Assistant Commissioner Of Income Tax, SATNA V. M/s Bansal Carriers Pvt. Ltd.,

ITSSA 52/JAB/2013

• Counselvise Citation: [2019] 117 COUNSELVISE.COM (IT) 1091 (ITAT-JABALPUR)
• Duration Of Justice: 5 year(s) 10 month(s) 6 day(s)
• Appeal Type: Income Tax (Search & Seizure) Appeal
• Pronouncement Date: 28-05-2019
• Appeal Filed By: Department
• Bench Allotted: DB
• Assessment Year: 2005-2006
• Appeal Filed On: 22-07-2013
• Court: TRIBUNAL
• Department Lawyers: V B SARGOR
• Assessee Lawyers: SUNIL NEMA ADVS
• Keywords: Unexplained cash credit; Bogus Share capital; Search and seizure; Capital receipt
• Section: 143(3); 133(6); 131; 68

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL, JABALPUR BENCH, JABALPUR BEFORE SHRI D.T. GARASIA, J.M. AND SHRI B.C.MEENA, A.M. I.T(S.S.).A.NOS.52,53 & 54/JAB/2013 A.YS. : 2005-06, 2006-07 & 2007-08 ACIT, CIRCLE SATNA VS M/S.BANSAL CARRIERS PRIVATE LIMITED, MIG 3, HEDGEWAR NAGAR, REWA APPELLANT RESPONDENT PAN NO. : AABCB 7511R C.O. NO.45, 46 & 47/JAB/2013 (ARISING OUT OF I.T(S.S.).A.NO.45,46 & 47/JAB/2013 A.Y. : 2005-06, 2006-07 & 2007-08 M/S.BANSAL CARRIERS PRIVATE LIMITED, MIG 3, HEDGEWAR NAGAR, REWA VS ACIT, CIRCLE SATNA CROSS OBJECTOR RESPONDENT -: 2: - 2 DEPARTMENT BY : SHRI V.B.SARGOR, DR ASSESSEE BY : SHRI K.P.DEWANI AND SHRI SUNIL NEMA, ADVS. DATE OF HEARING : 28 . 0 5 .201 5 DATE OF PRONOUNCEMENT : 25 . 0 6 .201 5 O R D E R PER BENCH THESE THREE APPEALS OF THE REVENUE AND CROSS OBJECT IONS OF THE ASSESSEE ARE DIRECTED AGAINST THE SEPARATE O RDERS OF THE CIT-28, MUMBAI, ALL DATED 22.05.2015 AND RELATE TO ASSESSMENT YEARS 2005-06, 2006-07 & 2007-08. FOR TH E SAKE OF CONVENIENCE, WE ARE DISPOSING OF ALL THESE APPEA LS AND CROSS OBJECTIONS BY THIS COMMON ORDER. I.T.(SS).A.NO. 52/JAB/2013 : 2. THE ONLY GROUND TAKEN BY THE REVENUE IS THAT ON THE FACTS AND IN THE CIRCUMSTANCES OF THE CASE, THE LD. CIT(A) ERRED IN FACTS AND IN LAW IN DELETING THE ADDITION OF RS. 41,00,000/- -: 3: - 3 MADE BY THE ASSESSING OFFICER ON ACCOUNT OF UNEXPLA INED SHARE APPLICATION MONEY U/S 68 OF THE INCOME-TAX AC T, 1961. 3. THE ASSESSEE COMPANY HAS RECEIVED SHARE APPLICATION MONEY FROM 20 SHAREHOLDERS AS PER ANNEXURE A. THI S INCLUDES FACE VALUE OF SHARES AND PREMIUM THEREON AGGREGATING TO RS. 41,20,000/- OUT OF WHICH AMOUNT OF RS 20,000/- RELATES TO SMT. MEENA BANSAL, ONE OF THE D IRECTORS OF THE COMPANY. THE SHAREHOLDINGS OF KOLKATA BASED SHA REHOLDER ARE AT RS. 41,00,000/-. THE FACTS OF THIS CASE ARE DISCUSSED IN ASSESSMENT YEAR 2010-11. THE ASSESSEE COMPANY FILED THE DETAILS REGARDING SHAREHOLDERS TO PROVE THEIR IDENT ITY, CREDITWORTHINESS AND GENUINENESS OF TRANSACTION. IT HAS ALSO FILED AFFIDAVITS IN RESPECT OF 19 SHARE HOLDERS OF KOLKATA FROM WHOM THE SHARE APPLICATION MONEY HAS BEEN RECEIVED IN CASH. THE EXPLANATION OFFERED AND PAPERS FILED HAVE BEEN VERIFIED. THE ASSESSEE COMPANY FAILED TO PRODUCE ANY OF THE SHAREHOLDERS INSPITE OF SUFFICIENT OPPORTUNITY. THE REFORE, THE AO HAS TREATED RS. 41,00,000/- AS UNEXPLAINED CREDI T TO THE INCOME OF THE ASSESSEE. -: 4: - 4 4. THE MATTER CARRIED TO LD. CIT(A) AND THE LD. CIT(A) DELETED THE ADDITION OBSERVING AS UNDER :- 13. I HAVE CONSIDERED THE FACTS OF THE CASE. DURING THE YEAR, 2 PERSONS HAVE MADE INVESTMENTS IN SHARE CAPITAL OF THE ASSESSEE COMPANY AS UNDER:- 1. SMT. KIM BAHADUR RANA 5,00,000 2. SHRI RAM BILASH SINGH 4,00,000 3. SHRI PRADEEP GOEL 2,00,000 4. SMT. NEHA CHOUDHARY 3,00,000 5. SMT. TAXNEEM MUSTUFA 3,50,000 6. SHRI NARESH SHAH 1,50,000 7. SHRI MUSTAFA ADAM ALI 4,00,000 8. SHRI RAGHUNATH YADAV 2,00,000 9. SHRI DAMODAR AGRAWAL 50,000 10. SMT. MUNMUM SARKAR 1,00,000 11. SHRI MAHENDRA KUMAR JOSHI 1,00,000 12. SHRI ANUP SARKAR 2,00,000 13. SMT. MANJU JHAWAR 50,000 14. SHRI PRAHLAD KUMAR 50,000 -: 5: - 5 AGRAWAL 15. SMT. BINDU SINGHANIA 5,00,000 16. SHRI SANJAY KUMAR SINGH 1,00,000 17. SMT.SWETA DOKANIA 1,00,000 18. SMT.SUNITA AGRAWAL 2,00,000 19. SHRI RAMESH KUMAR DOKANIA 1,50,000 14.1 I HAVE CONSIDERED THE SUBMISSIONS MADE BY LEARNED COUNSEL OF THE APPELLANT, PERUSED THE MATERIAL AND EVIDENCE ON RECORD AND CASE LAWS CITED BEFORE ME. IN ASSESSMENT YEAR UNDER CONSIDERATION SHARE APPLICATION MONEY AT RS. 41,00,000/- IS RECEIVED FROM 19 INDIVIDUALS AS MENTIONED ABOVE. THE AO HAS HELD THAT VARIOUS SHARE CAPITAL CONTRIBUTIONS RECEIVED BY APPELLANT ARE ASSESSABLE AT THE HANDS OF APPELLANT AS UNEXPLAINED CASH CREDIT. FROM THE ASSESSMENT ORDER IT APPEARS THAT A.O. HAS MADE THE ABOVE ADDITION, BY MAKING GENERAL OBSERVATIONS, WITHOUT FINDING -: 6: - 6 SPECIFIC INFIRMITY R ESPECTIVE INVESTMENTS. THE AO HAS GIVEN REFERENCE TO CERTAIN ENQUIRIES CONDUCTED BY HIM OR THROUGH INVESTIGATION WING OF INCOME TAX DEPARTMENT, KOLKATA AND THROUGH JURISDICTIONAL A.O. AT KOLKATA. THE PERUSAL OF ASSESSMENT ORDER INDICATES THAT AO HAS NOT RECORDED ANY FINDINGS WITH REFERENCE TO EACH AND EVERY SHAREHOLDER OF THE COMPANY. THE APPELLANTS IN RESPECT TO EACH OF THE SHARE HOLDER HAVE SUBMITTED SHARE APPLICATION FORMS DULY SIGNED BY AUTHORIZED PERSON WITH THEIR ADDRESSES, CONFIRMATION LETTER DULY SIGNED BY AUTHORIZED PERSON AND CONFIRMING INVESTMENT IN ASSESSEE COMPANY., COPY OF ACKNOWLEDGEMENT OF INCOME TAX RETURN CLEARLY INDICATING THE DETAIL OF WARD/ CIRCLE WHERE THE INVESTING PERSON IS ASSESSED TO INCOME TAX, AND COPY BANK STATEMENT ETC. INDICATING THAT AMOUNT IS INVESTED THROUGH BANKING CHANNEL IN MOST OF THE CASES. THE APPELLANT HAS -: 7: - 7 SUBMITTED RELEVANT DETAILS IN RESPECT TO EACH OF SHAREHOLDERS OF THE APPELLANT COMPANY TO ESTABLISH IDENTITY, GENUINENESS AND CREDITWORTHINESS OF SHARE APPLICANT. THE ASSESSING OFFICER HAS NOT BROUGHT ANYTHING ON RECORD TO DISPUTE THE DETAILS FURNISHED BY APPELLANT. ALL THE SHARE APPLICANTS ARE ASSESSED TO INCOME TAX. THE AMOUNT RECEIVED IS THROUGH PROPER BANKING CHANNEL. THE ASSESSING OFFICER HAS NOT POINTED OUT ANY