Appeal Details
Counselvise Citation
[2022] 106 COUNSELVISE.COM (IT) 0249 (ITAT-DELHI)
Assessee PAN
Bench
Appeal Number
CRN Number
Duration Of Justice
5 month(s) 12 day(s)
Appellant
Respondent
Appeal Type
Income Tax Appeal
Pronouncement Date
11-01-2022
Appeal Filed By
Assessee
Order Result
Allowed
Bench Allotted
E
Assessment Year
2013-2014
Appeal Filed On
29-07-2021
Judgement Text
IN THE INCOME TAX APPELLATE TRIBUNAL DELHI BENCH ‘E’, NEW DELHI Before Sh. Amit Shukla, Judicial Member Dr. B. R. R. Kumar, Accountant Member (Through Video Conferencing) ITA No. 925/Del/2021 : Asstt. Year : 2010-11 ITA No. 926/Del/2021 : Asstt. Year : 2011-12 ITA No. 927/Del/2021 : Asstt. Year : 2012-13 ITA No. 928/Del/2021 : Asstt. Year : 2013-14 ITA No. 929/Del/2021 : Asstt. Year : 2014-15 Nimbus Project Ltd., 1001-1006, Narain Manzil, 23, Barakhamba Road, New Delhi-110001 Vs DCIT, Central Circle-2, Noida (APPELLANT) (RESPONDENT) PAN No. AAACN0116H ITA No. 923/Del/2021 : Asstt. Year : 2012-13 Nimbus Multi commodity Brokers Pvt. Ltd. (formerly Nimbus Multi commodity Brokers Ltd.), 1001-1006, Narain Manzil, 23, Barakhamba Road, New Delhi-110001 Vs DCIT, Central Circle-2, Noida (APPELLANT) (RESPONDENT) PAN No. AAACN2195G ITA No. 924/Del/2021 : Asstt. Year : 2012-13 Bipin Agarwal, 1001-1006, Narain Manzil, 23, Barakhamba Road, New Delhi-110001 Vs DCIT, Central Circle-2, Noida (APPELLANT) (RESPONDENT) PAN No. AEWPA2901C Assessee by : Sh. Rajiv Khandelwal, CA Revenue by : Ms. Deepshikha Sharma, CIT DR Date of Hearing: 11.11.2021 Date of Pronouncement: 12.01.2022 ITA No. 923/Del/2021 Nimbus Multicommodity Brokers Pvt. Ltd. ITA No. 924/Del/2021 Bipin Agarwal ITA Nos. 925 to 929/Del/2021 Nimbus Project Ltd. 2 ORDER Per Dr. B. R. R. Kumar, Accountant Member: The present appeals have been fil ed by the assessee and the assessee agai nst the orders of the l d. CIT(A), Kanpur-4 dated 19.07.2021. 2. Si nce, the issues i nvol ved i n all these appeal s are i denti cal , they were heard togeth er and bei ng adjudi cated by a common order. 3. In ITA No. 925/Del /2021, foll owi ng grounds have been rai sed by the assessee: “1. The Commissioner of Income-tax (Appeals) - 4, Kanpur (hereinafter referred to as the CIT(A)) erred in upholding the action of the Deputy Commissioner of Income tax, Central Circle, Noida (hereinafter referred to as the Assessing Officer)in issuing notice under section 153 A of the Act. The appellants contend that on the facts and in the circumstance of the case and in law, the notice issued under section 153A is ab initiovoid inasmuch as the jurisdictional conditions for the issue of the said notice have not .been complied with and consequently, the assessment framed is bad in law and needs to be quashed. The appellants further, contend th at on the facts and in the circumstances of the case and in law, the CIT(A) erred in confirming the action of the Assessing Officer in assuming jurisdiction and framing the assessment order under section 153 A of the Act. ITA No. 923/Del/2021 Nimbus Multicommodity Brokers Pvt. Ltd. ITA No. 924/Del/2021 Bipin Agarwal ITA Nos. 925 to 929/Del/2021 Nimbus Project Ltd. 3 2. The Assessing Officer and the appropriate authority under section 153D erred in not properly complying with the provisions of section 153D of the Act. The appellants contend that on the facts and in the circumstances of the case and in law, the Assessing Officer and the appropriate authority under section 153D ought to have appropriately complied with the provisions of section 153D of the Act and having not so complied, the entire assessment proceedings are bad in law and thus, the impugned assessment order needs to be quashed. 3. The CIT(A) erred in upholding the action of the Assessing Officer in making an addition of Rs 34,00,000 under section 68 of the Act, being unsecured loan obtained from Kaypee Mercantile Private Limited on the ground that that the appellants have failed to prove the identity, creditworthiness and gen uineness of the lender and therefore, the loan obtained is unexplained. The appellants contend that on the facts and in the circumstances of the case and in law, the impugned addition is made on patently erroneous facts and law, and hence, not tenable; thus, requires to be deleted. Further, the said loan has been repaid during the year under reference and hence, the impugned addition ought not to have been made by the Assessing Officer. The appellants further, contend that the appellants have paid interest Rs. 2,06,137 on the said loan which has been allowed by the Assessing Officer and thus, the Assessing Officer has fallen in error in making addition of the impugned loan under reference received from Kaypee Mercantile Private Limited. 4. The CIT(A) erred in upholding the action of the Assessing Officer in charging interest under section s 234A, 234B and 234C of the Act, respectively. ITA No. 923/Del/2021 Nimbus Multicommodity Brokers Pvt. Ltd. ITA No. 924/Del/2021 Bipin Agarwal ITA Nos. 925 to 929/Del/2021 Nimbus Project Ltd. 4 The appellants contend that the Assessing Officer ought not to have charged impugned interest under section s 234A, 234B and 234C inasmuch as - (a) the Assessing Officer has not given an opportunity to the appellants before charging the said interest as required by ;the principles of nature justice. (b) the charging of interest is n ot in accordance with law.” 4. A search & sei zure operati on u/s 132 of the Income Tax Act, 1961 was conducted on 26.08.2015 at the premi ses of the assessee compri sing IITL Ni mbus Group of cases. The assessee was engaged in real estate busi ness i n and around NCR. 5. Consequent to the search operati on, noti ces u/s 153A have been i ssued to the assessee. In response, the assessee fil ed i ts return showi ng income of Rs.1,78,02,041/- for A.Y. 2010-11, Rs. 3,40,02,769/-for A.Y. 2011-12, Rs. 2,89,00,780/- for A.Y. 2012-13, Rs. 5,88,11,000/- for A.Y. 2013-14 & Rs. 1,13,46,070/-for A.Y. 2014-15. The assessments have been compl eted u/s 153A making the foll owi ng adjustments to the i ncome of the assessee. 6. Addi ti on made by the AO: A. Y. H e ad of a d d ition Ad d ition Re fe re nce to s eiz ed ma te ria l: ye s /No Da te of fi ling of orig ina l re turn Ni mb us P r ojects Ltd. 2010-11 U ns ec ured loa n 34, 00, 000 No 20. 09. 2010 2011-12 U ns ec ured loa n 1, 50, 00, 000 No 23. 09. 2011 2012-13 U ns ec ured loa n 20, 90, 00, 000 No 28. 09. 2012 ITA No. 923/Del/2021 Nimbus Multicommodity Brokers Pvt. Ltd. ITA No. 924/Del/2021 Bipin Agarwal ITA Nos. 925 to 929/Del/2021 Nimbus Project Ltd. 5 2013-14 Sha re p remium 25, 50, 00, 000 No 25. 09. 2013 2014-15 S h ar e p r emi u m 2 1 , 0 0 , 00 , 0 0 0 No 3 0 . 0 9 . 20 1 4 Ni mb us M u l ti commod i ti es Br ok ers Pv t. Ltd. 2012-13 Sha re p remium 2, 00, 00, 000 No 19. 09. 2012 B i p i n A g arwal 2012-13 U ns ec ured loa ns 2, 50, 00, 000 No 08. 09. 2012 7. Accordi ng to the provi si ons of Secti on 143(2), no noti ce shall be served on the assessee after expi ry of 6 months from the end of the F.Y. in whi ch the return i s furni shed the ti me li mit for i ssue of noti ce for the A.Y. 2014-15 stands expi red. 8. At the outset, i t was argued by the l d. AR that no i ncri mi nati ng materi al bel ongi ng to the assessee was found and sei zed during the course of search & sei zure operati ons u/s 132 of the IT Act on Nimbus Group. He reli ed on the arguments taken before the l d. CIT(A), the crux of the case l aws referred i n those arguments i s as under: “Delhi High Court has expl ained the l egal positi on that emerges as under: (i ) "Once a search takes pl ace under secti on 132, noti ce under secti on 153A(1) will have to be mandatori l y i ssued to the person searched requi ri ng hi m to fil e returns for si x assessment years i mmedi atel y precedi ng the previ ous year rel evant to the assessment year i n whi ch the search takes pl ace. (ii ) Assessments and reassessments pendi ng on the date of the search shal l abate. The total i ncome for such assessment ITA No. 923/Del/2021 Nimbus Multicommodity Brokers Pvt. Ltd. ITA No. 924/Del/2021 Bipin Agarwal ITA Nos. 925 to 929/Del/2021 Nimbus Project Ltd. 6 years will have to be computed by the Assessi ng Offi cers as a fresh exerci se. (iii) The Assessi ng Offi cer will exerci se normal assessment powers i n respect of the six years previ ous to the rel evant assessment year in whi ch the search l akes pl ace. The Assessi ng Offi cer has the power to assess and reassess the 'total i ncome' of the aforementi oned si x years in separate assessment orders for each of the si x years. In other words there wi ll be onl y one assessment order i n respect of each of the si x assessment years ‘i n whi ch both the di scl osed and the undi scl osed income woul d be brought to tax’. (i v) Al though secti on 153A does not say that addi ti ons shoul d be stri ctly made on the basi s of evi dence found i n the course of the search, or other post-search materi al or i nformati on avail abl e wi th the Assessi ng Offi cer whi ch can be rel ated to the evi dence found, i t does not mean that the assessment 'can be arbi trary or made wi thout any rel evance or nexus with the sei zed materi al . Obvi ousl y an assessment has to be made under thi s secti on onl y on the basi s of sei zed materi al . (v) In absence of any i ncri mi nating materi al , the compl eted assessment can be rei terated and the abated assessment o r reassessment can be made. The word 'assess' i n secti on 153A i s rel atabl e to abated proceedi ngs (i .e., those pendi ng on the date of search) and the word 'reassess' to compl ete assessment proceedi ngs. ITA No. 923/Del/2021 Nimbus Multicommodity Brokers Pvt. Ltd. ITA No. 924/Del/2021 Bipin Agarwal ITA Nos. 925 to 929/Del/2021 Nimbus Project Ltd. 7 (vi) In sofar as pendi ng assessments are concerned, the juri sdi cti on to make the origi nal assessment and the assessment under secti on 153A merges i nto one. Onl y one assessment shall be made separatel y for each assessment year on the basi s of the fi ndi ngs of the search and any other materi al exi sting or brou ght on the record of the Assessi ng Offi cer. (vii) Compl eted assessments can be i nterfered wi th by the Assessi ng Offi cer whil e maki ng the assessment under secti on 153A onl y on the basi s of some i ncrimi nati ng materi al unearthed duri ng the course of search or requi si ti on of documents or undi scl osed i ncome or property di scovered i n the course of search whi ch were not produced or not al ready di scl osed or made known in the course of ori gi nal assessment. Hon'bl e Bombay High Court i n the case of CIT vs. Conti nental Wareh ousi ng Corporati on (Nhava Sheva) Ltd. (58 taxmann.com 78) wherein i t has been hel d as under: "31. We, therefor e, hold that the Special Bench's und erstanding of the legal provision is not perverse nor does it suffer from any error of law apparent on the fac e o f the r ecord. The Special Bench in that regard held as under: “48. The provision under s ection 153A is applicable where a search or requisition is initiated after 31.5.2003. In such a case the AO is obliged to issue notice u/s 153A in respect of 6 preceding years, preceding the year in which s earch etc. has been initiated. Thereafter he has to ass ess or reassess the total income of these si x years. It is obligatory on the part of the AO to assess or r eassess ITA No. 923/Del/2021 Nimbus Multicommodity Brokers Pvt. Ltd. ITA No. 924/Del/2021 Bipin Agarwal ITA Nos. 925 to 929/Del/2021 Nimbus Project Ltd. 8 total income of the six years as provided in section 153A(1)(b) and reiterated in the 1 st proviso to this section. The second proviso states that the assessm ent or r eassessment pending on the date o f income which was vested in him earlier independent of the searc h and which came to an end due to initiation of the search. 50. The provision contained in section 132(1) empowers the officer to issue a warrant of search o f the premises of a person where any one or more of co nditions mentioned therein is or are satisfied, i.e. a) summons or notice has been issued to produce books of account or other documents but such books of account or documents have not been produced, b) summons or notice has been or might b e issued, he will not produce the book s of account or other documents mentioned therein, or c) he is in pos session of any money or bullion etc. which repres ents wholly or partly the income or property whic h has not been and which would not be disclosed for the purpose o f assessment, called as undisclosed income or property. We find that the provision in sec tion 132 (1) do es not use the word "incriminating document". Clauses (a) and (b) of s ection 132(1) employ the words "books of account or other documents". For harmonious interpretation of this provision with provision contained in section 153A, all the three co nditions on satisfaction of which a warrant of search can be issued will have to be taken into account. 51. Having held so, an assessment or reassessment u/s 153A arises only when a search has been initiated and conducted. Therefor e, such an assessm ent has a vital link with the initiation and conduct of the search. We have m entioned that a s earch can be authorized on satisfaction of one o f the three conditions enum erated earlier. Therefore, while interpreti ng the provision contained in section 153A, all these conditions will have to be taken into account. ITA No. 923/Del/2021 Nimbus Multicommodity Brokers Pvt. Ltd. ITA No. 924/Del/2021 Bipin Agarwal ITA Nos. 925 to 929/Del/2021 Nimbus Project Ltd. 9 With this, we proceed to literally interpret to provision in 153A as it exists and read it alongside the provision contained in sectio n 132(1). 