, AND IN RESPECT OF OTHER TWO PARTIES ON WHOM SUMMONS COULD NOT BE SERVED, HAS ALSO BEEN TAKEN BY THE CO-ORDINATE BENCH OF THE ITAT, DELHI BENCH B, NEW DELHI, IN THE CASE OF ITO VS. OMEGA BIOTECH LTD. (SUPRA), WHICH WAS REFERRED TO BY THE LD. DR. IN THAT CASE OF OMEGA BIOTECH LTD. (SUPRA), THE ISSUE REGARDING SHARE CAPITAL RECEIVED FROM 5 COMPANIES IN RESPECT OF WHICH THE AO HAS RECEIVED INFORMATION FROM THE INVESTIGATION WING THAT THOSE 5 COMPANIES WERE NOT CARRYING ON ACTUAL BUSINESS, BUT WERE ENGAGED IN THE BUSINESS OF PROVIDING ACCOMMODATION ENTRIES, HAS BEEN RESTORED BACK BY THE TRIBUNAL TO THE FILE OF THE AO TO DECIDE THE MATTER AFRESH IN AS MUCH AS THE SUMMONS 17 ITA NO. 4304/DEL/2014 (A.Y. 2001-02) ISSUED U/S. 131 OF THE ACT BY THE AO TO THOSE PARTIES COULD NOT BE SERVED UPON THEM AS THESE PARTIES WERE NOT FOUND AVAILABLE AT THE ADDRESSES GIVEN. IT IS, THUS, CLEAR THAT THE FACTS OF THAT CASE IS IDENTICAL TO THE FACTS OF THE PRESENT CASE, IN SO FAR AS THE 12 PARTIES ARE CONCERNED, IN RESPECT OF WHICH AN IDENTICAL INFORMATION HAS BEEN RECEIVED FROM INVESTIGATION WI NG THAT THESE 12 PARTIES WERE NOT CARRYING ON ACTUAL BUSINESS BUT WERE ENGAGED IN THE BUSINESS OF PROVIDING ACCOMMODATION ENTRIES, AND DURING THE COURSE OF ASSESSMENT PROCEEDINGS SUMMONS ISSUED U/S 131 OF THE ACT, TO THE TEN PARTIES OUT OF TWELVE PARTIES, AND TO OTHER TWO PARTIES, COULD NOT BE SERVED AS THEY WERE NOT FOUND AVAILABLE AT THE GIVEN ADDRESSES. 26. ON PERUSAL OF FINDINGS, THIS IS A CATEGORICAL OBSE RVATION BY THIS TRIBUNAL THAT IT IS NOT A CASE WHERE LD. AO FAILED TO MAKE ANY ENQUIRY TO ASCERTAIN FACTS THAT CAME IN TO LIGHT FROM INVESTIGATION CONDUCTED BY INVESTIGATION WING. WE R EFER TO HIGHLIGHTED PORTIONS IN ABOVE PREPRODUCTION, FROM O RDER OF THIS TRIBUNAL DATED 16.04.2010. THIS TRIBUNAL HAS ALSO O BSERVED THAT SINCE NONE OF 14 CREDITORS TO WHOM NOTICES UND ER SECTION 131 WERE ISSUED BY ASSESSING OFFICER HAS APPEARED B EFORE HIM FOR HIS EXAMINATION AND VERIFICATION, IT WAS TOTALL Y IMPRACTICABLE ON THE PART OF ASSESSING OFFICER TO P ROVIDE OPPORTUNITY TO CROSS EXAMINATION BY ASSESSEE. THIS TRIBUNAL HAS ALSO OBSERVED THAT ASSESSEE HAS NOT BROUGHT ANY MATERIAL TO PROVE ACTUAL PHYSICAL EXISTENCE OF SHARE APPLICA NTS EXCEPT 18 ITA NO. 4304/DEL/2014 (A.Y. 2001-02) PROVING THEIR EXISTENCE ON PAPERS. THIS TRIBUNAL FU RTHER RECORDS THAT ON ENQUIRY CONDUCTED BY INVESTIGATION WING IT WAS FOUND THAT ALL THESE PERSONS WERE ENGAGED IN BU SINESS OF PROVIDING ACCOMMODATION ENTRIES. VARIOUS DOCUMENTS I N THE NATURE OF CONFIRMATION LETTERS AND OTHER DETAILS SU BMITTED BY ASSESSEE CANNOT BE ACCEPTED ON THE FACE VALUE AND T HEREFORE, THIS TRIBUNAL FURTHER RECORDS THAT CIT(A) IN 1 ST ROUND OF PROCEEDINGS FAILED TO TAKE NOTE OF THE FACT THAT WH EN SHARE APPLICANTS WERE NOT FOUND AVAILABLE AT THE GIVEN AD DRESSES AND WERE NOT AVAILABLE FOR AOS EXAMINATION. THIS T RIBUNAL OBSERVED THAT MERELY ON THE BASIS OF CERTAIN PAPERS EXISTENCE OF APPLICANTS CANNOT BE ACCEPTED AND IT CAN THEREFO RE, BE SAID THAT AO HAS FAILED TO PROVIDE OPPORTUNITY TO ASSESS EE TO CROSS EXAMINE THEM. IT WAS ON THESE BACKGROUND THAT THIS TRIBUNAL OBSERVED THAT ASSESSING OFFICER IN THE ORIGINAL AS SESSMENT PROCEEDINGS DID NOT MERELY ON THE BASIS OF INFORMAT ION FROM INVESTIGATION WING BUT ALSO HAS TRIED TO FIND OUT W HETHER SHARE APPLICANTS ACTUALLY EXISTED OR NOT OR WHETHER THERE ENGAGED IN THE BUSINESS OF PROVIDING ACCOMMODATION ENTRIES TO ASSESSEE. HOWEVER, IT WAS BEYOND CONTROL TO PROVE THAT MONEY ACTUALLY EMANATED FROM THE COFFERS OF ASSESSEE COMPANY UNLES S CONCERNED SHARE APPLICANTS WERE EXAMINED BY HIM. 27. IT IS VERY PERTINENT TO OBSERVE HERE THAT THIS TRI BUNAL WAS EXPRESSING ITS VIEW THAT UNLESS ASSESSEE PROVIDES O R BRINGS CREDITORS BEFORE ASSESSING OFFICER FOR EXAMINATION, ASSESSING OFFICER COULD NOT HAVE INVESTIGATED ANY FURTHER REG ARDING CREDITWORTHINESS AND GENUINETY TEA OF TRANSACTIONS. TRIBUNAL 19 ITA NO. 4304/DEL/2014 (A.Y. 2001-02) FURTHER RECORDS THEREIN THAT IN ORDER TO DECIDE THI S ISSUE AS TO WHETHER SHARE CAPITAL OR SHARE APPLICATION MONEY RE CEIVED FROM 14 PARTIES REFERRED TO IN REPORT OF INVESTIGAT ION WING IS UNACCOUNTED MONEY OF ASSESSEE OR ANY OTHER PERSON, IT IS NECESSARY TO MAKE FURTHER ENQUIRY AND VERIFICATION BY EXAMINING CONCERNED PARTIES AS WELL AS BY TAKING IN TO ACCOUNT OTHER SURROUNDING CIRCUMSTANCES EVIDENCES. TO OUR UNDERSTANDING IT IS ON THIS BACKGROUND THAT THIS TR IBUNAL HAD REMANDED ISSUE BACK TO ASSESSING OFFICER TO MAKE SU CH FURTHER ENQUIRIES AND INVESTIGATION AS HE MAY THINK FIT AND PROPER. 