M/s Sashi Cables Ltd., Kolkata V. CIT, KOLKATA-1, Kolkata

ITA 793/KOL/2014

• Counselvise Citation: [2018] 119 COUNSELVISE.COM (IT) 0782 (ITAT-KOLKATA)
• Duration Of Justice: 4 year(s) 7 month(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 30-11-2018
• Appeal Filed By: Assessee
• Order Result: Partly Allowed
• Bench Allotted: B
• Assessment Year: 2009-2010
• Appeal Filed On: 30-04-2014
• Result in Favour of: Partly Allowed
• Court: TRIBUNAL
• Department Lawyers: P K SRIHARI CITSRDR
• Assessee Lawyers: RAJ KUMAR AGARWAL
• Keywords: Bogus Share capital; Search and seizure; Assessment record; Prejudicial to interest
• Section: 143(3); 148; 263

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL KOLKATA BENCH B KOLKATA BEFORE SHRI P.M.JAGTAP, VICE-PRESIDENT AND SHRI S.S.GODARA, JUDICIAL MEMBER ITA NO.793/KOL/2014 ASSESSMENT YEAR:2009-10 M/S SASHI CABLES LTD LAHA PAINT HOUSE,7, C.R. AVENUE, KOLKATA-72 [ PAN NO.AAECS 0433 Q ] / V/S . COMMISSIONER OF INCOME TAX-1, P-7, CHOWRINGHEE SQUAR,KOLKATA-72 /APPELLANT .. /RESPONDENT /BY APPELLANT SHRI RAJ KUMAR AGARWAL, AR /BY RESPONDENT SHRI P.K. SRIHARI, CIT-SR-DR /DATE OF HEARING 01-11-2018 /DATE OF PRONOUNCEMENT 30-11-2018 /O R D E R PER S.S.GODARA, JUDICIAL MEMBER:- THIS ASSESSEES APPEAL FOR ASSESSMENT YEAR 2009-10 ARISES AGAINST THE COMMISSIONER OF INCOME TAX-1,KOLKATAS ORDER DATED 21.03.2014, INVOLVING PROCEEDINGS U/S 263 OF THE INCOME TAX ACT, 1961; IN SHORT THE ACT. HEARD BOTH THE PARTIES. CASE FILE PERUSED. 2. WE START WITH BASIC FACTS PERTAINING TO THE INST ANT LIS. THE ASSESSEE-COMPANY IS ENGAGED IN MANUFACTURING OF CONDUCTOR & CABLES, JOB WORK OF BENDING ON MS SHEETS & TRADING ACTIVITY. IT FILED ITS RETURN ON 17.08.20 09 DECLARING TOTAL INCOME OF 83,96,118/-. THE ASSESSING OFFICER FRAMED REGULAR A SSESSMENT IN ITS CASE MAKING ITA NO.793/KOL/2014 A.Y. 200 9-10 M/S SASHI CABLES LTD. VS. CIT, KOL-0 1 PAGE 2 VARIOUS DISALLOWANCES / ADDITIONS THEREBY ASSESSING TOTAL INCOME TAXABLE INCOME AT 96,37,818/-. 3. CASE FILE SUGGESTS THAT THE CIT THEREAFTER SOUGH T TO REVISE THE ABOVE REGULAR ASSESSMENT BY TERMING IT ERRONEOUS CAUSING PREJUDIC IAL TO THE INTEREST OF THE REVENUE. HE ISSUED SEC. 263 SHOW CAUSE NOTICE 12/14.02.2013. BOTH THE LEARNED REPRESENTATIVES STATE AT THIS STAGE THAT THE CITS SHOW CAUSE FOR I NVOKING REVISION PROCEEDINGS READS AS FOLLOWS:- OFFICE OF THE COMMISSIONER OF INCOME TAX, KOLKATA-I KOLKATA AAYAKARBHAVAN, 7 TH FLOOR, P-7 CHOWRINGHEE SQYAREM JIKJATA-69 NO. CIT, KOL-1/263/SHASHI CABLES/2013-14/8369 DAT ED:12.02.2014 14 TO THE PRINCIPAL OFFICER M/S