52. The provision comes into operation if a search or requisition is initiated after 31.5.2003. On satisfac tion of this condition, the AO is under obligation to issue notice to the person requiring him to furnish the return of income of six years immediately prec eding the year of s earch. The word used is "shall" and, thus, there is no optio n but to issue such a notice. Ther eafter he has to assess or reassess total income of these six years. In this respect also, the word used is "shall" and, therefor e, the AO has no option but to assess o r reassess the total income of these six years. The pending proceedings shall abate. This means that out of si x years, if any assessment or reassessment is pending on the date of initiation of the search, it shall abate. In other words pending proceedings will not be proceeded with thereafter. The assessment has now to be made u/s 153A ( 1)(b) and the first proviso. It also means that only one ass essment will be made under the aforesaid provisions as the two proceedings i.e. assessment or reassessment proceedings and proceedings under this provision mer ge into one. If assessment made under sub-sec tion (1) is annulled in appeal or other l egal proceedings, then the abated ass essment or reassessment shall revive. This means that the assessm ent or r eassessment, which had abated, shall be made, for which extension o f time has been provided under section 153B. 53. The question now is what is the scope o f assessm ent or reassessment of to tal income u/s 153A (1) (b) and the firs t provision? We are of the view tha t for answering this question, guidance will have to be sought from section 132( 1). If any books o f ITA No. 923/Del/2021 Nimbus Multicommodity Brokers Pvt. Ltd. ITA No. 924/Del/2021 Bipin Agarwal ITA Nos. 925 to 929/Del/2021 Nimbus Project Ltd. 10 account or other documents relevant to the assessment had not been produced in the cours e of original assessment and found in the course of s earch in our humble opinion such books of account or other documents have to be tak en into account while making assessment or reass essment o f total income under the aforesaid provision. Similar position will obtain in a case where undisclosed income or undisclosed property has been found as a consequence of search. In other words, harmonious interpretation will produce the following results:- a) In so far as pending assessments are concerned, the jurisdiction to make original assessment and assessment u/s 153A merge into one and only one assessm ent for each assessment year shall be made separately on the basis of the findings of the search and any other material existing or brought on the r ecord of the AO. (b) In respect of non-abated asses sments, the assessment wilt b e made on the basis of books of account or other documents no t produced in the cours e of original assessment but found in the course of search, and undisclosed income or undisclosed property discovered in the course o f search. 54. It may be mentioned here that Ld. Counsel for All Cargo Global Logistics Ltd. was questioned about the scope of pending assessments as it was his contention that all six assessments are to be made, if necessary, on the basis of undisclosed income discovered in the course o f search. He was specifically questioned about the jurisdiction of the AO to make o riginal assessment along with assessment u/s 153A, merging into o ne. However he took an evasive view submitting that this question need no t b e decided in his case although the question of jurisdiction u/s 153A was vehemently ITA No. 923/Del/2021 Nimbus Multicommodity Brokers Pvt. Ltd. ITA No. 924/Del/2021 Bipin Agarwal ITA Nos. 925 to 929/Del/2021 Nimbus Project Ltd. 11 pressed on account of which ground No. 1 in the appeal for assessment year 2004-05 was admitted as additional around. He also wanted the additional ground to be retained in case of any future contingency." 9. The l d. AR submi tted that duri ng the year under consi derati on, the Assessi ng Offi cer had not accepted the i ncome offered by assessee and made the addi ti on whi ch was not based on any i ncri minati ng documents found duri ng the course of search acti on. Thi s fact can be verifi ed form the assessment order, wherei n the Assessi ng Offi cer had not menti oned anything about the i ncri mi nati ng documents sei zed duri ng the course of search acti on. The addi ti on has been made merel y on the basi s of so cal l ed i nvesti gati on report recei ved from Kolkata. In spi te of extensive search proceedi ngs carri ed out at the premi ses of the appellant, no i ncri minati ng evi dence whatsoever was found. 10. It was further argued that now a well deci ded judi ci al pri nci pal that the assessments made under secti on 153A wi thout any i ncri mi nati ng materi al bei ng found duri ng the search acti on are not i n accordance wi th l aw and the consequenti al resul t i s that the return/ori ginal assessments whi ch have acqui red finality are to be rei terated. Therefore, i t i s submi tted that the addi ti ons made by the AO otherwi se than on the basi s of i ncri mi nati ng evi dences found duri ng the course of search are bad i n l aw and deserve to be deleted. ITA No. 923/Del/2021 Nimbus Multicommodity Brokers Pvt. Ltd. ITA No. 924/Del/2021 Bipin Agarwal ITA Nos. 925 to 929/Del/2021 Nimbus Project Ltd. 12 11. In the li ght of the above arguments, we have perused the order of the l d. CIT(A). 8. Di scussi on & deci si on on l egal Grounds of these cases by the Ld. CIT(A): 8.1 Ground nos. 1 & 2 for al l the assessment years pertai n to l egal challenge to the noti ce u/s 153A of the Act. It i s al so submi tted by the ld. A.R. of the appel l ant that order u/s 153A of the Act i s i nvali d i n absence of i ncri mi nati ng materi al found as a resul t of search for these rel evant assessment years i n appeal s. Appel l ant al so pl aced reliance on the foll owi ng case l aws: i. CIT v. Kabul Chawl a (2016] 380 ITR 573/(2015) 234 Taxman 300/61 taxmann.com 412 (Del hi ), ii . All Cargo Gl obal Logi sti cs Li mited Vs. DCIT [2012] 18 ITR 106, iii . ACIT, Central Ci rcl e-16, New Delhi vs. Vi nita Chaurasi a, ITA No. 5957/DEL/2015 dated 05.10.2018, i v. ACIT, Central Ci rcl e-4, New Del hi vs. M/s. Mool chand Steel s Pvt. Ltd., ITA No. 2544/DEL/2015 dated 10.10.2018 etc. 8.2 Undersi gned has carefull y consi dered the submi ssi on and the case l aws ci ted by the appellant. However, consi deri ng the express provi si ons of secti on 153A of the Act, undersi gned woul d li ke to di ffer wi th the submi ssi on of the appell ant, because secti on 153A of the Act cl early provi des the power to AO to assess/reassess the cases of person searched u/s 132(1) ITA No. 923/Del/2021 Nimbus Multicommodity Brokers Pvt. Ltd. ITA No. 924/Del/2021 Bipin Agarwal ITA Nos. 925 to 929/Del/2021 Nimbus Project Ltd. 13 of the Act for i mmedi ately si x precedi ng years. Secti on 153A of the Act does not provi de exi stence of incri minati ng materi al as essenti al requi rement. In the opi ni on of the undersi gned, the acti on u/s 132/132A of the Act woul d automati call y tri gger the provi si ons of secti on 153A of the Act for computati on of total i ncome of the appell ant. Thi s provi si on does not restri ct the Assessi ng Offi cer to take action i n those cases where assessment has al ready been compl eted. Si nce, the AO has ri ghtl y exerci sed hi s powers to assess/reassess the case u/s 153A of the Act. The undersigned fi nds no force i n the submi ssi on of the appell ant and therefore, thi s ground i s di smi ssed. 8.3 The contenti on of the i d. A.R. i s al so not acceptabl e after pl aci ng reli ance on foll owi ng judi cial pronouncements: In the case of E.N. Gopakumar Vs. CIT (2016) 75 taxmann.com 215 (Keral a)], Hon'bl e Kerala High Court hel d that assessment proceedi ngs generated by i ssuance of a noti ce under secti on 153A(1)(a) can be concl uded agai nst i nterest of assessee i ncl udi ng maki ng addi ti ons even wi thout any i ncrimi nati ng materi al bei ng avail abl e agai nst assessee i n search under secti on 132 on basi s of whi ch noti ce was i ssued under secti on 153A(1)(a). The above order has been passed after consi deri ng cases of: i. CIT vs. Kabul Chawl a [2016] 380 ITR 573/(2015) 234 Taxman 300/61 taxmann.com 412 (Del hi ), ITA No. 923/Del/2021 Nimbus Multicommodity Brokers Pvt. Ltd. ITA No. 924/Del/2021 Bipin Agarwal ITA Nos. 925 to 929/Del/2021 Nimbus Project Ltd. 14 ii . CIT vs. Conti nental Warehousi ng Corpn. (Nhava Sheva) Ltd. [2015] 374 ITR 645/232 Taxman 270/58 taxmann.com 78 (Bom.), iii . Pri nci pal CIT vs. Kurel e Paper Mill s (P.) Ltd. [2016] 380 ITR 571 (Del hi), i v. CIT vs. Lancy Constructi ons [2016] 383 ITR 168/237 Taxman 728/66 taxmann.com 264 (Kar.) v. CIT vs. ST Franci es Cl ay Decor Til es [2016] 240 Taxman 168/70 taxmann.com 234 (Ker.) and vi . CIT vs. PromyKuri akose [2016] 386 ITR 597 (Ker.) Further, i n the case of CIT Vs. Raj Kumar Arora [2014] 52 taxmann.com 172 (All ahabad/2014) 367 ITR 517 (All ahabad)- Hon'ble Allahabad High Court h el d that Assessi ng Offi cer has power to reassess returns of assessee not onl y for undi scl osed i ncome found duri ng search operati on but al so wi th regard to materi al avail abl e at time of ori gi nal assessment. Si mil arl y, i n the case of CIT Vs. Kesarwani Zarda Bhandar Sahson Al l d. iTA No. 270 of 2014 (All ahabad), Hon'bl e Allahabad High Court hel d that Assessi ng Offi cer has power to reassess returns of assessee not only for undi scl osed i ncome found duri ng search operati on but al so wi th regard to materi al avail abl e at time of ori gi nal assessment. Al so, in the case of CIT Vs. St. Franci s Cl ay Decor Tiles (385 ITR 624)-Hon'bl e Kerala High Court hel d that noti ce i ssued under secti on 153A-return must be fil ed even if no i ncrimi nati ng documents di scovered duri ng search. ITA No. 923/Del/2021 Nimbus Multicommodity Brokers Pvt. Ltd. ITA No. 924/Del/2021 Bipin Agarwal ITA Nos. 925 to 929/Del/2021 Nimbus Project Ltd. 15 In the case of CIT Vs. Anil Kumar Bhati a (24 taxmann.com 98, 211 Taxman 453, 352 ITR 493)- Hon'bl e Delhi High Court hel d that juri sdi cti on of AO under 153A i s to assess total i ncome for the year and not restri cted to sei zed materi al Post search reassessment i n respect of all 6 years can be made even i f ori gi nal returns are al ready processed u/s 143(1)(a) - Assessi ng Offi cer has power u/s 153A to make assessment for all si x years and compute total income of assessee, i ncl udi ng undi scl osed i ncome, notwi thstandi ng that returns for these years have al ready been processed u/s 143(1)(a). Even i f assessment order had al ready been passed i n respect of all or any of those si x assessment years, ei ther under secti on 143(1)(a) or secti on 143(3) pri or to ini ti ati on of search/requi si ti on, still Assessi ng Offi cer i s empowered to reopen those proceedi ngs under secti on 153A wi thout any fetters and reassess total income taking note of undi scl osed i ncome, i f any, unearthed duri ng search. In the case of Fil atex Indi a Ltd Vs. CIT (49 taxmann.com 465)- Hon'bl e Delhi High Court hel d that duri ng assessment under secti on 153A, additi ons need not be restri cted or li mited to i ncri mi nati ng materi al , found duri ng course of search. 8.4 In vi ew of the detail ed di scussi on menti oned here-in-above and consi deri ng the judi ci al pronouncements ci ted here-in- above, l egal grounds of appeal of the appell ant are hereby di smi ssed for all assessment years. ITA No. 923/Del/2021 Nimbus Multicommodity Brokers Pvt. Ltd. ITA No. 924/Del/2021 Bipin Agarwal ITA Nos. 925 to 929/Del/2021 Nimbus Project Ltd. 16 12. At the end of the arguments, the ld. AR submitted that owing t o the different ratio laid down by the differen t Hon’ble High Courts, the legal issue would not be pressed if the matt er is decided on merits of the case. Since, th e Bench decided on merit s of the case, th e jurisdictional/legal issue is not required t o be adjudicat ed. Discussion & decision on merits of thes e cases: 13. A.Y. 2010-11, A.Y. 2011-12 and A.Y. 2012-13 pertai n to addi ti on of Rs.34,00,000/-, Rs.1,50,00,000 an d Rs.20,90,00,000 respecti vel y on account of unsecured l oans recei ved from M/s. Kaypee Mercantile Pvt. Ltd. and M/s. Ci ndy Goods & Suppl y Pvt. Ltd. A.Y. Amount Nature Recei ved from 2010-11 34,00,000 Unsecured Loan Kaypee Mercantil e Pvt. Ltd. 2011-12 1,50,00,000 Unsecured Loan Ci ndy Goods & Suppl y Pvt. Ltd. 2012-13 20,90,00,000 Unsecured Loan Ci ndy Goods & Suppl y Pvt. Ltd. ITA No. 925/Del/2021 for A.Y. 2010-11 Kaypee Mercantile Pvt. Ltd.: 14. Wi th regard to Kaypee Mercanti le Pvt. Ltd., the revenue all eged that before remitti ng the funds to the assessee, the l ender recei ved funds of si mil ar amounts. The l ender had no capaci ty to l end the money si nce no suffi ci ent bal ance i s bei ng ITA No. 923/Del/2021 Nimbus Multicommodity Brokers Pvt. Ltd. ITA No. 924/Del/2021 Bipin Agarwal ITA Nos. 925 to 929/Del/2021 Nimbus Project Ltd. 17 mai ntained by the l ender i n i ts bank statement. Further, the assessee and l ender has been asked to expl ai n the source of funds received by the l ender which i s thereafter given to the assessee, n o detai l s were furni shed. The revenue further hel d that these compani es are paper compani es of known accommodati on entry operati ons. The revenue al so reli ed on the l etter of the Deputy Di rector (Inv.), Uni t-II, Kol kata i n response to the commi ssi on i ssued u/s 131(1)(d) dated 14.10.2015. Hence, the i denti ty, credi tworthiness and the genui neness of the source of funds coul d not be expl ai ned. 15. Aggri eved the assessee filed appeal before the l d. CIT(A). 16. Wi th regard to the Kaypee Mercantil e Pvt. Ltd., the l d. CIT(A) dul y consi dered the report of the Inspector of the Kol kata Investi gati on Uni t whi ch i s as under: “As directed by the DDIT(Inv.), Unit-2(2), we visited the place at the given address. No office of suc h entity has been found there. No signboard in the name of suc h company was noticed anywhere in th e building. We enquired with the loca l inhabitants but nobody could give any information about the said c ompany. Thus, the company has not been found to exist at the given address.” 17. The report al so i ndi cates that summons coul d not be served. 