Makeway Consultancy Pvt. Ltd., Bhubaneswar V. DCIT, Circle-1(1), Bhubaneswar

ITA 85/CTK/2017

• Counselvise Citation: [2017] 127 COUNSELVISE.COM (IT) 5444 (ITAT-CUTTACK)
• Duration Of Justice: 5 month(s) 8 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 09-08-2017
• Appeal Filed By: Assessee
• Order Result: Partly Allowed
• Bench Allotted: SMC
• Next Hearing Date: 27-06-2017
• Assessment Year: 2010-2011
• Appeal Filed On: 01-03-2017
• Result in Favour of: Partly Allowed
• Court: TRIBUNAL
• Department Lawyers: D K PRADHAN
• Assessee Lawyers: P K MISHRA
• Section: 68; 10

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL CUTTACK SMC BENCH, CUTTACK BEFORE SHRI N.S SAINI, ACCOUNTANT MEMBER ITA NO. 85/CTK/2017 ASSESSMENT YEAR :2010 - 2011 MAKEWAY CONSULTANCY PVT LTD., PLOT NO.232, SAHEED NAGAR, BHUBANESWAR. VS. DCIT, CIRCLE 1(1), BHUBANESWAR PAN/GIR NO. AAECM 3298 C (APPELLANT ) .. ( RESPONDENT ) ASSESSEE BY : SHRI P.K.MISHRA, AR REVENUE BY : SHRI D.K.PRADHAN , DR DATE OF HEARING : 02 /08 / 2017 DATE OF PRONOUNCEMENT : 09 /08 / 2017 O R D E R THIS IS AN APPEAL FILED BY THE ASSESSEE AGAINST THE ORDER OF CIT(A) - 1, BHUBANESWAR , DATED 8.11.2016 FOR THE ASSESSMENT YEAR 2010 - 2011. 2. THE SOLE ISSUED IN THIS APPEAL IS THAT THE CIT(A) ERRED IN CONFIRMING THE ADDITION OF RS.44,00,000/ - UNDER SECTION 68 OF THE ACT. 3. THE BRIEF FAC TS OF THE CASE ARE THAT DURING THE YEAR UNDER CONSIDERATION, THE ASSESSEE RECEIVED SHARE APPLICATION MONEY OF RS.44,00,000/ - IN CASH FROM THE FOLLOWING PERSONS: MAEWAY CONSULTANCY PRIVATE LIMITED 2 ITA NO.85/CTK/2017 ASSESSMENT YEAR :2010 - 2011 DETAILS OF SHARE CAPITAL INTRODUCED DURING FINANCIAL YEAR 2009 - 10 SL NAME OF THE SHARE HOLDER ADDRESS OF THE SHARE HOLDER AMOUNT OF SHARE INDTROD U CED DATE MODE OF PAYMENT 1 MANDAN MOHANTY 3/O - KHITINDRA KUMAR MOHANTY PLOT NO. 899, JHARAPADA, NEAR BDA COLONY,BHUBANESWAR 750,000.0 0 DURING F.Y - 2009 - 10 CASH 2 3ONALIRAJ MOHANTY W/O - NANDAN MOHANTY PLOT NO. 899, JHARAPADA, NEAR BDA COLONY, BHUBANESWAR 325,000.0 0 DURING F.Y - 2009 - 10 CASH 3 ALEKHA KU. MOHAPATRA CHANDRAMANI MOHAPATRA AT - TENTULISIAN PO/VIA - KAMAKHYANAGAR DIST - DHENKANAL 35,000.00 DURING F/Y 2009 - 10 CASH 4 ASHOK PRADHAN LATE - PRAVAKAR PRADHAN AT - SASANGA /VIA - CHARBATIA PO - KUMARPUR, DIST - CUTTACK 35,000.00 DURING F/Y 2009 - 10 CASH 5 ATUL KU DAS LATE - JACOB DAS AT - MANDAPADA PO - DOULATABAD, DIST - CUTTACK 35,000.00 DURING F/Y 2009 - CASH 6 AVIRAM BEHERA PURNA CHANDRA BEHERA AT/PO - RADHAKISHOR PUR VIA - ATHAGARH, DIST - CUTTACK 35,000.00 DURING F/Y 2009 - CASH 7 BABAJI BEHERA(A) LATE - NALU BEHERA AT - IMMAMNAGAR, PO - BHAIRPUR, PS - JAGATPUR, DIST - CUTTACK 35,000.00 DURING F/Y 2009 - CASH 8 BABAJI BEHERA(B) HATAKESHAR BEHERA AT/PO - RADHAKISHOR PUR VIA - ATHAGARH, DIST - CUTTACK 35,000.00 DURING F/Y 2009 - CASH 9 BALARAM DAS BHIMSEN DAS AT - NUAPATNA, PO - KAY ALP ADA VIA - CHASAPADA, DIST - CUTTACK 35,000.00 DURING F/Y 2009 - CASH 10 BANSIDHAR SAHOO BANAMALI SAHOO AT - HURISAHI, PO - MAHAL VIA - DANPUR, DIST - KENDRAPADA 35,000.00 DURING F/Y 2009 - CASH 11 BASANT PRADHAN BIMBADHAR