SHASHI CABLES LTD LAHA PAINT HOUSE 7, CHITTARANJAN AVENUE, KOLKATA-72 PAN: AAECS0433Q SUB: PROCEEDING U/S. 263 OF THE INCOME TAX ACT, 1961 FOR A.Y. 2009-10-REGARDING- EXAMINATION OF ASSESSMENT RECORDS IN YOUR CASE FOR AY 2009-10 REVEALS THE FOLLOWING: 1. IN THIS CASE THE ASSESSEE FILED ITS RETURN OF INCOM E FOR ASSESSMENT YEAR 2009-10 ON 17.08.2009 SHOWING TOTAL INCOME AT RS.83,96,118/ -. THE ASSESSMENT WAS COMPLETED U/S. 143(3) ON 29.12.2011 AT A TOTAL INCO ME OF RS.96,37,820/- 2. ON PERUSAL OF RECORDS IT IS OBSERVED THAT ASSESSEE HAD CLAIMED TDS CREDITS OF RS.8,72,172/-, AND THE MAJOR PART OF WHICH (I.E. TD S OF RS.5,66,500/-) WAS DEDUCTED BY M/S VIJAY ELECTRICAL LTD. ON ACCOUNT OF PAYMENTS FOR PROFESSIONAL FEES OF RS.50,00,0000- BY SUCH PARTY TO THE ASSESSE E. BUT FROM THE PROFIT & LOSS ACCOUNT OF THE YEAR ENDED ON 31.03.2009, RELEVANT T O THE A.Y 2009-10, IT IS OBSERVED THAT SUCH INCOME I.E. PROFESSIONAL FEES RE CEIPT OF RS.50,00,000 WAS NOT CREDITED IN THE ACCOUNTS NOR ANY ADJUSTMENT OF SUCH AMOUNT IS NOTICED FROM THE DETAILS AVAILABLE ON RECORD. IN VIEW OF ABOVE, THE PROFESSIONAL FEES RECEIPT OF RS.50,00,000/- FOR THE YEAR ENDED ON 31.03.2009, RELEVANT TO AY 2009-10, WAS REQUIRED TO BE ADDED TO THE TOTAL INCOME OF THE ASSESSEE. SINCE THE ADDITION HAS NOT MADE IN THE ASSESSMENT, THIS HAS RESULTED IN UNDERASSESSMENT OF INCOME TO THE EXTENT OF RS.50,00,000/- FOR THE F.Y 2008-09 RELEVANT TO AY 2009-10. IN VIEW OF THE ABOVE FACTS, THE ORDER PASSED U/S 14 3(3) ON 29.12.2011 FOR AY 2009- 10 APPEARS TO BE ERRONEOUS IN SO FAR AS IT IS PREJU DICIAL TO THE INTERESTS OF REVENUE. THEREFORE, IT IS PROPOSED TO TAKE UP YOUR CASE FOR REVISION U/S. 263 OF THE I.T ACT, 1961. YOUR CASE IS FIXED FOR HEARING U/S 263 OF THE IT ACT,1961 ON 25/02/2014 AT 12.00 NOON FOR THIS PURPOSE. IN CASE OF FAILURE TO RESPOND TO THIS NOTICE, DECISION MAY BE TAKEN ON MERITS OF THE CASE. S D/- M.S. KAUSHIK ITA NO.793/KOL/2014 A.Y. 200 9-10 M/S SASHI CABLES LTD. VS. CIT, KOL-0 1 PAGE 3 (M.S.KAUSHIK) COMMISSIONER OF INCO ME TAX, KOLKAT-1, KOLK ATA. THE ASSESSEE FILED ITS REPLY ON 25.02.2014. IT FIRS T OF ALL PLACED ON RECORD ITS LICENCE FEES AGREEMENT WITH M/S VIJAY ELECTRICAL LTD. IN LI EU OF TOTAL CONSIDERATION OF 50 LAC FOR SEVEN YEARS. THE SAID ENTITY PAID IT 50 LAC AFTER DEDUCTING TDS OF 5,66,500/-. THE ASSESSEE DECLARED INCOME OF 9,39,335/- IN THE RELEVANT PREVIOUS YEAR. IT THEN CLAIMED TDS CREDIT OF THE ABOVE SUM DEDUCTED BY ITS PAYEE. ITS CASE WAS THAT ABOVE INCOME HAD TO BE SPREAD OUT FOR ALL EIGHT YEARS THA N TO BE ASSESSED IN THE IMPUGNED ASSESSMENT YEAR ONLY AS PER THE RELEVANT TIME SPAN IN THE LICENCE AGREEMENT. THE CIT HAS DECLINED THE SAME IN PARA 13 OF HIS ORDER WITHO UT COMMENTING ANYTHING ON ASSESSEES EXPLANATION. HE HAS NOT EVEN COMMENTED A NYTHING ON ITS ABOVE STATED CONTENTIONS. 