18. The ld. CIT(A) held that th e t otal income in th e ITR for the relev ant assessment y ear of the lender company was Rs.45,540/- and since the credits preceded the debits ITA No. 923/Del/2021 Nimbus Multicommodity Brokers Pvt. Ltd. ITA No. 924/Del/2021 Bipin Agarwal ITA Nos. 925 to 929/Del/2021 Nimbus Project Ltd. 18 in the bank account on the s ame dat es, th e creditworthiness of the lender cannot be considered as genuine. The ld. CIT(A ) has relied on the judgments of various Courts which are as un der: CIT Vs Mai than Internati onal 375 ITR 123 (Cal .) B.R. Petrochem (P.) Ltd. Vs. ITO 81 taxmann.com 424 (Madras) Ri ck Lunsford Trade & Investment Ltd Vs. CIT 2016-TIOL- 207-SC-IT Navodava Castl e Pvt. Ltd. Vs. CIT 230 Taxman 268 (SC) PCIT Vs. Vi kram Si ngh (2017) 85 taxmann.com 104 (Del .) CIT Vs. N.R. Portfoli o Pvt. Ltd. in ITA No. 1018, 1019/2100 (Del .) Pragati Fi nanci al Management Pvt. Ltd. Vs. CIT i n C.A. 887 & 998 of 2016 & others CIT vs. Nova Prom oters & Fi nlese (P) Ltd. 342 ITR 169 (Del .) CIT vs. D.K. Garg 84 taxmann.com 257 (Del .) and many other judgments whi ch have been dul y perused. In nutshell , the l d. CIT(A) has confi rmed the addi ti on sol el y based on A. The returned i ncome of the l ender company was meager B. There were credi ts i n the bank account before i ssue of the l oan. ITA No. 923/Del/2021 Nimbus Multicommodity Brokers Pvt. Ltd. ITA No. 924/Del/2021 Bipin Agarwal ITA Nos. 925 to 929/Del/2021 Nimbus Project Ltd. 19 19. Before us, duri ng the arguments, the l d. AR submi tted that the revenue authori ti es fail ed to appreci ate the detail s provi ded duri ng the proceedi ngs to establ i sh the i denti ty, genuineness and credi tworthi ness of the transacti on undertaken by the assessee wi th the above menti oned party: PAN and address of the party Copy of Ledger Confi rmati on Copy of Bank Statement of appell ant Copy of ITRs, Bal ance Sheet and Profi t and l oss statement of the l ender Copy of Inter Corporate Deposi t Agreement between appel l ant and M/s KMPL Repl y to noti ce i ssued u/s 133(6) of the Act fil ed by M/s KMPL Copy of Bank statement of the l ender di scl osi ng source of l oan Confi rmati on of accounts of appell ant i n books of l ender etc. 20. Thus, i t was argued that i t i s cl early evi dent that the assessee has di scharged i ts onus of provi ng the requi rements of Secti on 68 of the I.T. Act i .e. i dentity of party, genui neness of the transacti on and credi tworthi ness of the party by provi di ng extensi ve evi dences. It was further argued that the observati on of the revenue that the l ender M/s KMPL was being operated by a certai n person namel y, Mr. Deepak Patawari who was an entry operator i s wrong on facts. The AO has not brou ght anythi ng on record to expl ai n as how such a concl usi on was drawn. It was ITA No. 923/Del/2021 Nimbus Multicommodity Brokers Pvt. Ltd. ITA No. 924/Del/2021 Bipin Agarwal ITA Nos. 925 to 929/Del/2021 Nimbus Project Ltd. 20 argued that Mr. Deepak Patawari was nei ther a Di rector nor a Sharehol der i n the company. The revenue authori ti es merely stated that it became evident from the “database” and no reference has been made known to the assessee nor confronted to the assessee whereas the revenue itsel f accepted that the l ender i s an establi shed joi nt stock company li sted at Bombay Stock Exchange. 21. The l d. AR further reli ed on the foll owi ng case l aws: CIT Vs. Ori ssa Corporati on P. Ltd. 159 ITR 78 (SC) PCIT-4 vs. Hi-Tech Resi dency Pvt. Ltd. (96 taxmann.com 403) (SC) CIT-1 vs. Apex Therm Packagi ng Pvt. Ltd. (42 taxmann.com 473) (Guj.) Anand Prakash Agarwal vd. ACIT 6 DTR 191 (All .) CIT vs. Jauhari mal Goel 147 Taxman 448 (All .) S. Hasti mal vs. CIT 49 1TR 273 (Mad.) Tol aram Daga vs. CIT 59 ITR 632 (Assam) CIT vs. Daulat Ram Rawatmull 87 ITR 349 (SC) Sarogi Credi t Corpn. vs. CIT 103 ITR 344 (Pat.) ACIT(Inv.) vs. Shree Ram Hard Coke & Alli ed Industri es 1 MTC 780 ITO vs. M.S. Advance (P.) Ltd. 188 Taxati on 181 (Tri b.) Vi nod Kumar Bhandari vs. ACIT 174 Taxati on 49 (Tri b.) Addl . CIT vs. Bahri Bros. (P.) Ltd. 154 ITR 244/22 CIT vs. Gangeshwari Metal Pvt. Ltd. (ITA No. 597/ 2012) (Del .) Nemi chand Kothari vs. CIT 264 ITR 254 (Gau.) ITA No. 923/Del/2021 Nimbus Multicommodity Brokers Pvt. Ltd. ITA No. 924/Del/2021 Bipin Agarwal ITA Nos. 925 to 929/Del/2021 Nimbus Project Ltd. 21 22. Heard the arguments of both the parti es and perused the materi al avail abl e on record. 23. From the record, we fi nd that the sol e reason for confi rmi ng the addi ti on was l ow income tax return i n the year of i ssue whereas it was contended that i t i s not the case for the subsequent years. Duri ng the assessment proceedi ngs, the l ender has furni shed that all the detail s i n response to th e noti ce i ssued by the Assessi ng Offi cer u/s 133(6). The repl y dated 21.12.2017 fil ed before the AO has been perused. Subsequent to the recei pt of the repl y from the l ender, the AO di d not conduct any further enqui ry. The report of the DDIT(Inv.), Kol kata reli ed upon by the l d. CIT(A) and the AO was much before 21.12.2017 i .e. wi th response to the l etter i ssued by the DDIT(Inv.), Noi da on 14.10.2015. It i s apparent from the facts on record, whil e as per the report of 2015, the noti ce u/s 131 coul d not be served whereas duri ng the assessment proceedi ngs i n 2017, the enti re detail s have been submi tted by the assessee. The response to the noti ce i ssued u/s 133(6) was full and comprehensi ve. The amounts have been recei ved by the assessee on 27.07.2009 of Rs.16,00,000/- and Rs.18,00,000/- on 31.07.2009 as ICD beari ng i nterest of 9%. The same has been repai d on 07.01.2014 al ong wi th the i nterest agreed upon. The date of search i n the group was conducted on 26.08.2015. Havi ng exami ned the recei pt of l oan i ndependentl y di sregardi ng the date of search, we fi nd that the assessee di scharge the onus, prov ed the recei pt and repayment of the l oan recei ved al ong wi th the i nterest and the same i s al so ITA No. 923/Del/2021 Nimbus Multicommodity Brokers Pvt. Ltd. ITA No. 924/Del/2021 Bipin Agarwal ITA Nos. 925 to 929/Del/2021 Nimbus Project Ltd. 22 been brought before the Assessi ng Offi cer duri ng the assessment proceedi ngs. Hence, the reasons gi ven by the revenue authori ties for treating the l oan amount u/s 68 i s factuall y and l egally not vali d. Hence, we hereby di rect the addi ti on made be obli terated. 24. In the resul t, the appeal i n ITA 925/Del /2021 for A.Y. 2010-11 i s all owed. ITA No. 926/Del/2021 for A.Y. 2011-12 ITA No. 927/Del/2021 for A.Y. 2012-13 Cindy Goods & Supply Pvt. Ltd.: 25. Wi th regard to unsecured l oan recei ved from Ci ndy Goods & Suppl y Pvt. Ltd., the assessee was asked by the AO vi de l etter dated 22.09.2017 to furni sh the confi rmed copy of account, bank statement and copies of ITRs, bal ance sheet and profi t & l oss account. In response to the l etter, the assessee submi tted copy of ITR, Bank statement, confi rmati on from the l ender. The assessee al so submi tted a copy of l oan facili tati on agreement whi ch i s si gned by i ndependent wi tnesses. It was submi tted that the l ender company was establi shed i n 1995 and regi stered with ROC Kol kata, the Di rectors bei ng Sh. Mandan Gopal Sharma and Sh. Vi rendra Tri pathy. The substanti al sharehol der of thi s company i s held by two enti ti es namely, M/s Bonanza Vani jya Pvt. Ltd. and M/s Bri jdham Merchandi se Pvt. Ltd. The AO hel d that the enqui ry report from DDIT(Inv.), Uni t- 2(2), Kolkata reveal s that the said compani es have been used ITA No. 923/Del/2021 Nimbus Multicommodity Brokers Pvt. Ltd. ITA No. 924/Del/2021 Bipin Agarwal ITA Nos. 925 to 929/Del/2021 Nimbus Project Ltd. 23 by di fferent accommodati on entry operators to facili tate accommodati on entri es in di fferent forms to vari ous benefi ci ary groups. The AO hel d that these compani es are paper compani es of known accommodati on entry operators. 26. The AO further hel d that duri ng the post search proceedi ngs, the statement of Shri Anshul Mi ttal, one of the di rectors of Cindy Goods & Servi ces Pvt. Ltd., Pabl a Leasing & Fi nance company and Gi ri Fi nanci al Servi ces Pvt. Ltd. was recorded on 20.10.2015 and he admi tted that he i s dummy di rectors of several compani es from whi ch the l oans/ share appl i cati ons have been recei ved by the IITL Ni mbus Group of compani es. Further, other di rectors of the group com pany Shri Vi pul Kumar, brother of Shri Anshul Mi ttal duri ng statement u/s 131 of the Act on 20/10/2015 admi tted the fact that he i s dummy di rector i n the companies controll ed and managed by Shri Bi pi n Aggrwal. The AO hel d that, 1. On traci ng the trail backward to locate the ori gi nal source of fundi ng in Ni mbus group .from such l ender compani es, i t was observed that such funds have been routed through many other paper compani es/firms/concerns/i ndi vi dual s whi ch were al so rai sed l oans to other group enti ti es as depi cted i n thei r bank statements. It has been observed that all such enti ti es i nvol ved in l ayering of funds are l ocated at vari ous addresses i n Del hi and Kol kata, whi ch are known for bei ng used for provi di ng vari ous accommodati on entri es, as reveal ed duri ng vari ous searches/surveys conducted by Investi gati on Wi ng. ITA No. 923/Del/2021 Nimbus Multicommodity Brokers Pvt. Ltd. ITA No. 924/Del/2021 Bipin Agarwal ITA Nos. 925 to 929/Del/2021 Nimbus Project Ltd. 24 2. Ni mbus group i s actuall y routi ng i ts own unaccounted money under the umbrell a of Unsecured Loans and i t i s nothi ng but i ts own unaccounted cash whi ch was generated out of booki ng of fl ats wi th customers i n thei r projects and i nfused back i n the form of unsecured l oans. 3. Hence, i t i s cl ear that the assessee group had recei ved funds from these enti ti es i s nothi ng but just a pass through enti ty whose mai n work i s to provi de accommodati on entri es to Nimbus group. Therefore, on traci ng out the source to source of funds, i t has been found that the funds have come from another enti ty. In the wri tten submi ssi on dated 17.11.2017, the assessee submi tted that ITR and confi rmati on and bank statement has been fil ed and the transacti ons are bonafi de. 27. Further, duri ng the assessment proceedi ngs the, assessee was gi ven an opportuni ty to furni sh i ts comments on the enqui ry report of the i nvesti gati on uni t, Kol kata whi ch was fil ed on 22.12.2017. Further vi de l etter, dated 19.12.2017, the assessee was asked to produce the di rectors/ pri nci pal offi cer of the company for exami nati on on oath. Duri ng the statement, i t was agai n rei terated that the detail s have al ready been fil ed and the transacti ons withi n the ITTL- Ni mbus group for compani es are bona-fi de and genui ne. 28. Si nce, the company does not have any physi cal set up at the given address, the address gi ven i s onl y a postal address and the same address i s used as postal address for mul ti pl e compani es i ndul gi ng in to the same acti vi ty of provi di ng ITA No. 923/Del/2021 Nimbus Multicommodity Brokers Pvt. Ltd. ITA No. 924/Del/2021 Bipin Agarwal ITA Nos. 925 to 929/Del/2021 Nimbus Project Ltd. 25 accommodati on entri es. The di rectors of the companies are non- exi stent or even if they exi st, they are illiterate or semi illiterate i ndi vi dual s who do not h ave competence or credi bili ty to operate any i nvestment company. The company i s recei vi ng, huge amount as l oan and gi vi ng the same to other concerns wi thout any apparent moti ve of conducti ng any actual business and the di rectors of the company are not even aware of such huge transacti ons made by the company for consi deri ng the doctri ne of busi ness purposes. 29. In the vi ew of above, i t was hel d that i n case of credi ts in the name of thi rd parti es, i t i s the duty of the assessee to prove i denti ty or credi ts, capaci ty of credi tor to advance money an d genui neness of transacti on. In the i nstant case capaci ty of credi tor coul d not be proved. Mere fili ng of confi rmati on or transacti on through banki ng channel i s not enough to prove the genui neness of cash credi t and i t can be assessed. Credi tworthi ness must al so be proved and the transacti ons shoul d al so i nvi te confi dence of normal busi ness pri nci pl e of profi t. 30. The AO hel d that wi th regard to provi si ons of Secti on 68, the onus i s upon the assessee to prove the three i ngredi ents, i .e., i dentity, credi tworthiness of the person from whom the moni es were taken and the genuineness of the transacti on and hel d that assessee has routed i ts money from one paper based company i nto another with col ouri ng devi ce of unsecured l oan. Therefore, an addi ti on of Rs.1,50,00,000/- i s made u/s 68 of the Act. ITA No. 923/Del/2021 Nimbus Multicommodity Brokers Pvt. Ltd. ITA No. 924/Del/2021 Bipin Agarwal ITA Nos. 925 to 929/Del/2021 Nimbus Project Ltd. 26 31. Aggri eved the assessee filed appeal before the l d. CIT(A). 32. Wi th regard to the Ci ndy Goods & Suppl y Pvt. Ltd., the l d. CIT(A) whil e confi rmi ng the order of the Assessi ng Offi cer has dul y consi dered the report of the Inspector of the Kol kata Investi gati on Unit whi ch i s as under: “As directed by the DDIT(Inv.), Unit-2(2), we visited the place at the given address of Cindy Goods & Sup ply Pvt. Ltd. at Room No. 418A, 4 th Floor, Marshall House, N.S. Road, Kolkata-700001, it has been found that a notice is being hanged indicating the shifting of the said three companies to the new address at 277, B.B. Ganguly Street, 3 rd Floor, Room No. 306, Kolkata-700012. On visiting the new address a signboard at the entrance of the si ngle room office reflecting the names of all the 5 (five) companies has been noticed. It was found that few computers wer e placed in that room indicating that some accounts were being maintained there. However, no business activity was visible as to be carried out at that place. It was, however , reported by the employee of that offi ce Mr. Vivek Sharma that all the said 5 (five) companies are having their registered office at that address. Thereafter, summonses i n the cas e of all the said companies were served at that address.” 33. The report al so i ndi cates that summons was served on 19.10.2015. 