DCIT, New Delhi V. M/s. Globus Infrastructure Pvt. Ltd., New Delhi

ITA 4921/DEL/2013

• Counselvise Citation: 492120114 RSA 2013
• Duration Of Justice: 1 year(s) 1 month(s) 27 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 17-10-2014
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: C
• Next Hearing Date: 14-10-2014
• Assessment Year: 2006-2007
• Appeal Filed On: 20-08-2013
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: SATPAL SINGH
• Section: 68

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL IN THE INCOME TAX APPELLATE TRIBUNAL IN THE INCOME TAX APPELLATE TRIBUNAL IN THE INCOME TAX APPELLATE TRIBUNAL DELHI DELHI DELHI DELHI BENCH BENCH BENCH BENCH C CC C : NEW DELHI : NEW DELHI : NEW DELHI : NEW DELHI BEFORE SHRI G.D. AGRAWAL, VICE BEFORE SHRI G.D. AGRAWAL, VICE BEFORE SHRI G.D. AGRAWAL, VICE BEFORE SHRI G.D. AGRAWAL, VICE PRESIDENT AND PRESIDENT AND PRESIDENT AND PRESIDENT AND SHRI SHRI SHRI SHRI CHANDRA MOHAN GARG CHANDRA MOHAN GARG CHANDRA MOHAN GARG CHANDRA MOHAN GARG, JUDICIAL , JUDICIAL , JUDICIAL , JUDICIAL MEMBER MEMBER MEMBER MEMBER ITA NO ITA NO ITA NO ITA NO . .. . 4921/DEL/2013 4921/DEL/2013 4921/DEL/2013 4921/DEL/2013 ASSESSMENT YEAR ASSESSMENT YEAR ASSESSMENT YEAR ASSESSMENT YEAR : : : : 2006 2006 2006 2006 - -- - 07 0707 07 DEPUTY COMMISSIONER OF DEPUTY COMMISSIONER OF DEPUTY COMMISSIONER OF DEPUTY COMMISSIONER OF INCOME TAX, INCOME TAX, INCOME TAX, INCOME TAX, CIRCLE CIRCLE CIRCLE CIRCLE- -- -12(1), 12(1), 12(1), 12(1), N NN NEW DELHI. EW DELHI. EW DELHI. EW DELHI. VS. VS. VS. VS. M/S M/S M/S M/S GLOBUS INFRASTRUCTURES PVT.LTD., GLOBUS INFRASTRUCTURES PVT.LTD., GLOBUS INFRASTRUCTURES PVT.LTD., GLOBUS INFRASTRUCTURES PVT.LTD., 113 113 113 113- -- -114, MOHTA BUILDING, 114, MOHTA BUILDING, 114, MOHTA BUILDING, 114, MOHTA BUILDING, 4, BHIKAJI CAMA PLACE, 4, BHIKAJI CAMA PLACE, 4, BHIKAJI CAMA PLACE, 4, BHIKAJI CAMA PLACE, NEW DELHI NEW DELHI NEW DELHI NEW DELHI 110 066. 110 066. 110 066. 110 066. PAN : AACCG3277G. PAN : AACCG3277G. PAN : AACCG3277G. PAN : AACCG3277G. (APPELLANT) (RESPONDENT) ITA NO ITA NO ITA NO ITA NO .4922/DEL/2013 .4922/DEL/2013 .4922/DEL/2013 .4922/DEL/2013 ASSESSMENT YEAR : ASSESSMENT YEAR : ASSESSMENT YEAR : ASSESSMENT YEAR : 2006 2006 2006 2006 - -- - 07 0707 07 DEPUTY COMMISSIONER OF DEPUTY COMMISSIONER OF DEPUTY COMMISSIONER OF DEPUTY COMMISSIONER OF INCOME TAX, INCOME TAX, INCOME TAX, INCOME TAX, CIRCLE CIRCLE CIRCLE CIRCLE- -- -12(1), 12(1), 12(1), 12(1), NEW DELHI. NEW DELHI. NEW DELHI. NEW DELHI. VS. VS. VS. VS. M/S GLOBUS COLONISERS PVT.LTD., M/S GLOBUS COLONISERS PVT.LTD., M/S GLOBUS COLONISERS PVT.LTD., M/S GLOBUS COLONISERS PVT.LTD., 113 113 113 113- -- -114, MOHTA BUILDING, 114, MOHTA BUILDING, 114, MOHTA BUILDING, 114, MOHTA BUILDING, 4, BHIKAJI CAMA PLACE, 4, BHIKAJI CAMA PLACE, 4, BHIKAJI CAMA PLACE, 4, BHIKAJI CAMA PLACE, NEW DELHI NEW DELHI NEW DELHI NEW DELHI 110 066. 