4. WE HAVE GIVEN OUR THOUGHTFUL CONSIDERATION TO RI VAL CONTENTIONS QUA THE INSTANT FORMER ISSUE OF ASSESSMENT OF ENTIRE LICENCE FEES I NCOME OF 50 LAC RECEIVED IN THE RELEVANT PREVIOUS YEAR. THIS TAXPAYER HAS ALREADY P LACED ON RECORD ITS LICENSE AGREEMENT WITH M/S VIJAY ELECTRICAL LTD. INDICATING TOTAL CONSIDERATION OF 75 LAC SPLIT IN THREE INSTALLMENTS OF 25 LAC EACH UPON EXECUTION OF AGREEMENT, COMPLETION OF SUPPLY OF TECHNICAL KNOW-HOW DOCUMENTATION PROCEDUR ES BEFORE THE SUBMISSION OF JOINT UNDERTAKING TO BE FURNISHED BY LICENCING TO T HE CONSUMER AND UPON COMMENCEMENT OF COMMERCIAL PRODUCTION AGAINST THE O RDERS; RESPECTIVELY. THE ASSESSEE HAD ADMITTEDLY RECEIVED 50 LAC UNDER THE FORMER TWO HEADS. THE REVENUES ENDEAVOUR THROUGH THE CITS ORDER UNDER CHALLENGE I S TO ASSESS THIS ENTIRE SUM OF 50 LAC IN THE YEAR OF RECEIPT I.E IMPUGNED ASSESSMENT YEAR. IT TRANSPIRES AT THIS STAGE THAT THE ASSESSEE HAD FILED ITA NO.307/KOL/2018 IN ASSES SMENT YEAR 2011-12 BEFORE THIS TRIBUNAL CHALLENGING CORRECTNESS OF THE LOWER AUTHO RITIES ACTION ASSESSING FINAL PAYMENT OF 25 LAC. LEARNED CO-ORDINATE BENCHS ORDER DATED 13. 07.2018 HAS ACCEPTED ASSESSEES APPEAL AFTER HOLDING THE VERY LICENSE FE ES INCOME IS TO BE TAXABLE ON SPREAD OVER BASIS IN ALL CORRESPONDING SEVEN ASSESSMENT YE AR(S). WE ADOPT CONSISTENCY IN VIEW OF ALL THESE INTERVENING DEVELOPMENTS TO CONCL UDE THAT THE ASSESSING OFFICERS ITA NO.793/KOL/2014 A.Y. 200 9-10 M/S SASHI CABLES LTD. VS. CIT, KOL-0 1 PAGE 4 ACTION IN ASSESSING ASSESSEES LICENCE FEES INCOME OF 9,39,335/- INSTEAD OF THE ENTIRE RECEIPT OF 50 LAC IN THE IMPUGNED ASSESSMENT YEAR IS NEITHER E RRONEOUS NOR PREJUDICIAL TO INTEREST OF THE REVENUE FORMING ESSENTIAL CONDIT ION OF INVOKING THE CITS REVISIONAL JURISDICTIONAL VESTED U/S 263 AS PER HON'BLE APEX C OURTS LANDMARK DECISION IN MALABAR INDUSTRIAL CO. LTD. VS. CIT (2000) 243 ITR 83 (SC). WE THEREFORE REVERSE THE C ITS FINDINGS UNDER CHALLENGE QUA THIS FORMER ISSUE. 