34. The l d. CIT(A) hel d that the total income i n the ITR for the rel evant assessment year of the l ender company was too l ow for the A.Y. 2011-12 and Rs. 140,89,252/- for the A.Y. 2012-13 and si nce the credi ts preceded the debi ts i n the bank account ITA No. 923/Del/2021 Nimbus Multicommodity Brokers Pvt. Ltd. ITA No. 924/Del/2021 Bipin Agarwal ITA Nos. 925 to 929/Del/2021 Nimbus Project Ltd. 27 on the same dates, the credi tworthiness of the l ender cannot be consi dered as genui ne. The l d. CIT(A) has reli ed on the judgments of vari ous Courts whi ch are as under: B.R. Petrochem (P.) Ltd. Vs. ITO 81 taxmann.com 424 (Madras) Ri ck Lunsford Trade & Investment Ltd Vs. CIT 2016-TIOL- 207-SC-IT Navodava Castl e Pvt. Ltd. Vs. CIT 230 Taxman 268 (SC) PCIT Vs. Vi kram Si ngh (2017) 85 taxmann.com 104 (Del .) CIT Vs. N.R. Portfoli o Pvt. Ltd. in ITA No. 1018, 1019/2100 (Del .) Pragati Fi nanci al Management Pvt. Ltd. Vs. CIT i n C.A. 887 & 998 of 2016 & others CIT vs. Nova Prom oters & Fi nlese (P) Ltd. 342 ITR 169 (Del .) CIT vs. D.K. Garg 84 taxmann.com 257 (Del .) and many other judgments whi ch have been dul y perused. 35. Before us, duri ng the arguments, the l d. AR submi tted that the revenue authori ti es fail ed to appreci ate the detail s provi ded duri ng the proceedi ngs to establ i sh the i denti ty, genuineness and credi tworthi ness of the transacti on undertaken by the assessee wi th the above menti oned party: PAN and address of the party Copy of Ledger Confi rmati on Copy of Bank Statement of appell ant Copy of ITRs, Bal ance Sheet and Profi t and l oss statement of the l ender ITA No. 923/Del/2021 Nimbus Multicommodity Brokers Pvt. Ltd. ITA No. 924/Del/2021 Bipin Agarwal ITA Nos. 925 to 929/Del/2021 Nimbus Project Ltd. 28 Repl y to noti ce i ssued u/s 133(6) of the Act fil ed by M/s CG&SPL Copy of Bank statement of the l ender di scl osi ng source of l oan Confi rmati on of accounts of appell ant i n books of l ender etc. 36. Further, i t was argued that the l ender company i s i n exi stence from 1995 and the returned income for the A.Y. 2012-13 was Rs.1,40,89,252/- and it cannot be assumed that any paper company giv ing accommodation entry would pay t ax on the amount of Rs.1,40,89,252/-, the fact i tsel f indi cates that i t cannot be taken or presumed that the l ender company to be a non-exi sting, bogus company. 37. Thus, i t was argued that i t i s cl early evi dent that the assessee has di scharged i ts onus of provi ng the tenets of Secti on 68 of the IT act i .e. i dentity of party, genui neness of the transacti on and credi tworthi ness of the party by provi di ng extensi ve evi dences. It was further argued that the observati on of the revenue that the l ender M/s CG&SPL was bei ng operated by fi cti ti ous person i s not on correct facts on record. 38. Further, the l d. AR brought to our noti ce that the i dentity, genui neness and credi tworthi ness of the l ender namel y, CG&SPL has been wi del y exami ned i n detail duri ng the proceedi ngs before the Tri bunal i n the case of Ni mbus Indi a Ltd. for the A.Y. 2013-14 and reli ed on the order of the Co-ordi nate Bench of ITAT. ITA No. 923/Del/2021 Nimbus Multicommodity Brokers Pvt. Ltd. ITA No. 924/Del/2021 Bipin Agarwal ITA Nos. 925 to 929/Del/2021 Nimbus Project Ltd. 29 39. On the other hand, the l d. DR strongl y supported the orders of the revenue authori ti es. 40. We have gone through the order of the Co-ordi nate Bench of ITAT i n ITA No. 929 & 930/Del /2019 in the case of Ni mbus Indi a Ltd. Vs. DCIT for the A.Y. 2013-14 and A.Y. 2014-15. 41. The rel evant poi nts wi th regard to exami nati on of genui neness of Ci ndy Goods & Suppl y Pvt. Ltd. by the Tri bunal i n the above sai d order i s as under: Para 5 - The AO noted that the company was M/s Ci ndy Goods & Suppl y Pvt. Ltd. i s concerned, he noted that the sai d company was i ncorporated on 21st March, 1995 wi th i ts regi stered offi ce at Kol kata. Thi s company i s controll ed and managed by the di rectors Mr. Madan Gopal Sharma and Mr. Vi rendra Tri pathy who hol ds substanti al shares i n M/s Bonanza Vani jya Pvt. Ltd. and M/s Bri jdham Merchandi se Pvt. Ltd., havi ng 49.96% shares each . These di rectors are al so the di rectors i n vari ous other compani es based i n Kol kata. He noted that i n the i mpugned assessment year, thi s company has decl ared i ncome of Rs.11,146/- from busi ness and professi on. Its authori zed share capi tal i s Rs.4.51 crores and reserves and surpl us i s Rs.4,50,40,000/-. It has recei ved an amount of Rs.34,37,25,000/- as share premium. From the anal ysi s of the bank statements, he noted that an amount of Rs.5 crore was recei ved from M/s Worl d Resorts Li mi ted on 07th September, 2012 ITA Nos.929 & 930/Del /2019 and Rs.3.50 ITA No. 923/Del/2021 Nimbus Multicommodity Brokers Pvt. Ltd. ITA No. 924/Del/2021 Bipin Agarwal ITA Nos. 925 to 929/Del/2021 Nimbus Project Ltd. 30 crores on 21st August, 2012 from vari ous unknown enti ties and fi nall y transferred to assessee company on 03.09.2012. Para 8 - To verify the source of the i nvestment of the above compani es, the AO obtai ned i nformati on u/s 133(6) of the Act from the respective banks and noted ITA Nos.929 & 930/Del /2019 that there are back to back transacti ons of same amount i .e., credi t and debi t of the same amount on the same dates/foll owing dates wi th several other deposi ts and wi thdrawal s. The AO, therefore, confronted the assessee and asked him to expl ai n the i denti ty and credi t worthi ness of the i nvestor compani es and genui neness of the transacti ons. Rejecti ng the vari ous expl anati ons gi ven by the assessee and rel ying on the deci si on of the Hon'bl e Supreme Court i n the case of B. Ki shore Kumar vs. DCIT, the AO made addi ti on of Rs.29,50,00,000/- to the total income of the assessee bei ng the amount of share capi tal and share premium of Rs.15 crore recei ved from M/s Pabl a Leasi ng & Fi nance Pvt. Ltd., and Rs.14,50,00,000/- bei ng the share capi tal and share premi um recei ved from M/s Ci ndy Goods & Suppl y Pvt. Ltd. Para 13 - So far as the addi ti on of Rs.15 crores i n A.Y. 2013-14 and Rs.2.51 crore i n respect of M/s Pabl a Leasi ng & Fi nance Pvt. Ltd., Rs.14.50 crore from M/s Ci ndy Goods & Suppl y Pvt. Ltd. i n A.Y. 2013-14 and Rs.18 crore from M/s Gi ri Financi al Servi ces in A.Y. 2014-15 i s concerned, the l d. Counsel for the assessee drew the attenti on of the ITA No. 923/Del/2021 Nimbus Multicommodity Brokers Pvt. Ltd. ITA No. 924/Del/2021 Bipin Agarwal ITA Nos. 925 to 929/Del/2021 Nimbus Project Ltd. 31 Bench to the vari ous detail s of the parti es from whom the assessee has recei ved non-cumul ati ve redeemabl e share capi tal during the year. Referri ng to vari ous pages of the paper book , the l d. Counsel for the assessee drew the attenti on of the Bench to the copi es of the i ncome-tax returns, bal ance sheets, copy of annual reports of the compani es, bank statements, copi es of the assessment orders of those compani es, etc., and submi tted that the assessee has di scharged the onus cast on i t by substanti ati ng the i denti ty and credi t worthi ness of the credi tors and genui neness of the transacti ons. Para 15 - So far as M/s Ci ndy Goods & Suppl y Pvt. Ltd., i s concerned, the l d. Counsel for the assessee drew the attenti on of the Bench to the paper book page 182 whi ch i s the copy of noti ce dated 21.11.2017 i ssued by the AO u/s 133(6) to M/s Ci ndy Goods & Suppl y Pvt. Ltd. Referri ng to page 183 to 243, the l d. Counsel for the assessee drew the attenti on of the Bench to the submi ssi on of the sai d company i n response to noti ce u/s 133(6). Referring to page 244 to 246 of the paper book, he drew the attenti on of the Bench to the copy of the statement of Mr. Vi pul Kumar, Di rector of M/s Ci ndy Goods & Suppl y Pvt. Ltd., whose statement was recorded by the AO u/s 131 of the IT Act wherei n he has admi tted to have invested i n the assessee company. Referri ng to page 165 to 167 of the paper book, he drew the attention of the Bench to the order passed u/s 143(3) i n the case of M/s Ci ndy Goods & Suppl y Pvt. Ltd., wherein the AO has consi dered the ITA No. 923/Del/2021 Nimbus Multicommodity Brokers Pvt. Ltd. ITA No. 924/Del/2021 Bipin Agarwal ITA Nos. 925 to 929/Del/2021 Nimbus Project Ltd. 32 i nvestment made by the sai d company at Rs.38,20,21,000/- as on 01.04.2010 and 36,92,01,000/- as on 31.03.2011 for computi ng the di sall owance u/s 14A of the Act r.w. Rul e 8D of the IT Rul es. Referri ng to vari ous pages of the paper book , he submi tted that thi s company has shown conti nuous profi t whi ch i s Rs.1,40,89,252/- for A.Y. 2012-13, Rs.75,37,804/- for A.Y. 2013-14 and Rs.11,81,118/- for A.Y. 2015-16. He submi tted that whil e the AO has accepted the am ount recei ved from Intell ectual ITA Nos.929 & 930/Del /2019 Securi ti es Pvt. Ltd. as genui ne whi ch i s al so a Kol kata based company and from whom the shares were recei ved at a premi um of Rs.90 per share, however, he di sbeli eved the capaci ty of the sai d investor compani es for the i mpugned assessment year and i ssue of shares at a premi um. He submi tted that for A.Y. 2015-16, the AO, i n the order passed u/s 143(3), has accepted the amount recei ved from M/s Pabl a Leasi ng & Fi nance Pvt. Ltd., an d no addi ti on has been made. Si milarl y, i n the case of M/s Ci ndy Goods & Suppl y Pvt. Ltd., the AO has accepted an amount of Rs.3,50,00,000/- i n the order u/s 143(3) and no addi ti on has been made. Therefore, the addi ti on made by the AO and sustai ned by the CIT(A) i s not justifi ed. Para 26 - We have heard the ri val arguments made by both the si des, perused the orders of the AO, CIT(A) and the paper book fil ed on behal f of the assessee. We have al so consi dered the vari ous deci si ons ci ted before us. We fi nd the AO, i n the i nstant case, made addi ti on of ITA No. 923/Del/2021 Nimbus Multicommodity Brokers Pvt. Ltd. ITA No. 924/Del/2021 Bipin Agarwal ITA Nos. 925 to 929/Del/2021 Nimbus Project Ltd. 33 Rs.29,50,00,000/- to the total income of the assessee bei ng the amount of Rs.14,50,00,000/- from M/s Ci ndy Goods & Suppl y ITA Nos.929 & 930/Del /2019 Pvt. Ltd., and Rs.15 crores from M/s Pabl a Leasi ng & Fi nance Pvt. Ltd., on account of non-genui ne share premi um/share capi tal . Si mil arl y for A.Y. 2014-15, the AO made an addi ti on of Rs.20,51,00,000/- bei ng an amount of Rs.2,51,00,000/- recei ved from M/s Pabl a Leasi ng & Fi nance Pvt. Ltd. and Rs.18 crores from Gi ri Fi nanci al Servi ces Pvt. Ltd. treati ng the same as non-genui ne and by i nvoki ng the provi si ons of secti on 68 of the IT Act. We find the l d.CIT(A) uphel d the addi ti on so made by the AO. It i s the submi ssi on of the l d. Counsel for the assessee that the assessee has fi l ed the requi site detail s such as copy of the bank account, copy of the Income-tax returns, copy of confi rmati ons, detail s of all otment of shares, etc. before the AO to substanti ate the i denti ty and credi t worthi ness of the i nvestor compani es and the genui neness of the transacti on. It i s al so hi s submi ssi on that the di rectors of the investor compani es were produced before the AO whose statements were recorded u/s 131 i n whi ch they have confi rmed to have i nvested i n the shares of the assessee company. It i s al so hi s submi ssi on that i n the precedi ng and subsequent assessment years, such share capi tal at hi gh premi um has been accepted by the AO i n the order passed u/s 153A/143(3) and no adverse vi ew has been taken. Further, i t i s al so hi s submi ssi on that such non-cumul ati ve non- parti ci pati ng opti onall y converti ble redeemabl e preference ITA No. 923/Del/2021 Nimbus Multicommodity Brokers Pvt. Ltd. ITA No. 924/Del/2021 Bipin Agarwal ITA Nos. 925 to 929/Del/2021 Nimbus Project Ltd. 34 shares were redeemed to the i nvestor compani es i n the F.Y. 2014-15 much before the search and, therefore, under the facts and ci rcumstances of the case no addi ti on i s call ed for. Para 28 - A perusal of the submi ssi on filed by the assessee whi ch has been reproduced at para 19 of thi s order sh ows that the AO, i n the order passed u/s 143(3) has accepted an amount of Rs.3,50,00,000/- recei ved by the assessee from M/s Ci ndy Goods & Suppl y Pvt. Ltd. towards share capi tal and share premi um and no addi ti on has been made. ....Therefore, the all egati on of the AO that these compani es are paper compani es wi thout doing any busi ness and these compani es are exi sting only for bei ng used by di fferent accommodati on entry operators to faci litate accommodati on entri es i n di fferent forms to vari ous benefi ci ary groups i s factuall y incorrect i n vi ew of the orders passed i n case of these i nvestor compani es i n precedi ng and subsequent years. 42. We find that the Co-ordi nate Bench of the ITAT has dul y consi dered the i denti ty of the company and found it to have been i ncorporated i n the year 1995, the amounts have been accepted as genui ne duri ng the assessments compl eted u/s 143(3), the returned income range from Rs.1.4 crores, Rs.75 l acs, Rs.11 l acs for the A.Y. 2012-13, A.Y. 2013-14 and A.Y. 2015-16 respectivel y provi ng that the l ender company cannot be consi dered as a accommodati on entry provi der/paper company. The company has dul y responded to noti ces i ssued ITA No. 923/Del/2021 Nimbus Multicommodity Brokers Pvt. Ltd. ITA No. 924/Del/2021 Bipin Agarwal ITA Nos. 925 to 929/Del/2021 Nimbus Project Ltd. 35 u/s 133(6) to the revenue authori ti es. Further, the Di rector of the company namel y, Mr. Vi pul Kumar has confi rmed the i nvestments made i n the assessee company duri ng the statement recorded u/s 131 of the IT Act by the AO. Hence, keepi ng i n vi ew, the facts narrated above, we fi nd that the observati on of the revenue authori ti es hol di ng that the i denti ty, genui neness and credi tworthi ness of the l ender company coul d not be proved i s contrary to the facts on record. Hence, the addi ti on made by the revenue authori ti es i s li abl e to be obl iterated. 