27. NOW WHEN WE REFER TO ASSESSMENT ORDER PASSED BY LD . AO UNDER SECTION 256 OF THE ACT, WE OBSERVE THAT AS SESSING OFFICER HAD INITIATED INVESTIGATION BY ISSUING NOTI CE TO ASSESSEE TO PRODUCE THE ALLEGED CREDITORS BEFORE HIM, ALONGW ITH REQUISITES DETAILS AS CALLED FOR. 28. WE THEREFORE, DO NOT AGREE WITH ARGUMENT ADVANCED BY LD. AR THAT THIS TRIBUNAL VIDE ORDER DATED 16.04.20 10 HAD SHIFTED ENTIRE ONUS OF PROVING CREDITWORTHINESS AND GENUINETY OF TRANSACTION UPON ASSESSING OFFICER. IT IS CLEAR FROM ABOVE REFERRED PARAGRAPHS THAT, THE TRIBUNAL WANTED ASSES SING OFFICER TO START BY RECORDING STATEMENTS OF ALLEGED CREDITORS, WITHOUT WHICH HE COULD NOT HAVE ADVANCED HIS INVEST IGATION ANY FURTHER. SIMILAR VIEW WAS TAKEN BY THIS TRIBUNA L IN THE CASE OF M/S SHIVAM SOFTEK LTD., AND M/S RUBLE CHEMI CALS PVT. LTD., TO WHOM SUMMONS U/S.131 WAS ISSUED BY AO , COULD NOT BE SERVED, AS THEY WERE NOT AVAILABLE. 20 ITA NO. 4304/DEL/2014 (A.Y. 2001-02) 29. NOW ENTIRE CONTROVERSY BOILS DOWN TO MAIN ISSUE AS TO WHETHER ASSESSEE HAS DISCHARGED ITS ONUS OF PROVING IDENTITY, CREDITWORTHINESS AND MOST IMPORTANTLY THE GENUINENE SS OF THE TRANSACTIONS. 30. BEFORE US LD. AR SUBMITTED THAT ASSESSEE HAD TENDE RED ALL NECESSARY DOCUMENTS PERTAINING TO ALLEGED CREDI TORS BY WAY OF REPLY DATED 14.11.2011. ON PERUSAL OF THIS LETTE R, WHICH IS PLACED AT PAGE 27-37 OF PAPER BOOK, WE OBSERVE THAT ASSESSEE IS CLAIMING THAT THESE ALLEGED CREDITORS ARE NO LON GER SHAREHOLDERS OF ASSESSEE, AND THEREFORE IT WAS NOT PRACTICALLY POSSIBLE FOR ASSESSEE TO SUBMIT THEIR LATEST ADDRES S. HOWEVER, ASSESSEE HAS SUBMITTED DETAILS OF ALLEGED CREDITORS AS PER COMPANY STATUTORY RECORDS AS ON DATE. WE HAVE GONE THROUGH EACH AND EVERY CREDITORS AND RESPECTIVE DOCUMENTS P LACED AT PAGES 43-381 OF PAPER BOOK THE DETAILS OF WHICH ARE AS UNDER: 1. WELCOME COIR INDUSTRIES LTD. 31. THE SHARE APPLICATION FORM IS PLACED AT PAGE 43, W HICH DO NOT CONTAIN ANY DAY, PERSON WHO HAS SIGNED AND W ITH WHAT A QUALITY PERSON HAS ISSUED SUCH A LETTER. THIS APP LICANT HAS APPLIED FOR 30,000 EQUITY SHARES OF ASSESSEE AT RS. 10 PER SHARE OF RELATING TO RS. 3 LACS. THE PAYMENT HAS BE EN MADE BY WAY OF CHECK ISSUED FROM CORPORATION BANK AT PAG E 45 OF PAPER BOOK. ON PERUSAL OF BANK STATEMENT WE OBSERVE THAT IT IS FOR A PERIOD OF 10.05.2000 TO 30.05.2000. THE OP ENING BALANCE OF THIS BANK STATEMENT IS NIL. IT IS VERY I NTERESTING TO NOTE THAT IN THIS ACCOUNT THE 1 ST DEPOSITS BY CASH IS OF RS. 21 ITA NO. 4304/DEL/2014 (A.Y. 2001-02) 10,000/- AGAINST WHICH CHARGES HAVE BEEN DEDUCTED O N FOR ISSUE OF CHEQUE-BOOK WHICH GOES TO PROVE THAT ACCOU NT WAS OPENED VERY RECENTLY. SUBSEQUENTLY THERE ARE DEBITS AMOUNTING TO RS. 4 LACS, 5 LACS AND AGAIN 5 LACS, W HICH HAS BEEN MADE ON 25.05.2000 TO VARIOUS PARTIES. WE FAIL TO UNDERSTAND WHEN OPENING BALANCES NIL, HOW COULD A SSESSEE ISSUE CHEQUES AMOUNTING TO SUCH HUGE AMOUNTS OF RS. 14 LAKHS ON A SINGLE DATE, WITHOUT THEIR BEING SUFFICI ENT BALANCE ON A DAY PREVIOUS TO ISSUANCE OF THESE PAYMENTS. 32. THE NEXT DOCUMENT AT PAGE 46 IS RETURN OF INCOME F ILED BY THIS APPLICANT FOR ASSESSMENT YEAR 1999-2000(BUT NOT FOR A. Y:2001-02) IS WITHOUT PAN NUMBER AND NEITHER IS THERE ANY INDICATION OF APPLICATION BEING MADE FOR OBTAINING SAME. THE RETURN SHOWS THERE IS A CARRY FORWARD LOSS AMOUNTIN G TO RS. 1,38,63,160/- WHICH SHOWS THAT THIS COMPANY DID NOT HAVE ANY BUSINESS DURING PREVIOUS YEAR RELEVANT TO ASSES SMENT YEAR 1999-2000. THE NEXT DOCUMENT IS THE MASTER DAT A OBTAINED FROM WEBSITE MINISTRY OF CORPORATE AFFAIRS WHICH SHOWS THAT COMPANY WAS INCORPORATED ON 20.12.89 AND THAT LAST AGM CONDUCTED BY THIS COMPANY WAS ON 29.09.200 9 FOR APPROVING BALANCE SHEET DATED 31.03.2009. THE NEXT DOCUMENT IS ANNUAL RETURN OF COMPANY FILED ON THE B ASIS OF BALANCE SHEET DRAWN ON 31.03.2009 AT PAGE 49 TO 69 OF PAPER BOOK. THE DIRECTORS REPORT PLACED AT PAGE 70 FURTHE R SHOWS THAT THIS COMPANY WAS SUFFERING LOSS OF RS. 2,210/- AS COMPARED TO PREVIOUS YEAR LOSS OF RS. 7,960/-. IN T HE AUDITED 22 ITA NO. 4304/DEL/2014 (A.Y. 2001-02) REPORT BALANCE SHEET AND PROFIT AND LOSS PLACED AT PAGES 76 TO 78 SHOWS THAT THERE ARE HUGE LOSSES. 33. NONE OF THE DOCUMENTS SUBMITTED PERTAINS TO APPLIC ANTS POSITION FOR ASSESSMENT YEAR 2001-02 WHICH COULD SU PPORT ARGUMENT OF LD. AR THAT, ALL DOCUMENTS HAS BEEN FIL ED BY ASSESSEE BEFORE ASSESSING OFFICER DURING ORIGINAL A S WELL AS SUBSEQUENT ASSESSMENT PROCEEDING. NONE OF THESE DOC UMENTS DISCHARGE INITIAL ONUS CAST UPON ASSESSEE REGARDING ESTABLISHING IDENTITY, CREDITWORTHINESS AND MOST IM PORTANTLY GENUINESS OF TRANSACTION. 