110 066. 110 066. 110 066. PAN : AACCG3279N. PAN : AACCG3279N. PAN : AACCG3279N. PAN : AACCG3279N. (APPELLANT) (RESPONDENT) ITA NO ITA NO ITA NO ITA NO .4923/DEL/2013 .4923/DEL/2013 .4923/DEL/2013 .4923/DEL/2013 ASSESSMENT YEAR : ASSESSMENT YEAR : ASSESSMENT YEAR : ASSESSMENT YEAR : 2006 2006 2006 2006 - -- - 07 0707 07 DEPUTY COMMISSIONER OF DEPUTY COMMISSIONER OF DEPUTY COMMISSIONER OF DEPUTY COMMISSIONER OF INCOME TAX, INCOME TAX, INCOME TAX, INCOME TAX, CIRCLE CIRCLE CIRCLE CIRCLE- -- -12(1), 12(1), 12(1), 12(1), NEW DELHI. NEW DELHI. NEW DELHI. NEW DELHI. VS. VS. VS. VS. M/S GLOBUS INVESTMENTS PVT.LTD., M/S GLOBUS INVESTMENTS PVT.LTD., M/S GLOBUS INVESTMENTS PVT.LTD., M/S GLOBUS INVESTMENTS PVT.LTD., 113 113 113 113- -- -114, MOHTA BUILDING, 114, MOHTA BUILDING, 114, MOHTA BUILDING, 114, MOHTA BUILDING, 4, BHIKAJI CAMA PLACE, 4, BHIKAJI CAMA PLACE, 4, BHIKAJI CAMA PLACE, 4, BHIKAJI CAMA PLACE, NEW DELHI NEW DELHI NEW DELHI NEW DELHI 110 066. 110 066. 110 066. 110 066. PAN : AACCR5028G. PAN : AACCR5028G. PAN : AACCR5028G. PAN : AACCR5028G. (APPELLANT) (RESPONDENT) APPELLANT BY : SHRI SATPAL S INGH, SR.DR. RESPONDENT S BY : SHRI G.N. GUPTA, ADVOCATE. ORDER ORDER ORDER ORDER PER G.D. AGRAWAL, VP PER G.D. AGRAWAL, VP PER G.D. AGRAWAL, VP PER G.D. AGRAWAL, VP : :: : THESE APPEALS BY THE REVENUE ARE DIRECTED AGAINST THE ORDER OF LEARNED CIT(A)-XVIII, NEW DELHI DATED 7 TH JUNE, 2013 FOR THE AY 2006-07. ITA-4921 TO 4923/D/2013 2 2. IN ALL THESE APPEALS, ONLY ONE GROUND IS RAISED BY THE REVENUE WHICH IS AGAINST THE DELETION OF ADDITION MADE BY T HE ASSESSING OFFICER UNDER SECTION 68 OF THE INCOME-TAX ACT, 1961. THE AMOUNT OF ADDITION IN RESPECT OF ALL THE THREE COMPANIES IS AS UNDER:- (I) M/S GLOBUS INFRASTRUCTURES PVT.LTD. : `45,00,0 00/- (II) M/S GLOBUS COLONISERS PVT.LTD. : `75,00,000/- (III) M/S GLOBUS INVESTMENTS PVT.LTD. : `60,00,000 /- 3. SINCE THE FACTS IN ALL THE COMPANIES ARE IDENTIC AL, WE SHALL DISCUSS HEREIN BELOW THE FACTS IN THE CASE OF M/S G LOBUS COLONISERS PVT.LTD IN ITA NO.4922/DEL/2013. 