43. In the resul t, the appeal of the assessee i n ITA No. 926/Del /2021 for A.Y. 2011-12 and ITA No. 927/Del /2021 for A.Y. 2012-13 i s all owed. ITA No. 928/Del/2021 for A.Y. 2013-14 ITA No. 929/Del/2021 for A.Y. 2014-15 44. Duri ng the A.Y. 2013-14 and A.Y. 2014-15, the assessee company i ssued 8% non-converti bl e, non-parti ci pati ng compul sory remedi abl e preference shares to the compani es whose detail s are furni shed as under: For the A.Y. 2013-14 Sl . No. Name of the i nvestor No. of shares Share Cap Share Premi um Total 1. Gi ri Financi al Servi ces Pvt. Ltd. 3700000 37000000 148000000 185000000 2. Pabl a Leasi ng Fi nance Pvt. Ltd. 2000000 20000000 80000000 100000000 Total 255000000 ITA No. 923/Del/2021 Nimbus Multicommodity Brokers Pvt. Ltd. ITA No. 924/Del/2021 Bipin Agarwal ITA Nos. 925 to 929/Del/2021 Nimbus Project Ltd. 36 For the A.Y. 2014-15 Sl . No. Name of the i nvestor No. of shares Share Cap Share Premi um Total 1. Gi ri Financi al Servi ces Pvt. Ltd. 900000 9000000 36000000 45000000 2. Pabl a Leasi ng Fi nance Pvt. Ltd. 3300000 33000000 132000000 165000000 Total 42000000 168000000 210000000 45. The AO hel d that Gi ri Fi nanci al Servi ces Pvt. Ltd. i s a pri vate li mited company i n corporate on 19.01.1995 and regi stered at ROC Kolkata. The earli er Di rectors were Sh. Ramesh Kumar and Sh. Ranjan Kumar whereas the present Di rectors are Sh. Vi pin Kumar, Sh. Madan Gopal Sharma, Sh. Anshul Mi ttal and Sh. Vi rendera Tri pathi . The AO hel d that the i nvestor company was found to have received moni es i n the form of share capi tal and share premi um recei ved mai nl y from M/s Strong Vi nimay Pvt. Ltd. and M/s Murl i dhar Deal com Pvt. Ltd. 46. Wi th regard to Pabl a Leasi ng Fi nance Pvt. Ltd., the AO hel d that the i nvestor company recei ved moni es mai nly from M/s Fling Management Consul tant Pvt. Ltd. and M/s Ori ent Commodeal Pvt. Ltd. whi ch are having same address an d common Di rectors. The AO further hel d that the statement of Sh. Ami t Bagri has been recorded by the Investi gati on Uni t Kol kata wherei n Sh. Ami t Bagri admi tted that these compani es have been used for provi di ng entri es to the vari ous benefi ci ary compani es on the commi ssi on basi s. The AO hel d that duri ng ITA No. 923/Del/2021 Nimbus Multicommodity Brokers Pvt. Ltd. ITA No. 924/Del/2021 Bipin Agarwal ITA Nos. 925 to 929/Del/2021 Nimbus Project Ltd. 37 the post search proceedi ngs, the statement of Sh. Anshul Mi ttal was recorded on 20.10.2015 wherei n Sh. Anshul Mi ttal admi tted that he i s a dummy Di rector of several company from whi ch the l oans and share capi tal has been recei ved by Nimbus Group of company. It was al so hel d that Sh. Vi pi n Kumar brother of Sh . Anshul Mi ttal has al so admi tted in the statement recorded u/s 131 that he was a dummy Di rector i n the compani es controll ed and managed by Sh. Vi pi n Agarwal . 47. The AO was i n recei pt of report from the DDIT(Inv.), Unit- 2(2), Kol kata wi th regard to the above two i nvestors compan y namely, Gi ri Financi al Servi ces Pvt. Ltd. and Pabl a Leasi ng Fi nance Pvt. Ltd. The report of the DDIT(Inv.) wi th regard to these two enti ti es whi ch have contri buted to 8% non- converti bl e, redeemable preference shares i s as under: “As directed by the DDIT(Inv.), U nit-2(2), we visited the given addresses of Pabla Leasing & Finance Pvt. Ltd. and Giri Financial Service Pvt. Ltd. The entities have not been found at the given addreses. On visiting the spot at the given address of the Intellectual Securities Pvt. Ltd., Padma Estates Pvt. Ltd........ it has been found that a notic e b een hang ed indicating the shifting of the said three companies to a new address at 277, B.B. Ganguly Street, 3 rd Floor, Room No. 306, Kolkata-700012. On visiting the new address a signboard at the entrance of the single room office reflecting the names of all the 5 (five) companies has been notic ed. It was found that few computers wer e placed in that room indicating that some accounts were being maintained there. However, no business activity was visible as to be carried out at that place. It was, however, reported by the employee o f that o ffice Mr. Vivek ITA No. 923/Del/2021 Nimbus Multicommodity Brokers Pvt. Ltd. ITA No. 924/Del/2021 Bipin Agarwal ITA Nos. 925 to 929/Del/2021 Nimbus Project Ltd. 38 Sharma that all the said 5 (five) companies are having their registered office at that address. Thereafter, summons es in the cas e of all the said companies were s erved at that address.” 48. The AO hel d that the onus of provi ng the i denti ty and credi tworthi ness of i nvestors and genui neness of transacti ons i s on to the assessee com pany. The fi nanci al s of these purportedl y Investor Company i s so weak such that i t fil es i ts ITRs at negli gi bl e or negative i ncomes and that i ts turnover i s al so not very si gni fi cant. The AO summari zed hi s concl usi ons as under: “i. In view of thes e observations, the AR vide questionnaire dated 19.12.2017 was required to produce the repres entatives/ directors/ contact persons of thes e purported investor companies for thei r examination otherwise the onus of p roving identity of such persons, the genuineness of such transactions and creditworthiness of suc h investor parties shall lie on the assessee, failure to do which would convince the revenue authorities to make adverse infer ence that ail these purported share capital/premium investments are sham and nothing but accommodation entries. ii. Further, it cannot be believed tha t investors invest their crores of rupees in a non-listed company without any return and the recipient company even do es not have the particulars/contact details, of such investors. Further, creditworthiness of inves tors is not proved sinc e the sourc e of funds with company purported investors remains highly suspicious. Moreover the ass essee company also failed to produc e even a single document in respect of due diligence and valuation report to justify the premium to sup port his contention. Also, ther e is no reason to believe that the assessee is not able to trace the ITA No. 923/Del/2021 Nimbus Multicommodity Brokers Pvt. Ltd. ITA No. 924/Del/2021 Bipin Agarwal ITA Nos. 925 to 929/Del/2021 Nimbus Project Ltd. 39 investors for personal deposition since had the investor been genuine; they would have been in co ntact of the ass essee. Further, during the assessment proc eedings the, assess ee was given an opportunity to furnish its comments on the / enquiry report of the investigation unit, Kolkata which was filed on 22.12.2017. Further vide letter dated 19.12.2017, the As sessee was asked to produce the directors/ principal officer of the co mpany for examination on oath. During the statem ent, it was again reiterated that the details have already been filed and the transactio ns within the ITTL Nimbus group for companies are bona-fide and genuine. Since, the company does not have any physical set up at the given address, the address given is only a postal address and the same address is used as postal address for multiple companies indulging in to the same activity of providing accommodation entries. The directors of the companies are non-existent or even if they exis t, they are illiterate or s emi illiterate individuals who do not have competence or credibility to operate any investment company. The company is rec eiving hug e amount as loan and giving the same to other concerns without any apparent motive of conducting any actual business and the directors of the company are not even aware of such huge transactions made by the company for, considering the doctrine of business purposes. In the view of above, it is held that in case of credits in the name o f third parties, it is the duty of the assessee to prove identity or credits, capacity of creditor to advance money and genuineness o f transaction. In the instant case capacity of creditor could not b e proved. Mere filing of confirmation or transaction through banking channel is not enough to prove the g enuineness o f cash credit and it can be assessed. Creditworthiness must also be proved and the ITA No. 923/Del/2021 Nimbus Multicommodity Brokers Pvt. Ltd. ITA No. 924/Del/2021 Bipin Agarwal ITA Nos. 925 to 929/Del/2021 Nimbus Project Ltd. 40 transactions should also invite confidence of normal business principle of profit. Secondly, when the account o f the assess ee Company and th e transactions are doubted by the AO, then to prove the genuinenes s of such transactions assessee has to go some steps further of its ow n to prove the genuineness of transactions by direct and corroborative evidences and must establish the c apacity to inves t/ advance such funds by such person. “ 49. Hol di ng thus, the AO made addi ti on of the 8% non- converti bl e, preference shares recei ved by the assessee u/s 68 of the IT Act. 50. Aggri eved the assessee filed appeal before the l d. CIT(A). 51. Before the l d. CIT(A), the l d. AR submi tted that the matter i s covered by the order of the ITAT i n the case of Ni mbus Indi a Ltd. However, the l d. CIT(A) hel d that si nce the facts of every case are di fferent in many respects i ncl udi ng the statement gi ven by the concern persons who have managed the entri es and al so si nce the i ssue has not reached fi nali ty as yet, the deci si ons of the case has been taken based on the judgments of the various Hon’ble Courts. 52. The rel evant porti on of the order of the l d. CIT(A) on thi s aspect i s as under: “10.1 Ground no. 3 to 5 pertai n to addi ti on of Rs.28,50,00,000/- & Rs.21,00,00,000/- for A.Y. 2013-14 & A.Y. ITA No. 923/Del/2021 Nimbus Multicommodity Brokers Pvt. Ltd. ITA No. 924/Del/2021 Bipin Agarwal ITA Nos. 925 to 929/Del/2021 Nimbus Project Ltd. 41 2014-15 respecti vely on account of i ssue of 8% non- cumul ative preference share, as per fol l owi ng tabl e: S. No. Name of th e C r ed i tor A . Y. 2 0 1 3-14 A . Y. 2014-15 S h ar e C ap i tal @ Rs . 10/- p er s h ar e S h ar e p r emi u m @ Rs . 40/- p e r s h ar e S h ar e C ap i tal @ R s . 1 0 /- p er s h ar e S h ar e p r emi u m @ Rs . 40/- p er s h ar e 1. M/s P a b la le a s ing & F ina nc e P vt. Ltd . 2, 00, 00, 000 8, 00, 00, 000 3, 30, 00, 000 13, 20, 00, 000 2. M/s Girl F ina nc ia l Se rvic e s P vt. Ltd . 3, 70, 00, 000 14, 80, 00, 000 90, 00, 000 3, 60, 00, 000 T otal 5 , 7 0 , 0 0, 0 0 0 2 2 , 8 0 , 00 , 0 0 0 4 , 2 0 , 0 0, 0 0 0 1 6 , 8 0 , 00 , 0 0 0 Gra nd Tota l Rs 28, 50, 00, 000 (5, 70, 00, 000 + 22, 80, 00000) Rs . 21, 00, 00, 000 (4, 20, 00, 000 + 16,80, 00, 000) It was noted by the AO i n detailed and el aborate assessment orders that, the enti ti es to whom non-cumul ati ve preference share were i ssued are the paper enti ti es i nvol ved i n provi di ng accommodati on entries. AO has depi cted the enqui ry and i nvesti gati on report i n case of these all eged enti ti es, as conducted by the i nvesti gati on wi ng of the department at Kol kata, wherei n, the di rectors of the all eged enti ti es have accepted i n the sworn statements that, thei r concerns are i nvol ved in the busi ness of provi di ng accommodati on entri es i n the form of share premi um/share capi tal /non-cumul ative preference share/unsecured l oans. It was al so noted by the AO that, each debi t entry i n the Bank statements of the all eged credi tors i s preceded by the equi val ent amount of credi t on the same or on the pri or date. Hence, the genui neness of the ITA No. 923/Del/2021 Nimbus Multicommodity Brokers Pvt. Ltd. ITA No. 924/Del/2021 Bipin Agarwal ITA Nos. 925 to 929/Del/2021 Nimbus Project Ltd. 42 transacti on and credi t capaci ty of the creditor i s not substanti ated by the appell ant. Therefore, AO came to the concl usi on that the credi ts from these all eged enti ti es are bogus, fi cti ti ous and unexpl ai ned and accordi ngl y, addi ti on i s justi fi ed by the AO u/s 68 of the Act. ................ 10.3 The undersi gned has carefull y gone through the assessment orders, wri tten submi ssi ons as well as verbal arguments of the Ld. A.R. It i s seen that during these rel evant assessment years, the appell ant company has recei ved funds on account of i ssui ng non-cumul ati ve preference shares, as per foll owi ng detail s: S. No. Name of th e C r ed i tor A . Y. 2 0 1 3-14 A . Y. 2 0 1 4-15 S h ar e C ap i tal @ R s . 1 0 /- p er s h ar e S h ar e p r emi u m @ Rs . 40/- p e r s h ar e S h ar e C ap i tal @ R s . 1 0 /- p er s h ar e S h ar e p r emi u m @ Rs . 40/- p er s h ar e 1. M/s P a b la le a s ing & F ina nc e P vt. Ltd . 2, 00, 00, 000 8, 00, 00, 000 3, 30, 00, 000 13, 20, 00, 000 2. M/s Girl F ina nc ia l Se rvic e s P vt. Ltd . 3, 70, 00, 000 14, 80, 00, 000 90, 00, 000 3, 60, 00, 000 T otal 5 , 7 0 , 0 0, 0 0 0 2 2 , 8 0 , 00 , 0 0 0 4 , 2 0 , 0 0, 0 0 0 1 6 , 8 0 , 00 , 0 0 0 Gra nd Tota l Rs 28, 50, 00, 000 (5, 70, 00, 000 + 22, 80, 00000) Rs . 21, 00, 00, 000 (4, 20, 00, 000 + 16,80, 00, 000) The all eged creditor enti ti es namely M/s. Pabl a Leasi ng & Fi nance Pvt. Ltd. and M/s. Gi ri Financi al Servi ces Pvt. Ltd. were subjected to enqui ri es and i nvesti gati on by di rectorate of i nvesti gati on, Kol kata. The revenant report as submi tted by the ITA No. 923/Del/2021 Nimbus Multicommodity Brokers Pvt. Ltd. ITA No. 924/Del/2021 Bipin Agarwal ITA Nos. 925 to 929/Del/2021 Nimbus Project Ltd. 43 DDIT(l nv.), unit-2(2), Kol kata, has al ready been scanned and reproduced i n precedi ng paras. 10.4 Careful perusal of the enquiry reports notes the foll owi ng rel evant observati ons: i) All eged credi tor enti ti es do not exi st on the gi ven addresses. Al l the all eged enti ties are operati ng from si ngl e room i n a buil di ng at Kol kata wi th onl y a computer and tabl e. There were no evi dence of any busi ness activi ti es being carri ed by these al l eged credi tor enti ti es. ii ) All eged credi tor compani es are i denti fi ed paper compani es of known accommodati on entry operators. iii ) Statement of entry operators have been recorded on oath to evi dence that, these all eged entiti es are carryi ng on the busi ness of provi di ng accommodati on entri es on commi ssi on basi s in rel ati on to share premi um/share capi tal /non-cumul ati ve preference share/unsecured l oans. i v) Pri nci pal Offi cer or the di rector to whom summons u/s 131 of the Act were i ssued on the known address of the all eged credi tor enti ti es, they di d not attend i n response to summons. 