DISCREPANCY IN THE DOCUMENTS SUBMITTED BY APPELLANT. THE ASSESSING OFFICER HAS ALSO NOT DISPUTED THE AUTHENTICITY OF THE EVIDENCE SUBMITTED BEFORE HIM. 14.2 IT APPEARS THAT NO INCRIMINATING MATERIAL WAS FOUND DURING THE COURSE OF SEARCH INDICATING THAT SHARE CAPITAL IS IN THE NATURE OF ACCOMMODATION ENTRY. IN THE ABSENCE OF ANY INCRIMINATING MATERIAL FOUND ADDITION CANNOT BE JUSTIFIED. THE AO, HAS NOT BROUGHT -: 8: - 8 ANY EVIDENCE ON RECORD TO SHOW THAT INVESTMENT IN SHARE CAPITAL IN NAME OF THE DIFFERENT PERSONS ARE ASSESSEES OWN MONEY. THE APPELLANT IN THIS REGARD HAS PLACED RELIANCE UPON THE DECISION OF HON'BLE DELHI HIGH COURT IN THE CASE OF CIT VS. VALUE CAPITAL IN THIS REGARD HAS PLACED RELIANCE UPON THE SERVICES PVT. LTD. REPORTED AT 307 ITR 334 (DEL.). IN THE SAID JUDGMENT THE HON'BLE DELHI HIGH COURT HAS HELD THAT IN THE ABSENCE OF ANY EVIDENCE TO THE EFFECT THAT MONEY HAS FLOWN FROM COFFERS OF APPELLANT NO ADDITION U/S 68 OF I.T. ACT 1961 IN RESPECT TO SHARE CAPITAL CONTRIBUTION MADE WITH APPELLANT COMPANY CAN BE MADE. THE RATIO OF THIS JUDGMENT SQUARELY APPLIES TO THE FACTS OF THE APPELLANT. 14.3 IN THE PRESENT CASE, IT IS EVIDENT THAT SHARE APPLICATION MONEY HAS BEEN RECEIVED THROUGH CHEQUE, THROUGH PROPER BANKING -: 9: - 9 CHANNEL. THE CAPITAL CONTRIBUTION IS BY VARIOUS INDIVIDUALS WHO ARE ASSESSED TO TAX. ON THE BASIS OF ABOVE FACTS THERE IS SUFFICIENT EVIDENCE ON RECORD TO SHOW THAT IDENTITY, GENUINENESS AND CREDITWORTHINESS OF SHARE HOLDERS MAKING CONTRIBUTION TOWARDS SHARE CAPITAL. 14.4 THE A.O., WITH A VIEW TO EXAMINE GENUINENESS OF SHARE APPLICATION MONEY HAS CALLED FOR INFORMATION U/S 133(6) OF INCOME TAX ACT 1961 AND HAS ALSO ISSUED SUMMONS U/S 131 OF THE INCOME-TAX ACT, 1961. THE AO HAS OBSERVED IN THE ASSESSMENT ORDER FOR ASSTT. YEAR 2010-11 THAT INVESTORS DID NOT FURNISH THE I NFORMATION AND DID NOT ATTEND ON THE DATE FIXED, WHICH DOES NOT APPEAR TO BE CORRECT. IT IS SEEN FROM RECORD THAT MANY OF SHAREHOLDERS HAD SUBMITTED DETAILS CALLED FOR, IN PURSUANCE TO SUMMON ISSUED U/S 131 OF INCOME- -: 10: - 10 TAX ACT, 1961. MAY BE IN SOME CASES, AFTER THE DATE GIVEN BY THE ASSESSING OFFICER. IN FACT MANY SHARE HOLDERS HAD GIVEN REPLY OF NOTICE ISSUED U/S 133(6) OF INCOME-TAX ACT WHICH ARE PLACED IN PAPER BOOK SUBMITTED. MERELY BECAUSE NOTICE ISSUED TO SOME SHARE HOLDERS WAS NOT RESPONDENT WITHIN DUE DATE, THEIR SHARE APPLICATION MONEY CANNOT BE TREATED AS UNEXPLAINED AMOUNT. IN FACT THIS ISSUE HAS BEEN EXAMINED AGAIN BY THE A.O. DURING REMAND PROCEEDINGS AND HE HAS SUBMITTED A REMAND REPORT VIDE LETTER DATED 12.04.2013, IN WHICH NO DOUBTS HAS BEEN RAISED, ABOUT THE GENUINENESS OF THE TRANSACTION OR ABOUT THE IDENTITY OF THE PERSON AND THEIR CAPACITY. 14.5 THE AO IN THE ASSESSMENT ORDER FOR ASSTT. YEAR 2010-11 HAS OBSERVED THAT PHYSICAL EXISTENCE OF SHARE APPLICANTS IS NOT ESTABLISHED. THE APPELLANT HAS SUBMITTED -: 11: - 11 DETAILS OF PAN OF EACH AND EVERY SHARE HOLDERS AND ACKNOWLEDGEMENT OF INCOME TAX RETURN CLEARLY INDICATING THE DETAIL OF WARD/CIRCLE WHETHER SHARE APPLICANT IS ASSESSED TO INCOME TAX WHICH IS PACED IN PAPER BOOK. IT IS SEEN THAT ALL THE SHARE APPLICANTS ARE ASSESSED TO INCOME TAX AND ARE MAKING REGULAR COMPLIANCE UNDER THE PROVISIONS OF I.T. ACT 1961. ON THE FACE OF ABOVE UNDISPUTED FACTUAL POSITION THE PHYSICAL EXISTENCE OF SHARE APPLICANTS CANNOT BE QUESTIONED. IN VIEW OF ABOVE, THE OBSERVATION OF AO THAT SHARE APPLIANCE HAS NO PHYSICAL EXISTENCE OR CONTRIBUTION OF SHARE CAPITAL IS MERELY ACCOMMODATION ENTRY IS UNJUSTIFIED. IN FACT THIS ISSUE HAS BEEN EXAMINED BY THE A.O., AGAIN DURING THE REMAND PROCEEDINGS AND HAS SUBMITTED A DETAILED REPORT VIDE LETTER DATED 12.04.2013 WHICH IS REPRODUCED IN THE FOREGOING -: 12: - 12 PARAGRAPHS, AND NO DOUBTS HAS BEEN RAISED BY THE A.O. ABOUT THE GENUINENESS OF THE ABOVE PERSONS OR ABOUT THE GENUINENESS OF THE TRANSACTIONS. 14.6 THE HON'BLE APEX COURT IN THE CASE OF CIT VS LOVELY EXPORTS HAS HELD THAT ONCE THE NAME OF SHARE HOLDERS ARE PROVIDED TO AO IT CANNOT BE REGARDED AS UNDISCLOSED INCOME UNDISCLOSED INCOME OF THE APPELLANT. THE RATIO AS LAID DOWN HAS BEEN FOLLOWED BY HON'BLE DELHI HIGH COURT IN THE CASE OF DWARKADISH INVESTMENT PVT. LTD. IN ITS JUDGMENT DATED 2 ND AUGUST 2010. IN THE AFORESAID JUDGMENT OF HON'BLE DELHI HIGH COURT IT HAS BEEN HELD THAT DECISION RENDERED BY APEX COURT IN THE CASE OF LOVELY EXPORTS IS A BINDING PRECEDENT AND APPELLANT HAVING ESTABLISHED IDENTITY OF SHAREHOLDERS NO ADDITION IN RESPECT TO SHARE CAPITAL CAN BE MADE AT THE HANDS OF COMPANY. IN THE CASE OF -: 13: - 13 APPELLANT COMPANY IDENTITY, GENUINENESS AND CREDITWORTHINESS OF SHARE HOLDERS HAVING BEEN ESTABLISHED NO ADDITION IN RESPECT TO SHARE CAPITAL CONTRIBUTION CAN BE MADE BY AO AND IS SUSTAINABLE IN THE LIGHT OF DECISION OF HON'BLE APEX COURT IN THE CASE OF LOVELY EXPORTS PVT. LTD. 14.7 DURING THE COURSE OF APPELLATE PROCEEDINGS A REMAND REPORT WAS CALLED FOR, FROM THE A.O. THE AO IN THIS REGARD HAS SUBMITTED A REPORT DATED 12.04.2013 , WHICH HAS BEEN REPRODUCED IN THE FOREGOING PARAGRAPHS. FROM THE PERUSAL OF THIS REPORT AS ALSO THE MATERIAL PRODUCED BY THE APPELLANT, IT MAY BE CONCLUDED THAT SUFFICIENT EVIDENCE HAS BEEN BROUGHT ON RECORD TO PROVE THAT INVESTMENT TOWARDS SHARE CAPITAL BY DIFFERENT COMPANIES IS EXPLAINED. 15. IN VIEW OF THE ABOVE FACTS, I AM OF THE OPINION THAT IDENTITY, CREDITWORTHINESS AND -: 14: - 14 GENUINENESS OF TRANSACTION STAND SATISFACTORILY EXPLAINED BY APPELLANT AND THERE IS NO JUSTIFICATION FOR MAKING ANY ADDITION IN THE CASE OF APPELLANT ON ACCOUNT OF SHARE CAPITAL CONTRIBUTION AS UNEXPLAINED CASH CREDIT. IN VIEW OF THE ABOVE DISCUSSION AND RESPECTFULLY FOLLOWING THE JUDGMENT OF HON'BLE SUPREME COURT IN THE CASE OF LOVELY EXPORTS PVT. LTD., AND THAT OF HON'BLE DELHI HIGH COURT IN THE CASE OF DWARKADISH INVESTMENTS PVT. LTD., AND VALUE CAPITAL SERVICES PVT. LTD., ADDITION OF RS. 41,00,000/- MADE AS UNEXPLAINED SHARE CAPITAL/SHARE APPLICATION MONEY IS ORDERED TO BE DELETED. THEREFORE, THE GROUND NO.2 AND GROUND NO. 3 OF THE ASSESSEE ARE ALLOWED. 