2. M/S. SHIMMER MARKETING PVT.LTD 34. THE SHARE APPLICATION FORM IS PLACED AT PAGE 85 WH ICH DO NOT CONTAIN ANY DAY. THIS PARTICULAR APPLICANT HAS APPLIED FOR 30,000 EQUITY SHARES OF ASSESSEE AT RS. 10/- PER SH ARE OF RELATING TO RS. 3 LACS. THE PAYMENT HAS BEEN MADE B Y WAY OF CHEQUE ISSUED FROM FEDERAL BANK AT PAGE 87 OF PAPER BOOK. ON PERUSAL OF BANK STATEMENT, WE OBSERVE THAT BALAN CE IN THIS ACCOUNT IS QUITE MEAGER AS COMPARED TO TRANSACTIONS . FUNDS HAVE BEEN TRANSFERRED IN THE ACCOUNT OR CLEARING MO STLY ON THE EVERY BASIS WHEN CHEQUE FOR SHARE CAPITAL HAS BEEN ISSUED. THE BANK STATEMENT SUBMITTED IS ONLY A LEASE DURING MONTH OF MARCH 2001. PAGE 86 IS ACKNOWLEDGEMENT OF RETURN OF INCOME FILED FOR ASSESSMENT YEAR 2000-2001. THE PAN NUMBER HAS BEEN APPLIED FOR, BY FORM NO. 49 IS PLACED AT PAGE 89 TO 19 OF PAPER BOOK. IT IS PERTINENT TO NOTE THAT FORM NO. 4 9 A DOES NOT CONTAIN ADDRESS OF THIS APPLICANT AND HAS BEEN FILE D WITH CIRCLE 29(5), WHEREAS RETURN HAS BEEN FILED WITH CENTRAL C IRCLE 3 (5). 23 ITA NO. 4304/DEL/2014 (A.Y. 2001-02) THE RETURNS SHOWS THAT ASSESSEE HAS EARNED PROFIT F ROM BUSINESS AND PROFESSION AMOUNTING TO RS.1,789/-. TH E DATE OF FILING RETURN APPEARS TO BE APRIL 2001, WHICH CREAT ES A DOUBT THAT IT HAS BEEN FILED ONLY FOR THE PURPOSES OF CRE ATING A FAADE OF EXISTENCE. 35. AT PAGE 91 OF PAPER BOOK, IS THE MASTER DATA OF M/ S. GRASSROOTS MARKETING PVT. LTD., OBTAINED FROM WEBSI TE OF MINISTRY OF CORPORATE AFFAIRS WHICH SHOWS THAT APPL ICANT HAS FILED BALANCE SHEET DATED 31.03.2010. THE ADDRESS T HAT APPEARS IN MASTER DATA, IS DIFFERENT FROM ADDRESS M ENTIONED IN ACKNOWLEDGEMENT OF RETURN OF INCOME FILED. THIS IS FOLLOWED BY RETURN FILED BY APPLICANT, WITH ONLY BALANCE SHEET FOR THE YEAR ENDING 31.03.2010, AS AN ANNEXURE AND PROFIT AND LO SS ACCOUNT OF THIS COMPANY HAS NOT BEEN PLACED ON RECO RD. 36. IN THE INSTANT CASE ASSESSEE HAS NOT ANY PRODUCED RELEVANT INFORMATION PERTAINING TO ASSESSMENT YEAR 2001-02 TO ESTABLISH IDENTITY, CREDITWORTHINESS AND GENUINENES S OF TRANSACTION. THERE IS NO SINGLE DOCUMENT THAT HAS B EEN PLACED ON RECORD WHICH COULD PROVE ANY BUSINESS ACTIVITY B EING CARRIED OUT BY THIS ALLEGED APPLICANT. THE FORM IS SUBMITTED ARE INCOMPLETE WITHOUT HAVING FULL INFORMATION IN R ESPECT OF THE ALLEGED APPLICANT. 3. SUMA FINANCE AND INVESTMENT LTD: 37. THE SHARE APPLICATION FORM PLACED AT PAGE 107 AND DATED WHERE THIS APPLICANT HAS APPLIED FOR 20,000 EQUITY SHARES OF RS. 10/- EACH AT AN AGGREGATE VALUE OF RS. 2 LACS. THE SIGNATORY DETAILS ARE NOT AVAILABLE. THE PAYMENT HA S BEEN 24 ITA NO. 4304/DEL/2014 (A.Y. 2001-02) MADE BY WAY OF CHEQUE ISSUED FROM BANK OF PUNJAB ON 18.05.2000. THE BANK STATEMENT PLACED AT PAGE 109 O F PAPER BOOK PERTAINS TO A PERIOD FROM 15.04.2000 TO 18.05. 2000 AND OPENING BALANCE AS OF 15 TH APRIL IS NIL. MONEYS HAVE BEEN DEPOSITED AND HAVE BEEN WITHDRAWN SIMULTANEOUSLY. P AGE 110 OF PAPER BOOK IS ACKNOWLEDGEMENT OF RETURN OF INCOM E FOR ASSESSMENT YEARS 1999-2000, (NOT FOR 2001-02) WHICH HAS NOT BEEN STAMPED TO PROVE THAT IT HAS BEEN FILED. THE I NCOME DECLARED BY ALLEGED APPLICANT UNDER THE HEAD PROFIT FROM BUSINESS IS ONLY RS. 16,910/- AND HAS SHOWN SOME SPECULATION LOSS. PAGE 111 OF PAPER BOOK IS THE MAS TER DETAILS OF THE APPLICANT OBTAINED FROM THE WEBSITE OF MINIS TRY OF CORPORATE AFFAIRS, WHICH REVEALS A DIFFERENT ADDRES S VIS--VIS, ADDRESS MENTIONED IN RETURN OF INCOME. THE REFUND S TATUS FOR ASSESSMENT YEAR 2010-11 HAS BEEN FILED AT PAGE 112 OF PAPER BOOK, WHICH DO NOT ESTABLISH EITHER CREDITWORTHINES S OR GENUINENESS OF TRANSACTION ENTERED INTO BETWEEN THI S APPLICANT AND ASSESSEE DURING ASSESSMENT YEAR 2001- 02. THERE IS NO OTHER DETAIL THAT HAS BEEN PRODUCED IN RESPECT OF THIS APPLICANT. 38. IN THE INSTANT CASE ASSESSEE HAS NOT PRODUCED RELE VANT INFORMATION PERTAINING TO ASSESSMENT YEAR 2001-02 T O ESTABLISH IDENTITY, CREDITWORTHINESS AND GENUINENES S OF TRANSACTION. THERE IS NO SINGLE DOCUMENT THAT HAS B EEN PLACED ON RECORD WHICH COULD PROVE ANY BUSINESS ACTIVITY B EING CARRIED OUT BY THIS ALLEGED APPLICANT. 