10.5 Further, duri ng the post search i nvesti gati ons, statement of Shri Anshul Mi ttal one of the Di rector of the M/s. Pabl a l easi ng & Fi nance Pvt. Ltd. and M/s. Gi ri Fi nanci al Servi ces Pvt. Ltd. was recorded on 20.10.2015 and Shri Anshul Mittal has ITA No. 923/Del/2021 Nimbus Multicommodity Brokers Pvt. Ltd. ITA No. 924/Del/2021 Bipin Agarwal ITA Nos. 925 to 929/Del/2021 Nimbus Project Ltd. 44 admi tted i n the sworn statements that, he i s a dummy di rector of the all eged credi tor compani es from whi ch, l oans/snare appl i cati on/share premi um have been recei ved by IITL- Ni mbus group of compani es. Further, other di rectors of the group compani es Shri Vi pul Kumar, brother of Shri Anshul Mi ttal , duri ng the statement recorded u/s 131 of the Act on 20.10.2015 has admi tted the fact that, he i s a dummy di rector i n the compani es control l ed and managed by Shri Bi pin Agarwal . 10.6 During the course of search i n the case IITL-Ni mbus group of compani es the i ncri minati ng di ary wri tten by Shri Bipi n Agarwal was found from the hi s suitcase at B-128, Surajmal Vi har, New Del hi-92. Thi s i ncri minati ng document i nventori ed as Annexure A-2. From Page-8 of An nexure A-2 i t i s evi dent that, the A/c No. 00030340061364 bel ongs to one of the group company. This i ncri mi nati ng document depi cts the systemati c date-wi se payment of cash and recei pt of cheque. For exampl e on 24.12.2014, cash of Rs. 20,00,00,000/- i s represented by the entry C/20CR------24.12.2014 and further, cash payment of Rs. 15,00,00,000/- on 23.02.2015 i s depi cted as 23.02.2015- ------C/15CR. Further, the recei pt of cheque on vari ous dates i s al so noted i n the i ncri mi nating document whi ch, matches exactl y wi th the recei pt of cheque in the bank account of the company on account of i ssue of 8% non-cumul ati ve preference share to the all eged credi tors entiti es menti oned here-in-above. Al so, the commi ssi on of Rs. 43,40,000/- i s pai d for obtai ning accommodati on entries, as could be evi denced from sei zed i ncrimi nati ng document. Al so, Shri Bi pi n Agarwal has ITA No. 923/Del/2021 Nimbus Multicommodity Brokers Pvt. Ltd. ITA No. 924/Del/2021 Bipin Agarwal ITA Nos. 925 to 929/Del/2021 Nimbus Project Ltd. 45 surrendered Rs. 35,00,00,000/- for A.Y. 2015-16, as a undi scl osed i ncome on the basi s of thi s i ncri minati ng document, Annexure A-2, page-8. Therefore, i t i s concl uded that, appell ant group compani es are i n the habit of recei ving the cheques from the alleged credi tor enti ti es after i ssui ng cash to the accommodati on entry provi ders. Al so, chargi ng of the huge premi um of Rs. 90 per share was not justi fied by the appell ant wi th cogent evi dences in the form of val uati on report etc. Al l these above menti oned factors corroborate the fact fi ndi ng of the AO that, al l eged credi ts i n the form of preference shares are fi ctiti ous and concocted. 10.7 Further, undersi gned has n oti ced that the credi t capaci ty of the share appl i cants al so stands unsubstanti ated. The followi ng tabl e shows the total credi ts by the credi tors i n the form of share capi tal/premi um, and thei r i ncome di scl osed i n the ITR: S. No. Name of th e C r ed i tor s T otal cr ed i ts ( i n cl u d i ng sh ar e cap i tal / p r emi u m) T otal i n come d i s cl os ed i n I T R AY 2 0 13-14 AY 2 0 14-15 A Y 2 0 13-14 AY 2 0 14-15 1. M/s P a b la le a s ing & F ina nc e P vt. Ltd. 10, 00, 00, 000 16, 50, 00, 000 30,85, 542 Nil 2. M/s Giri F ina nc ia l Se rvic e s P vt. Ltd. 18, 50, 00, 000 4, 50, 00, 000 3,39, 176 9, 16, 779 From the above tabl e, i t i s evi dent that the enti ti es advanci ng huge money to appell ant company are having very meager i ncome to substanti ate such huge share capi tal /premi um. For exampl e, M/s Gi rl Financi al Servi ces Pvt. Ltd., havi ng i ncome of onl y 9,00,000/- odd has advanced huge sum i n the form of ITA No. 923/Del/2021 Nimbus Multicommodity Brokers Pvt. Ltd. ITA No. 924/Del/2021 Bipin Agarwal ITA Nos. 925 to 929/Del/2021 Nimbus Project Ltd. 46 preference share of Rs.4,500, 000/-, whi ch appears to be beyond human probabi li ty. The case of other credi tor i s no di fferent, as coul d be evi denced from the above menti oned tabl e. Thus, i t can be concl uded that the appell ant has fail ed to prove the credi t capaci ty of the credi tors. Al so, there i s no agreement or the co-l ateral securi ty arrangements or payment of i nterest on the preference share between the appel l ant and credi tor compani es. Further, a careful , perusal of Bank statements of these alleged credi tors reveal the astoni shi ng si mil ari ty in the pattern of fund flow. It i s i nvari abl y noted that the creditor’s accounts were deposited with cheque of equi val ent or more amount of credi t on the same date or pri or to advanci ng the l oan to the appell ant company. Foll owi ng tabl e shows the credi t entry pri or to advanci ng credi t to appell ant company by the alleged credi tors: S. No Na me of the C re d itor Ba nk a c c ount no. Da te a nd amount of d eb it in c re d itor Ba nk a c c ount Da te a nd amount of c re d it in c re d itor Ba nk a c c ount 1. M/s P a b la Le as ing & F ina nc e P vt. Ltd. IDBI Ba nk Ltd . , Kolka ta A/c No. - 0291102000006668 10. 01. 2013 25, 00, 000 10. 01. 2013 50, 00, 000 2. -do- 10. 01. 2013 25, 00, 000 14. 01. 2013 25, 00, 000 3. -do- 14. 01. 2013 25, 00, 000 17. 01. 2013 25, 00, 000 4. -do- 17. 01. 2013 25, 00, 000 22. 01. 2013 3, 09, 85, 314 5. -do- 24. 01. 2013 50, 00, 000 05. 02. 2013 50, 00, 000 6. -do- 24. 01. 2013 50, 00, 000 07. 02. 2013 25, 00, 000 7. -do- 24. 01. 2013 50, 00, 000 07. 02. 2013 25, 00, 000 8. -do- 24. 01. 2013 50, 00, 000 08. 02. 2013 50, 00, 000 9. -do- 24. 01. 2013 50, 00, 000 08. 02. 2013 25, 00, 000 ITA No. 923/Del/2021 Nimbus Multicommodity Brokers Pvt. Ltd. ITA No. 924/Del/2021 Bipin Agarwal ITA Nos. 925 to 929/Del/2021 Nimbus Project Ltd. 47 10. -do- 24. 01. 2013 50, 00, 000 08. 02. 2013 25, 00, 000 11. -do- 05. 02. 2013 50, 00, 000 08. 02. 2013 25, 00, 000 12. -do- 07. 02, 2013 50, 00, 000 11 02. 2013 25, 00, 000 13. : -do- 08. 02. 2013 50, 00, 000 27. 02. 2013 25, 00, 000 14. -do- 08. 02. 2013 50, 00, 000 27. 02. 2013 25, 00, 000 15. -do- 08. 02. 2013 25, 00, 000 01. 03. 2013 25, 00, 000 16. -do- 11. 02. 2013 25, 00, 000 01. 03. 2013 25, 00, 000 17. -do- 27. 02. 2013 50, 00, 000 01. 03. 2013 19, 00, 000 18. -do- 01. 03. 2013 50, 00, 000 01. 03. 2013 50, 00, 000 19. -do- 01. 03. 2013 50, 00, 000 01. 03. 2013 31, 00, 000 20. -do- 01. 03. 2013 50, 00, 000 01. 03. 2013 50, 00, 000 21. -do- 01. 03. 2013 50, 00, 000 02. 03. 2013 25, 00, 000 22. -do- 02. 03. 2013 25, 00, 000 02.03. 2013 25, 00, 000 23. -do- 02. 03. 2013 25, 00, 000 05. 03. 2013 35, 00, 000 24. -do- 05. 03. 2013 35, 00, 000 08. 03. 2013 10, 00, 000 25. -do- 08. 03. 2013 15, 00, 000 08. 03. 2013 5, 00, 000 26. -do- 02. 04. 2013 1, 00, 00, 000 20. 03. 2013 80, 00, 000 27. -do- 02. 04. 2013 65, 00, 000 20. 03. 2013 80, 00, 000 28. -do- 02. 04. 2013 1, 00, 00, 000 20. 03 2013 25, 00, 000 29. -do- 02. 04. 2013 1, 00, 00, 000 30. 03. 2013 50, 00, 000 30. -do- 02. 04. 2013 1, 00, 00, 000 30. 03. 2013 50, 00, 000 31. -do- 02. 04. 2013 1, 00, 00, 000 30. 03. 2013 80, 00, 000 32 -do- 02. 04. 2013 1, 00, 00, 000 30. 03. 2013 80, 00, 000 33 -do- 02. 04. 2013 1, 00, 00, 000 30. 03. 2013 80, 00, 000 34. -do- 02. 04. 2013 1, 00, 00, 000 30. 03. 2013 80, 00, 000 35. -do- 02. 04. 2013 1, 00, 00, 000 30. 03. 2013 80, 00, 000 36. -do- 02. 04. 2013 1, 00, 00, 000 30. 03. 2013 80, 00, 000 37. -do- 03. 04. 2013 1, 20, 00, 000 02. 04. 2013 50, 00, 000 38. -do- 03. 04. 2013 1, 00, 00, 000 02. 04. 2013 80, 00, 000 t 39. -do- 03. 04. 2013 40, 00, 000 02. 04. 2013 50, 00, 000 40. -do- 10.04.2013 1,00,00,000 02.04.2013 80,00,000 41. -do- 10.04.2013 1,00,00,000 03.04.2013 25,00,000 42. -do- 10.04.2013 1,25,00,000 03.04.2013 15,00,000 ITA No. 923/Del/2021 Nimbus Multicommodity Brokers Pvt. Ltd. ITA No. 924/Del/2021 Bipin Agarwal ITA Nos. 925 to 929/Del/2021 Nimbus Project Ltd. 48 43. -00- 08.04.2013 2,00,00,000 44. -do- 08.04.2013 2,00,00,000 45. -do- 09.04.2013 50,00,000 46. -do- 09.04.2013 1,00,00,000 26,50,00,000/- 47. M/s Giri Financial Services Pvt. Ltd. Punjab National Bank, A/c No. - 0954002100021187 25.01.2013 35,00,000 24.01.2013 50,00,000 48. -do- 25.01.2013 40,00,000 24.01.2013 30,00,000 49. -do- — — 24.01.2013 10,00,000 50. -do- — — 25,01.2013 20,00,000 51. -do- — — 25.01.2013 10,00,000 52. -do- 28.01.2013 35,00,000 28.01.2013 20,00,000 53. -ao- 29.01.2013 30,00,000 08.02.2013 25,00,000 54. -do- 09.02.2013 25,00.000 11.02.2013 50,00,000 55. -do- 12.02.2013 30,00,000 11.02.2013 40,00,000 56. -do- 12.02.2013 35,00,000 11.02.2013 35,00,000 57. -do- 12.02.2013 30,00,000 18.02.2013 55,00,000 58. -do- 12.02.2013 30,00,000 18.02.2013 45,00,000 59. -do- 19.02.2013 35,00,000 22.02.2013 25,00,000 60. -do- 19,02.2013 35,00,000 22.02.2013 25,00,000 61. -do- 19.02.2013 30,00,000 22.02.2013 25,00,000 62. -do- 25.02.2013 35,00,000 22.02.2013 30,00,000 63. -do- 25.02.2013 35,00,000 25.02.2013 35,00,000 64. -do- 25.02.2013 35,00,000 05.03.2013 60,00,000 1 65. -do- 26.02.2013 35,00,000 08.03.2013 35,00,000 66. -do- 06.03.2013 30,00,000 08.03.2013 30,00,000 67. -do- 05.03.2013 30,00,000 08.03.2013 35,00,000 68. -do- 09.03.2013 25,00,000 09.03.2013 25,00,000 69. -do- 09.03.2013 25,00,000 11.03.2013 40,00,000 ITA No. 923/Del/2021 Nimbus Multicommodity Brokers Pvt. Ltd. ITA No. 924/Del/2021 Bipin Agarwal ITA Nos. 925 to 929/Del/2021 Nimbus Project Ltd. 49 70. -do- 09.03.2013 25,00,000 11.03.2013 30,00,000 71. -do- 09.03.2013 25,00,000 11.03.2013 30,00,000 72. -do- 11.03.2013 25,00,000 12.03.2013 30,00,000 73. -do- 12.03.2013 25,00,000 12.03.2013 20,00,000 74. -do- 12.03.2013 25,00,000 13.03.2013 25,00,000 75. -do- 12.03.2013 50,00,000 13.03.2013 25,00,000 76. -do- 12.03.2013 25,00,000 13.03.2013 20,00,000 77. -do- 13.03.2013 25,00,000 13.03.2013 30,00,000 78. -do- 13.03.2013 25,00,000 14.03.2013 25,00,000 79. -do- 14.03.2013 25,00,000 18.03.2013 40,00,000 80. -do- 14.03.2013 25,00,000 18,03.2013 40,00,000 81. -do- 14.03.2013 25,00,000 19.03.2013 30,00,000 82. -do- 14.03.2013 25,00,000 19,03.2013 40,00,000 83. -do- 15.03.2013 25,00,000 20.03.2013 30,00,000 84. -do- 19.03.2013 30,00,000 20.03.2013 40,00,000 85. -do- 19.03.2013 25,00,000 20.03.2013 30,00,000 86. -do- 19.03.2013 25,00,000 21.03.2013 35,00,000 87. -do- 20.03.2013 35,00,000 21.03.2013 35,00,000 88. -do- 20.03.2013 35,00,000 21.03.2013 30,00,000 89. -do- 21.03.2013 30,00,000 22.03.2013 20,00,000 90. -do- 21.03.2013 40,00,000 22.03.2013 30,00,000 91. -do- 21.03.2013 30.00,000 22.03.2013 20,00,000 92. -do- 22.03.2013 30,00,000 22.03.2013 30,00,000 93. -do- 22.03.2013 40,00,000 23.03.2013 25,00,000 94. -do- 22.03.2013 30,00,000 23.03.2013 25,00,000 95. -do- 23.03.2013 50,00,000 25.03.2013 25,00,000 96. -do- 23.03.2013 50,00,000 25,03.2013 30,00,000 97. -do- 30.03.2013 10,00,000 25.03.2013 30,00,000 98. -do- 26.03.2013 22,00,000 ITA No. 923/Del/2021 Nimbus Multicommodity Brokers Pvt. Ltd. ITA No. 924/Del/2021 Bipin Agarwal ITA Nos. 925 to 929/Del/2021 Nimbus Project Ltd. 50 99. -do- 26.03.2013 37,57,878 100 . -do- 26.03.2013 30,00,000 101 . -do- 26.03.2013 35,00,000 102 . -do- 26.03.2013 35,00,000 j 103 . -do- 26.03.2013 25,00,000 104 . -do- 26.03.2013 40,00,000 105 . M/s Giri Financial Services Pvt. Ltd. ICICI Bank Ltd, A/c No. - 0954002100021187 09.02.2013 50,00,000 08.02.2013 50,00,000 106 . -do- 11.03.2013 25,00,000 09.03.2013 20,00,000 107 . -do- 11.03.2013 25,00,000 09.03.2013 25,00,000 108 . -do- 11.03.2013 25,00,000 09.03.2013 25,00,000 109 . -do- 11.03.2013 25,00,000 09.03.2013 15,00,000 110 . -do- 12.03.2013 25,00,000 09.03.2013 15,00,000 111 . -do- 12.03.2013 25,00,000 11.03.2013 25,00,000 112 . -do- 12.03.2013 25,00,000 11.03.2013 25,00,000 113 . -do- 12.03.2013 25,00,000 11.03.2013 50,00,000 114 . -do- 14.03.2013 25,00,000 13.03.2013 25,00,000 115 . -do- 14.03.2013 25,00,000 13.03.2013 30,00,000 116 . -do- 14.03.2013 25,00,000 13.03.2013 40,00,000 117 . -do- 14.03.2013 25,00,000 14.03.2013 25,00,000 118 . -do- 15.03.2013 25,00,000 119 . M/s Giri Financial Services Pvt. Ltd. Punjab National Bank, A/c No. - 0954002100021187 02.04.2013 35,00,000 26.03.2013 37,57,878 120 . -do- 02.04.2013 20,00,000 26.03.2013 30,00,000 121 . -do- 02.04.2013 35,00,000 26.03.2013 35,00,000 122 . -do- 02.04.2013 35,00,000 26.03.2013 35,00,000 123 . -do- 02.04.2013 35,00,000 26.03.2013 25,00,000 124 . -do- 02.04.2013 35,00,000 26.03.2013 40,00,000 ITA No. 923/Del/2021 Nimbus Multicommodity Brokers Pvt. Ltd. ITA No. 924/Del/2021 Bipin Agarwal ITA Nos. 925 to 929/Del/2021 Nimbus Project Ltd. 51 125 . -do- 02.04.2013 35,00,000 02.04.2013 25,00,000 126 . -do- 02.04.2013 35,00,000 02.04.2013 25,00,000 127 . -do- 03,04.2013 35,00:000 02.04.2013 25,00,000 128 . -do- 03.04.2013 30,00,000 02.04.2013 25,00,000 129 . -do- 03.04.2013 30,00,000 04.04.2013 50,00,000 130 . -do- 05.04.2013 35,00,000 10.04.2013 40,00,000 131 . -do- 05.04.2013 20,00,000 10.04.2013 25,00,000 132 . -do- 11.04.2013 35,00,000 23,00,00,000/- Thus, the evi dence submitted by the appell ant does not i nspi re the confi dence regardi ng credi t capaci ty of the credi tors and genui neness of the transacti ons, especi ally consi deri ng the fact that, lenders have di scl osed meager i ncome in thei r returns and each credi t of unsecured l oans to the appell ant company i s preceded by the equi val ent or more amount of deposi ts of credi t on the same date or on the pri or dates. Al so, AO has recorded the fi ndi ng of fact that, most of the l enders do not exi st and operate on the gi ven address and are paper compani es provi di ng the accommodati on entri es of share capi tal /unsecured l oans. Al so it i s noted from the bal ance sheet of the credi tor compani es that, they do not possesses any tangi