7. WE HAVE HEARD THE RIVAL CONTENTIONS OF BOTH THE PAR TIES. LOOKING TO THE FACTS AND CIRCUMSTANCES OF THE CASE, WE FIND THAT THE AO HAS MADE THE ADDITION ON ACCOUNT OF SHA RE CAPITAL CONTRIBUTION OF RS. 41 LAKHS. THE LD. CIT(A) HAS CA LLED FOR -: 15: - 15 REMAND REPORT AND DURING THE REMAND PROCEEDINGS, TH E ASSESSEE ESTABLISHED THE IDENTITY, GENUINENESS AND CREDITWORTHINESS OF SHAREHOLDERS AND SHAREHOLDERS, THUS, FULLY EXPLAINED. THE DETAILS WERE GIVEN BY THE LD.CIT(A) IN HIS ORDER ON PAGES 4 TO 0, WHICH IS REPRODUCED AS UNDER :- 'IN A Y 2005-06 INCREASE IN SHARE CAPITAL HAS BEEN CONTRIBUTED BY 7 SHAREHOLDERS. THE DETAILED FACTUAL POSITION AS REGARD TO EVIDENCE ON RECORD IS GIVEN HEREUNDER. 'IN A. Y. 2005-06 INCREASE IN SHARE CAPITAL HAS BEEN CONTRIBUTED BY 19 SHAREHOLDERS. THE DETAILED FACTUAL POSITION AS REGARD TO EVIDENCE ON RECORD IS GIVEN HEREUNDER. A) SMT. KIM BAHADUR RANA ACKNOWLEDGEMENT OF INCOME TAX RETURN FOR A.Y. 2005-06 INDICATING THE DETAIL OF WARD/ CIRCLE WHERE THE SHARE -: 16: - 16 APPLICANT IS ASSESSED TO INCOME TAX, BALANCE SHEET AS AT 31.03.2005 WHEREIN THE AMOUNT INVESTED AT RS. 5,00,000/- IN ASSESSEE COMPANY IS SHOWN ON ASSET SIDE UNDER THE HEAD INVESTMENT, COPY OF SHARE APPLICATION FORM DULY SIGNED BY SHARE APPLICANT AND AFFIDAVIT AFFIRMING INVESTMENT WITH ASSESSEE COMPANY. REPLY OF NOTICE ISSUED U/S. 133(6) OF INCOME-TAX ACT, 1961, RECEIVED BY THIS OFFICE ON 8.12.2011. THE SHARE CAPITAL TRANSACTION WAS CONFIRMED BY SHARE HOLDER AND EVIDENCES OF INVESTMENT MADE WITH ASSESSEE COMPANY WERE SUBMITTED AND EXPLAINED. B) SHRI. RAM BILASH SINGH ACKNOWLEDGEMENT OF INCOME TAX RETURN FOR A. Y. 2005-06 INDICATING THE -: 17: - 17 DETAIL OF WARD/ CIRCLE WHERE THE SHARE APPLICANT IS ASSESSED TO INCOME TAX, BALANCE SHEET AS AT 31.03.2005 WHEREIN THE AMOUNT INVESTED AT RS. 4,00,000/- IN ASSESSEE COMPANY IS SHOWN ON ASSET SIDE UNDER THE HEAD INVESTMENT, AND AFFIDAVIT AFFIRMING INVESTMENT WITH ASSESSEE COMPANY. REPLY OF NOTICE ISSUED U/ S.133(6) OF INCOME-TAX ACT, 1961. THE SHARE CAPITAL TRANSACTION WAS CONFIRMED BY SHARE HOLDER AND EXPLAINED. C) SHRI. PRADEEP GOEL COPY OF SHARE APPLICATION FORM DULY SIGNED BY SHARE APPLICANT, ACKNOWLEDGEMENT OF INCOME TAX RETURN FOR A Y 2005-06 INDICATING THE DETAIL OF WARD/ CIRCLE WHERE THE SHARE APPLICANT IS ASSESSED TO INCOME TAX, -: 18: - 18 BALANCE SHEET AS AT 31.03.2005 WHEREIN THE AMOUNT INVESTED AT RS. 2,00,000/- IN ASSESSEE COMPANY IS SHOWN ON ASSET SIDE UNDER THE HEAD INVESTMENT, AND AFFIDAVIT AFFIRMING INVESTMENT WITH ASSESSEE COMPANY. REPLY OF NOTICE ISSUED U/S. 133(6) OF INCOME-TAX ACT, 1961, RECEIVED BY THIS OFFICE ON 7.12.2011. THE SHARE CAPITAL TRANSACTION WAS CONFIRMED BY SHARE APPLICANT AND EXPLAINED. D) NEHA CHOUDHARY ACKNOWLEDGEMENT OF INCOME TAX RETURN FOR A.Y. 2005-06 INDICATING THE DETAIL OF WARD/ CIRCLE WHERE THE SHARE APPLICANT IS ASSESSED TO INCOME TAX, BALANCE SHEET AS AT 31.03.2005 WHEREIN THE AMOUNT INVESTED AT RS.3,00,000/- IN ASSESSEE COMPANY IS -: 19: - 19 SHOWN ON ASSET SIDE UNDER THE HEAD INVESTMENT, AND AFFIDAVIT AFFIRMING INVESTMENT WITH ASSESSEE COMPANY. ON ENQUIRY THROUGH ITO, WARD 46(3), KOLKATA, REPLY OF NOTICE ISSUED U/S.133(6) OF INCOME-TAX ACT, 1961, RECEIVED AND SAME WAS FORWARDED TO THIS OFFICE BY INCOME TAX OFFICER, WARD 46(3), KOLKATA VIDE LETTER DATED 2.12.2011 AND RECEIVED BY THIS OFFICE ON 3.12.2011. THE SHARE CAPITAL TRANSACTION WAS CONFIRMED BY SHARE APPLICANT AND EVIDENCES OF INVESTMENT MADE WITH ASSESSEE COMPANY WERE SUBMITTED AND EXPLAINED. E) TASNEEM MUSTUFA ACKNOWLEDGEMENT OF INCOME TAX RETURN FOR A Y 2005-06 INDICATING THE DETAIL OF WARD/ CIRCLE WHERE THE -: 20: - 20 SHARE APPLICANT IS ASSESSED TO INCOME TAX, BALANCE SHEET AS AT 31.03.2005 WHEREIN THE AMOUNT INVESTED AT RS. 3,50,000/- IN ASSESSEE COMPANY IS SHOWN ON ASSET SIDE UNDER THE HEAD INVESTMENT, AND AFFIDAVIT AFFIRMING INVESTMENT WITH ASSESSEE COMPANY. THE INSPECTOR OF INCOME TAX, ITO, WARD 28(3), KOLKATA HAS COLLECTED INFORMATION FROM SHARE APPLICANT THROUGH TELEPHONIC CONVERSATION. THE SHARE CAPITAL TRANSACTION WAS CONFIRMED BY SHARE APPLICANT AND LETTER OF CONFIRMATION SUBMITTED BEFORE INCOME TAX OFFICER, WARD-28(3), KOLKATA AND SAME RECEIVED BY THIS OFFICE ON 21.12.2011. REPLY OF NOTICE ISSUED U/S. 133(6) OF INCOME-TAX ACT, 1961, RECEIVED BY THIS OFFICE ON 7.12.2011. ALONG WITH REPLY -: 21: - 21 EVIDENCES OF INVESTMENT WITH ASSESSEE COMPANY WERE SUBMITTED AND EXPLAINED. F) SHRI. NARESH SHAH ACKNOWLEDGEMENT OF 1NCOME TAX RETURN FOR A Y 2005-06 INDICATING THE DETAIL OF WARD! CIRCLE WHERE THE SHARE APPLICANT IS ASSESSED TO INCOME TAX, BALANCE SHEET AS AT 31.03.2005 WHEREIN THE AMOUNT INVESTED AT RS.1,50,000/- IN ASSESSEE COMPANY IS SHOWN ON ASSET SIDE UNDER THE HEAD INVESTMENT, COPY OF SHARE APPLICATION FORM DULY SIGNED BY SHARE APPLICANT AND AFFIDAVIT AFFIRMING INVESTMENT WITH ASSESSEE COMPANY. REPLY OF NOTICE ISSUED U/S. 133(6) OF INCOME- TAX ACT, 1961, RECEIVED BY THIS OFFICE ON 8.12.2011. THE SHARE CAPITAL -: 22: - 22 TRANSACTION WAS CONFIRMED BY SHARE HOLDER AND EXPLAINED. G) SHRI. MUSTAFA ADAM ALI COPY OF SHARE APPLICATION FORM DULY SIGNED BY SHARE APPLICANT, ACKNOWLEDGEMENT OF INCOME TAX RETURN FOR A Y 2005-06 INDICATING THE DETAIL OF WARD! CIRCLE WHERE THE SHARE APPLICANT IS ASSESSED TO INCOME TAX, BALANCE SHEET AS AT 31.03.2005 WHEREIN THE AMOUNT INVESTED AT RS. 4,00,000/- IN ASSESSEE COMPANY IS SHOWN AN ASSET SIDE UNDER THE HEAD INVESTMENT, AND AFFIDAVIT AFFIRMING INVESTMENT WITH ASSESSEE COMPANY. ON ENQUIRY THROUGH ITO , WARD 46(3), KOLKATA, REPLY OF NOTICE ISSUED U/S 133(6) OF INCOME-TAX ACT, 1961. RECEIVED AND