4. ONYX EXIM & SALES PVT.LTD 25 ITA NO. 4304/DEL/2014 (A.Y. 2001-02) 39. THIS UNDATED SHARE APPLICATION FORM AT PAGE 113 OF PAPER BOOK REVEALS THAT THIS ALLEGED APPLICANT HAD APPLIED FOR 30,000 EQUITY SHARES OF ASSESSEE OF RS. 10/- EACH A GGREGATING TO RS. 3 LACS. THIS APPLICANT HAS MADE PAYMENT BY W AY OF CHEQUE ISSUED FROM CANARA BANK, WHICH IS PLACED AT PAGE 114 OF PAPER BOOK. THE BANK STATEMENT PRODUCED AT PAGE 115 OF PAPER BOOK IS FOR PERIOD 01.03.2001 TO 31.03.2001. PECULIAR THING OBSERVED ON THIS ACCOUNT IS THAT ON 1 ST ______ DEPOSIT OF RS. 3,05,818.24/-, WHICH HAS BEEN WITHDRAWN AND THE N AGAIN DEPOSITED BY WAY OF VARIOUS CHECKS. ONE MORE PECULI AR THING OBSERVED IS THAT THIS APPLICANT HAS ISSUED CHEQUE A MOUNTING TO RS. 2 LACS TO SHIMMER MARKETING, WHOM WE HAVE DE ALT WITH HEREINABOVE. THIS CREATES ABOUT THAT THESE COMPANIE S MIGHT HAVE MADE PAYMENTS TO EACH OTHER. PAGE 116 OF PAPER BOOK IS ACKNOWLEDGEMENT OF RETURN OF INCOME FILED FOR ASSES SMENT YEAR 1999-2000 WHICH HAS BEEN NOT ATTESTED, AS RECE IVED BY DEPARTMENT. THE RETURN SHOWS THAT THE APPLICANT EAR NED INCOME UNDER THE HEAD PROFIT FROM BUSINESS AND PROF ESSION AMOUNTING TO RS. 6,563/-. THE RETURN DOES NOT SHOW PAN NUMBER AND HAS MENTIONED AS APPLIED FOR. 40. THE NEXT PAGE BEING 117 APPEARS TO BE INTIMATION F ROM DEPARTMENT REGARDING PAN NUMBER OF APPLICANT. THIS LETTER IS UNDATED PAN NUMBER IN HAND WRITTEN AGAIN THE FORMAT IN WHICH LETTER HAS BEEN ISSUED IS NOT USUAL FORMAT IS SUED BY DEPARTMENT. 41. PAGE 118 IS MASTER DETAILS OF THE APPLICANT OBTAIN ED FROM SITE OF MINISTRY OF CORPORATE AFFAIRS ALONGWITH BAL ANCE SHEET AS 26 ITA NO. 4304/DEL/2014 (A.Y. 2001-02) ON 31 ST MARCH 2009 AT PAGE120-152, FOLLOWED BY BALANCE SHE ET AS ON 31.03.2010 ALONG WITH RESPECTIVE ANNUAL RETUR NS. AT PAGE 164 BALANCE SHEET AS ON 31.03.2011. NONE OF BA LANCE SHEET IS COUPLED WITH PROFIT AND LOSS ACCOUNT FOR R ELEVANT YEARS. 42. IN THE INSTANT CASE ASSESSEE HAS NOT PRODUCED RELE VANT INFORMATION PERTAINING TO ASSESSMENT YEAR 2001-02 T O ESTABLISH IDENTITY, CREDITWORTHINESS AND GENUINENES S OF TRANSACTION. THERE IS NO SINGLE DOCUMENT THAT HAS B EEN PLACED ON RECORD WHICH COULD PROVE ANY BUSINESS ACTIVITY B EING CARRIED OUT BY THIS ALLEGED APPLICANT. 5. M/S. HOPWIN ADMARK & CONSULTANCY SERVICES LTD . 43. PAGE 172 IS SHARE APPLICATION FORM. PAGE 175 IS ACKNOWLEDGMENT OF RETURN OF INCOME FOR ASSESSMENT Y EAR 2000-01, WHICH SHOWS PAN NUMBER, AS APPLIED FOR. TH E INCOME DECLARED IS RS. 41,645/- FROM BUSINESS AND PROFESSION. THIS IS FOLLOWED BY MASTER DETAILS OBTA INED FROM WEB SITE OF MINISTRY OF CORPORATE AFFAIRS. THE DIRE CTORS REPORT FOR YEAR ENDED 31.03.2011 MENTIONS THAT APPLICANT H AS MADE PROFIT OF RS. 281/- FROM GROSS RECEIPT OF RS. 3500/ - DURING YEAR. THERE IS BALANCESHEET FOR YEAR ENDED 31.03.20 11 PLACED AT PAGE 182 TO 186 OF PAPER BOOK, WHICH REVEALS THA T THERE HAS BEEN NO BUSINESS ACTIVITY THAT HAS BEEN CARRIED ON BY THE APPLICANT. FROM PAGES 186 TO 197 EXTRACTS FROM BALA NCE SHEET FOR YEAR ENDED 31.03.2010 AND 31.03.2011 HAS BEEN P LACED, WHICH IS OF NO RELEVANCE TO ESTABLISH CREDIT WORTHI NESS AND 27 ITA NO. 4304/DEL/2014 (A.Y. 2001-02) GENUINELY OF TRANSACTION WHICH PERTAINS TO ASSESSME NT YEAR 2001-02. 6. UMESNEH SECURITIES PVT.LTD., 44. THE SHARE APPLICATION FORM BY THIS APPLICANT PLACE D AT PAGE 199 OF PAPER BOOK IS DATED 24.04.2000 WHEREIN IT HAS APPLIED FOR 50,000 EQUITY SHARES OF ASSESSEE FOR RS . 10/- EACH AGGREGATING TO RS. 5 LAKHS DRAWN ON KESHAV OF SAHKA RI BANK LTD. THE BANK STATEMENT HAS BEEN PLACED AT PAGE 201 WHICH SHOWS AN OPENING BALANCE OF RS. 5250/- AS ON 07.04. 2000. THE BANK HAS DEBITED CHARGES FOR ISSUING CHEQUE BOO K AMOUNTING TO RS. 50 AND SUBSEQUENTLY THERE IS A DEP OSIT OF RS. 10 LACS INTO ACCOUNT. THE BANK STATEMENT ALSO S HOWS SUBSEQUENT DEPOSITS OF HUGE AMOUNTS AND CORRESPONDI NG CASH DEBITS OF MORE THAN 2 LACS ON VARIOUS DATES. FURTHE R BANK STATEMENT HAS BEEN PROVIDED ONLY FOR A PERIOD OF 01 .04.2000 TO 30.04.2000 WITH CLOSING BALANCE OF RS. 5415/- IN THE ACCOUNT AS ON LAST DATE. PAGE 202 OF PAPER BOOK IS THE COPY OF ACKNOWLEDGEMENT OF RETURN FILED FOR ASSESSMENT YEAR 1999- 2000 WITH A NET PROFIT BEING DECLARED AT RS. 4155/- . IT IS ALSO OBSERVED THAT RETURN HAS BEEN FILED AS ON 31.03.200 0. PAGE 203 IS ANOTHER APPLICATION PRESENTED BY THE APPLICA NT FOR 30,000 EQUITY SHARES BEING ISSUED BY ASSESSEE AGGRE GATING VALUE AT RS. 3 LACS. THIS PAYMENT HAS BEEN ISSUED B Y APPLICANT BY WAY OF CHEQUE DRAWN ON KESHAV OF SAHKA RI BANK LTD. THE NEXT PAGE 205 IS BANK STATEMENT FOR THE PE RIOD 15.032001 TO 07.042001 WHEREIN AGAIN OPENING BALANC E AS ON 10.03.2001 IS 5743. A SIMILAR PATTERN IS OBSERVED D URING THIS 28 ITA NO. 4304/DEL/2014 (A.Y. 2001-02) PERIOD OF DEPOSIT OF HUGE AMOUNT AND SUBSEQUENT DEPOSITS/WITHDRAWALS BY CASH AND CHECK ON VARIOUS D ATES. 45. PAGE 207 IS ACKNOWLEDGEMENT OF RETURN OF INCOME FILED FOR ASSESSMENT YEAR 2000-2001 WHEREIN NET PROFIT HA S BEEN DECLARED AS 5642 AND RETURN HAS BEEN FILED ON 30.03 .2001. 