5. NEXT COMES THE CORRECTNESS OF CITS DIRECTIONS I SSUED TO THE ASSESSING OFFICER ON THE LATTER ISSUE OF ASSESSEES SHARE APPLICATION / PREMIUM AFTER HOLDING THAT NO DETAILED INQUIRIES HAD BEEN CONDUCTED DURING THE CO URSE OF SCRUTINY. THE CITS RELEVANT DISCUSSION QUA THIS LATTER ISSUE READS AS FOLLOWS:- 14. FURTHER, AS ALREADY MENTIONED ABOVE, THE OTHER ISSUES RAID DURING THE PROCEEDINGS U/S. 263 WERE INFORMED TO THE ASSESSEE DURING THE HEARIN G ON 25.2.2014. THE ASSESSEE HAS FAILED TO FURNISH DETAILS DOCUMENTARY EVIDENCES IN RESPECT OF SUCH QUERIES RAISED. NO BOOKS OF ACCOUNTS COULD ALSO BE PRODUCED BY THE ASSESSEE. IT IS SEEN THAT THE ASSESSEE ALLOTTED SHARES TO 3 (THREE) COMPANIES VIZ.- SL.NO. NAME & ADDRESS OF SHAREHOLDER NO. OF SHARES FACE VALUE PREMIUM 1 JHILMIL DISTRIBUTORS PVT. LTD. 334/157 JESSORE RD. S.NO.8 KOLKATA-700089 PAN- AABCJ8307R 20000 10/- 40/- 2 DHANERASH TIE-UP PVT.LTD. 334/157, JESSORE RD. S.NO.8, KOLKATA-700089 PAN- AACCD6155E 20000 10/- 40/- 3 POTENTIAL VINIMAY PVT. LTD. 334/157, JESSORE RD.S.NO.8 KOLKAT-700089 PAN-AAECP3584D 10000 10/- 40/- TOTAL VALUE INVOLVED IS RS.25,00,000/- 15. IT MAY BE MENTIONED HERE THAT THIS CASE FORMS A PART OF LARGE NUMBER OF CASES IN WHICH SHARE CAPITAL IS SHOWN TO HAVE BEEN INTRODUCED BY R OTATING THE UNACCOUNTED MONEY THROUGH VARIOUS COMPANIES OR ENTITIES. SUCH INTRODUCTION OF SHARE CAPITAL WAS SHOWN IN LARGE NUMBER OF CASES ON THE BASIS OF DUMMY COMPANIES WHICH WERE CREATED SOLELY FOR THE PURPOSE OF BUILDING UP SHARE CAPITAL. THIS IS EVIDENT FROM THE FACT THAT ALMOST ALL THESE COMPANIES INCLUDING THIS COMPANY ARE NOT FOUND AT THE ADDRESS GIVEN IN THE RETURN OF INCOME, NOR THEY HAVE RESP ONDED TO THE NOTICES ISSUED. THE DIRECTORS OF THESE COMPANIES ARE EITHER FICTITIOUS OR LOW-PAID EMPLOYEES LIKE PEONS, DRIVER S OR OTHER PERSONS OF SMALL MEANS. IN ALMOST ALL THESE CASES IT HAS BEEN CLAIMED THAT THE ADDRESS OF THE CO. HAS CHANGED. THIS VERY FACT SPEAKS VOLUMES ABOUT THE BONA FIDE O F THESE COMPANIES & THEIR GENUINENESS. NO INTIMATIONS ARE FILED ABOUT THE SO- CALLED CHANGE OF ADDRESSES. IT IS NOT VERY SURPRISING THAT THAT EVERY SUCH CO. CLAIME D THE CHANGE OF ADD AS THE DEFENSE OF NOT BEING FOUND ON OFFICIAL ADDRESS. ITA NO.793/KOL/2014 A.Y. 200 9-10 M/S SASHI CABLES LTD. VS. CIT, KOL-0 1 PAGE 5 16. THE MODUS OPERANDI OF INTRODUCTION OF SUCH BOGU S SHARE CAPITAL IS THAT UNACCOUNTED CASH IS GENERALLY DEPOSITED IN ACCOUNT OF DIFFERENT PERSONS/COMPANIES AND FROM THESE ACCOUNTS, CHEQUES ARE ISSUED TO VARI OUS OTHER COMPANIES AND AFTER ROTATING THE MONEY IN 3-4 LAYERS, THE MONEY IS INTR ODUCED AS SHARE CAPITAL IN OTHER COMPANIES AND THIS CYCLE CONTINUES TILL THE TIME UN ACCOUNTED MONEY REACHES ITS INTENDED DESTINATION. THE OPERATORS OF SUCH BOGUS C OMPANIES ENSURE THAT THE MONEY IS LAUNDERED THROUGH MORE THAN ONE LAYER. THAT IS THE REASON WHY WHILE CHECKING THE BOGUS ACCOUNTS OF SUBSCRIBER COMPANIES, IT IS INVAR