SAME WAS FORWARDED -: 23: - 23 TO THIS OFFICE ON 7.12.2011. THE SHARE CAPITAL TRANSACTION WAS CONFIRMED BY SHARE APPLICANT AND EVIDENCES OF INVESTMENT MADE WITH ASSESSEE COMPANY WERE SUBMITTED AND EXPLAINED. H) SHRI. RAGHUNATH YADAV COPY OF SHARE APPLICATION FORM DULY SIGNED BY SHARE APPLICANT, ACKNOWLEDGEMENT OF 1NCOME TAX RETURN FOR A Y 2005-06 INDICATING THE DETAIL OF WARD/CIRCLE WHERE THE SHARE APPLICANT IS ASSESSED TO INCOME TAX, BALANCE SHEET AS AT 31.03.2005 WHEREIN THE AMOUNT INVESTED AT RS. 2,00,000/- IN ASSESSEE COMPANY IS SHOWN ON ASSET SIDE UNDER THE HEAD INVESTMENT, AND AFFIDAVIT AFFIRMING INVESTMENT WITH ASSESSEE COMPANY. -: 24: - 24 REPLY OF NOTICE ISSUED U/S. 133(6) OF INCOME-TAX ACT, 1961, RECEIVED BY THIS OFFICE ON 8.12.2011. THE SHARE CAPITAL TRANSACTION WAS CONFIRMED BY SHARE HOLDER AND EXPLAINED. (I) SHRI. DAMODAR AGRAWAL COPY OF SHARE APPLICATION FORM DULY SIGNED BY SHARE APPLICANT, COPY OF PAN CARD, ACKNOWLEDGEMENT OF INCOME TAX RETURN FOR A.Y. 2005-06 INDICATING THE DETAIL OF WARD/CIRCLE WHERE THE SHARE APPLICANT IS ASSESSED TO INCOME TAX, BALANCE SHEET AS AT 31.03.2005 WHEREIN THE AMOUNT INVESTED AT RS. 50,000/- IN ASSESSEE COMPANY IS SHOWN ON ASSET SIDE UNDER THE HEAD INVESTMENT, AND AFFIDAVIT AFFIRMING INVESTMENT WITH 6 -: 25: - 25 ASSESSEE COMPANY. COPY OF STATEMENT DATED 14.11.2011 OF SHRI. DAMODAR AGRAWAL RECORDED BY INSPECTOR OF INCOME TAX, SATNA ON HIS VISIT TO KOLKATA, WHEREBY SHARE APPLICANT HAS CONFIRMED SHARE CAPITAL TRANSACTION WITH ASSESSEE COMPANY. (I)SMT. MUNMUN SARKAR COPY OF SHARE APPLICATION FORM DULY SIGNED BY SHARE APPLICANT, COPY OF PAN CARD, ACKNOWLEDGEMENT OF INCOME TAX RETURN FOR AY 200506 INDICATING THE DETAIL OF WARD/ CIRCLE WHERE THE SHARE APPLICANT IS ASSESSED TO INCOME TAX, BALANCE SHEET AS AT 31.03.2005 WHEREIN THE AMOUNT INVESTED AT RS. 1,00,000/- IN ASSESSEE COMPANY IS SHOWN ON ASSET SIDE UNDER THE HEAD INVESTMENT, AND AFFIDAVIT AFFIRMING INVESTMENT WITH -: 26: - 26 ASSESSEE COMPANY. ON ENQUIRY THROUGH INSPECTOR OF INCOME TAX, CIRCLE-23, KOLKATA, SHARE CAPITAL SUBMITTED. INSPECTOR REPORT RECEIVED BY THIS OFFICE ON 27.12.2011. COPY OF STATEMENT RECORDED BY INCOME TAX, SATNA ON HIS VISIT TO KOLKATA ON 14.11.2011 WHEREBY SHARE APPLICANT HAS CONFIRMED SHARE CAPITAL TRANSACTION WITH ASSESSEE COMPANY. J) SHRI. DAMODAR AGRAWAL COPY OF SHARE APPLICATION FORM DULY SIGNED BY SHARE APPLICANT, ACKNOWLEDGEMENT OF INCOME TAX RETUM FOR A Y 2005-06 INDICATING THE DETAIL OF WARD/ CIRCLE WHERE THE SHARE APPLICANT IS ASSESSED TO INCOME TAX, BALANCE SHEET AS AT 31.03.2005 WHEREIN THE AMOUNT INVESTED AT RS. -: 27: - 27 1,00,000/- IN ASSESSEE COMPANY IS SHOWN ON ASSET SIDE UNDER THE HEAD INVESTMENT, AND AFFIDAVIT AFFIRMING INVESTMENT WITH ASSESSEE COMPANY. COPY OF STATEMENT DATED 14.11.2011 OF SHRI. MAHENDRA KUMAR JOSHI RECORDED BY INSPECTOR OF INCOME TAX, SATNA ON HIS VISIT TO KOLKATA, WHERE BY SHARE APPLICANT HAS CONFIRMED SHARE CAPITAL TRANSACTION WITH ASSESSEE COMPANY. K) SHRI. ANUP SARKAR ACKNOWLEDGEMENT OF INCOME TAX RETURN FOR A Y 2005-06 INDICATING THE DETAIL OF WARD/ CIRCLE WHERE THE SHARE APPLICANT IS ASSESSED TO INCOME TAX, BALANCE SHEET AS AT 31.03.2005 WHEREIN THE AMOUNT INVESTED AT RS.2,00,000/- IN ASSESSEE COMPANY IS -: 28: - 28 SHOWN ON ASSET SIDE UNDER THE HEAD INVESTMENT, AND AFFIDAVIT AFFIRMING INVESTMENT WITH ASSESSEE COMPANY. ON ENQUIRY THROUGH INCOME TAX OFFICER, WARD-27(4), KOLKATA REPLY OF NOTICE U/S.133(6) OF I.T.ACT, 1961 RECEIVED AND SAME WAS FORWARDED TO THIS OFFICE BY INCOME TAX OFFICER, WARD-27(4), KOLKATA VIDE LETTER DATED 22.12.2011. THE SHARE CAPITAL TRANSACTION WAS CONFIRMED BY SHAREHOLDERS AND EVIDENCES OF INVESTMENT MADE WITH ASSESSEE COMPANY WERE SUBMITTED AND EXPLAINED. COPY OF STATEMENT DATED 14.11.2011 RECORDED BY INSPECTOR OF INCOME TAX, SATNA ON HIS VISIT TO KOLKATA, WHERE BY SHARE APPLICANT HAS CONFIRMED SHARE CAPITAL TRANSACTION WITH ASSESSEE COMPANY. -: 29: - 29 (M) SMT. MANJU JHAWAR COPY OF SHARE APPLICATION FORM DULY SIGNED BY SHARE APPLICANT, ACKNOWLEDGEMENT OF INCOME TAX RETURN FOR A Y 2005-06 INDICATING THE DETAIL OF WARD/ CIRCLE WHERE THE SHARE APPLICANT IS ASSESSED TO INCOME TAX, BALANCE SHEET AS AT 31.03.2005 WHEREIN THE AMOUNT INVESTED AT RS. 50,000/- - IN ASSESSEE COMPANY IS SHOWN ON ASSET SIDE UNDER THE HEAD INVESTMENT, AND AFFIDAVIT AFFIRMING INVESTMENT WITH ASSESSEE COMPANY. ON ENQUIRY THROUGH INCOME TAX OFFICER, WARD-38(2), KOLKATA IT HAS BEEN VERIFIED THAT SMT. MANJU JHAWAR IS INCOME TAX ASSESSEE AND INVESTMENT WITH ASSESSEE COMPANY HAS BEEN CONFIRMED. COPY OF REPORT -: 30: - 30 SUBMITTED BY INCOME TAX OFFICER, WARD-38(2), KOLKATA RECEIVED BY THIS OFFICE 21.12.2011 . COPY OF STATEMENT DATED 14.11.2011 OF SMT. MANJU JHAWAR RECORDED BY INSPECTOR OF INCOME TAX, SATNA ON HIS VISIT TO KOLKATA, WHERE BY SHARE APPLICANT HAS CONFIRMED SHARE CAPITAL TRANSACTION WITH ASSESSEE COMPANY. (N) SHRI. PRAHLAD KUMAR AGRAWAL COPY OF SHARE APPLICATION FORM DULY SIGNED BY SHARE APPLICANT, COPY OF PAN CARD, ACKNOWLEDGEMENT OF INCOME TAX RETURN FOR AY 2005-06 INDICATING THE DETAIL OF WARD/CIRCLE WHERE THE SHARE APPLICANT IS ASSESSED TO INCOME TAX, BALANCE SHEET AS AT 31.03.2005 WHEREIN THE AMOUNT INVESTED AT RS. 50, 000/- IN ASSESSEE -: 31: - 31 COMPANY IS SHOWN ON ASSET SIDE UNDER THE HEAD INVESTMENT, AND AFFIDAVIT AFFIRMING INVESTMENT WITH ASSESSEE COMPANY. REPLY OF NOTICE ISSUED U/S.133(6) OF INCOME-TAX ACT, 1961, RECEIVED BY THIS OFFICE ON 22.11.2011 . THE SHARE CAPITAL TRANSACTION WAS CONFIRMED BY SHARE APPLICANT AND EXPLAINED. (0) SMT. BINDU SINQHANIA COPY OF SHARE APPLICATION FORM DULY SIGNED BY SHARE APPLICANT, COPY OF PAN CARD, ACKNOWLEDGEMENT OF INCOME TAX RETURN FOR AY 2005-06 INDICATING THE DETAIL OF WARD/ CIRCLE WHERE THE SHARE APPLICANT IS ASSESSED TO INCOME TAX, BALANCE SHEET AS AT 31.03.2005 WHEREIN THE AMOUNT INVESTED AT