46. APPLICANTS MASTER DETAILS OBTAINED FROM WEBSITE OF MINISTRY OF CORPORATE AFFAIRS HAVE BEEN ANNEXED AT PAGE 108 WHICH HAS A DIFFERENT ADDRESS. THERE IS NO OTHER DE TAIL LIKE BALANCE SHEET, PROFIT AND LOSS ACCOUNT, AUDITED REP ORT, ANNUAL RETURNS THAT HAS BEEN FILED IN RESPECT OF THIS APPL ICANT FOR A. Y. 2001-02. 47. IN THE INSTANT CASE ASSESSEE HAS NOT PRODUCED RELE VANT INFORMATION PERTAINING TO ASSESSMENT YEAR 2001-02 T O ESTABLISH IDENTITY, CREDITWORTHINESS AND GENUINENES S OF TRANSACTION. THERE IS NO SINGLE DOCUMENT THAT HAS B EEN PLACED ON RECORD WHICH COULD PROVE ANY BUSINESS ACTIVITY B EING CARRIED OUT BY THIS ALLEGED APPLICANT. 7. M/S. MAA SHAKUMBHARI STONE CRUSHERS PVT.LTD., . 48. PAGE 208 IS SHARE APPLICATION FORM. M/S. MAA SHAKUMBHARI STONE CRUSHERS PVT. LTD., HAS APPLIED F OR 30,000 EQUITY SHARES OF ASSESSEE WORTH RS. 10/- SHA RE AGGREGATING TO RS. 3 LAKH. THE APPLICANT HAS PAID M ONEY BY WAY OF CHEUQE DRAWN FROM FEDERAL BANK. PAGE 210 OF PAPER BOOK IS BANK STATEMENT FROM 01.03.2001 TO 31.03.200 1 OF APPLICANT WHEREIN THERE IS A PATTERN OF DEPOSIT AND WITHDRAWAL OF MONEY. PAGE 211 IS ACKNOWLEDGEMENT OF RETURN OF INCOME FILED FOR ASSESSMENT YEAR 2000-2001 WHICH DOES NOT HAVE PAN 29 ITA NO. 4304/DEL/2014 (A.Y. 2001-02) NUMBERS BEING A NEW CASE. THE ADDRESS MENTIONED IN THE SHARE APPLICATION FORM AND RETURN OF INCOME ARE DIF FERENT, WHICH DOES NOT TALLY WITH ADDRESS MENTIONED ON BANK STATEMENT. THE SIGNATORY TO SHARE APPLICATION FORMS AS WELL AS A RETURN OF INCOME ARE DIFFERENT AND DOES NOT REVEA L NAME, CAPACITY IN WHICH RETURN OF INCOME HAS BEEN SIGNED. 49. IN THE INSTANT CASE ASSESSEE HAS NOT PRODUCED RELE VANT INFORMATION PERTAINING TO ASSESSMENT YEAR 2001-02 T O ESTABLISH IDENTITY, CREDITWORTHINESS AND GENUINENES S OF THE TRANSACTION. 8. M/S.SPARKLE BREWARIES PVT.LTD 50. PAGE 213 TO 214 REVEALS MASTER DETAILS OF APPLICAN T OBTAINED FROM WEBSITE OF MINISTRY OF CORPORATE AFFA IRS WHEREIN DATE OF LAST APPROVED BALANCESHEET BEING 31.03.2010 HAS BEEN MENTIONED. PAGE NO. 215-223 IS HANDWRITTEN ANNUAL R ETURN UNDER COMPANIES ACT FOR YEAR ENDING 31 ST SEPTEMBER 2009, PAGE 224-237 IS ANNUAL RETURN FOR YEAR ENDING 30.09 .2010. PAGE NUMBERS 234-236 ARE ANNEXURE TO ANNUAL RETURN BEING NOTICE FOR CONDUCTING ANNUAL GENERAL MEETING FOR AP PROVING AUDITED BALANCE SHEET AS ON 31.03.2009, SHOWS REGIS TERED OFFICE OF THIS APPLICANT AT 1 ST FLOOR, PLOT NO. 62, MARBLE MARKET, SECTOR 20, DWARKA, NEW DELHI WHEREAS MASTER DATA OB TAINED FROM MINISTRY OF CORPORATE AFFAIRS REVEALS REGISTER ED ADDRESS BEING THE 4/4123, VASANT KUNJ, NEW DELHI. 51. THIS ITSELF SHOWS THAT NONE OF THESE ADDRESSES ARE CORRECT AS IN A SMALL PERIOD BETWEEN 2009 TO 2010 APPLICANT HAS 30 ITA NO. 4304/DEL/2014 (A.Y. 2001-02) SHOWN TWO DIFFERENT ADDRESSES AS ITS REGISTERED OFF ICE IN A DOCUMENT WHICH HAS BEEN ALLEGED TO BE ON PUBLIC DOM AIN. 52. THE AUDIT REPORT ANNEXED AT PAGE 238-264 IS FOR YE AR ENDING 31.03.2009 AND 31.03.2010. BOTH THESE AUDIT REPORT DO NOT CONTAIN PROFIT AND LOSS ACCOUNT OF APPLICANT . 53. THE SHARE APPLICATION FORM IF ANY, BY THIS COMPANY FOR ISSUANCE OF SHARES OF ASSESSEE IS NOT ANNEXED HEREW ITH. 54. IN THE INSTANT CASE ASSESSEE HAS NOT PRODUCED RELE VANT INFORMATION PERTAINING TO ASSESSMENT YEAR 2001-02 T O ESTABLISH IDENTITY, CREDITWORTHINESS AND GENUINENES S OF THE TRANSACTION. 9. M/S. SHIVAM SOFTECH LTD., . 55. PAGE 265 IS SHARE APPLICATION FORM M/S. SHIVAM SOF TECH LTD., HAS APPLIED FOR 40,000 EQUITY SHARES OF ASSES SEE WORTH RS. 10/-, SHARES AGGREGATING TO RS.4 LAKH. THE APPL ICANT HAS PAID MONEY BY WAY OF CHEQUE DRAWN ON FEDERAL BANK. PAGE 267 OF PAPER BOOK IS BANK STATEMENT FROM 01.03.2001 TO 31.03.2001 OF APPLICANT WHEREIN THERE IS A PATTERN OF DEPOSIT AND WITHDRAWAL OF MONEY. PAGE 268 IS ACKNOWLEDGEMEN T OF RETURN OF INCOME FILED FOR ASSESSMENT YEAR 2000-200 1 WHICH DOES NOT HAVE PAN NUMBERS AND HAS MENTIONED NOT YE T APPLIED IN THE COLUMN. THE APPLICANT HAS DECLARED A NET INCOME OF RS. 14,035/- IN THE RETURN. PAGE 269 IS M ASTER DETAILS OF APPLICANT OBTAINED FROM WEBSITE OF MINIS TRY OF CORPORATE AFFAIRS, WHEREIN DATE OF INCORPORATION