4. THE ASSESSEE HAD RECEIVED TOTAL SHARE APPLICATIO N MONEY AMOUNTING TO `2,50,00,000/- INCLUDING SHARE PREMIUM OF `2,37,50,000/- FROM AS MANY AS SIXTEEN CONCERNS. THE ASSESSEE HAD FURNISHED THE LIST OF SUCH CONCERNS ALONG WITH COPY OF SHARE APPLICATI ON FORMS ETC. THE ASSESSING OFFICER ASKED THE ASSESSEE TO PRODUCE THE DIRECTORS OF THE FOLLOWING THREE COMPANIES:- NAME OF THE COMPANY AMOUNT 1. ARUN FINVEST PVT.LTD. `25,00,000 2. SRI NIWAS LEASING & FINANCE LTD. `25,00,000 3. POLO LEASING & FINANCE LTD. `25,00,000/- `75,00,000/- 5. THE ASSESSEE COULD NOT PRODUCE THE DIRECTORS OF THESE COMPANIES BUT A WRITTEN REPLY WAS FILED STATING THAT ALL THE DETAILS ALONG WITH PERMANENT ACCOUNT NUMBER OF THESE COMPANIES HAVE AL READY BEEN FURNISHED. IN VIEW OF NON-PRODUCTION OF DIRECTORS OF THESE COMPANIES, THE ASSESSING OFFICER TREATED SHARE APPLICATION MON EY RECEIVED FROM ITA-4921 TO 4923/D/2013 3 THEM TO BE THE BOGUS MONEY OF THE ASSESSEE. HE ALS O MADE REFERENCE TO THE CD PROVIDED BY THE INVESTIGATION WING AND ST ATED THAT THESE THREE COMPANIES ARE KNOWN AS ENTRY PROVIDERS. IN V IEW OF THIS, THE ASSESSING OFFICER HELD THAT THE CREDIT IN THE SHAPE OF SHARE APPLICATION MONEY IS UNEXPLAINED CASH INTRODUCED BY THE ASSESSE E IN THE GARB OF SHARE APPLICATION MONEY. HE, THEREFORE, MADE THE A DDITION OF `75 LAKHS UNDER SECTION 68 OF THE ACT. HOWEVER, EXCEPT MAKING REFERENCE TO THE CD RECEIVED BY THE INVESTIGATION WING, THE A SSESSING OFFICER HAS NOT GIVEN ANY DETAILS OR EVIDENCES IN HIS POSSESSIO N SO AS TO ESTABLISH THAT ANY OF THE ABOVE COMPANIES IS A ENTRY PROVIDER . DURING THE COURSE OF HEARING BEFORE THE CIT(A), HE CALLED FOR THE REM AND REPORT FROM THE ASSESSING OFFICER. HE ALSO DIRECTED THE ASSESSEE T O PRODUCE THE DIRECTORS OF THESE THREE COMPANIES BEFORE ASSESSING OFFICER IN THE REMAND PROCEEDINGS. THE ASSESSEE PRODUCED THE DIRE CTORS IN REMAND PROCEEDINGS AND THE RELEVANT PORTION OF THE REMAND REPORT SUBMITTED BY ASSESSING OFFICER, WHICH IS REPRODUCED BY THE CI T(A) IN PARAGRAPH 5.5 OF HIS ORDER READS AS UNDER:- 5.5 IN VIEW OF THE OBJECTIONS RAISED BY THE APPELL ANT COMPANY, ANOTHER REPORT WAS SOUGHT FOR FROM THE ASSESSING OFFICER FOR PROVIDING OPPORTUNITY TO THE APPELLANT TO PRODUCE THE DIRECTORS AS REQUESTED BY IT. THE ASSESSING OFFICER THEN SUBMITTED A REMAND REPOR T DATED 18.02.2013 AS UNDER:- ADDITION U/S 68 WAS MADE IN THE ASSESSMENT ORDER ON ACCOUNT OF UNEXPLAINED SHARE APPLICATION MONEY RECEIVED FROM THE FOLLOWING COMPANIES:- NAME OF THE COMPANY AMOUNT 1. ARUN FINVEST PVT.LTD. `25,00,000 2. SRI NIWAS LEASING & FINANCE LTD. `25,00,000 3. POLO LEASING & FINANCE LTD. `25,00,000/- `75,00,000/- 3. THE ASSESSEE FILED APPEAL BEFORE CIT(A)-XV. THE THEN CIT(A)-XV, NEW DELHI, VIDE HIS LETTER NO.413 D ATED 19.3.2010 CALLED FOR A REMAND REPORT. ITA-4921 TO 4923/D/2013 4 4. ACCORDINGLY, REMAND REPORT WAS SENT VIDE THIS OFFICE LETTER NO.DCIT/CIR12(1)/REMAND REPORT/2012- 13/731 DATED 12.11.2012 (COPY ENCLOSED). 