RS.5,00,000/- IN -: 32: - 32 ASSESSEE COMPANY IS SHOWN ON ASSET SIDE UNDER THE HEAD INVESTMENT. ON ENQUIRY THROUGH INCOME TAX OFFICER, WARD-34(I), KOLKATA, SHRI. DEEPAK DOKANIA, ACA APPEARED AND FILED ALL THE REQUISITE DOCUMENTS RELATED TO SHARE APPLICANT AND SHARE CAPITAL TRANSACTION WAS CONFIRMED AND EXPLAINED. (P) SHRI. SANJAY KUMAR SINGH COPY OF SHARE APPLICATION FORM. DULY SIGNED BY SHARE APPLICANT, COPY OF PAN CARD, ACKNOWLEDGEMENT OF INCOME TAX RETURN FOR AY 2005-06 INDICATING THE DETAIL OF WARD/ CIRCLE WHERE THE SHARE APPLICANT IS ASSESSED TO INCOME TAX, AND AFFIDAVIT AFFIRMING INVESTMENT WITH ASSESSEE COMPANY IS ASSESSED TO -: 33: - 33 INCOME TAX AND AFFIDAVIT AFFIRMING INVESTMENT WITH ASSESSEE COMPANY. ON ENQUIRY THROUGH INCOME TAX OFFICER, WARD-23(3), KOLKATA, SHARE CAPITAL TRANSACTION WAS CON FINNED AND EVIDENCES OF INVESTMENT MADE WITH ASSESSEE COMPANY WERE SUBMITTED. INSPECTOR REPORT RECEIVED BY THIS OFFICE ON 27.12.2011. COPY OF STATEMENT RECORDED BY INSPECTOR OF INCOME TAX, SATNA ON HIS VISIT TO KOLKATA ON 14.11.2011 WHERE BY SHARE APPLICANT HAS CON FINNED SHARE CAPITAL TRANSACTION WITH ASSESSEE COMPANY (Q) SMT. SWETA DOKANIA COPY OF SHARE APPLICATION FORM DULY SIGNED BY SHARE APPLICANT, COPY OF -: 34: - 34 PAN CARD, ACKNOWLEDGEMENT OF INCOME TAX RETURN FOR A Y 2005-06 INDICATING THE DETAIL OF WARD/CIRCLE WHERE THE SHARE APPLICANT IS ASSESSED TO INCOME TAX, BALANCE SHEET AS AT 31.03.2005 WHEREIN THE AMOUNT INVESTED AT RS. 1,00,000/- IN ASSESSEE COMPANY IS SHOWN ON ASSET SIDE UNDER THE HEAD INVESTMENT. THE SHARE CAPITAL TRANSACTION WAS CONFIRMED. INSPECTOR REPORT WAS FORWARDED TO THIS OFFICE ON 21.11.2011. REPLY OF NOTICE ISSUED U/S.133(6) OF INCOME TAX ACT 1961, RECEIVED BY THIS OFFICE. THE SHARE CAPITAL TRANSACTION HAS BEEN CONFIRMED AND EXPLAINED BY SHARE APPLICANT. (R) SMT. SUNITA AGRAWAL -: 35: - 35 COPY OF PAN CARD, ACKNOWLEDGEMENT OF INCOME TAX RETURN FOR A Y 2005-06 INDICATING THE DETAIL OF WARD/ CIRCLE WHERE THE SHARE APPLICANT IS ASSESSED TO INCOME TAX, COPY OF SHARE APPLICATION FORM. DULY SIGNED BY SHARE APPLICANT. REPLY OF NOTICE ISSUED U/ S. 133(6) OF INCOME TAX ACT 1961 RECEIVED BY THIS OFFICE. THE SHARE CAPITAL TRANSACTION HAS BEEN CON FINNED AND EXPLAINED BY SHARE APPLICANT. (S) SHRI. RAMESH KUMAR DOKANIA COPY OF SHARE APPLICATION FORM DULY SIGNED BY SHARE APPLICANT, COPY OF PAN CARD, ACKNOWLEDGEMENT OF INCOME TAX RETURN FOR A Y 2005-06 INDICATING THE DETAIL OF WARD/ CIRCLE WHERE -: 36: - 36 THE SHARE APPLICANT IS ASSESSED TO INCOME TAX, BALANCE SHEET AS AT 31.03.2005 WHEREIN THE AMOUNT INVESTED AT RS. 1,50,000/- IN ASSESSEE COMPANY IS SHOWN ON ASSET SIDE UNDER THE HEAD INVESTMENT. THE INSPECTOR OF INCOME TAX, ITO WARD-49(4), KOLKATA HAS VISITED THE SHAREHOLDER. THE SHARE CAPITAL TRANSACTION WAS CONFIRMED. INSPECTOR REPORT WAS FORWARDED TO THIS OFFICE ON 21.11.2011. 8. THERE WAS NO INCRIMINATING DOCUMENTS FOUND DURING T HE COURSE OF SEARCH AGAINST THE ASSESSEE. THE ASSESSEE HAS SUBMITTED PAPERS OF EACH AND EVERY SHAREHOLDER. THE ONUS IS ON THE ASSESSEE TO ESTABLISH THE IDENTITY, GENUINEN ESS AND CREDITWORTHINESS OF RESPECTIVE SHAREHOLDERS, WHICH WAS -: 37: - 37 ESTABLISHED. DURING THE REMAND PROCEEDINGS, THE AO HAS NOT MADE ANY ADVERSE OBSERVATIONS AS REGARDS THE CONTRI BUTION OF SHARE CAPITAL WITH COMPANY. THE ASSESSMENT WAS COMP LETED U/S 143(3) READ WITH SECTION 153A, WHEREIN INCOME O F THE ASSESSEE HAS BEEN COMPUTED AS PER BOOKS OF ACCOUNT IN RESPECT OF THE ACTIVITY OF THE BUSINESS AND NO DEFE CT OR MISTAKE HAS BEEN FOUND IN THE BOOKS OF ACCOUNT OF THE ASSES SEE AND BOOKS OF THE ASSESSEE HAVE NOT BEEN REJECTED. WE FI ND THAT DURING THE COURSE OF SEARCH, NO INCRIMINATING DOCUM ENTS OR EVIDENCES HAVE BEEN FOUND TO DISPROVE THE GENUINENE SS OF SHAREHOLDERS CAPITAL CONTRIBUTION. THE SHARE CAPIT AL CONTRIBUTION HAS BEEN DISCLOSED BY THE COMPANY IN I TS REGULAR RETURNS OF INCOME. THE LD. CIT(A) HAS VERIFIED THE ACKNOWLEDGEMENT OF RETURNS, BALANCE SHEET OF 31 ST MARCH, 2005, SHARE APPLICATION FORM, AFFIDAVIT AND REPLY T O NOTICE U/S 136 IN THE CASE OF ALL THE SHAREHOLDERS SMT. KIM BAHADUR RANA, SHRI RAM BILASH SINGH, SHRI PRADEEP GOEL, SMT. NEHA CHOUDHARY, SMT. TAXNEEM MUSTUFA, SHRI NARESH SHAH, SHRI MUSTAFA ADAM ALI, SHRI RAGHUNATH YADAV, SHRI DAMODAR AGRAWAL, SMT. -: 38: - 38 MUNMUM SARKAR, SHRI MAHENDRA KUMAR JOSHI, SHRI ANUP SARKAR, SMT. MANJU JHAWAR, SHRI PRAHLAD KUMAR AGRAWAL, SMT. BINDU SINGHANIA, SHRI SANJAY KUMAR SINGH, SMT. SWETA DOKANIA, SMT. SUNITA AGRAWAL AND SHRI RAMESH KUMAR DOKANIA. THE LD. CIT(A) HAS VERIFIED THE PARTICULARS IN RESPECT OF AL L THESE SHAREHOLDERS AND DELETED THE ADDITION. THEREFORE, OUR INTERFERENCE IS NOT CALLED. APPEAL DISMISSED. 9. CROSS OBJECTION FILED BY THE ASSESSEE IS MERELY IN SUPPORT OF THE APPEAL. THE CROSS OBJECTION IS DISMI SSED AS IT IS SUPPORTIVE TO ORDER. 10. IN THE RESULT, THE APPEAL OF THE REVENUE IS DISMISS ED AND CROSS OBJECTION IS ALSO DISMISSED. I.T.(SS).A.NO. 53/JAB/2013 : 11. THE ONLY GROUND TAKEN IN THIS APPEAL BY THE REVENUE IS THAT ON THE FACTS AND IN THE CIRCUMSTANCES OF THE C ASE, THE LD. CIT(A) ERRED IN FACTS AND IN LAW IN DELETING THE AD DITION OF RS. 24,50,000/- MADE BY THE ASSESSING OFFICER ON ACCOUN T OF -: 39: - 39 UNEXPLAINED SHARE APPLICATION MONEY U/S 68 OF THE I NCOME- TAX ACT, 1961. 