PRADHAN AT/PO - TALABASTA, VIA - DAMP ADA, DIST - CUTTACK 35,000.00 DURING F/Y 2009 - 10 CASH 12 BASANTA KU. MOHARANA JAIRAM MOHARANA AT - KUMBHEI,PO - SALAGAON VIA - JAGATPUR,PS - JAGATPUR DIST - CUTTACK 35,000.00 DURING F/Y 2009 - 10 CASH 13 BHAJAY KUMAR PAL ISWAR CHANDRA PAL AT - DEKANI, PO - PATALIPANKA VIA - KUJANGA, DIST - KENDRAPADA 35,000.00 DURING F/Y 2009 - 10 CASH 14 BIBHUTI BEHERA BAISHNAB BEHERA AT/PO - RADHAKISHOR PUR VIA - ATHAGARH, DIST - CUTTACK 35,000.00 DURING F/Y 2009 - CASH 15 BICHITRANANDA SWAIN BAURIBANDHU SWAIN AT - ANDEISAHI, PO - BHOIRIPUR PS - JAGATPUR, DIST - CUTTACK 35,000.00 DURING F/Y 2009 - 10 CASH 3 ITA NO.85/CTK/2017 ASSESSMENT YEAR :2010 - 2011 SL NAME OF THE SHARE HOLDER ADDRESS OF THE SHARE HOLDER AMOUNT OF SHARE INDTRODU DATE MODE OF PAYMENT 16 3IDYADHAR BISWAL UATE - GOPAL BISWAL AT/PO - BALI,VIA - ATHAGARH DIST - CUTTACK 35,000.00 DURING F/Y 2009 - 10 CASH 17 BIJAY MOHANTY LATE - KALI CHARAN MOHANTY AT - MAHULIAGARH (BASUDEVPUR) PO - KADUA /VIA - JAGANNATHPRASAD DIST - GANJAM 35,000.00 DURING F/Y 2009 - 10 ' CASH 18 BIRANJAN BIHARI SAMSEN BIHARI AT - PARBATIA, PO - CHHAGAON VIA - CHARBATIA, DIST - CUTTACK 35,000.00 DURING F/Y 2009 - CASH 19 DAMODAR GHADEI LATE - GOPI GHADEI AT - KAPURSINGH, PO - ORANDA VIA - ATHAGARH, DIST - CUTTACK 35,000.00 DURING F/Y 2009 - 10 CASH 20 DHIRENDRA KU. SAHOO BRAJABANDHU SAHOO AT - BHOIRIPUR, PO - SALAGAON VIA - JAGATPUR, DIST CUTTACK 35,000.00 DURING F/Y 2009 - CASH 21 DILLIP KU.SAMAL DAMBARUDHAR SAMAL AT - KAPURSINGH, PO - ORANDA VIA - ATHAGARH, DIST - CUTTACK 35,000.00 DURING F/Y 2009 - 10 CASH 22 GANDHARBA SAHOO DAMADOR SAHOO AT/PO - BALI, VIA - ATHAGARH, PS - GURUDIJHATIA, DIST - CUTTACK 35,000.00 DURING F/Y 2009 - CASH 23 GANGARAM BALMUKHI BALI BALMUKHI AT - MASUDIA, PO - RADHAKISHORPUR VIA - ATHAGARH, DIST - CUTTACK 35,000.00 DURING F/Y 2009 - 10 CASH 24 GOURANGA SETHA JOGENDRA SETHA AT - PURUSOTTAMPUR PO - RADHAKISHORPUR VIA - ATHAGARH, DIST - CUTTACK 35,000.00 DURING F/Y 2009 - 10 CASH 25 HRUSIKESA OJA RAM CHANDRA OJHA AT/PO - PURUNA BAZAR, DIST - BHADRAK 35,000.00 DURING F/Y 2009 - 10 CASH 26 KAILASH CH. NAYAK LATE - SHYAMSUNDAR NAYAK AT/PO - RADHAKISHOR PUR VIA - ATHAGARH, DIST - CUTTACK 35,000.00 DURING F/Y 2009 - 10 CASH 27 KARTIK KODAM SINGH LATE - RAMA CHANDRA KODAM SINGH AT - BEHENDA, PO - GADAMATIAPUR, VIA - KANAS, DIST - PURI 35,000.00 DURING F/Y 2009 - 10 CASH 28 KESAB SETHI KAILASH SETHI AT/PO - RADHAKISHOR PUR VIA - ATHAGARH, DIST - CUTTACK 35,000.00 DURING F/Y 2009 - CASH 29 LAXMIDHAR BEURA HARIHARA BEURA AT - DIHASAHI, PO - KAYLA PADA VIA - CHHASAPADA, DIST - CUTTACK 35,000.00 DURING F/Y 2009 - CASH 30 LAXMIDHAR BISWAL LATE - SAURI BISWAL AT - GANESHSWAR PUR, PO - GOPINATHPUR, VIA - BAHUGRAM, DIST - CUTTACK 35,000.00 DURING F/Y 2009 - 10 CASH 4 ITA NO.85/CTK/2017 ASSESSMENT YEAR :2010 - 2011 31 LAXMIDHAR MOHANTY FAKIR CH. MOHANTY AT/PO - TARADINGI, VIA - ATHAGARH, DIST - CUTTACK 35,000.00 DURING F/Y 2009 - 10 CASH SL NAME OF THE SHARE HOLDER ADDRESS OF THE SHARE HOLDER AMOUNT OF SHARE INDTRODU DATE MODE OF PAYMENT 32 I MAHESWAR ROUT 3AIDHAR ROUT AT - BISHNUPUR, PO - KAKHADI, VIA - CHHASAPADA, DIST - CUTTACK 35,000.00 DURING F/Y 2009 - DASH 33 MOHAN HEMBRUM RUPEI HEMBRUM AT - LAXMIPRIYA PUR, PO - SAHIDA, VIA - PALLAHADA, DIST. - ANGUL 35,000.00 DURING F/Y 2009 - CASH 34 MRS JASMA GAGARAI IATIA GAGARAI AT - BRAHMANBASTA, PO - KAKHADI, 35,000.00 DURING F/Y 2009 - CASH 35 PARSURAM BEURA LATE - MADHAB BEURA AT - KAPURSINGH, PO - ORANDA, VIA - ATHAGARH, DIST - CUTTACK 35,000.00 DURING F/Y 2009 - 10 CASH 36 PITAMBAR BEHERA DAITARI BEHERA AT/PO - HARIPUR, PS - KHAIRA, DIST - BALESHWAR 35,000.00 DURING F/Y 2009 - 10 CASH 37 PRAMOD KUMAR BEHERA MADHAV BEHERA AT - BELDA, PO - RADHAKISHORPUR, ATHAGARH, CUTTACK. 35,000.00 DURING F/Y 2009 - 10 CASH 38 PRAMOD KUMAR DASH NIRANJAN DASH AT - KEDARESWAR, PO - CHARBATIA, VIA - CHOUDWAR, DIST - CUTTACK 35,000.00 DURING F/Y 2009 - 10 CASH 3 9 PRASANTA SWAIN LATE - JADUMANI SWAIN AT/PO - RADHAKISHOR PUR VIA - ATHAGARH, DIST - CUTTACK 35,000.00 DURING F/Y 2009 - CASH 4 0 PRATAP KU. SAHOO JAYADEV SAHOO AT - SARKOLI, PO - BALI, PS - GURUDIJHATIA, DIST - 35,000.00 DURING F/Y 2009 - CASH 4 1 RADHANATH BISWAL RATNAKAR BISWAL AT/PO - BALI,VIA - ATHAGARH, PS - GURUDIJHATIA, DIST - 35,000.00 DURING F/Y 2009 - CASH 4 2 RAJ KISHORE BEHERA GHANASYAM BEHERA AT - SITARAMPUR, PO - ORANDA, VIA - ATHAGARH, DIST - CUTTACK 35,000.00 DURING F/Y 2009 - CASH 4 3 RAJAT KUMAR SAMAL GOLEKHA BIHARI SAMAL AT/PO - ORANDA, VIA - ATHAGARH PS - GURUDIJHATIA, DIST - 35,000.00 DURING F/Y 2009 - CASH 4 4 RAMA CHANDRA MUDULI LATE - RAJU MUDULI AT/PO - BHATAPARA, VIA - BAHUGRAM, PS - SALIPUR, DIST - 35,000.00 DURING F/Y 2009 - 10 CASH 4 5 SANKARMAJHI HURIMAJHI AT/PO - RADHAKISHOR PUR VIA - ATHAGARH, DIST - CUTTACK 35,000.00 DURING F/Y 2009 - CASH 46 SANTOSH KU. SAHOO GOURANGA SAHOO AT - GADASAHI, PO - ATHAGARH, VLA/PS - ATHAGARH, DIST - CUTTACK 35,000.00 DURING F/Y 2009 - 10 CASH 5 ITA NO.85/CTK/2017 ASSESSMENT YEAR :2010 - 2011 47 SARAT CH. DAS PAHALI DAS AT - BISHNUPUR, PO - KAKHADI, VIA - CHHASADA, DIST - CUTTACK 35,000.00 DURING F/Y 2009 - 10 CASH 48 SEKHAR SAHOO ARJUN SAHOO AT - PURUSOTTAM PUR, PO - RADHAKISHORPUR, VIA - ATHAGARH, DIST CUTTACK 35,000.00 DURING F/Y 2009 - 10 CASH SL NAME OF THE SHARE HOLDER ADDRESS OF THE SHARE HOLDER AMOUNT OF SHARE INDTRODU CED DATE MODE OF PAYMENT 49 I 3HYAM SUNDAR MOHANTY LATE - KHALI CH. MOHANTY \ T - BASUDEVPUR, PO - KADUA , VIA - JAGANNATHPRASAD, DIST - GANJAM 35,000.00 DURING F/Y 2009 - 10 CASH 50 SUBASH BEHERA DAITARI BEHERA AT/PO - RADHAKISHORPUR, VIA - ATHAGARH, DIST CUTTACK 35,000.00 DURING F/Y 2009 - CASH 51 SUDARSAN SAHOO DUSASHAN SAHOO AT - BRAHMANBASTA, PO - KAKHADI, 35,000.00 DURING F/Y 2009 - CASH 52 SUDHAKAR SAHOO LATE - UCHHAB SAHOO AT/PO - BALI, VIA - ATHAGARH, PS - GURUDIJHATIA, DIST - 35,000.00 DURING F/Y 2009 - CASH 53 SUKANTA KU. PARIDA LATE - KHETRABASI PARIDA AT/PO - RADHAKISHORPUR, VIA - ATHAGARH, DIST CUTTACK 35,000.00 DURING F/Y 2009 - CASH 54 SURESH SETHI SATYANANDA SETHI AT/PO - RADHAKISHORPUR, VIA - ATHAGARH, DIST CUTTACK 35,000.00 DURING F/Y 2009 - CASH 55 TAP AN KU. MALLA KARUNAKAR MALLA AT/PO - SIKHARPUR, PS - CHAULIAGANJA, DIST - 35,000.00 DURING F/Y 2009 - CASH 56 YUDHISTIR SAMAL HADIBANDHU SAMAL AT - KAPURSINGH, PO - ORANDA, VIA - ATHAGARH, DIST - CUTTACK 35,000.00 DURING F/Y 2009 - 10 CASH 57 ANT ARY AMI SARGHARIA BRUNDABAN SARGHARIA AT - TADAKI, PO. CHANDRAPUR, VIA - DUKURA, DIST - MAYURBHANJ 35,000.00 DURING F/Y 2009 - CASH 58 ARUNDAS SANKARSAN DAS PLOT NO.3657, PRACH VIHAR, PALASUNI, BHUBANESWAR - 25, 35,000.00 DURING F/Y 2009 - 10 CASH 59 BANSIDHARA NAG BHUBAN NAG AT - SURESHMAL, PO. DUNGUIGUDA, VIA - CHAHARBAL, KALAHANDI, 35,000.00 DURING F/Y 2009 - 10 CASH 60 BASANTA SWAIN ANAM CHARAN SWAIN AT - OSANGARA, PO - JIGARANA, VIA - JARIA, DIST - KENRAPADA, 35,000.00 DURING F/Y 2009 - CASH 61 BIBEKANANDA SAHOO KISHORE CHANDRA SAHOO PLOT NO.245, JAYDEV VIHAR, BHUBANESWAR - 13, ODISHA 35,000.00 DURING F/Y 2009 - CASH 6 ITA NO.85/CTK/2017 ASSESSMENT YEAR :2010 - 2011 62 HEMANTA KU SAMAL BANAMBAR SAMAL AT/PO. ALATI BHARATAPUR, VIA - THAKURPATNA, DIST. JAIPUR 35,000.00 DURING F/Y 2009 - CASH 63 JANAKI BISOI SIBA BISOI TARINI BARTI, NEAR SATYA NAGAR OVER BRIDGE, BHUBANESWAR, 35,000.00 DURING F/Y 2009 - 10 CASH 64 MAD AN MOHAN SAHOO PABITRA MOHAN SAHOO AT/PO - SANKHAMUR PS - KHAMAR, ANGUL, ODISHA 35,000.00 DURING F/Y 2009 - CASH 65 MOHAN SAHOO GOPINATH SAHOO AT - CHATILO, PO - HARIANTA, VIA - CHOUDWAR, DIST - CUTTACK, ODISHA 35,000.00 DURING F/Y 2009 - 10 CASH SL NAME OF THE SHARE HOLDER ADDRESS OF THE SHARE HOLDER AMOUNT OF SHARE INDTRODU CED DATE MODE OF PAYMENT 66 T 4RS. KUMUDINI SAHOO ] 3ATYABRATA MOHAPATRA VT - NIALISAHI, PO. NIALI, DIST - CUTTACK, ODISHA 35,000.00 DURING '/Y 009 - 10 CASH 67 MURALIDHAR PANIGRAHI 3HYAMSUNDAR PANIGRAHI VT - 'KHAIRAJALA,PO - ALASU, VIA - JAGANNATHPRASAD, GANJAM 35,000.00 DURING F/Y 2009 - 10 CASH 68 'IRUSINGHA CH. SAMAL APRATI SAMAL AT/PO - PIRBAZAR, JAGATPUR, CUTTACK, ODISHA 35,000.00 DURING F/Y 2009 - 10 CASH 69 PRAMOD KUMAR PANDA LALMOHAN PANDA AT - SUNARIBUGUDA, PO - MADHUPALLI VIA - PALSURA, DIST - 35,000.00 DURING F/Y 2009 - 10 CASH 70 PRAVAT KUMAR JENA KHETRABASI JENA AT/PO. BAGADA, VIA - SRIBALADEVJEW, DIST - 35,000.00 DURING F/Y 2009 - 10 CASH 71 RINIMAHAPATRA MANAS KUMAR PRUSTY AT - NAYAPALLI, NUASAHI, PLOT NO.495, BHUBANESWAR, ODISHA 35,000.00 DURING F/Y 2009 - 10 CASH 72 SANDHYARANI SWAIN RAM CHANDRA SWAIN AT/PO. SAILO JHARPADA, VIA - SAILO GOBINDPUR, DIST - CUTTACK, ODISHA 35,000.00 DURING F/Y 2009 - 10 CASH 73 SOURAV SATPATHY SATYANARAYAN SATPATHY AT/PO. KHANDAPADA, MADHUBAN SAHI, DIST - NAYAGARH 35,000.00 DURING F/Y 2009 - 10 CASH 74 SUJATA PATNAIK HARA NARAYAN PATNAIK AT/PO - HAZIPUR, VIA - TIRAN, DIST - JAGATSIGHPUR, ODISHA 35,000.00 DURING F/Y 2009 - CASH 75 ASHOK KU. BEHERA LATE - BABAJI BEHERA AT/PO - GURUDIJHATIA, PS - GURUDIJHATIA, DIST - CUTTACK 35,000.00 DURING F/Y 2009 - CASH 76 ASHOK KUMAR ROUT KRUSHNA CHANDRA ROUT AT - BALICHATURI, PO - CHASAPADA. DIST - CUTTACK 35,000.00 DURING F/Y 2009 - CASH 7 ITA NO.85/CTK/2017 ASSESSMENT YEAR :2010 - 2011 77 BASUDEV P ARID A RAJ AN PARIDA KANAKATURU, PO - SANKURU, VIA/PS - BUGUDA, DIST - GANJAM 35,000.00 DURING F/Y 2009 - 10 CASH 78 BHIKARIPRADHAN (DRVR) GHANASHYAM