IABLY FOUND THAT THE SAID COMPANIES HAVE ALSO RECEIVED SIMILAR AMOUNT FROM SO ME OTHER PERSONS OR COMPANIES BY CHEQUE AND ISSUED TILE CHEQUE AS SUBSCRIPTION TO THE SHARE CAPITAL AFTER FEW DAYS. IN SUCH A SITUATION, IT IS IMPERATIVE THAT THE .A.O S. CONDUCTING ENQUIRIES SHOULD GO BACK TO AT LEAST UP TO 2-3 LAYERS, BECAUSE IT IS ON LY THEN THAT THE REAL PICTURE EMERGES. IT IS WELL SETTLED PRINCIPLE OF LAW AS DECLARED BY THE HON'BLE SUPREME COURT IN THE CASE OF SUMATI DAYAL VS. C1T (214 ITR 801) (SC) THA T THE TRUE NATURE OF TRANSACTION HAVE TO BE ASCERTAINED IN THE LIGHT OF SURROUNDING CIRCUMSTANCES. IT NEEDS TO BE EMPHASIZED THAT STANDARD OF PROOF BEYOND REASONABLE DOUBT HAS NO APPLICABILITY IN DETERMINATION OF MATTERS UNDER TAXING STATUTES. IT IS ALSO WELL SETTLED THAT TAX AUTHORITIES ARE ENTITLED TO LOOK INTO SURROUNDING C IRCUMSTANCE TO FIND OUT THE REALITY OF THE TRANSACTION BY APPLYING THE TEST OF HUMAN PROBA BILITY. THIS WAS THE PRINCIPLE LAID DOWN BY THE HONBLE SUPREME COURT IN THE CASE OF CIT VS. DURGA PRASAD MORE 82 ITR 540 (SC). IT IS ALSO WELL SETTLED LAW THAT ONUS OF PROVING CREDITS IN ITS BOOK OF ACCOUNTS LIES SQUARELY ON THE ASSESSEE AND SUCH PRO OF CONSISTS OF PROVING THE IDENTITY OF THE SUBSCRIBER OR CREDITOR, CAPACITY OF SUCH CRE DITOR OR SUBSCRIBER TO MAKE PAYMENT AND ALSO TO PROVE THE GENUINENESS OF THE TRANSACTIO N, IT IS ONLY WHEN THE ASSESSEE DISCHARGES THIS PRIMARY ONUS, THAT ONUS SHIFTS TO T HE DEPARTMENT. MERELY ESTABLISHING THE IDENTITY OF THE CREDITOR IS NOT SUFFICIENT. THI S IS THE RATIO IN A LARGE NUMBER OF DECISIONS INCLUDING SHANKAR INDUSTRIES VS. CIT (197 8) 114 ITR 689 (CAL); C. KANT & CO. VS. CIT, (1980) 126 ITR 63 (CAL); PRAKASH TEXTI LE AGENCY VS. CIT, (1980) 121 ITR 890 (CAL); ORIENTAL WIRE INDUSTRIES P. LTD. VS. CIT, (1981) 131 ITR 688 (CAL); CIT VS. UNITED COMMERCIAL & INDUSTRIES CO. (P) LTD. , (1991) 187 ITR 596, 599 (CAL); M.A. UNNEERIKUTTI VS. CIT, (1992) 198 ITR 14 7, 150 (KER), SPECIAL LEAVE PETITION DISMISSED BY THE SUPREME COURT (1993) 201 ITR (ST.) 23 (SC); CIT VS. PRECISION FINANCE PVT. LTD., (1994) 208 ITR 465, 47 0 (CAL). THE MANNER OF PAYMENT BY THE ACCOUNT PAYEE CHEQUE IS ALSO NOT SACROSANCT AND THIS CANNOT MAKE A BOGUS TRANSACTION AS GENUINE ONE [(CIT VS. PRECISION FINA NCE PVT. LTD., ($) 208 ITR 465,470,471 (CAL). CF. NIZAM WOOL AGENCY VS. CIT, ( 1992) 1931TR 318,320 (ALL)]. 