12. THE SHORT FACTS OF THE CASE ARE THAT THE ASSESSEE M /S. BANSAL CARRIERS IS ENGAGED IN BUSINESS OF TRANSPORT ATION. A SEARCH AND SEIZURE OPERATION WAS CARRIED U/S 132(1) OF THE INCOME-TAX ACT, 1961, BY THE DIRECTOR OF INCOME TAX . SUBSEQUENT TO SEARCH, A NOTICE U/S153A OF THE ACT W AS ISSUED TO THE ASSESSEE AND DURING THE ASSESSMENT PROCEEDIN GS, THE ASSESSEE COMPANY HAS RECEIVED SHARE APPLICATION MON EY FROM TWO KOLKATA BASED COMPANIES. THE DETAILS OF SHARE H OLDINGS OF THE TWO COMPANIES ARE GIVEN AS UNDER :- 1) RAJADHIRAJ CONSULTANTS PVT. LTD., 27, BRABOURNE ROA D, 3 RD FLOOR, KOLKATA-1 (PAN :AABCR5088F) RS. 18,00,000/- AND 2) DIPLOMAT LIMITED, 7/1A, GRANT LANE, 2 ND FLOOR, KOLKATA-12 (PAN : AAACDE9353N) RS. 6,50,000/-. THE TOTAL AMOUNT OF SHARE APPLICATION MONEY COMES T O RS. 24,50,000/-. THE ASSESSEE COMPANY HAS FILED DETAILS OF THE COMPANY SUCH PAN, ACKNOWLEDGEMENT OF RETURN, ETC. T O PROVE THE IDENTITY, CREDITWORTHINESS AND GENUINENESS OF T HE -: 40: - 40 TRANSACTIONS. THE ASSESSEE COMPANY ALSO PROVIDED LA TEST ADDRESS OF SHAREHOLDERS WHICH IS STATED TO HAVE BEE N OBTAINED FROM THE WEB-SITE OF THE MINISTRY OF COMPANY AFFAIR S. THE AO TREATED THIS AMOUNT OF RS. 24,50,000/- OF SHARE APP LICATION MONEY AS UNEXPLAINED AND ADDED AS INCOME OF THE ASS ESSEE FOR FINANCIAL YEAR RELEVANT TO ASSESSMENT YEAR 2006 -07. 13. THE MATTER CARRIED TO LD. CIT(A) AND THE LD. CIT(A) HAS ALLOWED THE CLAIM BY OBSERVING AS UNDER :- 14. I HAVE CONSIDERED THE SUBMISSIONS MADE BY LEARNED COUNSEL OF THE APPELLANT, PERUSED THE MATERIAL AND EVIDENCE ON RECORD AND CASE LAWS CITED BEFORE ME. IN ASSESSMENT YEAR UNDER CONSIDERATION SHARE APPLICATION MONEY AT RS. 24,50,000/- IS RECEIVED FROM TWO COMPANIES AS MENTIONED ABOVE. THE AO HAS HELD THAT VARIOUS SHARE CAPITAL CONTRIBUTIONS RECEIVED BY APPELLANT ARE ASSESSABLE AT THE HANDS OF APPELLANT AS UNEXPLAINED CASH CREDIT. FROM THE ASSESSMENT ORDER IT APPEARS THAT A.O. HAS MADE THE ABOVE -: 41: - 41 ADDITION, BY MAKING GENERAL OBSERVATIONS, WITHOUT FINDING SPECIFIC INFIRMITY R ESPECTIVE INVESTMENTS. THE AO HAS GIVEN REFERENCE TO CERTAIN ENQUIRIES CONDUCTED BY HIM OR THROUGH INVESTIGATION WING OF INCOME TAX DEPARTMENT, KOLKATA AND THROUGH JURISDICTIONAL A.O. AT KOLKATA. THE PERUSAL OF ASSESSMENT ORDER INDICATES THAT AO HAS NOT RECORDED ANY FINDINGS WITH REFERENCE TO EACH AND EVERY SHAREHOLDER OF THE COMPANY. THE APPELLANTS IN RESPECT TO EACH OF THE SHARE HOLDER HAVE SUBMITTED SHARE APPLICATION FORMS DULY SIGNED BY AUTHORIZED PERSON WITH THEIR ADDRESSES, EXTRACT FROM THE MINUTES OF BOARD MEETING INDICATING THAT RESOLUTION PASSED BY INVESTING COMPANIES, TO INVEST IN SHARES OF PUBLIC/PRIVATE LIMITED COMPANY, MEMORANDUM & ARTICLES OF ASSOCIATION OF INVESTING COMPANIES, CONFIRMATION LETTER DULY SIGNED BY AUTHORIZED PERSON AND CONFIRMING INVESTMENT -: 42: - 42 IN ASSESSEE COMPANY, ROC WEBSITE PRINT OUT INDICATING THAT STATUS OF INVESTING COMPANIES ARE IN ACTIVE, COPY OF ACKNOWLEDGEMENT OF INCOME TAX RETURN CLEARLY INDICATING THE DETAIL OF WARD/CIRCLE WHERE THE INVESTING COMPANY IS ASSESSED TO INCOME TAX, COPY OF AUDITED BALANCE SHEET WHEREIN THE AMOUNT INVESTED IN APPELLANT COMPANY IS SHOWN ON ASSET SIDE UNDER THE HEAD INVESTMENT AND COPY OF BANK STATEMENT INDICATING THAT AMOUNT IS INVESTED THROUGH PROPER BANKING CHANNEL. THE APPELLANT HAS SUBMITTED RELEVANT DETAILS IN RESPECT TO EACH OF INVESTORS OF THE APPELLANT COMPANY TO ESTABLISH THEIR IDENTITY, GENUINENESS AND CREDITWORTHINESS OF SHARE APPLICANT. THE AO HAS NOT BROUGHT ANYTHING ON RECORD TO DISPUTE THE DETAILS FURNISHED BY APPELLANT. ALL THE SHARE APPLICANTS ARE COMPANIES AND ARE ASSESSED TO INCOME TAX. THE AMOUNT RECEIVED IS THROUGH PROPER -: 43: - 43 BANKING CHANNEL. THE ASSESSING OFFICER HAS NOT POINTED OUT ANY DISCREPANCY IN THE DOCUMENTS SUBMITTED BY APPELLANT. FURTHER, THE AO HAS ALSO NOT DISPUTED THE AUTHENTICITY OF THE EVIDENCE SUBMITTED BEFORE HIM. 14.1 IT APPEARS THAT NO INCRIMINATING MATERIAL WAS FOUND DURING THE COURSE OF SEARCH INDICATING THAT SHARE CAPITAL IS IN THE NATURE OF ACCOMMODATION ENTRY. IN THE ABSENCE OF ANY INCRIMINATING MATERIAL FOUND ADDITION CANNOT BE JUSTIFIED. THE AO, HAS NOT BROUGHT ANY EVIDENCE ON RECORD TO SHOW THAT INVESTMENT IN SHARE CAPITAL IN NAME OF THE DIFFERENT COMPANIES IS ASSESSEES OWN MONEY. THE APPELLANT IN THIS REGARD HAS PLACED RELIANCE UPON THE DECISION OF HON'BLE DELHI HIGH COURT IN THE CASE OF CIT VS. VALUE CAPITAL IN THIS REGARD HAS PLACED RELIANCE UPON THE SERVICES PVT. LTD. REPORTED AT 307 ITR 334 (DEL.). IN THE SAID JUDGMENT THE -: 44: - 44 HON'BLE DELHI HIGH COURT HAS HELD THAT IN THE ABSENCE OF ANY EVIDENCE TO THE EFFECT THAT MONEY HAS FLOWN FROM COFFERS OF APPELLANT NO ADDITION U/S 68 OF I.T. ACT 1961 IN RESPECT TO SHARE CAPITAL CONTRIBUTION MADE WITH APPELLANT COMPANY CAN BE MADE. THE RATIO OF THIS JUDGMENT SQUARELY APPLIES TO THE FACTS OF THE APPELLANT. 14.2 IN THE PRESENT CASE, IT IS EVIDENT THAT SHARE APPLICATION MONEY HAS BEEN RECEIVED THROUGH CHEQUE, THROUGH PROPER BANKING CHANNEL. THE CAPITAL CONTRIBUTION IS BY VARIOUS COMPANIES WHICH ARE ASSESSED TO TAX. ON THE BASIS OF ABOVE FACTS THERE IS SUFFICIENT EVIDENCE ON RECORD TO SHOW THAT IDENTITY, GENUINENESS AND CREDITWORTHINESS OF SHARE HOLDERS MAKING CONTRIBUTION TOWARDS SHARE CAPITAL IS PROVED. 14.3 THE A.O., WITH A VIEW TO EXAMINE GENUINENESS OF SHARE APPLICATION MONEY HAS -: 45: - 45 CALLED FOR INFORMATION U/S 133(6) OF INCOME TAX ACT 1961 AND HAS ALSO ISSUED SUMMONS U/S 131 OF THE INCOME-TAX ACT, 1961. THE AO HAS OBSERVED IN THE ASSESSMENT ORDER FOR ASSTT. YEAR 2010-11 THAT INVESTORS DID NOT FURNISH THE I NFORMATION AND DID NOT ATTEND ON THE DATE FIXED, WHICH DOES NOT APPEAR TO BE CORRECT. IT IS SEEN FROM RECORD THAT MANY OF SHAREHOLDERS HAD SUBMITTED DETAILS CALLED FOR, IN PURSUANCE TO SUMMON ISSUED U/S 131 OF INCOME- TAX ACT, 1961, MAY BE IN SOME CASES, AFTER THE DATE GIVEN BY THE ASSESSING OFFICER. IN FACT MANY SHARE HOLDERS HAD GIVEN REPLY OF NOTICE ISSUED U/S 133(6) OF INCOME-TAX ACT WHICH ARE PLACED IN PAPER BOOK SUBMITTED. MERELY BECAUSE NOTICE ISSUED TO SOME SHARE HOLDERS WAS NOT RESPONDENT WITHIN DUE DATE, THEIR SHARE APPLICATION MONEY CANNOT BE TREATED AS UNEXPLAINED AMOUNT. IN FACT THIS ISSUE HAS BEEN EXAMINED AGAIN BY THE A.O. DURING REMAND -: 46: - 46 PROCEEDINGS AND HE HAS SUBMITTED A REMAND REPORT VIDE LETTER DATED 12.04.2013, IN WHICH NO DOUBTS HAS BEEN RAISED, ABOUT THE GENUINENESS OF THE TRANSACTION OR ABOUT THE IDENTITY OF THE PERSON AND THEIR CAPACITY. 