PRADHAN AT - ANGASINGHA, PO - SARANKUL, DIST - NAYAGARH 35,000.00 DURING F/Y 2009 - 10 CASH 79 BHIMSEN SAMAL BIPRABAR SAMAL AT/PO - BEDAPADA, VIA - HINDOL ROAD, PS - RASOL , DIST - DHENKANAL 35,000.00 DURING F/Y 2009 - 10 CASH 80 BIBHUDATTA SAMAL SURENDRA KU. SAMAL C/O - P. SAHOO QR NO - L/327, BARAMUNDA, H.B COLONY, BHUBANESWAR - 751 35,000.00 DURING F/Y 2009 - 10 CASH 81 BI J AY JENA 'B' LAMBODAR JENA AT/PO - CHHAGAON, VIA - ATHAGARH, PS - GURUDIJHATIA, DIST - CUTTACK 35,000.00 DURING F/Y 2009 - 10 CASH SL NAME OF THE SHARE HOLDER ADDRESS OF THE SHARE HOLDER AMOUNT OF SHARE INDTRODU CED DATE MODE OF PAYMEN T 82 DHIRENDRA KISHORE SAMA LATE - KULAMANI SAMAL AT/PO - SATYABHAMAPUR, VIA - BAHUGRAM, DIST - CUTTACK 35,000.00 DURING F/Y 2009 - CASH 83 GOBARDHAN SAHOO LATE - BAISHNAB CHARAN SAHOO AT - PARIPADA, PO - PARIPADA VIA - MANGALPUR, DIST - JAIPUR. 35,000.00 DURING F/Y 2009 - CASH 84 HARIHARA PRADHAN GOPI PRADHAN AT/PO - TARATUA, DIST - KHORDHA, ODISHA 35,000.00 DURING F/Y 2009 - CASH 85 KAMAL MOHANTY LATE - ANATABANDHU MOHANTY AT/PO - TAMANDO, KHANDAGIRI, KHURDA. 35,000.00 DURING F/Y 2009 - 10 CASH 86 KEDARESWAR DAS LATE - BASUDEV DAS AT - NUAPATNA, PO - KAY ALP AD A, VIA - CHHASAPADA, DIST - 35,000.00 DURING F/Y 2009 - CASH 87 MANOJ KU. MUDULI RAM CHANDRA MUDULI AT/PO - BHATAPARA, VIA - BAHUGRAM, PS - SALIPUR, DIST - CUTTACK. 35,000.00 DURING F/Y 2009 - 10 CASH 88 NARENDRA ROUT(B) GHANASHYAM ROUT AT - PITHAKHIA, PO - GURUDIJHATIA, 35,000.00 DURING F/Y 2009 - CASH 89 NIRMALKU. JENA LATE - BANCHHANIDHI JENA AT/PO - RADHAKISHORPUR, PS - KHUNTUNI, VIA - ATHAGARH, DIST CUTTACK 35,000.00 DURING F/Y 2009 - 10 CASH 90 NRUSINGHA CH. NAYAK LATE - MAHESWAR NAYAK AT - KUNDI, PO - KUMUDA JAIPUR, DIST - CUTTACK. 35,000.00 DURING F/Y 2009 - 10 CASH 91 PRABIR KUMAR SWAIN LATE - PIT ABASH SWAIN AT/PO - SISILO, VIA - BALAKATI, PS - DIST - KHURDA - 752100 35,000.00 DURING F/Y 2009 - CASH 8 ITA NO.85/CTK/2017 ASSESSMENT YEAR :2010 - 2011 92 PRADEEP KU. PATTNAYAK(I LATE - MINAKETAN PATTNAIK AT - ORAMI, PO - HADAPADA, VIA - NARANGADA, DIST - KHURDA 35,000.00 DURING F/Y 2009 - CASH 93 PRADEEP SAMAL DHIRENDRA KISHORE SAMAL AT/PO - SATYABHAMAPUR, VIA - BAHUGRAM, DIST - CUTTACK 35,000.00 DURING F/Y 2009 - CASH 94 PRASANTA KU. ROUT PACHANAN ROUT AT - BALI SASAN, PO - BALI, VAI - ATHAGARH, DIST - CUTTACK. 35,000.00 DURING F/Y 2009 - CASH 95 PRASNTA KU BEHERA PRAVAKAR BEHERA AT - DADHISINGA, PO - MAHIMAGADI, DIST - DHENKANAL 35,000.00 DURING F/Y 2009 - CASH 96 RAMA KISHORE SINGH LATE - RAMRUP SINGH AT - DHARMAPIPARA, PO - KOKILA, VIA /PS - JAGDISHPUR, BIHAR. 35,000.00 DURING F/Y 2009 - CASH 97 SATYAJEET SINGH BARID BARAN BARAL AT - BIRAKISHOR PUR, PO - ATHAGARH, DIST - CUTTACK. 35,000.00 DURING F/Y 2009 - 10 CASH 44,00,000/ - DURING THE COURSE OF ASSESSMENT PROCEEDINGS, THE ASSESSING OFFICER REQUIRED THE ASSESSEE TO PRODUCE THE FOLLOWING 10 PERSONS ALONGWITH THEIR PROOF OF IDENTITY, THEIR GENUINENESS, CREDITWORTHINESS AND THEIR SOURCES: SL. NO . NAME OF THE PERSON AND ADDRESS 01. NANDAN MOHANTY, JHARAPADA ,BDA COLONY,BHUBANESWAR. 02. SONALIRAJ MOHANTY,JHARAPAD A ,BDA COLONY, BHUBANESWAR. 