HA S BEEN SHOWN TO BE 14.02.2000. AUDITED ACCOUNTS FOR YEAR E NDING 31.03.2010 PLACED AT PAGE 288- 296, DOES NOT HAVE P ROFIT AND 31 ITA NO. 4304/DEL/2014 (A.Y. 2001-02) LOSS ACCOUNT OF APPLICANT WHICH COULD BRING OUT TRU E AND CORRECT PICTURE OF AFFAIRS OF APPLICANT. AUDITED AC COUNTS FOR YEAR ENDING 31.03.2011 HAS BEEN PLACED FROM PAGE 30 1-311 WHEREIN PROFIT AND LOSS ACCOUNT HAS BEEN ANNEXED AN D REVEALS THAT INCOME FOR YEAR ENDED 31.03.2011 WAS ONLY RS. 45,000/- WHEREAS INCOME FOR YEAR ENDED 31.03.2010 WAS RS.680 0/-. IN THE INSTANT CASE ASSESSEE HAS NOT PRODUCED RELEV ANT INFORMATION PERTAINING TO ASSESSMENT YEAR 2001-02 T O ESTABLISH IDENTITY, CREDITWORTHINESS AND GENUINENES S OF THE TRANSACTION. 10. RUBAL CHEMICALS PVT.LTD. 56. THIS COMPANY HAS APPLIED FOR 50,000 EQUITY SHARES OF ASSESSEE OF RS. 10/- EACH AGGREGATING TO RS. 5 LAKH AND PAYMENT HAS BEEN MADE BY CHEQUE DRAWN ON PUNJAB NAT IONAL BANK. THE COPY OF APPLICATION OF SHARE IS PLACED AT PAGE 312 OF PAPER BOOK ALONG WITH COPY OF CHEQUE AT PAGE 313, O F CURRENT ACCOUNT NO. 5290 PLACED AT PAGE 314-315 WHICH IS FO R A PERIOD OF 30.03.2000 TO 04.05.2000. PAGE 316 CONTAI NS ACKNOWLEDGEMENT OF RETURN OF INCOME FOR ASSESSMENT YEAR 1999-2000 WHICH SHOWS THAT INCOME UNDER THE HEAD P ROFIT FROM BUSINESS AND PROFESSION AT RS. 14,111/-. THE RETURN OF INCOME IS ALLEGED TO HAVE BEEN FILED ON 24.03.2000 AND DATE ON ACKNOWLEDGEMENT STAMP FROM DEPARTMENT SEEMS TO B E DIFFERENT DATE WITHOUT SIGNATURE AND RECEIPT NUMBER . THERE IS NO PAN OR GIR NUMBER THAT HAS BEEN MENTIONED ON RET URN. AT PAGE 317 OF PAPER BOOK THERE IS AN INTIMATION FROM DEPARTMENT ISSUED UNDER SECTION 143(1)(A) OF THE AC T FOR 32 ITA NO. 4304/DEL/2014 (A.Y. 2001-02) ASSESSMENT YEARS 1997-98 WHICH ALSO DOES NOT CONTAI N GIR/PAN NUMBER. ASSESSMENT ORDER FOR ASSESSMENT AND 97- 98 HAS BEEN ANNEXED AT PAGE 318-319 OF PAPER BOOK. IT IS VERY PERTINENT TO OBSERVED THAT IN THE ASSESSMENT ORDER, THE INCOME HAS BEEN DECLARED AT RS. 72,340/- WHICH DOES NOT TALLY WITH ANY OF FIGURES MENTIONED IN THE INTIMATION ISS UED BY DEPARTMENT PLACED AT PAGE 317 FOR THE VERY SAME ASS ESSMENT. 57. IN THE ASSESSMENT ORDER AT PAGE 318 THE ADDRESS W HICH WAS TYPED HAS BEEN CANCELLED AND CHANGED WITH THE HANDWRITTEN ADDRESS. PAGE 319 OF ASSESSMENT ORDER D OES NOT SEEM TO BE IN USUAL FORMAT AS ISSUED BY DEPARTMENT ARE THEREBY CAUSING SERIOUS DOUBT ON ITS AUTHENTICITY. MASTER DETAILS OF TAINT FROM MINISTRY OF CORPORATE AFFAIRS IS PLACED AT PAGE 320 WHEREIN BALANCE SHEET FOR YEAR ENDED 31.03 .2009 HAS BEEN FILED FOLLOWED BY ANNUAL RETURN WHEREIN BA LANCE SHEET FOR YEAR ENDING 31.03.2006 HAS BEEN DETAILED AT PAGE 322-332 WHICH IS FOLLOWED BY ANNUAL RETURN FOR YEAR ENDING 31.03.2008 AT PAGE 333-340 FOLLOWED BY ANNUAL RETUR N FOR YEAR ENDING 31.03.2009 FROM PAGE 341-346. IN THE INSTANT CASE ASSESSEE HAS NOT PRODUCED R ELEVANT INFORMATION PERTAINING TO ASSESSMENT YEAR 2001-02 T O ESTABLISH IDENTITY, CREDITWORTHINESS AND GENUINENES S OF THE TRANSACTION. 11. KIRAN BANSAL 58. SHARE APPLICATION FORM ISSUED BY THIS APPLICANT IS PLACED AT PAGE 355 OF PAPER BOOK WHEREIN APPLICANT HAS APP LIED FOR ALLOTMENT OF 15,000 EQUITY SHARES OF RS. 10 EACH AG GREGATING 33 ITA NO. 4304/DEL/2014 (A.Y. 2001-02) TO RS. 1 LAKH 50,000. THE PAYMENT HAS BEEN MADE BY WAY OF CHEQUE DRAWN ON FEDERAL BANK PLACED AT PAGE 434 OF PEOPLE PAGE 435 OF PAPER BOOK IS COPY OF BANK STATEMENT FR OM 01.03.2001-03.04.2001 A SIMILAR PATTERN OF DEPOSIT AND WITHDRAWALS OF HUGE AMOUNTS IS OBSERVED IN THIS STA TEMENT. PAGE 358 IS THIS COPY OF RATION CARD WHICH SHOWS IT EMS LIKE SUGAR, RICE AND QUANTITY WHICH HAS BEEN CONSUMED BY THIS APPLICANT IN VARIOUS QUARTERS. IN THE RETURN OF INC OME FILED BY APPLICANT PLACED AT PAGE 360, SHOWS THAT APPLICANT WAS HAVING INCOME FROM HOUSE PROPERTY AT RS. 49,500 AND INCOME FROM BUSINESS OR PROFESSION AT RS. 7,342 FOR ASSESS MENT YEAR 2000-2001. THERE IS NO DOCUMENT THAT HAS BEEN PLACE D IN PAPER BOOK WHICH COULD PROVE CREDIBILITY OF THIS AP PLICANT AND GENUINELY OF TRANSACTION. 12. SUBASH GUPTA 59. PAGE 61 IS SHARE APPLICATION FORM SUBMITTED BY TH IS APPLICANT FOR ALLOTMENT OF 15,000 EQUITY SHARES OF RS. 10/- EACH AGGREGATING TO RS. 1,50,000/-. THE PAYMENT HAS BEEN ISSUED BY WAY OF CHEQUE DRAWN ON FEDERAL BANK LTD., IS PLACED AT PAGE 362 OF PAPER BOOK. PAGE 363 IS BANK STATEMENT FOR THE PERIOD 01.03.2001 TO 30.03.2001 WHEREIN THE RE IS A SEQUENCE OF DEPOSIT AND WITHDRAWAL OF MONEY AT CONS ECUTIVE DATES. PAGE 364 IS A RATION CARD OF APPLICANT ISSUE D ON 10.09.1998 AND PAGE 365 IS COPY OF RETURN FILED BY THIS APPLICANT FOR ASSESSMENT YEAR 2000-2001 WHICH SHOWS THAT APPLICANT WAS EARNING SALARY INCOME AMOUNTING TO RS . 