5. NOW, THE LD.CIT(A) VIDE HIS LETTER NO.CIT(A)- 18/REMAND REPORT/2012-13/741 DATED 03.12.2012 HAS SENT A COPY OF LETTER FILED BY CHARTERED ACCOUNTANT OF THE APPELLANT DURING THE COURSE OF HEARING AND ASKE D FOR SUBMISSION OF REMAND REPORT. 6. IN THE LETTER, THE CHARTERED ACCOUNTANT HAS MAIN LY CONTENDED THAT THE ASSESSEE COMPANY HAS NOT BEEN GIVEN REASONABLE OPPORTUNITY/SUFFICIENT TIME TO PRO DUCE THE DIRECTORS OF THE ABOVE SAID COMPANIES. 7. ACCORDINGLY, THE ASSESSEE VIDE THIS OFFICE LETTE R NO.F.NO.DCIT/CIR.12(1)/REMAND/2012-13 DATED 17.12.2012 (COPY ENCLOSED) WAS ASKED TO PRODUCE THE DIRECTORS OF THE FOLLOWING COMPANIES ALONG WITH THE FOLLOWING DETAILS AND DOCUMENTS IN ORDER TO PROVE T HE PHYSICAL IDENTITY, CREDITWORTHINESS AND GENUINENESS OF THE TRANSACTIONS:- A) M/S ARUN FINVEST PVT.LTD. B) M/S SHRINIVAS LEASING & FINANCE LTD. C) M/S POLO LEASING & FINANCE P.LTD. IN RESPECT OF THE ABOVE COMPANIES THE FOLLOWING WER E ALSO REQUIRED:- A) PERSONAL DEPOSITION OF THE PRINCIPAL OFFICER/DIRECTORS OF THE ABOVE COMPANIES. B) COPY OF ACCOUNT OF THE ABOVE PARTIES IN YOUR BOO KS OF ACCOUNT FOR A.Y. 2006-07. C) THEIR CONFIRMATIONS AS ON DATE. D) COPIES OF THEIR COMPLETE RETURN OF INCOME WITH COMPUTATION OF INCOME FOR ASST. YEAR 2006-07. E) COPIES OF THEIR AUDITED BALANCE-SHEET AND PROFIT & LOSS ACCOUNT WITH ALL THE SCHEDULES & ANNEXURES. F) DETAILS OF ALL THE BANK ACCOUNTS MAINTAINED BY THEM DURING THE FINANCIAL YEAR 2005-06 & 2006-07 IN THE NAME OF THE COMPANY AND THEIR DIRECTORS WITH COMPLETE BANK STATEMENTS OF ALL THE BANK ACCOUNTS W ITH COMPLETE NARRATION OF ALL DEBIT AND CREDIT ENTRIES. G) THEIR BOOKS OF ACCOUNT FOR THE ASSESSMENT YEAR 2006-07. ITA-4921 TO 4923/D/2013 5 8. IN COMPLIANCE TO THE ABOVE THE ASSESSEE COMPANY ON 24.12.2012 FILED ITS REPLY DATED 24.12.2012 (COP Y ENCLOSED). THE ASSESSEE COMPANY HAS ALSO ENCLOSED COPY OF THE ACCOUNTS OF THE ABOVE PARTIES. 9. ON 04.01.2013, THE ASSESSEE COMPANY PRODUCED THE FOLLOWING PERSONS ALONG WITH THE CERTAIN DOCUMENTARY EVIDENCES TO PROVE THE IDENTITY, CREDITWORTHINESS AND GENUINENESS OF THE TRANSACTION . A) M/S ARUN FINVEST PVT.LTD. (ADDITION OF RS.25,00,000/-) ON BEHALF OF THE ABOVE MENTIONED COMPANY SH. RAJ KUMAR SANJOTRA, DIRECTOR (FROM 1999 TO 2006) APPEAR ED AND FURNISHED THE FOLLOWING DOCUMENTS:- A) PHOTO COPIES OF HIS PAN AND VOTER I-CARD. B) PHOTO COPY OF CONFIRMATION OF HAVING INVESTED RS.15,00,000/- FOR ALLOTMENT OF 7500 EQUITY SHARES. C) PHOTO COPY OF CONFIRMATION OF ACCOUNT. D) PHOTO COPY OF ACKNOWLEDGEMENT OF ITR FOR A.Y. 2006-07. E) PHOTO COPY OF