17. IT MAY BE REITERATED THAT THE GENUINENESS OF TH E SHARE CAPITAL IN THIS CASE AND HUNDREDS OF OTHER SUCH CASES WHERE ASSESSMENTS HAVE BEEN COMPLETED BY VARIOUS A.OS CAN BE GAUGED FROM THE FACT THAT THE SAME MODU S OPERANDI HAS BEEN USED TO OBTAIN AN ORDER U/S. 143(3) PROVIDING AUTHENTICITY OR GENUINENESS TO THE SHARE CAPITAL INTRODUCED. ONCE THE UNACCOUNTED MONEY WAS INTRODUC ED IN THE GARB OF GENUINE SHARE CAPITAL IN THE COMPANY, BY ROTATING IT THROUGH VARI OUS OTHER COMPANIES, A RETURN OF INCOME IS FILED SHOWING NOMINAL INCOME, THEREAFTER, A LETTER OR INFORMATION IS SENT TO THE A.O. STATING THAT THE ASSESSEE COMPANY HAS BY M ISTAKE OMITTED TO DECLARE A NOMINAL SUM IN THE RETURN OF INCOME, OR MADE CERTAI N CLAIM OF DEDUCTION OR EXPENSES WHICH IS NOT ALLOWABLE. THIS PROVIDES TO THE A.O. T HE REASON OR PRETEXT FOR ISSUING NOTICE U/S. 148 OF THE IT ACT THEREBY BRINGING THE CASE UNDER SCRUTINY. THE A.O. AFTER CONDUCTING PERFUNCTORY & SUPERFICIAL ENQUIRIES U/S. 133(6), COMPLETES THE ASSESSMENT ITA NO.793/KOL/2014 A.Y. 200 9-10 M/S SASHI CABLES LTD. VS. CIT, KOL-0 1 PAGE 6 ORDER BY MAKING THE TOKEN ADDITION OF THE SUBSEQUEN TLY DECLARED INCOME AND/OR NOMINAL DISALLOWANCES WITHOUT MAKING ANY ADDITION O N A/C OF DUBIOUS ADDITION TO THE SHARE - CAPITAL. THIS PROVIDES THE CERTIFICATE OF G ENUINENESS TO THE SHARE- CAPITAL WHICH HAS BEEN FRESHLY LAUNDERED BY INTRODUCING UNA CCOUNTED MONEY IN VARIOUS LAYERS. FURTHER THE AO HAS NOT MADE ANY INDEPENDENT VERIFICATION OF THE DOCUMENT FILED IN SUPPORT OF THE CONTRIBUTION TO SHARE-CAPIT AL. THIS RENDERS THE A.O'S ORDER COMPLETELY ERRONEOUS & PREJUDICIAL TO THE INTEREST OF REVENUE. THIS ALSO PROVIDES LEGITIMACY TO THE BOGUS SHARE CAPITAL INTRODUCED IN THE ASSESSEE COMPANY. THIS LAUNDERED SHARE CAPITAL IS THEN PASSED ON TO THE UL TIMATE INTENDED DESTINATION. IT MAY BE MENTIONED HERE THAT FOR INTRODUCING AND ROTATING THE UNACCOUNTED MONEY AT VARIOUS STAGES, CERTAIN PERCENTAGE IS CHARGED AS A COST. ALL THESE TRANSACTIONS AND THE INTRODUCTION OF BOGUS SHARE CAPITAL MAY APPARENTLY SEEM TO BE REAL. HOWEVER, IT NEEDS TO BE EMPHASIZED THAT APPARENT HAS TO BE DIST INGUISHED FROM REAL, IN A SITUATION LIKE THE ONE DESCRIBED ABOVE, THAT HAS BEEN CONTRIV ED IN A LARGE NUMBER OF CASES. IN THIS CONTEXT, THE OBSERVATIONS OF THE HON'BLE SUPRE ME COURT IN THE CASE OF CIT VS. DURGA PRASAD MORE 540 (SC) ARE PERTINENT, WHEREIN T HE HON' BLE SUPREME COURT HAS OBSERVED :- 'IT IS TRUE THAT AN APPARENT MUST BE CONSIDERED TO BE REAL UNTIL IT IS SHOWN THAT THERE ARE REASONS TO BELIEVE THAT THE APPARENT IS N OT THE REAL. IN A CASE OF THE PRESENT KIND A PARTY WHO RELIES ON A RECITAL IN A D EED HAS TO ESTABLISH THE TRUTH OF THOSE RECITALS, OTHERWISE IT WILL BE VERY EASY T O MAKE SELF- SERVING STATEMENTS