03. BASANTA SWAIN,OSANGARA, JIGARANA, KENDRAPARA. 04. BANAMBAR SAMALALATI BHARATPUR. 05' MURALIDHAR PANIGRAHI, KHAIRAJALA.PO - ALASU. 06. PRAMOD KUMAR PANDA, SUNARIBUGUDA,MADHUPALI. 07. BIBHUDATTASAMAI.BARAMUNDA.H.B.COLONY, BHUBANESWAR. 03.. 08. MANOJ KUMAR MUDULI. BNATAPARA.SALIPUR. 09. PRABIR KUMAR SWAINA , SSILO,BALAKATI. 10. BICHITRANANDA SWAIN,ANDEISAHI.JAGATPUR.CUTTACK . 4 . THE ASSESSEE WAS REQUIRED TO PRODUCE THE DETAILS OF MODE OF REC EIPT OF SHARE APPLICATION MONEY, DOCUMENTARY EVIDENCE AND CONFIRMATION OF 9 ITA NO.85/CTK/2017 ASSESSMENT YEAR :2010 - 2011 EACH PARTY FROM WHOM SUCH SHARE APPLICATION MONEY AMOU NTING TO RS.44,00,000/ - WAS OBTAINED. LD A.R. OF THE ASSESSEE APPEARED AND FILED COPY OF INCOME TAX RETURNS OF SHRI NANDAN MOHANTY AND SANOLIRAJ MOHANTY FOR ASSESSMENT YEAR 2010 - 2011 FROM WHOM SHARE APPLICATION MONEY OF RS.7,50,000/ - AND RS.3,25,000/ - WAS RECEIVED IN CASH AND SUBMITTED THAT THEY WERE ALSO THE DIRECTORS OF THE COMPANY. THE ASSESSING OFFICER OBSERVED THAT ALMOST ALL THE TRANSACTIO NS EXCEPT TWO ARE IN A ROUND FIGURE OF RS.35,000/ - EACH, AND HAS BEEN RECEIVED IN CASH DURING FINANCIAL YEAR 2009 - 2010. THEREFORE, HE ADDED THE SAME U/S.68 OF THE ACT AS UNEXPLAINED INCOME AND THEREBY MADE ADDITION OF RS.44,00,000/ - . 5. ON APPEAL, THE CI T(A) CONFIRMED THE ACTION OF THE ASSESSING OFFICER. 6. BEFORE ME, LD A.R. OF THE ASSESSEE FILED LIST OF 97 PERSONS FROM WHOM SHARE APPLICATION MONEY WAS RECEIVED BY THE ASSESSEE DURING THE IMPUGNED ASSESSMENT YEAR. HE SUBMITTED THAT OUT OF 97 PERSONS, TWO PERSONS NAMELY SHRI NANDAN MOHANTY AND S ONA LI RAJ MOHANTY ARE DIRECTORS OF THE COMPANY, WHO HAVE CONTRIBUTED RS.7,50,000/ - AND RS.3,25,000/ - RESPECTIVELY TOWARDS SHARE APPLICATION MONEY. IN SUPPORT OF THE IDENTITY AND SOURCE, LD A.R. FILED BEFORE ME COPY OF INCOME TAX RETURNS OF NANDAN MOHANTY AND SONALI RAJ MOHANTY WHEREFROM IT WAS POINTED OUT THAT THEY HAD FILED RETURN OF INCOME SHOWING INCOME OF RS.6,99,710/ - AND RS.2,50,000/ - RESPECTIVELY. HE SUBMITTED THAT BOTH 10 ITA NO.85/CTK/2017 ASSESSMENT YEAR :2010 - 2011 THESE DIRECTORS ARE INCOME TAX ASSESS EE AND ARE FILING INCOME TAX RETURNS REGULARLY SHOWING SIMILAR AMOUNT OF INCOME. HENCE, IT WAS HIS SUBMISSION THAT THE SHARE APPLICATION MONEY GIVEN IN CASH WAS OUT OF TAXED INCOME. IT WAS SUBMITTED THAT THE IDENTITY AND CREDITWORTHINESS OF THESE TWO SHA RE APPLICANTS IS PROVED FROM THE COPIES OF INCOME TAX RETURNS FILED AND THEIR PAN. HE FURTHER ARGUED THAT OUT OF BALANCE 95 SHAREHOLDERS FROM WHOM RS.35,000/ - EACH WAS RECEIVED DURING THE YEAR AS SHARE MONEY, THE ASSESSING OFFICER HAD CALLED EIGHT PERSONS FOR VERIFICATION. WITH REGARDS TO 87 SHAREHOLDERS, NO ENQUIRY WHATSOEVER WAS MADE BY THE ASSESSING OFFICER AND, THEREFORE, THE ASSESSING OFFICER WAS NOT JUSTIFIED IN MAKIN G ADDITION OF RS.33,25,000 / - U/S.68 OF THE ACT. REGARDING BALANCE 8 PERSONS FROM W HOM SHARE APPLICATION MONEY OF RS.2,80,000/ - WAS RECEIVED , HE SUBMITTED THAT THEY HAVE CONTRIBUTED MEAGRE AMOUNT OF RS.35,000/ - TOWARDS SHARE APPLICATION MONEY AND IT CANNOT BE SAID THAT