20,000 DURING YEAR. 34 ITA NO. 4304/DEL/2014 (A.Y. 2001-02) THERE IS NO DOCUMENT THAT HAS BEEN PLACED IN THE PA PER BOOK WHICH COULD PROVE CREDIBILITY OF THIS APPLICAN T AND THE GENUINELY OF THE TRANSACTION DURING A. Y. 2001-02 13. VISHAL AGGARWAL 60. PAGE 366 IS SHARE APPLICATION FORM SUBMITTED BY TH IS APPLICANT FOR ISSUANCE OF 20,000 EQUITY SHARES OF R S. 10/- EACH AGGREGATING TO RS. 2 LACS. THE PAYMENT HAS BEE N MADE BY THIS APPLICANT BY WAY OF CHEQUE DRAWN ON FEDERAL BANK LTD., PLACED AT PAGE 367 OF PAPER BOOK. ONE MORE VE RY PERTINENT THING OBSERVED IS THAT SIGNATURE ON THE S HARE APPLICATION FORM IS VERY MUCH SIMILAR TO SIGNATURES FOUND ON SHARE APPLICATIONS OF M/S. MAA SHAKUMBHARI & M/S.SH IVAM SOFTECH. 61. PAGE 368-369 IS FURTHER PERIOD 05.03.2001 TO 31.03 .2001 WHEREIN A PATTERN OF DEPOSIT AND WITHDRAWAL HAS BEE N OBSERVED. PAGE 370 RATION CARD OF BROTHER OF THIS A PPLICANT WHEREIN APPLICANTS NAME HAS BEEN MENTIONED. RETURN OF INCOME FOR ASSESSMENT YEAR 1999 2000 HAS BEEN PLACE D AT PAGE 371 OF PAPER BOOK WHEREIN SALARY INCOME HAS BE EN SHOWN AMOUNTING TO RS. 48,000 ONLY AND INCOME FROM OTHER SOURCES AT RS. 18,300. THERE IS NO DOCUMENT THAT HAS BEEN PLACED IN THE PA PER BOOK WHICH COULD PROVE THE CREDIBILITY OF THIS APPL ICANT AND THE GENUINELY OF THE TRANSACTION FOR A. Y. 2001-02. 14. AMIT KUMAAR SINGH 62. PAGE 372 IS SHARE APPLICATION FORM SUBMITTED BY TH IS APPLICANT FOR ISSUANCE OF 15,000 EQUITY SHARES OF R S. 10 EACH 35 ITA NO. 4304/DEL/2014 (A.Y. 2001-02) AGGREGATING TO RS. 1,50,000. THE PAYMENT HAS BEEN M ADE BY THIS APPLICANT BY WAY OF CHECK DRAWN ON FEDERAL BAN K LTD., PLACED AT PAGE 373 OF PAPER BOOK. THE BANK STATEMEN T IS PLACED AT PAGE 374 OF PAPER BOOK FOR A PERIOD OF 01 .03.2001 TO 31.03.2001 WHEREIN PATTERN OF DEPOSIT AND WITHDRAWA L HAS BEEN OBSERVED. PAGE 375 RATION CARD OF BROTHER OF T HIS APPLICANT WHEREIN APPLICANTS NAME HAS BEEN MENTION ED. RETURN OF INCOME FOR ASSESSMENT YEAR 1999- 2000 HAS BEEN PLACED AT PAGE 371 OF PAPER BOOK WHEREIN SALARY INC OME HAS BEEN SHOWN AMOUNTING TO RS. 32,000 AND INCOME FROM BUSINESS AND PROFESSION AT RS. 23,140/-. THERE IS NO DOCUMENT THAT HAS BEEN PLACED IN THE PA PER BOOK WHICH COULD PROVE THE CREDIBILITY OF THIS APPL ICANT AND THE GENUINELY OF THE TRANSACTION FOR A. Y. 2001-02. 15. S. H. MALICK 63. PAGE 377 IS SHARE APPLICATION FORM SUBMITTED BY TH IS APPLICANT FOR ISSUANCE OF 20,000 EQUITY SHARES OF R S. 10 EACH AGGREGATING TO RS. 2 LACS. THE PAYMENT HAS BEEN MAD E BY THIS APPLICANT BY WAY OF CHEQUE DRAWN ON STATE BANK OF B IKANER, PLACED AT PAGE 379 OF PAPER BOOK. PAGE 379 IS COPY OF PASS BOOK FOR PERIOD 24.03.2001 TO 27.03.2001 WHEREIN A PATTERN OF DEPOSIT AND WITHDRAWAL HAS BEEN OBSERVED. PAGE 380 RATION CARD OF BROTHER OF THIS APPLICANT WHEREIN APPLICANT S NAME HAS BEEN MENTIONED. RETURN OF INCOME FOR ASSESSMENT YEA R 2000- 01 HAS BEEN PLACED AT PAGE 381 OF PAPER BOOK WHEREI N SALARY INCOME HAS BEEN SHOWN AMOUNTING TO RS. 40,000/- ONL Y AND INCOME FROM OTHER SOURCES AT RS. 13,282. IT IS ALSO OBSERVED 36 ITA NO. 4304/DEL/2014 (A.Y. 2001-02) THAT THIS APPLICANT HAS BEEN FOUND TO BE DIRECTORS AND MANY OF COMPANIES MENTIONED HEREIN BEING ALLEGED SHARE APPL ICANTS OF ASSESSEE. 64. THERE IS NO DOCUMENT THAT HAS BEEN PLACED IN PAPER BOOK WHICH COULD PROVE CREDIBILITY OF THIS APPLICAN T AND GENUINELY OF THE TRANSACTION. 65. ON ANALYSIS OF ALL ABOVE ALLEGED APPLICANTS WHO HA VE ALLEGED TO HAVE INVESTED MONEY WITH ASSESSEE, HAS B EEN FOUND TO BE NON-GENUINE. NONE OF DOCUMENTS FILED BEFORE A SSESSING OFFICER DURING REMAND PROCEEDINGS PERTAINED TO ASSE SSMENT YEAR 2001-02, AND FILING OF SUCH DOCUMENTS CANNOT I N ANY MANNER DISCHARGED INITIAL ONUS CAST UPON ASSESSEE U NDER SECTION 68 OF THE ACT. EVEN DURING ORIGINAL ASSESSM ENT PROCEEDINGS ASSESSEE DID NOT PROVIDE WITH CORRECT D ETAILS LIKE CONFIRMATIONS, PERSONALLY PRESENTING THESE CREDITOR S OR THEIR REPRESENTATIVES (AS THE CASE MAY BE) BEFORE ASSESSI NG OFFICER, NOW THE PLEA TAKEN BY ASSESSEE THAT AS CONSIDERABLE TIME HAS PASSED AND MORE SO THAT THESE APPLICANTS BEING NO L ONGER SHAREHOLDERS OF ASSESSEE AND THEREFORE, ASSESSEE CO ULD NOT PROVIDE WITH CURRENT DETAILS OF THESE APPLICANTS, I S VERY HARD TO BELIEVE. HAD THESE APPLICANTS TO BE GENUINE IN N ATURE