14.4 IN ASSESSMENT ORDER FOR THE ASSTT. YEAR 2010-11, THE AO HAS REFERRED TO STATEMENT OBTAINED FROM B.K. CHOUDHARY, C. A. AND PROPRIETOR OF GHOSAL & CO., C.AS. THE ADDRESS OF THE AFORESAID C.A. AND ADDRESSES OF FOUR COMPANIES WHO HAVE CONTRIBUTED TO SHARE CAPITAL WITH CERTAIN COMPANIES OF BANSAL GROUP ARE SAME. THE CHARTERED ACCOUNTANT HAS DENIED HAVING KNOWLEDGE ABOUT EXISTENCE OF FOUR COMPANIES WHO HAVE CONTRIBUTED TO SHARE CAPITAL. THE PERUSAL OF ROC DETAILS SUBMITTED IN RESPECT TO AFORESAID FOUR COMPANIES WOULD INDICATE THAT ADDRESSES MENTIONED IN ROC MASTER DETAILS ARE DIFFERENT -: 47: - 47 FROM THAT WHICH IS UNDER OCCUPATION BY SHRI B.K. CHOUDHARY. IN VIEW OF ABOVE FACT IT IS EVIDENT THAT ENQUIRY CONDUCTED BY AO IS AT DIFFERENT ADDRESS THAN THAT INDICATED IN ROC WEBSITE. ANOTHER INCIDENT OBSERVED BY AO IS WITH REGARD TO SHRI RAM BILASH SINGH. IT IS SEEN THAT INSPECTOR OF INCOME TAX HAS FOUND ONE SHRI SANJAY SINGH AND INFORMATION SOLICITED FROM SUCH PERSON WHO INFORMED THAT HE HAS NO KNOWLEDGE OF ANY SHRI RAM BILASH SINGH. HOWEVER, THE STATEMENT OF SHRI SANJAY SINGH ALONE DOES NOT PROVE THAT SHRI RAM BILASH SINGH WAS NOT EXISTENCE AND THAT HE DID NOT MAKE INVESTMENT IN SHARE CAPITAL. IN FACT SHRI RAM BILASH SINGH HAS SUBMITTED AN AFFIDAVIT WHEREIN HE HAS SOLEMNLY AFFIRMED INVESTMENT WITH COMPANY OF BANSAL GROUP AND HAS ALSO PROVIDED ACKNOWLEDGEMENT OF INCOME TAX RETURN INDICATING DETAILS OF WARD/CIRCLE WHERE HE HAS ASSESSED TO -: 48: - 48 INCOME TAX AND BALANCE SHEET WHEREIN AMOUNT INVESTED IN COMPANIES OF BANSAL GROUP IS SHOWN ON ASSET SIDE. AFORESAID DETAILS SUBMITTED ARE ON RECORD OF AO. ON THE FACT OF LEGAL EVIDENCE ON RECORD I AM OF THE OPINION THAT THERE IS NO JUSTIFICATION FOR TAKING ANY ADVERSE VIEW WITH REGARD TO INFORMATION OBTAINED BY INSPECTOR OF INCOME TAX FROM SHRI SANJAY SINGH. IN FACT IN THE REMAND REPORT, THE AO, HAS NOT MADE ANY SUCH OBSERVATION. IN VIEW OF THE ABOVE VARIOUS OBSERVATIONS OF TAKING ADVERSE INFERENCE BY MAKING ENQUIRIES FROM SHRI B.K.CHOUDHARY AND SHRI SANJAY SINGH ARE NOT JUSTIFIED. 14.5 THE AO IN THE ASSESSMENT ORDER FOR ASSESSMENT YEAR 2010-11 HAS OBSERVED THAT PHYSICAL EXISTENCE OF SHARE APPLICANTS IS NOT ESTABLISHED. THE APPELLANT HAS SUBMITTED DETAILS OF PAN OF EACH AND EVERY SHAREHOLDERS AND ACKNOWLEDGEMENT OF INCOME TAX RETURN -: 49: - 49 CLEARLY INDICATING THE DETAIL OF WARD/CIRCLE WHETHER SHARE APPLICANT IS ASSESSED TO INCOME TAX WHICH IS PLACED IN PAPER BOOK. IT IS SEEN THAT ALL THE SHARE APPLICANTS ARE ASSESSED TO INCOME TAX AND ARE MAKING REGULAR COMPLIANCE UNDER THE PROVISIONS OF INCOME-TAX ACT, 1961. ON THE FACE OF ABOVE UNDISPUTED FACTUAL POSITION THE PHYSICAL EXISTENCE OF SHARE APPLICANTS CANNOT BE QUESTIONED. IN VIEW OF THE ABOVE, THE OBSERVATION OF AO THAT SHARE APPLICANT HAS NO PHYSICAL EXISTENCE OR CONTRIBUTION OF SHARE CAPITAL IS MERELY ACCOMMODATION ENTRY IS UNJUSTIFIED. 14.6 THE HON'BLE APEX COURT IN THE CASE OF CIT VS LOVELY EXPORTS HAS HELD THAT ONCE THE NAME OF SHARE HOLDERS ARE PROVIDED TO AO IT CANNOT BE REGARDED AS UNDISCLOSED INCOME UNDISCLOSED INCOME OF THE APPELLANT. THE RATIO AS LAID DOWN HAS -: 50: - 50 BEEN FOLLOWED BY HON'BLE DELHI HIGH COURT IN THE CASE OF DWARKADISH INVESTMENT PVT. LTD. IN ITS JUDGMENT DATED 2 ND AUGUST 2010. IN THE AFORESAID JUDGMENT OF HON'BLE DELHI HIGH COURT IT HAS BEEN HELD THAT DECISION RENDERED BY APEX COURT IN THE CASE OF LOVELY EXPORTS IS A BINDING PRECEDENT AND APPELLANT HAVING ESTABLISHED IDENTITY OF SHAREHOLDERS NO ADDITION IN RESPECT TO SHARE CAPITAL CAN BE MADE AT THE HANDS OF COMPANY. IN THE CASE OF APPELLANT COMPANY IDENTITY, GENUINENESS AND CREDITWORTHINESS OF SHARE HOLDERS HAVING BEEN ESTABLISHED NO ADDITION IN RESPECT TO SHARE CAPITAL CONTRIBUTION CAN BE MADE BY AO AND IS SUSTAINABLE IN THE LIGHT OF DECISION OF HON'BLE APEX COURT IN THE CASE OF LOVELY EXPORTS PVT. LTD. 14.7 DURING THE COURSE OF APPELLATE PROCEEDINGS A REMAND REPORT WAS CALLED FOR, FROM THE A.O. THE AO IN THIS REGARD HAS -: 51: - 51 SUBMITTED A REPORT DATED 12.04.2013 , WHICH HAS BEEN REPRODUCED IN THE FOREGOING PARAGRAPHS. FROM THE PERUSAL OF THIS REPORT AS ALSO THE MATERIAL PRODUCED BY THE APPELLANT, IT MAY BE CONCLUDED THAT SUFFICIENT EVIDENCE HAS BEEN BROUGHT ON RECORD TO PROVE THAT INVESTMENT TOWARDS SHARE CAPITAL BY DIFFERENT COMPANIES IS EXPLAINED. HOWEVER, IN THE INTEREST OF JUSTICE AND FOR CLARITY, I FEEL IT NECESSARY AND APPROPRIATE TO DISCUSS EACH CASE INDIVIDUALLY AND TO SEE WHETHER THE INVESTMENTS MADE BY THE PERSON CONCERNED WAS EXPLAINED OR NOT. (I) M/S. DIPLOMAT LIMITED : THIS COMPANY HAS MADE INVESTMENT OF RS. 6,50,000/- AS SHARE CAPITAL DURING THE YEAR. IT IS GATHERED THAT THIS COMPANY HAS BEEN ASSESSED TO TAX REGULARLY FOR INCOME TAX AND THE AMOUNT IS PAID THROUGH CHEQUE AND IS DULY REFLECTED IN THE BANK STATEMENT OF THE -: 52: - 52 COMPANY. THE COMPANY FURTHER FILED A CONFIRMATION, OWNING OF THE TRANSACTION AND ALSO SUBMITTED ITS BALANCE SHEET, MEMORANDUM OF ASSOCIATION AND ARTICLES OF ASSOCIATION. FURTHER, THE ITO WARD 6(1), KOLKATA MADE NECESSARY ENQUIRY FROM THIS COMPANY, ON THE BASIS OF NOTICE ISSUED BY ACIT CIRCLE SATNA AND ON ENQUIRY, THE TRANSACTION WAS CONFIRMED BY THIS COMPANY. IF THAT BE THE CASE, THEN NOTHING MORE NEED TO BE PROVED BY THE ASSESSEE, THE ENTIRE TRANSACTION IS STAND PROVED IN TERMS OF IDENTITY OF THE COMPANY, ITS CREDITWORTHINESS AND GENUINENESS OF TRANSACTION. SINCE THIS FACT HAS BEEN RE-VERIFIED BY THE ASSESSING OFFICER DURING THE COURSE OF REMAND PROCEEDINGS AND REPORT IS SUBMITTED VIDE LETTER DATED 12.04.2013 STATING THAT THESE TRANSACTIONS WERE CONFIRMED, I FEEL THAT NO REASON AS TO WHY THIS ADDITION SHOULD HAVE -: 53: - 53 BEEN OR COULD HAVE BEEN MADE BY THE