BALANCE-SHEET AND P & L ACCOUNT FO R ASST. YEAR 2006-07. F) PHOTO COPY OF ONE PAGE BANK STATEMENT OF THE COMPANY. B) M/S SHRINIVAS LEASING & FINANCE LTD: (ADDITION O F RS.25,00,000/-) ON BEHALF OF THE ABOVE MENTIONED COMPANY SH. VINOD GARG, DIRECTOR (FROM 2002 TO 2011) APPEARED AND FURNISHED THE FOLLOWING DOCUMENTS:- A) PHOTO COPIES OF HIS PAN AND VOTER I-CARD. B) PHOTO COPY OF CONFIRMATION OF HAVING INVESTED RS.25,00,000/- FOR 12500 EQUITY SHARES. C) PHOTO COPY OF CONFIRMATION OF ACCOUNT. D) PHOTO COPY OF ACKNOWLEDGEMENT OF ITR WITH COMPUTATION OF INCOME FOR A.Y. 2006-07. E) PHOTO COPY OF BALANCE-SHEET AND P & L ACCOUNT FO R ASST. YEAR 2006-07 WITHOUT ANNEXURE. F) PHOTO COPY OF ONE PAGE BANK STATEMENT OF THE COMPANY. C) M/S POLO LEASING & FINANCE PVT.LTD. (ADDITION OF RS.25,00,000/-) ITA-4921 TO 4923/D/2013 6 ON BEHALF OF THE ABOVE MENTIONED COMPANY SH. SURINDER PAL SINGH, DIRECTOR (FROM 2003 TO MARCH 20 07) APPEARED AND FURNISHED THE FOLLOWING DOCUMENTS:- A) PHOTO COPIES OF HIS PAN AND VOTER I-CARD. B) PHOTO COPY OF CONFIRMATION OF HAVING ALLOTTED 12500 EQUITY SHARES FOR RS.25,00,000/-. C) PHOTO COPY OF CONFIRMATION OF ACCOUNT. D) PHOTO COPY OF ACKNOWLEDGEMENT OF ITR FOR A.Y. 2006-07. E) PHOTO COPY OF BALANCE-SHEET AND P & L ACCOUNT FO R ASST. YEAR 2006-07. F) PHOTO COPY OF ONE PAGE BANK STATEMENT OF THE COMPANY. THE ABOVE DETAILS AND DOCUMENTS FURNISHED BY THE DIFFERENT PARTIES HAS BEEN PLACED ON RECORD. 9. STATEMENTS OF SHRI VINOD GARG AND SURINDER PAL SINGH AND RAJ KUMAR SANJOTRA WERE RECORDED ON 4.1.2013. THE COPIES OF THEIR STATEMENTS AND THE DOCUMENTS AS DISCUSSED ABOVE ARE ENCLOSED HEREWITH. 10. DESPITE OF SUFFICIENT OPPORTUNITY PROVIDED BY T HE AO DURING THE COURSE OF ASSESSMENT PROCEEDINGS, THE ASSESSEE COULD NOT PRODUCE THE DIRECTORS OF THE ABO VE COMPANIES WHICH IS INDICATIVE OF THE FACT THAT THES E ARE NOT GENUINE INVESTMENTS. MOREOVER, THE BALANCE SHE ETS AND OTHER DOCUMENTS FILED BY THE ABOVE MENTIONED COMPANIES, BY NO MEANS PROVE THE CREDITWORTHINESS T O ADVANCE THE SHARE CAPITAL TO THE ASSESSEE COMPANY. DURING THE COURSE OF ASSESSMENT PROCEEDINGS, THE ASSESSING OFFICER HAS RIGHTLY MADE THE ADDITIONS U/ S 68 OF THE I.T. ACT, ON ACCOUNT OF UNEXPLAINED SHARE CA PITAL. THEREFORE, THE ADDITIONS MADE BY THE A.O. DESERVE T O BE CONFIRMED. 