bl e or i ntangi bl e fi xed assets to conduct busi ness acti vi ti es. Thus, i t i s concl uded that, genuineness of the transacti on and credi t capaci ty of the credi tors stands u nsubstanti ated. Appel l ant, on the other hand has not pl aced any materi al before the undersi gned to di sl odge the fi ndi ng of the AO. Therefore, consi deri ng the totali ty of facts and ci rcumstances of the case, ITA No. 923/Del/2021 Nimbus Multicommodity Brokers Pvt. Ltd. ITA No. 924/Del/2021 Bipin Agarwal ITA Nos. 925 to 929/Del/2021 Nimbus Project Ltd. 52 i t i s concluded that, appel l ant has mi serabl y fail ed to prove the credi t capaci ty and genuineness of the transacti on. 10.8 It i s a settl ed preposi ti on of l aw u/s. 68 of the IT Act that the ini ti al burden of proof rests u pon the appel l ant to establi sh the i denti ty, credi t capaci ty of the credi tor and to establ i sh the genui neness of transacti on. For the sake of cl ari ty provi si on of secti on 68 of the Act as amended reads as under: "68. Where any sum i s found credi ted i n the books of an assessee mai ntai ned for any previ ous year, and the assessee offers no expl anati on about the nature and source thereof or the expl anati on offered by hi m is not, i n the opi ni on of the [Assessing] Officer, satisfactory, the sum so credited may’ be charged to i ncome-tax- as the i ncome of the assessee of that previ ous year: "[Provi ded that where the assessee i s a company (not bei ng a company i n whi ch the publi c are substanti all y i nterested), an d the sum so credi ted consi sts of share appl i cati on money, share capi tal , share premi um or any such amount by whatever name call ed, any expl anati on offered by such assessee-company shall be deemed to be not sati sfactory, unl ess— (a) the person, bei ng a resi dent i n whose name such credi t i s recorded i n the books of such company al so offers an expl anati on about the nature and source of such sum so credi ted; and ITA No. 923/Del/2021 Nimbus Multicommodity Brokers Pvt. Ltd. ITA No. 924/Del/2021 Bipin Agarwal ITA Nos. 925 to 929/Del/2021 Nimbus Project Ltd. 53 (b) Such expl anati on i n the opi ni on of the Assessi ng Offi cer aforesai d has been found to be sati sfactory: Provi ded further that nothi ng contai ned i n the fi rst provi so shall appl y i f the person, i n whose name the sum referred to therei n i s recorded, i s a venture capi tal fund or a venture capital company as referred to i n cl ause (23FB) of secti on 10.]" The present facts of the case are squarel y covered by the provi si ons of l aw' menti oned here-in-above, wherei n i t was i mperati ve for the appell ant to si mul taneousl y prove the i denti ty and credi tworthi ness of the credi tors al ong with the genui neness of transacti on. In the i nstant facts of the case, appel l ant has mi serabl y fail ed to prove genui neness of the transacti on and credi tworthi ness of the creditors. Hence, addi ti on made by Assessi ng Offi cer i s perfectl y justi fi ed. 10.9 It i s al so an establi shed l aw that mere fili ng of confi rmati on l etter and the ITR copi es are not enough to prove the credi t capaci ty of the credi tor. Hon'bl e Kol kata Hi gh Court: i n the case of CIT Vs Korl av Tradi ng Company Ltd.(Cal .) 232 ITR 280 and CIT Vs Preci si on Fi nance P. Ltd. (Cal.) 208 ITR 465 have observed and hel d that mere filing of confi rmati on and transacti on through the banki ng channel i s not enough to prove the genui neness of cash credit and i t can be assessed. Further, Hon'bl e Apex Court in the case of Shri Roshan D. Haiti Vs CIT (SC) 107 ITR 938 hel d that i n the case of credi ts i n the name of thi rd party, i t i s the duty of the appell ant to prove the i denti ty or credi t capaci ty of the credi tors to advance money and ITA No. 923/Del/2021 Nimbus Multicommodity Brokers Pvt. Ltd. ITA No. 924/Del/2021 Bipin Agarwal ITA Nos. 925 to 929/Del/2021 Nimbus Project Ltd. 54 genui neness of transacti on. Further, Hon'bl e Del hi Hi gh Court i n the case of Sanraj Engineering Pvt. Ltd. Vs. CIT i n ITA 79/2016 has hel d that, "addi ti on made u/s 68 of the Act on account of unsecured l oans was not justifi ed, where ini ti al onus of provi ng the credi tworthi ness of the l enders were not di scharged by the assessee." Al so, Hon'ble Gujarat Hi gh Court i n the case of Pawan Kumar Sanghvi [2018] SO taxmann.com 290 has hel d that, "where assessee recei ved loan from two compani es, i n vi ew of fact that on date of advanci ng l oan to assessee there were credi t entri es of al most si milar amounts and bal ance after these transacti ons was a small amount and moreover assessee fail ed to produce these l enders for veri fi cati on, i mpugned amount was ri ghtly brought to tax under secti on 68." Hon'bl e Delhi Hi gh Court i n the case of Seema Jai n Vs ACIT [2018] 96 taxmann.com 307 (Delhi ) has hel d that, "where AO made addi ti on to assessee's income i n respect of l oan avail ed, i n vi ew of fact that l ender company di d not have tangi bl e or i ntangi bl e fixed assets and, moreover, i t had decl ared a meager i ncome and, thus, i t was not i n a positi on to gi ve such a huge l oan to assessee, i mpugned addi ti on was to be confi rmed." Further, Hon'bl e Delhi Hi gh Court i n the case of CIT Vs Ul tra Modern Exports (P.) Ltd [2013] 40 taxmann.com 458 (Del hi )/[2014] 220 Taxman 165 (Delhi )(MAG.) has hel d that, "where i n order to ascertai n genui neness of assessee's cl ai m rel ati ng to recei pt of share appli cati on money, Assessi ng Offi cer sent noti ces to share appl i cants whi ch returned unserved, however, assessee still managed to secure documents such as thei r i ncome tax returns as wel l as bank account parti cul ars, in such ITA No. 923/Del/2021 Nimbus Multicommodity Brokers Pvt. Ltd. ITA No. 924/Del/2021 Bipin Agarwal ITA Nos. 925 to 929/Del/2021 Nimbus Project Ltd. 55 ci rcumstances, Assessi ng Offi cer was justi fi ed i n drawi ng adverse i nference and addi ng amount i n questi on to assessee's taxabl e i ncome under secti on 68." Al so, Hon'ble Cal cutta Hi gh Court i n the case of C!T Vs Mai than Internati onal 56 (2015] 375 ITR 123 (Cal cutta) has hel d that, "Assessi ng Offi cer coul d not accept genui neness of l oan taken by assessee from vari ous credi tors merel y on basi s of thei r bank statements and l etter of confi rmati ons as he was requi red to exami ne credi tworthi ness of sai d credi tors as well ." Hon'bl e Madras Hi gh Court i n the case of B.R. Petrochem (P.) Ltd. Vs ITO [2017] 81 taxmann.com 424 (Madras) has observed and hel d that, "where assessee received share capi tal from vari ous contri butors, i n vi ew of fact that those contri butors were persons of i nsi gni fi cant means and thei r credi tworthiness to have made contri buti ons had not been establi shed, i mpugned addi ti on made by authoriti es bel ow in respect of amount i n questi on under secti on 68 was to be confi rmed." Further, Hon'bl e Supreme Court whil e di smi ssing the SLP of the assessee i n the case of Ri ck Lunsford Trade & Investment Ltd Vs CIT 2016 TIOL-207-SC-IT has hel d that, "i t i s open to the Revenue Department to make addi ti on on account of alleged share capi tal u/s 68, where the assessee company has fail ed to show genui neness of i ts shareholders." Al so, Hon'bl e Apex Court in the case of Navodaya Castl e Pvt. Ltd. Vs CIT [2015] 230 Taxman 268 (SC) observed duri ng di smi ssal of SLP of the appel l ant that, "Hi gh Court rul i ng that certi fi cate of i ncorporati on, PAN etc., are n ot suffi ci ent for purpose of i dentifi cati on of subscri ber company when there i s materi al to show that subscri ber was a paper company and not a genui ne ITA No. 923/Del/2021 Nimbus Multicommodity Brokers Pvt. Ltd. ITA No. 924/Del/2021 Bipin Agarwal ITA Nos. 925 to 929/Del/2021 Nimbus Project Ltd. 56 i nvestor." i n the i nstant case, the undersi gned i s of the vi ew that the credi t capaci ty of the credi tor and genuineness of the transacti on are not proved by the appel l ant company. 10.10 Further, Hon'bl e Del hi Hi gh Court i n the case of PCIT Vs Vi kram Si ngh (2017) 85 taxmann.com 104 has observed and hel d that "even i f transacti on of l oan i s made through cheque, i t cannot be presumed to be genui ne in absence of any agreement, securi ty and interest payment. Mere submi ssi on of the PAN and bank statements of the credi tor does not establi sh the authenti ci ty and genuineness of huge loan transacti on parti cul arl y when the ITR of the l ender does not i nspi re such confi dence. Mere submi ssi on of ID proof and the fact that the l oan transacti on were through banki ng channel does not establi sh the authenti ci ty of transacti on. The l oan entri es are generall y masked to pump the bl ack money i nto the banking channel and such practi ces conti nued to pl ague Indi an Economy." Further, i n the case of CIT Vs. N.R, Portf oli o Pvt. Ltd. (ITA No. 1018, 1019/2100 dated 22.11.2013) Hon'bl e Del hi Hi gh Court has observed and hel d that: "mere producti on of i ncorporati on detail s, PAN Nos. or the fact that thi rd persons or company h ad fil ed i ncome tax detail s i n case of a pri vate li mi ted compan y may not be suffi ci ent when surroundi ng and attendi ng facts predi cate a cover up. These facts indi cate and refl ect proper paper work or documentati on but genui neness, credi tworthi ness, i denti ty are deeper and obtrusi ve compani es no doubt are arti fi ci al or juri sti c person but they are soull ess and are dependent upon the indi vi dual s behind ITA No. 923/Del/2021 Nimbus Multicommodity Brokers Pvt. Ltd. ITA No. 924/Del/2021 Bipin Agarwal ITA Nos. 925 to 929/Del/2021 Nimbus Project Ltd. 57 them who run and manage the said compani es. It i s the person behi nd the company who take the deci si ons, control s and manage them." The cases reli ed upon by the Ld. AR are on thei r own footi ngs and di sti ngui shabl e on facts and are not appl i cabl e to the present case. Further, Hon'bl e Calcutta Hi gh Court has observed and hel d i n the case of Pragati Financi al Management Pvt. Ltd. Vs. CIT i n C.A. 887 & 998 of 2016 and others dated 07.03.2017, that, AO i s enti tl ed to make enqui ry u/s. 68 of the-Act regardi ng genui neness of the transacti on, Further, i t i s hel d that, in the following judicial pronouncements of the Hon’ble Hi gh Courts that, unsecured l oans/share capi tal received from the enti ti es i nvol ved i n provi ding accommodati on entri es are li abl e to be taxed u/s 68 of the Act: i) CIT vs. Nova Promoters & Fi nl ease (P) Ltd. 342 ITR 169 [Del hi ] 2013. ii ) CIT vs. D.K. Garg [2017] 84 taxmann.com 257 [Del hi ] 10.11 The AR of the appell ant has submi tted that the AO di d not all ow assessee to make the cross examinati on of the persons on whose statement Ld. AO rel i ed for maki ng the assessment agai nst the assessee even after speci fi c request of the assessee whi ch i s agai nst the pri nci pl e of natural justi ce, hence the assessment made i s bad i n l aw. In thi s regard i t i s observed that ail the materi al facts, whi ch have been used agai nst the assessee, have been provi ded to the appell ant, therefore the pl ea of the appell ant that non provi di ng the opportuni ty of cross ITA No. 923/Del/2021 Nimbus Multicommodity Brokers Pvt. Ltd. ITA No. 924/Del/2021 Bipin Agarwal ITA Nos. 925 to 929/Del/2021 Nimbus Project Ltd. 58 examinati on, vi ti ates the income escapi ng assessment proceedi ngs has not been found correct. 10.12 On the i ssue of cross exami nati on, i t i s noti ced that all the documents were shown to the appell ant. Therefore, no separate opportuni ty to further cross exami ne i s requi red to be gi ven to the appell ant. Further, Hon'bl e Supreme Court, i n the well-known Dhakeswari Cotton Mill s (26 ITR 775 at 782) case, rul ed that the Evi dence Act may have no appli cati on i n tax assessment proceedi ngs. However, the court al so cl ari fi ed l ater, i n Chuharmal vs CIT (172ITR 250at 255 SC), that when the taxing authori ti es are desi rous of i nvoking the pri nci pl es of the Evi dence Act i n proceedi ngs before them, they are n ot prevented from doi ng so. All that i s requi red i s that whatever materi al they coll ect will have to be pl aced before the tax- payi ng assessee, i f adverse i nference i s goi ng to be drawn - audi al teram partem i s a well-known pri nci pl e of natural justi ce. Thi s pri nci pl e i s establi shed by the judgment of the Supreme Court i n Dhakeswari Cotton Mill s Ltd. v. CIT (26 ITR 775,783), and appli ed by that court i n Ki shin chand Chell aram vs. CIT (125 ITR 713), where an assessment based on the resul t of private i nqui ri es conducted behi nd the back of the assessee was set asi de because the evi dence so gathered was n ot pl aced before the assessee. In Gunda Subbayya vs. CIT (7 ITR21, 28), Hon'bl e Madras Hi gh Court has held: "Information which the Income-Tax Officer has received may not always be accurate and it is only fair when he proposes-to act on material which he has obtained from an outside source ITA No. 923/Del/2021 Nimbus Multicommodity Brokers Pvt. Ltd. ITA No. 924/Del/2021 Bipin Agarwal ITA Nos. 925 to 929/Del/2021 Nimbus Project Ltd. 59 that he should give the assessee an opportunity of showing, if he can, that the Income Tax Officer has been misinformed; bu t the Income-Tax obviously not bound to disclose the source of his information" 10.13 Further, juri sdi cti onal Hon'bl e All ahabad Hi gh Court in the case of Motil al Padampat Udyog Ltd. Vs. CIT 293 1TR 656 has l ai d down the correct preposi ti on of l aw of cross exami nati on and hel d as foll ows: "Right of cross-examination of persons from whom the Assessing Officer has collected the evidence is not required by law. The requirement of the statute for a valid assessment would be met if all the evidence collected which is to be used against the assessee while fram ing the assessment order is placed before the assessee and he is given opportunity to rebut the evidence." In thi s case, all the materi al used agai nst the assessee has been provi ded, therefore the contenti on of the AR that the assessee has not been given opportuni ty of cross exami nati on i s not found tenabl e in the li ght of above judgments. 