THOSE PERSONS COULD NOT HAVE THIS MEAGRE AMOUNT CONTRIBUTED TOWARDS SHARE APPLICATION MONEY. HE FURTHER SUBMITTED THAT IN THE SUBSEQUENT ASSESSMENT YEAR 2011 - 12, THE ASSESSEE COMPANY HAS ALLOWED SHARES TO THE SHARE APPLICANTS AND FILED THE REQUIRED RETURNS WITH THE REGISTRAR OF COMPANIES AND THAT THEY ARE STILL SHAREHOLDE RS OF THE ASSESSEE COMPANY. IN SUPPORT OF THE SAME, HE FILED COPY OF AUDITED ACCOUNT AS ON 31.3.2011 AND 31.3.2010 AND SUBMITTED THAT SHARE APPLICATION MONEY SHOWN AS ON 31.3.2010 WAS TRANSFERRED TO SHARE 11 ITA NO.85/CTK/2017 ASSESSMENT YEAR :2010 - 2011 CAPITAL ACCOUNT. HENCE, HE PRAYED ADDITION OF RS .44 LAKHS MADE BY THE ASSESSING OFFICER SHOULD BE DELETED. 7. ON THE OTHER HAND, LD D.R. VEHEMENTLY OPPOSED THE SUBMISSIONS OF LD A.R. OF THE ASSESSEE AND SUBMITTED THAT IT WAS HIGHLY IMPROBABLE THAT THE ASSESSEE WOULD RECEIVE SHARE APPLICATION MONEY FROM 95 SHARE APPLICANTS IN IDENTICAL AMOUNT OF RS.35,000/ - EACH AND THAT TOO IN CASH. HE SUBMITTED THAT THE IDENTITY, GENUINENESS AND CREDITWORTHINESS HAS NOT BEEN PROVED AND, THEREFORE, THE ADDITION WAS RIGHTLY MADE BY THE ASSESSING OFFICER AND CONFIRMED BY THE CIT(A). 8. I HAVE HEARD THE RIVAL SUBMISSIONS, PERU SED THE ORDERS OF LOWER AUTHORITIES AND MATERIALS AVAILABLE ON RECORD. IN THE INSTANT CASE, THE ASSESSEE COMPANY HAS CLAIMED TO HAVE RECEIVED RS.44,00,000/ - AS SHARE APPLICATION MONEY DURING THE YEAR UNDER CONSIDERATION. THE SAID AMOUNT WAS CLAIMED TO HAVE RECEIVED FROM SHRI NANDAN MOHANTY OF RS.7,50,000/ - AND SONALI RAJ MOHANTY OF RS.3,25,000/ - AND BALANCE AMOUNT OF RS.33,25,000/ - FROM 95 PERSONS OF RS.35,000/ - EACH. DURING THE COURSE OF ASSESSMENT PROCEEDINGS, THE ASSESSING OFFICER IN ORDER TO VERIFY THE GENUINENESS OF SHARE APPLICATION CLAIMED TO HAVE RECEIVED BY THE ASSESSEE REQUIRED THE ASSESSE E TO PRODUCE THE FOLLOWING PERSONS AND FILE DOCUMENTS IN SUPPORT OF SHARE APPLICATION MONEY: 12 ITA NO.85/CTK/2017 ASSESSMENT YEAR :2010 - 2011 SL. NO . NAME OF THE PERSON AND ADDRESS 01. NANDAN MOHANTY, JHARAPADA ,BDA COLONY,BHUBANESWAR. 02. SONALIRAJ MOHANTY,JHARAPAD A ,BDA COLONY, BHUBANESWAR. 03. BASANTA SWAIN,OSANGARA, JIGARANA, KENDRAPARA. 04. BANAMBAR SAMALALATI BHARATPUR. 05' MURALIDHAR PANIGRAHI, KHAIRAJALA.PO - ALASU. 06. PRAMOD KUMAR PANDA, SUNARIBUGUDA,MADHUPALI. 07. BIBHUDATTASAMAI.BARAMUNDA.H.B.COLONY, BHUBANESWAR. 03.. 08. MANOJ KUMAR MUDULI. BNATAPARA.SALIPUR. 09. PRABIR KUMAR SWAINA ,SSILO,BALAKATI. 10. BICHITRANANDA SWAIN,ANDEISAHI.JAGATPUR.CUTTACK . 9. IN RESPONSE THERETO, THE ASSESSEE FILED INCOME TAX RETURN OF SHRI NANDAN MOHANTY AND SONALI RAJ MOHANTY . THE ASSESSEE ALSO SUBMITTED PAN OF SAID TWO PERSONS AND POINTED OUT THAT THEIR INCOME FOR THE ASSESSMENT YEAR 2010 - 2011 WAS RS.6,99,710/ - AND RS.2,50,000/ - , RESPECTIVELY AND SIMILAR AMOUNT OF INCOME WAS ALSO SHOWN BY THEM IN THEIR EARLIER YEARS RETURN OF INCOME . THEREAFTER, THE ASSESSING OFFICER ADDED THE ENTIRE AMOUNT OF RS.44,00,000/ - TO THE INCOME OF THE ASSESSEE BY TREATING THE SHARE APPLICATIONS AS BOGUS. 10. ON APPEAL, THE CIT(A) CONFIRMED THE ACTION OF THE ASSESSING OFFICER. 