6. FROM PARAGRAPH NO.9 OF THE REMAND REPORT, IT IS EVIDENT THAT ON 4.1.2013, THE ASSESSEE COMPANY PRODUCED THE DIRECTO R OF ALL THE THREE COMPANIES AND THEY ALSO PRODUCED THE NECESSARY EVID ENCES I.E. PHOTOCOPY OF THEIR PERMANENT ACCOUNT NUMBER AND THE IR VOTER-ID, PHOTOCOPY OF THE CONFIRMATION FOR INVESTMENT IN THE ASSESSEE COMPANY, PHOTOCOPY OF CONFIRMATION OF ACCOUNT, PHOT OCOPY OF ACKNOWLEDGEMENT OF INCOME TAX RETURN FOR THE RELEVA NT ASSESSMENT ITA-4921 TO 4923/D/2013 7 YEAR AND PHOTOCOPY OF THE BANK STATEMENT OF THE COM PANY. THE ASSESSING OFFICER RECORDED THEIR STATEMENTS AS IS E VIDENT FROM PARAGRAPH 9 BUT HAS NOT DISCUSSED THE DETAILS OF TH E AVERMENT MADE BY THE DIRECTORS. THEREFORE, IT IS PRESUMED THAT A LL THE THREE DIRECTORS MUST HAVE AFFIRMED THE INVESTMENT MADE BY THEM IN T HE SHARE CAPITAL. HAD THEY STATED ANYTHING ADVERSE, THE ASSESSING OFF ICER WOULD HAVE CERTAINLY DISCUSSED THE SAME IN THE REMAND REPORT. IN PARAGRAPH NO.10, THE ASSESSING OFFICER RECOMMENDED FOR THE CO NFIRMATION OF THE ADDITION ON THE GROUND THAT THESE DIRECTORS WERE NO T PRODUCED DURING THE ORIGINAL ASSESSMENT PROCEEDINGS AND, MOREOVER, FROM THE BALANCE SHEET AND OTHER DOCUMENTS FILED BY THE ABOVE MENTIO NED COMPANIES, CREDITWORTHINESS TO THE EXTENT OF INVESTMENT MADE B Y THEM IN THE SHARE CAPITAL OF THE ASSESSEE COMPANY IS NOT PROVED . SO FAR AS FIRST POINT IS CONCERNED THAT THE DIRECTORS WERE NOT PROD UCED DURING ORIGINAL ASSESSMENT PROCEEDINGS IS IRRELEVANT WHEN DURING RE MAND PROCEEDINGS, THE DIRECTORS HAVE ALREADY BEEN PRODUC ED AND THEREFORE, LEARNED CIT(A) WAS FULLY JUSTIFIED IN CONSIDERING T HE FACTS AS EMERGED AFTER THE APPEARANCE OF THE DIRECTORS BEFORE THE AS SESSING OFFICER DURING REMAND PROCEEDINGS. TO EXAMINE THE ASSESSIN G OFFICERS CONTENTION THAT FROM THE BALANCE SHEET, CREDITWORTH INESS OF THE SHARE APPLICANT COMPANIES IS NOT PROVED, WE HAVE EXAMINED THE BALANCE SHEET OF ALL THE ABOVE THREE COMPANIES WHICH IS PRO DUCED IN THE PAPER BOOK BY THE ASSESSEE. AT PAGE 104 OF THE PAPER BOO K, THERE IS A BALANCE SHEET OF ARUN FINVEST PVT.LTD. WHOSE SHARE CAPITAL IS `60 LAKHS AND RESERVE & SURPLUS IS `40 LAKHS. THUS, THE SHAR EHOLDERS FUND IS `1 CRORE WHICH IS MANY TIMES MORE THAN THE INVESTMENT MADE BY THEM IN THE ASSESSEE COMPANY. THE BALANCE SHEET OF SHRI NI WAS LEASING & FINANCE LTD. IS AT PAGE 81 OF THE ASSESSEES PAPER BOOK, THEIR SHARE CAPITAL IS `3,99,00,000/-. THE BALANCE SHEET OF PO LO LEASING & FINANCE PVT.LTD. IS AT PAGE 91 OF THE ASSESSEES PAPER BOOK . THEIR SHARE CAPITAL IS `65 LAKHS AND RESERVE & SURPLUS IS `40 LAKHS. T HUS, THE SHAREHOLDERS FUND OF ALL THE THREE COMPANIES IS SE VERAL TIMES MORE ITA-4921 TO 4923/D/2013 8 THAN THE AMOUNT INVESTED BY THEM IN THE ASSESSEE CO MPANY. THEREFORE, ON WHAT BASIS THE ASSESSING OFFICER HAS MENTIONED THAT FROM THE BALANCE SHEET OF THESE COMPANIES, THE CRED ITWORTHINESS OF THE SHARE APPLICATION IS NOT PROVED, IS BEST KNOWN TO T HE ASSESSING