10.14 In vi ew of the above detail ed di scussi on of the factual matri x of the case and consi deri ng the enumerated judi ci al pron ouncements, i t i s concl uded that appell ant company has mi serably fail ed to prove the vi tal ingredi ents of credi tworthi ness of the creditors and genuineness of the transacti on. Therefore, undersi gned fi nds no reason to i nterfere ITA No. 923/Del/2021 Nimbus Multicommodity Brokers Pvt. Ltd. ITA No. 924/Del/2021 Bipin Agarwal ITA Nos. 925 to 929/Del/2021 Nimbus Project Ltd. 60 wi th the addi ti on made by Assessing Offi cer, u/s 68 of the Act. The same i s therefore, confi rmed and ground of appeal of the appel l ant i s di smi ssed for A.Y. 2013- 14 & A.Y. 2014-15.” 53. Aggri eved with the order of the l d. CIT(A) the assessee filed appeal before the ITAT. 54. Duri ng the heari ng, at the outset, the l d. AR brought to our noti ce that the i denti ty, genuineness and credi tworthi ness of the i nvestors namel y, Gi ri Fi nanci al Servi ces Pvt. Ltd. & Pabl a Leasi ng & Finance Pvt. Ltd. has been wi del y exami ned i n detail duri ng the proceedi ngs before the Tri bunal i n the case of Ni mbus Indi a Ltd. for the A.Y. 2013-14 and reli ed on the order of the Co-ordi nate Bench of ITAT. 55. On the other hand, the l d. DR strongl y supported the orders of the revenue authori ti es. 56. We have gone through the order of the Co-ordi nate Bench of ITAT i n ITA No. 929 & 930/Del /2019 in the case of Ni mbus Indi a Ltd. Vs. DCIT for the A.Y. 2013-14 and A.Y. 2014-15. 57. The rel evant poi nts wi th regard to exami nati on of genui neness of Gi ri Fi nanci al Servi ces Pvt. Ltd. & Pabl a Leasing & Finance Pvt. Ltd. by the Tri bunal i n the above sai d order i s as under: Para 7 - From the report of the Investi gati on Uni t, Kol kata, he noted that thi s company along wi th Gi ri Fi nanci al Servi ces Pvt. Ltd., M/s Pabl a Leasi ng & Finance Pvt. Ltd. ITA No. 923/Del/2021 Nimbus Multicommodity Brokers Pvt. Ltd. ITA No. 924/Del/2021 Bipin Agarwal ITA Nos. 925 to 929/Del/2021 Nimbus Project Ltd. 61 and Intell ectual Securiti es Pvt. Ltd., are used by di fferent accommodati on entry operators to faci litate accommodati on entry operators. Further, the Di rectors of these compani es have admi tted that they were involved in provi di ng accommodati on entri es on commi ssi on basi s to IITL Ni mbus group of compani es. Para 9 - So far as A.Y. 2014-15 i s concerned, the AO made addi ti on of Rs.20,51,00,000/- being the amount of share capi tal recei ved from M/s Pabl a Leasi ng & Fi nance Pvt. Ltd. of Rs.2,51,00,000/- and the amount of share capi tal recei ved from M/s Gi ri Fi nanci al Servi ces Pvt. Ltd. of Rs.18 crores. Para 13 - So far as the addi ti on of Rs.15 crores i n A.Y. 2013-14 and Rs.2.51 crore i n respect of M/s Pabl a Leasi ng & Fi nance Pvt. Ltd., ........and Rs.18 crore from M/s Gi ri Fi nanci al Servi ces i n A.Y. 2014-15 i s concerned, the l d. Counsel for the assessee drew the attenti on of the Bench to the vari ous detail s of the parti es from whom the assessee has recei ved non-cumul ati ve redeemabl e share capi tal during the year. Referri ng to vari ous pages of the paper book , the l d. Counsel for the assessee drew the attenti on of the Bench to the copi es of the i ncome-tax returns, bal ance sheets, copy of annual reports of the compani es, bank statements, copi es of the assessment orders of those compani es, etc., and submi tted that the assessee has di scharged the onus cast on i t by substanti ati ng the i denti ty and credi t worthi ness of the credi tors and genui neness of the transacti ons. ITA No. 923/Del/2021 Nimbus Multicommodity Brokers Pvt. Ltd. ITA No. 924/Del/2021 Bipin Agarwal ITA Nos. 925 to 929/Del/2021 Nimbus Project Ltd. 62 Para 16 - So far as the am ount of Rs.18 crore recei ved from M/s Gi ri Financi al Servi ces (P) Ltd. i n A.Y. 2014-15 i s concerned, the l d. Counsel for the assessee submi tted that the assessee has fi l ed the requi si te documents such as th e copy of bank statement of the i nvestor company, thei r audi ted accounts, i ncome-tax return acknowl edgement, Form 2 fil ed wi th the ROC, etc., to substanti ate the i denti ty and the credi t worthi ness of the i nvestor company and genui neness of the transacti on. Referring to paper book page 254, he submi tted that Gi ri Fi nanci al Servi ces (P) Ltd., i s regi stered wi th RBI as a NBFC w.e.f. 16.02.2001. He submi tted that in response to noti ce u/s 133(6), the di rector of the company Mr. Anshul Mi ttal had appeared and filed rel evant document and he had confi rmed to have invested in the assessee company. He submi tted that in the A.Y. 2015-16, the AO, i n the order ITA Nos.929 & 930/Del /2019 passed u/s 153A/143(3) has accepted a sum of Rs.11.34 crores towards share capi tal and share premi um i n the assessee com pany and no adverse vi ew has been taken. Further, the i nvestor company i s showi ng conti nuous substanti al i ncome and, therefore, no addi ti on i s call ed for u/s 68 of the Act when the assessee has proved the three i ngredi ents of secti on 68 of the IT Act, 1961. Para 26 - We have heard the ri val arguments made by both the si des, perused the orders of the AO, CIT(A) and the paper book fil ed on behal f of the assessee. We have al so consi dered the vari ous deci si ons ci ted before us. We fi nd ITA No. 923/Del/2021 Nimbus Multicommodity Brokers Pvt. Ltd. ITA No. 924/Del/2021 Bipin Agarwal ITA Nos. 925 to 929/Del/2021 Nimbus Project Ltd. 63 the AO, i n the i nstant case, made additi on of Rs.29,50,00,000/- to the total income of the assessee bei ng the amount of Rs.14,50,00,000/- from M/s Ci ndy Goods & Suppl y ITA Nos.929 & 930/Del /2019 Pvt. Ltd., and Rs.15 crores from M/s Pabl a Leasi ng & Fi nance Pvt. Ltd., on account of non-genui ne share premi um/share capi tal . Si mil arl y for A.Y. 2014-15, the AO made an addi ti on of Rs.20,51,00,000/- bei ng an amount of Rs.2,51,00,000/- recei ved from M/s Pabl a Leasi ng & Fi nance Pvt. Ltd. and Rs.18 crores from Gi ri Fi nanci al Servi ces Pvt. Ltd. treati ng the same as non-genui ne and by i nvoki ng the provi si ons of secti on 68 of the IT Act. We find the l d.CIT(A) uphel d the addi ti on so made by the AO. It i s the submi ssi on of the l d. Counsel for the assessee that the assessee has fi l ed the requi site detail s such as copy of the bank account, copy of the Income-tax returns, copy of confi rmati ons, detail s of all otment of shares, etc. before the AO to substanti ate the i denti ty and credi t worthi ness of the i nvestor compani es and the genui neness of the transacti on. It i s al so hi s submi ssi on that the di rectors of the investor compani es were produced before the AO whose statements were recorded u/s 131 i n whi ch they have confi rmed to have i nvested i n the shares of the assessee company. It i s al so hi s submi ssi on that i n the precedi ng and subsequent assessment years, such share capi tal at hi gh premi um has been accepted by the AO i n the order passed u/s 153A/143(3) and no adverse vi ew has been taken. Further, i t i s al so hi s submi ssi on that such non-cumul ati ve non- ITA No. 923/Del/2021 Nimbus Multicommodity Brokers Pvt. Ltd. ITA No. 924/Del/2021 Bipin Agarwal ITA Nos. 925 to 929/Del/2021 Nimbus Project Ltd. 64 parti ci pati ng opti onall y converti ble redeemabl e preference shares were redeemed to the i nvestor compani es i n the F.Y. 2014-15 much before the search and, therefore, under the facts and ci rcumstances of the case no addi ti on i s call ed for. Para 28 - .......... In the case of M/s Pabl a Leasi ng & Fi nance ITA Nos.929 & 930/Del /2019 Pvt. Ltd., the AO, i n the order passed u/s 143(3) for A.Y. 2015-16, copy of whi ch i s pl aced at pages 503 and 504 of the paper book, has accepted an amount of Rs.2,64,60,000/- towards preferenti al share capi tal and Rs.11,34,00,000/- towards equi ty share capi tal and no addi ti on has been made. Si mil arl y, i n the case of Gi ri Fi nanci al Servi ces Pvt. Ltd., the AO, i n the order passed u/s 143(3)/153A for A.Y. 2015-16, copy of whi ch i s pl aced at pages 505 and 506 of the paper book, has accepted th e same and no addi ti on has been made. Therefore, the all egati on of the AO that these compani es are paper compani es wi thout doi ng any busi ness and these compani es are exi sti ng only for bei ng used by di fferent accommodation entry operators to facili tate accommodati on entri es i n different forms to vari ous benefi ci ary groups i s factuall y i ncorrect i n vi ew of the orders passed i n case of these i nvestor compani es i n precedi ng and subsequent years. 58. We find that the Co-ordi nate Bench of the ITAT has consi dered the i dentity of the compani es and found that Gi ri Fi nanci al Servi ces Pvt. Ltd. to have been incorporated i n the ITA No. 923/Del/2021 Nimbus Multicommodity Brokers Pvt. Ltd. ITA No. 924/Del/2021 Bipin Agarwal ITA Nos. 925 to 929/Del/2021 Nimbus Project Ltd. 65 year 1995, the amounts have been accepted as genui ne duri ng the assessments compl eted u/s 143(3), the returned i ncome range from Rs.53.9 l acs, Rs.9.16 l acs, Rs.148 l acs for the A.Y. 2013-14, A.Y. 2014-15 and A.Y. 2015-16 respecti vely in the case of Gi ri Fi nanci al Servi ces Pvt. Ltd. and i n the case of Pabl a Leasi ng & Fi nance Pvt. Ltd. Rs.30.85 l acs for the A.Y. 2013-14, Rs.(-) 52.22 l acs for A.Y. 2014-15 and Rs.93.18 l acs for A.Y. 2015-16 whi ch undi sputedly proves that the i nvestor compani es cannot be consi dered as a accommodati on entry provi der/paper company. The company has dul y responded to noti ces i ssued u/s 133(6) to the revenue authori ti es. Further, Shri Vi rendra Tri pathy, Managi ng Di rector of M/s Pabl a Leasi ng & Fi nance Pvt. Ltd., has confi rmed the i nvestments made i n the assessee company duri ng the statement recorded u/s 131 of the IT Act by the revenue authoriti es. Mr. An shul Mi ttal , Di rector of the company has submi tted all the rel evant detail s before the revenue authori ti es. Hence, keeping i n vi ew, the facts narrated above, we find that the observation of the revenue authori ti es hol di ng that the i denti ty, genui neness and credi tworthiness of the l ender company coul d not be proved i s contrary to the facts on record. Hence, the addi ti on made by the revenue authori ti es i s li abl e to be obliterated. 59. In the resul t, the appeal of the assessee i n ITA No. 928/Del /2021 for A.Y. 2013-14 and ITA No. 929/Del /2021 for A.Y. 2014-15 i s all owed. ITA No. 923/Del/2021 Nimbus Multicommodity Brokers Pvt. Ltd. ITA No. 924/Del/2021 Bipin Agarwal ITA Nos. 925 to 929/Del/2021 Nimbus Project Ltd. 66 ITA No. 923/Del/2021 for A.Y. 2012-13 Nimbus Mult icommodity Brokers Pvt. Ltd. 60. Duri ng the year, the assessee recei ved unsecured l oans from three entiti es whi ch are as under: Sr. No. Name of Party Amount(Rs.) 1. Ci ndy Goods & Suppli ers 2,00,00,000/- 2. Newways Fi nance Pvt. Ltd. 1,05,00,000/- 3. RCJ Investment Trust Ltd. 70,00,000/- Total 3,75,00,000 61. The AO has made addi ti on under Secti on 68 of the IT Act on account of the unsecured l oan recei ved from M/s Ci ndy Goods & Suppl y Pvt. Ltd. accepti ng the unsecured l oans recei ved from the other two l enders namel y, Newways Fi nance Pvt. Ltd. and RCJ Investment Trust Ltd. 62. The i ssue of i denti ty, genui neness and credi tworthi ness of the l ender namel y, M/s Ci ndy Goods & Suppl y Pvt. Ltd. has al ready been di scussed i n the ITA No. 926/Del /2021 for A.Y. 2011-12 and ITA No. 927/Del /2021 for A.Y. 2012-13. Hence, foll owi ng the same rati o, the addi ti on made by the AO i s di rected to be del eted. 63. In the resul t, the appeal of the assessee i n ITA No. 923/Del /2021 for A.Y. 2012-13 i s all owed. ITA No. 924/Del/2021 for A.Y. 2012-13 Bipin Agarwal 64. Duri ng the year, the assessee recei ved unsecured l oans from seven enti ti es whi ch are as under: ITA No. 923/Del/2021 Nimbus Multicommodity Brokers Pvt. Ltd. ITA No. 924/Del/2021 Bipin Agarwal ITA Nos. 925 to 929/Del/2021 Nimbus Project Ltd. 67 Sr. No. Name of Party Amount(Rs.) 1. Viniyas Finance & Investment Pvt. Ltd. 2,50,00,000/- 2. M/s Cindy Goods & Supply Pvt. Ltd. 2,50,00,000/- 3. M/s Mysore Finlease Pvt. Ltd. 4,00,00,000/- 4. RCJ Investment Trus t Pvt. Ltd. 50,00,000/- 5. M/s Mysore Finlease Pvt. Ltd. 2,00,00,000/- 6. M/s Jardine Infrastructure & Develo pers Pvt. Ltd. 1,25,00,000/- 7. M/s Tavishi Ho ldings Pvt. Ltd. 2,00,00,000/- 65. The AO has made addi ti on u/s 68 of the I.T. Act on account of unsecured l oan recei ved from M/s Ci ndy Goods & Suppl y Pvt. Ltd. onl y accepti ng the unsecured l oans recei ved from the other l enders. 66. The i ssue of i denti ty, genui neness and credi tworthi ness of the l ender namel y, M/s Ci ndy Goods & Suppl y Pvt. Ltd. has al ready been di scussed i n ITA No. 926/Del /2021 for A.Y. 2011- 12 and i n ITA No. 927/Del /2021 for A.Y. 2012-13. Hence, foll owi ng the same rati o, the addi ti on made by the AO i s di rected to be del eted. 67. In the resul t, the appeal of the assessee i n ITA No. 924/Del /2021 for A.Y. 2012-13 i s all owed. Order Pronounced i n the Open Court on 12/01/2022. Sd/- Sd/- (Amit Shukla) (Dr. B. R. R. Kumar) Judicial Member Accountant Member Dated: 12/01/2022 *Subodh Kumar, Sr. PS* ITA No. 923/Del/2021 Nimbus Multicommodity Brokers Pvt. Ltd. ITA No. 924/Del/2021 Bipin Agarwal ITA Nos. 925 to 929/Del/2021 Nimbus Project Ltd. 68 Copy forwarded to: 1. Appellant 2. Respondent 3. CIT 4. CIT(Appeals) 5. DR: ITAT ASSISTANT REGISTRAR Date Initial 1. Draft punched on computer 07 & 10.01.2022 PS 2. Draft placed before author 11.01.2022 PS 3. Draft proposed & placed before the second member JM/AM 4. Draft discussed/approved by Second Member. JM/AM 5. Approved Draft comes to the Sr.PS/PS PS/PS 6. Kept for pronouncement on PS 7. File sent to the Bench Clerk PS 8. Date on which file goes to the AR 9. Date on which file goes to the Head Clerk. 10. Date of dispatch of Order. 11. Date of uploading
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