IN DOCUMENTS EITHER EXECUTED OR TAKEN BY A PARTY AND RELY ON THOSE RECITALS. IF ALL THAT AN ASSESSEE WHO WANTS TO EVAD E TAX IS TO HAVE SOME RECITALS MADE IN A DOCUMENT EITHER EXECUTED BY HIM OR EXECUT ED IN HIS FAVOUR THEN THE DOOR WILL BE LEFT WIDE OPEN TO EVADE TAX. A LITTLE PROBING WAS SUFFICIENT IN THE PRESENT CASE TO SHOW THAT THE APPARENT WAS NOT THE REAL. THE TAXING AUTHORITIES WERE NOT REQUIRED TO PUT ON BLINKERS WHILE LOOKING AT THE DOCUMENTS PRODUCED BEFORE THEM. THEY WERE ENTITLED TO LOOK INTO THE SU RROUNDING CIRCUMSTANCES TO FIND OUT THE REALITY OF THE RECITALS MADE IN THOSE DOCUMENTS.' THIS ISSUE ALSO HAS NOT BEEN EXAMINED BY THE A.O. D URING THE COURSE OF SCRUTINY. 18. SINCE THE ASSESSING OFFICER HAS FAILED TO PROPE RLY SCRUTINIZE AND ENQUIRE INTO THE ABOVE ASPECTS, THE ASSESSMENT COMPLETED IN THIS CAS E SET-ASIDE WITH THE DIRECTION TO THE ASSESSING OFFICER THAT THE FACTS AND FIGURES SH OULD BE EXAMINED PROPERLY DE-NOVO AND A CORRECT CONCLUSION BE ARRIVED AS PER LAW. THE ASSESSMENT IS, THEREFORE, SET ASIDE IN FULL. 6. LEARNED COUNSEL REPRESENTING ASSESSEE FAILS TO R EBUT THE CITS BASIC FINDING OF FACT THAT IT HAD NOT PLACED THE RELEVANT DOCUMENTAR Y EVIDENCE DURING THE COURSE OF SCRUTINY FOR THE PURPOSE OF ASSESSING OFFICERS FAC TUAL VERIFICATION OF THE INVESTOR(S) PARTIES. WE FIND IN THIS FACT THAT THIS TRIBUNALS IN M/S SHUSH LAKSHMI VAREY LTD VS. CIT ITA NO.1104/KOL/2014 DECIDED ALONGWITH BATCH OF MORE THAN 400 CASES AS AFFIRMED IN HON'BLE JURISDICTIONAL HIGH COURTS IN RAYMANDIR REAL ESTATE VS. DCIT ITA NO.113/KOL/2016 FINALLY UPHELD IN HON'BLE APEX COUR T HAS AFFIRMED SIMILAR DIRECTIONS ITA NO.793/KOL/2014 A.Y. 200 9-10 M/S SASHI CABLES LTD. VS. CIT, KOL-0 1 PAGE 7 ISSUED TO THE ASSESSING OFFICER FOR RE-VERIFICATION OF ALL INVESTOR PARTIES. NO REBUTTAL ON FACTS OR LAW IS FORTHCOMING FROM THE ASSESSEE SI DE. WE THUS AFFIRM THE CITS FINDINGS UNDER CHALLENGE QUA THIS LATTER ISSUE. 7. NO OTHER ARGUMENT HAS BEEN RAISED BEFORE US QUA ANY OTHER SUBSTANTIVE GROUND; IF ANY PLEADED IN THE INSTANT APPEAL. 8. THIS ASSESSEES APPEAL IS PARTLY ALLOWED IN ABOV E TERMS. ORDER PRONOUNCED IN OPEN COURT ON 30/11/2018 SD/- SD /- ( !) (#$ ') (P.M.JAGTAP) (S.S.GODARA) VICE PRESIDENT JUDICIAL MEMBER *DKP-SR.PS ( - 30/11/2018 / KOLKATA / COPY OF ORDER FORWARDED TO:- 1. /APPELLANT-M/S SASHI CABLES LTD.LAHAPAINT HOUSE,7, C.R. AVENUE, KOL-72 2. /RESPONDENT-CIT-KOL-01, P-7, CHOWRINGHEE SQUARE, KO LKATA-72 3. + . / CONCERNED CIT 4. . - / CIT (A) 5. / $$+ , + / DR, ITAT, KOLKATA 6. 3 / GUARD FILE. BY ORD ER/ , /TRUE COPY/ / +,