OFFICER. AFTER CONSIDERING THE ENTIRETY OF THE FACTS, WE ARE OF THE OPINION THAT THE CIT(A) RIGHTLY ARRIVED AT THE CONCLUSION THAT T HE ASSESSEE COMPANY HAS DULY DISCHARGED THE ONUS OF PROVING THE CASH CR EDIT IN ITS BOOKS OF ACCOUNT. FROM THE FACTS OF THE CASE, IT IS EVIDENT THAT THE ASSESSEE HAS DULY ESTABLISHED THE IDENTITY AND CREDITWORTHINESS OF THE CREDITOR (I.E. SHARE APPLICANT), AND THE GENUINENESS OF THE TRANSA CTION. WE, THEREFORE, DO NOT FIND ANY JUSTIFICATION TO INTERFE RE WITH THE ORDER OF THE CIT(A). 7. THE FACTS IN THE CASE OF ALL THE THREE COMPANIES ARE IDENTICAL. IN ALL THE THREE CASES, THE DIRECTORS OF THE SHARE APP LICANT COMPANIES WERE PRODUCED DURING REMAND PROCEEDINGS AND NECESSA RY EVIDENCES WERE FURNISHED BY THEM. THE ASSESSING OFFICER IN A LL THE CASES DOUBTED THE CREDITWORTHINESS OF THE SHARE APPLICANTS. THER EFORE, WE HAVE EXAMINED THE BALANCE SHEET OF EACH THREE SHARE APPL ICANTS IN THE CASE OF ALL THE THREE APPEALS BEFORE US. 8. IN THE CASE OF GLOBAL INVESTMENTS PVT.LTD. I.E. ITA NO.4923/DEL/2013, THERE WERE THREE SHARE APPLICANTS FROM WHOM TOTAL `60 LAKHS WERE RECEIVED. THE DETAILS OF THE SHARE APPLICANTS IS AS UNDER:- NAME OF THE COMPANY AMOUNT 1. M.V. MARKETING PVT.LTD. `10,00,000 2. SRI NIWAS LEASING & FINANCE LTD. `25,00,000 3. SATWANT SINGH SODHI CONSTRUCTION PVT.LTD. `25,00 ,000 `60,00,000 ITA-4921 TO 4923/D/2013 9 9. THE BALANCE SHEET OF M.V. MARKETING PVT.LTD. IS AT PAGE 72 OF THE ASSESSEES PAPER BOOK. THE SHARE CAPITAL OF THE CO MPANY IS `1,50,00,000/- AND RESERVE & SURPLUS IS `2,64,297/- . AT PAGE 90, THERE IS A BALANCE SHEET OF SHRI NIWAS LEASING & FINANCE LTD. WHOSE SHARE CAPITAL IS `3,99,00,000/-. THE BALANCE SHEET OF SA TWANT SINGH SODHI CONSTRUCTIONS PVT.LTD. IS AT PAGE 103. THEIR SHARE CAPITAL IS `1 CRORE. THUS, THE SHARE CAPITAL OF EACH OF THE THREE COMPAN IES IS SEVERAL TIMES MORE THAN THE INVESTMENT IN THE SHARE CAPITAL MADE BY THE ABOVE THREE COMPANIES IN THE ASSESSEE COMPANY. 10. SIMILAR ARE THE FACTS IN THE CASE OF M/S GLOBUS INFRASTRUCTURES PVT.LTD. IN THIS CASE, THE TOTAL SHARE APPLICATION MONEY ADDED BY THE ASSESSING OFFICER WAS `45 LAKHS WHICH WAS RECEIVED FROM THE THREE COMPANIES AS UNDER:- NAME OF THE COMPANY AMOUNT 1. S.G.C. PUBLISHING PVT.LTD. `5,00,000 2. SRI NIWAS LEASING & FINANCE LTD. `25,00,000 3. VPS VALVES & TUBES PVT.LTD. `15,00,000 `45,00,000 11. AT PAGE 97 OF THE ASSESSEES PAPER BOOK, THERE IS A BALANCE SHEET OF S.G.C. PUBLISHING PVT.LTD. THEIR SHARE CA PITAL IS `35 LAKHS, RESERVE & SURPLUS IS `49,50,000/-. THUS, THE SHARE HOLDERS FUND IS `84,50,000/-. THE INVESTMENT IN THE SHARE APPLICAT ION OF THE