11. I FIND THAT IN R ESPECT OF RECEIPT OF RS.7,50,000/ - FROM SHRI NANDAN MOHANTY AND RS.3,25,000/ - FROM SONALI RAJ MOHANTY, THE ASSESSEE HAS NOT ONLY FILED THEIR PAN BUT ESTABLISHED THEIR IDENTITY AND ALSO FILED COPY OF RETURN OF INCOME TO ESTABLISH THEIR CREDITWORTHINESS. IT IS OBSERVED THAT BOTH OF THEM ARE DIRECTORS OF THE ASSESSEE COMPANY AND HAVE CONFIRMED THE ABOVE TRANSACTION OF SHARE APPLICATION BY SIGNING THE AUDITED ACCOUNTS OF THE ASSESSEE. THUS, IN MY CONSIDERED VIEW, THE INITIAL ONUS WHICH WAS 13 ITA NO.85/CTK/2017 ASSESSMENT YEAR :2010 - 2011 ON THE ASSESSEE UND ER LAW IN RESPECT OF TRANSACTION IN QUESTION WAS DULY DISCHARGED BY THE ASSESSEE COMPANY. I FIND THAT NO MATERIAL HAS BEEN BROUGHT ON RECORD BY THE ASSESSING OFFICER TO SHOW THAT ABOVE TRANSACTION OF SHARE APPLICATION WAS BOGUS. THEREFORE, IN MY CONSIDER ED VIEW ADDITION OF RS.7,50,000/ - AND RS.3,25,000/ - CANNOT BE SUSTAINED. 12. FURTHER, IN RESPECT OF SHARE APPLICATION OF RS.35,000 / - EACH RECEIVED FROM 8 PERSONS AGGREGATING TO RS.2,80,000/ - , I FIND THAT THE ASSESSEE COULD NOT FILE ANY DOCUMENTARY EVIDENCE IN SUPPORT OF ABOVE CLAIM OF RECEIPT OF SHARE APPLICATION MONEY INSPITE OF THE FACT THAT IT WAS CALLED UPON BY THE ASSESSING OFFI CER TO DO SO. THE SOLE ARGUMENT OF THE ASSESSEE IS THAT IN THE SUBSEQUENT ASSESSMENT YEAR, SHARES WERE DULY ALLOTTED TO THE PERSONS. IN MY CONSIDERED VIEW, MERELY FROM THE ABOVE FACT IT CANNOT BE HELD THAT THE ONUS WHICH WAS ON THE ASSESSEE TO PROVE THE GENUINENESS OF SHARE APPLICATION MONEY WAS DISCHARGED BY IT. THEREFORE, I DO NOT FIND ANY GOOD REASON TO INTERFERE WITH THE ORDERS OF LOWER AUTHORITIES TO THE EXTENT OF ADDITION OF RS.2,80,000/ - PERTAINING TO THE SAID 8 PERSONS. 13. IN RESPECT OF BALANCE SHARE APPLICATION MONEY OF RS.30,45,000/ - RELATING TO 87 PERSONS, I FIND THAT THE ASSESSEE HAS DULY FURNISHED THEIR NAME AND ADDRESS TO THE ASSESSING OFFICER DURING THE COURSE OF ASSESSMENT PROCEEDINGS. THEREAFTER THE ASSESSING OFFICER NOT MADE ANY ENQUIR Y IN RESPECT OF SAID 87 PERSONS. THE ASSESSING OFFICER ALSO NOT REQUIRED THE ASSESSEE TO FURNISH ANY FURTHER MATERIAL IN RESPECT OF SHARE 14 ITA NO.85/CTK/2017 ASSESSMENT YEAR :2010 - 2011 APPLICATION MONEY RECEIVED FROM SAID 87 PERSONS. IN MY CONSIDERED VIEW, THE ADDITION OF RS.30,45,000/ - RELATING TO 8 7 PERSONS COULD NOT HAVE BEEN MADE BY THE ASSESSING OFFICER WITHOUT MAKING ANY FURTHER ENQUIRY. THEREFORE, ADDITION OF RS.30,45,000/ - IS NOT SUSTAINED. THUS, OUT OF RS.44,00,000/ - , ADDITION OF RS.41,20,000/ - IS HEREBY DELETED AND ADDITION OF RS.2,80,000/ - IS CONFIRMED. 14 . IN THE RESULT, APPEAL FILED BY THE ASSESSEE IS PARTLY ALLOWED. ORDER PRONOUNC ED IN THE OPEN COURT ON 09 /08 /2017. SD/ - ( N.S SAINI) A CCOUNTANT MEMBER CUTTACK; DATED 09 /08 /2017 B.K.PARIDA, SPS COPY OF THE ORDER FORWARDED TO : BY ORDER, SR.PRIVATE SECRETARY ITAT, CUTTACK 1. THE APPELLANT : MAKEWAY CONSULTANCY PVT LTD., PLOT NO.232, SAHEED NAGAR, BHUBANESWAR 2. THE RESPONDENT: DCIT, CIRCLE 1(1), BHUBANESWAR 3. THE CIT(A) - 1, BHUBANESWAR 4. PR.CIT - 1, BHUBANESWAR 5. DR, ITAT, CUTTACK 6. GUARD FILE. //TRUE COPY//