ASSESSEE WOULD HAVE HAD COMPLETE DETAILS, NECESSARY TO ESTABLISH CREDITWORTHINESS. HAD TRANSACTIONS BEING GENUINE, THESE PARTIES WOULD HAVE PRESENTED THEMSELVES BEFOR E ASSESSING OFFICER FOR VERIFICATION. TIME AND AGAIN, LD. AR ARGUED THAT ASSESSING OFFICER HAS NOT FULFILLED HIS DUTIES AS DIRECTED BY THIS TRIBUNAL VIDE ORDER DATED 16/04/10 . FOR 37 ITA NO. 4304/DEL/2014 (A.Y. 2001-02) WHICH, WE OBSERVE THAT EVEN AFTER PROVIDING ALL WRO NG DETAILS/INFORMATION TO THE ASSESSING OFFICER, HE AT TEMPTED TO VISIT THESE APPLICANTS BY DEPUTING INSPECTOR AND AL SO BY ISSUING NOTICES UNDER SECTION 133 (6) OF THE ACT. I T IS WELL WITHIN THE KNOWLEDGE OF THE ASSESSEE THAT THE ASSES SING OFFICER COULD HAVE NOT FOUND THESE APPLICANTS AS THEY NEVER EXISTED IN REALITY. 66. TO OUR MIND THESE DOCUMENTS CANNOT BE RELIED UPON AS THEY DO NOT PERTAIN TO PERIOD DURING WHICH MONIES W ERE INTRODUCED INTO ASSESSEE AS ALLEGED SHARE APPLICATI ON. NONE THE LESS, ASSESSEE HAS ALSO NOT PRODUCED COPIES OF SHARES ALLOTTED, THE FOLIO NUMBER ETC., TO ESTABLISH THAT SHARES WERE ACTUALLY ISSUED TO THESE ALLEGED APPLICANTS DURING RELEVANT PERIOD, WHICH WAS VERY MUCH WITHIN REALM OF ASSESSE E. THE BELIEF OF LD. AO THAT UNACCOUNTED MONEY IS LAUNDERE D AS CLEAN SHARE CAPITAL BY CREATING A FAADE OF PAPER W ORK, ROUTING MONEY THROUGH SEVERAL BANK ACCOUNTS AND GETTING IT THE SEAL OF STATUTORY APPROVAL HAS NOT BEEN DISPROVED BY ASS ESSEE IN ANY MANNER WHAT SO EVER. BANK STATEMENTS OF ALLEGED SUBSCRIBING COMPANIES ARE FOR A VERY LIMITED PERIOD AND NOT FOR WHOLE YEAR. ANALYSIS OF THIS STATEMENT DOES NOT THROW ANY LIGHT WHATSOEVER ON SOURCE OF FUNDS OF ALLEGED SUBS CRIBER COMPANIES. THE USE OF WORDS 'ANY SUM FOUND CREDITED IN THE BOOKS' IN SECTION 68 INDICATES THAT SAID SECTION IS VERY WIDELY WORDED AND AN INCOME-TAX OFFICER IS NOT PRECLUDED F ROM MAKING AN ENQUIRY AS TO TRUE NATURE AND SOURCE THER EOF EVEN IF THE SAME IS CREDITED AS RECEIPT OF SHARE APPLICA TION MONEY. 38 ITA NO. 4304/DEL/2014 (A.Y. 2001-02) 67. IF THE AMOUNT CREDITED IS A CAPITAL RECEIPT THEN I T CANNOT BE TAXED BUT IT IS FOR INCOME-TAX OFFICER TO BE SAT ISFIED THAT TRUE NATURE OF RECEIPT IS THAT OF CAPITAL. MERELY, BECAUSE COMPANY CHOOSES TO SHOW RECEIPT OF MONEY AS CAPITAL , IT DOES NOT PRECLUDE INCOME-TAX OFFICER FROM GOING INTO QUE STION WHETHER THIS IS ACTUALLY SO. SECTION 68 WOULD CLEAR LY EMPOWER HIM TO DO SO. WHERE, THEREFORE, ASSESSEE REPRESENTS THAT IT HAS ISSUED SHARES ON THE RECEIPT OF SHARE APPLICATION M ONEY THEN AMOUNT SO RECEIVED WOULD BE CREDITED IN THE BOOKS O F ACCOUNT OF THE COMPANY. THE INCOME-TAX OFFICER WOULD BE ENT ITLED TO ENQUIRE, AND IT WOULD INDEED BE HIS DUTY TO DO SO, WHETHER THE ALLEGED SHAREHOLDERS DO IN FACT EXIST OR NOT. IF TH E SHAREHOLDERS EXIST THEN, POSSIBLY, NO FURTHER ENQUIRY NEED BE MA DE. BUT IF THE INCOME-TAX OFFICER FINDS THAT ALLEGED SHAREHOLD ERS DO NOT EXIST THEN, IN EFFECT, IT WOULD MEAN THAT THERE IS NO VALID ISSUANCE OF SHARE CAPITAL. SHARES CANNOT BE ISSUED IN THE NAME OF NON-EXISTING PERSONS. THE USE OF THE WORDS 'MAY BE CHARGED' (EMPHASIS ADDED) IN SECTION 68 CLEARLY IND ICATES THAT THE INCOME-TAX OFFICER WOULD THEN HAVE THE JURISDIC TION, IF THE FACTS SO WARRANT, TO TREAT SUCH A CREDIT TO BE INCO ME OF ASSESSEE. THE ONUS OF SATISFACTORILY EXPLAINING SUC H CREDITS REMAINS ON PERSON IN WHOSE BOOKS SUCH SUM IS CREDIT ED. IF SUCH PERSON FAILS TO OFFER AN EXPLANATION OR EXPLAN ATION IS NOT FOUND TO BE SATISFACTORY THEN SUM IS ADDED TO TOTAL INCOME OF PERSON. 68. UNDER SUCH CIRCUMSTANCES OF FACTS WE ARE OF THE CONSIDERED OPINION THAT ASSESSEE HAS NOT FURNISHED ANY 39 ITA NO. 4304/DEL/2014 (A.Y. 2001-02) DETAILS IN RESPECT OF ALLEGED APPLICANTS FOR THE PE RIOD UNDER CONSIDERATION, WHICH COULD DISCHARGE INITIAL ONUS C AST UPON ASSESSEE U/S 68 OF THE ACT. WE FEEL THAT IT WILL NO T SERVE ANY PURPOSE TO SET ASIDE ISSUE AGAIN FOR VERIFICATION T O LD. AO, AS ASSESSEE HAS ALREADY ADMITTED IN ITS REPLY DATED 14 .11.2011, THAT THESE APPLICANTS ARE NO LONGER SHARE HOLDERS O F ASSESSEE AND WILL NOT BE POSSIBLE TO PRODUCE THEIR CURRENT D ETAILS. UNDER ABOVE NOTED FACTS AND DOCUMENTS PLACED ON REC ORD, WE THEREFORE, DO NOT HESITATE TO UP HOLD ORDER OF LD. CIT(A). ACCORDINGLY, GROUNDS RAISED BY ASSESSEE STANDS DISM ISSED. IN THE RESULT, APPEAL FILED BY ASSESSEE STANDS DISM ISSED. ORDER PRONOUNCED IN THE OPEN COURT ON 31 ST MAY, 2017. SD/- SD/- (N. K. SAINI) (BEENA A. PILLAI) ACCOUNTANT MEMBER JUDICIAL MEMBER DATE: 31.05.2017 @M!T