ASSESSEE COMPANY IS ONLY `5 LAKHS. AT PAGE 85, THERE IS A B ALANCE SHEET OF SHRI NIWAS LEASING & FINANCE LTD. WHOSE SHARE CAPITAL IS `3,99,00,000/- WHILE THE INVESTMENT BY THEM IN THE SHARE APPLICATI ON MONEY WITH THE ASSESSEE COMPANY IS ONLY `25 LAKHS. THE BALANCE SH EET OF VPS VALVES & TUBES PVT.LTD. IS AT PAGE 71 OF THE ASSESSEES PA PER BOOK. THEIR SHARE CAPITAL IS `37,90,000/- AND RESERVE & SURPLUS IS `1,35,50,000/-. THUS, THE SHAREHOLDERS FUND IS `1,73,40,000/-. TH E INVESTMENT BY VPS ITA-4921 TO 4923/D/2013 10 VALVES & TUBES PVT.LTD. WITH THE ASSESSEE COMPANY W AS ONLY `15 LAKHS. THUS, IT IS EVIDENT THAT THE SHAREHOLDERS FUNDS OF ALL THE THREE COMPANIES ARE SEVERAL TIMES MORE THAN THE INVESTMEN T MADE BY THESE THREE COMPANIES WITH M/S GLOBAL INFRASTRUCTURES PVT .LTD., I.E., THE ASSESSEE. ON THESE FACTS, ON WHAT BASIS THE ASSESS ING OFFICER IN THE REMAND REPORT HAS MENTIONED THAT THE CREDITWORTHINE SS OF THE SHARE APPLICANT IS NOT PROVED IS BEST KNOWN TO HIM. 12. AFTER CONSIDERING THE TOTALITY OF ABOVE FACTS, WE DO NOT FIND ANY JUSTIFICATION TO INTERFERE WITH THE ORDER OF LEARNE D CIT(A). THE SAME IS SUSTAINED. 13. IN THE RESULT, ALL THE APPEALS OF THE REVENUE A RE DISMISSED. DECISION PRONOUNCED IN THE OPEN COURT ON 17 TH OCTOBER, 2014. SD/- SD/- ( (( ( CHANDRA MOHAN GARG CHANDRA MOHAN GARG CHANDRA MOHAN GARG CHANDRA MOHAN GARG ) )) ) (G.D. AGRAWAL (G.D. AGRAWAL (G.D. AGRAWAL (G.D. AGRAWAL ) )) ) JUDICIAL MEMBER JUDICIAL MEMBER JUDICIAL MEMBER JUDICIAL MEMBER VICE PRESIDENT VICE PRESIDENT VICE PRESIDENT VICE PRESIDENT DATED : 17.10.2014 VK. COPY FORWARDED TO: - 1. APPELLANT : DEPUTY COMMISSIONER OF INCOME TA X, DEPUTY COMMISSIONER OF INCOME TAX, DEPUTY COMMISSIONER OF INCOME TAX, DEPUTY COMMISSIONER OF INCOME TAX, CIRCLE CIRCLE CIRCLE CIRCLE- -- -12(1), NEW DELHI. 12(1), NEW DELHI. 12(1), NEW DELHI. 12(1), NEW DELHI. 2. RESPONDENT : M/S GLOBUS INFRASTRUCTURES PVT.LTD. , M/S GLOBUS INFRASTRUCTURES PVT.LTD., M/S GLOBUS INFRASTRUCTURES PVT.LTD., M/S GLOBUS INFRASTRUCTURES PVT.LTD., M/S GLOBUS COLONISERS PVT.LTD. AND M/S GLOBUS COLONISERS PVT.LTD. AND M/S GLOBUS COLONISERS PVT.LTD. AND M/S GLOBUS COLONISERS PVT.LTD. AND M/S GLOBUS INVESTMENTS PVT.LTD., M/S GLOBUS INVESTMENTS PVT.LTD., M/S GLOBUS INVESTMENTS PVT.LTD., M/S GLOBUS INVESTMENTS PVT.LTD., 113 113 113 113- -- -114, MOHTA BUILDING, 114, MOHTA BUILDING, 114, MOHTA BUILDING, 114, MOHTA BUILDING, 4, BHIKAJI CAMA PLACE, 4, BHIKAJI CAMA PLACE, 4, BHIKAJI CAMA PLACE, 4, BHIKAJI CAMA PLACE, NEW DELHI NEW DELHI NEW DELHI NEW DELHI 110 066. 110 066. 110 066. 110 066. 3. CIT 4. CIT(A) 5. DR, ITAT ASSISTANT REGISTRAR