ASSESSING OFFICER. I AM OF THE CONSIDERED OPINION THAT THE ASSESSEE HAS DISCHARGED THE ONUS IN THIS REGARD AND THEREFORE ADDITION OF RS. 6,50,000/- AS UNEXPLAINED SHARE CAPITAL IN THE NAME OF M/S. DIPLOMAT LIMITED IS DIRECTED TO BE DELETED. (II) M/S. RAJADHIRAJ CONSULTANTS PRIVATE LIMITED: THIS PERSON HAS MADE AN INVESTMENT OF RS. 18,00,000/- IN THE CASE OF THE ASSESSEE COMPANY DURING THE YEAR. THE AMOUNT HAS BEEN INVESTED THROUGH CHEQUE AND A COPY OF BANK STATEMENT OF THE ASSESSEE WAS PRODUCED BEFORE THE AO. M/S. RAJADHIRAJ CONSULTANTS PRIVATE LIMITED HAS BEEN ASSESSED TO TAX REGULARLY. FURTHER, NECESSARY ENQUIRY IN THIS CASE WAS MADE BY THE JURISDICTIONAL AO AND REPORT WAS VERIFIED BY THE ASSESSING OFFICER VIDE HIS LETTER DATED -: 54: - 54 7.12.2011. IN VIEW OF THESE FACTS, I FEEL THAT THIS TRANSACTION OF INVESTMENT IN SHARE CAPITAL STAND PROVED AND THE ADDITION OF RS. 18,00,000/-MADE BY THE ASSESSING OFFICER IS DIRECTED TO BE DELETED. 15. IN VIEW OF THE ABOVE FACTS, I AM OF THE OPINION THAT IDENTITY, CREDITWORTHINESS AND GENUINENESS OF TRANSACTION STAND SATISFACTORILY EXPLAINED BY APPELLANT AND THERE IS NO JUSTIFICATION FOR MAKING ANY ADDITION IN THE CASE OF APPELLANT ON ACCOUNT OF SHARE CAPITAL CONTRIBUTION AS UNEXPLAINED CASH CREDIT. IN VIEW OF THE ABOVE DISCUSSIONS ADDITION OF RS. 24,50,000/-, MADE AS UNEXPLAINED SHARE CAPITAL/SHARE APPLICATION MONEY IS ORDERED TO BE DELETED AND THEREFORE GROUND NO.2 AND GROUND NO.3 OF THE ASSESSEE ARE ALLOWED. -: 55: - 55 14. WE HAVE HEARD THE RIVAL CONTENTIONS OF BOTH THE PAR TIES. WE FIND THAT THE AO HAS MADE THE ADDITION ON ACCOUN T OF SHARE CAPITAL CONTRIBUTION OF RS. 24.50 LAKHS. BEFO RE THE CIT(A), THE REMAND REPORT WAS CALLED FOR AND DURING THE REMAND PROCEEDINGS, THE ASSESSEE HAS ESTABLISHED ID ENTITY, GENUINENESS AND CREDITWORTHINESS OF SHAREHOLDERS AN D THE CAPITAL WAS FULLY EXPLAINED. THE LD. CIT(A) HAS ALS O VERIFIED THE REPORT OF DDIT (INVESTIGATION), KOLKATA AND RELYING UPON THE INVESTIGATION OF DDIT, KOLKATA AND HELD THAT THE SH AREHOLDERS HAVE REPORTED TO COMPLIANCE. THEREFORE, THE LD. CIT (A) HAS DELETED THE ADDITION. 15. DURING THE COURSE OF HEARING OF THE APPEAL, THE LD. SENIOR D.R. COULD NOT BRING ANY CONTRARY EVIDENCE A GAINST THE FINDING OF CIT(A). THEREFORE, WE HAVE NO ALTERNATIV E BUT TO ENDORSE THE ACTION OF THE LD. CIT(A). THE LD. CIT(A ) HAS ALSO RELIED UPON THE DECISION OF HON'BLE BOMBAY HIGH COU RT IN I.T.A.NO. 523 OF 2013 IN THE CASE OF ALL CARGO GLO BAL LOGISTICS LIMITED, I.T.A.T. ORDER IN THE CASE OF SMT. VIMLA S INGHVI IN I.T.A.NO. 345/JODH/2013. THE ASSESSEE HAS ALSO PROD UCED THE SHARE CAPITAL OF THE FIRM, EXTRACT OF MINUTES OF BO ARD MEETING, -: 56: - 56 CERTIFICATE OF REGISTRATION, MEMORANDUM OF ARTICLES OF ASSOCIATION AND CONFIRMATION. MOREOVER, ACKNOWLEDGE MENT OF INCOME TAX RETURNS, AUDITED BALANCE SHEET AS ON 31. 3.2006, COPY OF THE BANK STATEMENTS, SHARE CAPITAL AND RESE RVE & SURPLUS AND DETAILS OF INVESTMENT. CONSIDERING ALL THESE DOCUMENTARY EVIDENCES, THE LD. CIT(A) HAS DELETED T HE ADDITION. OUR INTERFERENCE IS NOT CALLED. APPEAL DI SMISSED. 16. CROSS OBJECTION FILED BY THE ASSESSEE IS MERELY IN SUPPORT OF THE APPEAL. THE CROSS OBJECTION IS DISMI SSED AS IT IS SUPPORTIVE TO ORDER. 17. IN THE RESULT, THE APPEAL OF THE REVENUE IS DISMISS ED AND CROSS OBJECTION IS ALSO DISMISSED. I.T.(SS).A.NO. 54/JAB/2013 : 18. THE ONLY GROUND TAKEN BY THE REVENUE IS THAT ON THE FACTS AND IN THE CIRCUMSTANCES OF THE CASE, THE LD. CIT(A) ERRED IN FACTS AND IN LAW IN DELETING THE ADDITION OF RS. 38,87,500/- MADE BY THE ASSESSING OFFICER ON ACCOUNT OF UNEXPLA INED SHARE APPLICATION MONEY U/S 68 OF THE INCOME-TAX AC T, 1961. 19. DURING THE YEAR UNDER CONSIDERATION, THE ASSESSEE HAS RECEIVED THE SHARE PREMIUM TO THE TUNE OF RS. -: 57: - 57 38,87,500/- FROM SEVEN KOLKATA BASED COMPANIES. TH E COMPANY HAS FURNISHED DETAILS OF SHARES TO PROVE TH E IDENTITY, CREDITWORTHINESS AND GENUINENESS OF THE TRANSACTION. SHARE APPLICATION MONEY HAVE BEEN GIVE N THROUGH CHEQUES. THE ASSESSEE HAS FURNISHED THE COP Y OF CONFIRMATION. THE ENTIRE CAPITAL RECEIPT FROM KO LKATA SHAREHOLDERS TREATED AS UNEXPLAINED AND ADDED TO TH E INCOME OF THE ASSESSEE. 20. THE MATTER CARRIED TO LD. CIT(A). THE LD. CIT(A) DELETED THE ADDITION OBSERVING AS UNDER :- 13. I HAVE CONSIDERED THE FACTS OF THE CASE. DURING THE YEAR, 7 COMPANIES HAVE MADE INVESTMENTS IN SHARE CAPITAL OF THE ASSESSEE COMPANY AS UNDER:- RS/ 1. M/S.ARTLINE FISCAL SERVICES PVT.LTD. 4,50,000/- 2. SMT MIRA DEVI DOKANIA 5,50,000/- 3. M/S. TAJ VINCOM PVT.LTD. 6,87,500/- 4. M/S.VERTEX SUPPLIERS PVT.LTD. 5,00,000/- 5. M/S.GANGAUR PROPERTIES PVT.LTD. 5,00,000/- 6. M/S. MANUBHAWAN DISTRIBUTORS PVT. LD. 5,00,000/- 7. M/S. PUSPAK DEALCOM PVT.LTD. 6,00,000/- 14.1 I HAVE CONSIDERED THE SUBMISSIONS -: 58: - 58 MADE BY LEARNED COUNSEL OF THE APPELLANT, PERUSED THE MATERIAL AND EVIDENCE ON RECORD AND CASE LAWS CITED BEFORE ME. IN ASSESSMENT YEAR UNDER CONSIDERATION SHARE APPLICATION MONEY AT RS. 38,87,500/- IS RECEIVED FROM SEVEN COMPANIES AS MENTIONED ABOVE. THE AO HAS HELD THAT VARIOUS SHARE CAPITAL CONTRIBUTIONS RECEIVED BY APPELLANT ARE ASSESSABLE AT THE HANDS OF APPELLANT AS UNEXPLAINED CASH CREDIT. FROM THE ASSESSMENT ORDER IT APPEARS THAT A.O. HAS MADE THE ABOVE ADDITION, BY MAKING GENERAL OBSERVATIONS, WITHOUT FINDING SPECIFIC INFIRMITY R ESPECTIVE INVESTMENTS. THE AO HAS GIVEN REFERENCE TO CERTAIN ENQUIRIES CONDUCTED BY HIM OR THROUGH INVESTIGATION WING OF INCOME TAX DEPARTMENT, KOLKATA AND THROUGH JURISDICTIONAL A.O. AT KOLKATA. THE PERUSAL OF ASSESSMENT ORDER INDICATES THAT AO HAS NOT RECORDED ANY FINDINGS WITH REFERENCE TO EACH AND EVERY -: 59: - 59 SHAREHOLDER OF THE COMPANY. THE APPELLANTS IN RESPECT TO EACH OF THE SHARE HOLDER HAVE SUBMITTED SHARE APPLICATION FORMS DULY SIGNED BY AUTHORIZED PERSON WITH THEIR ADDRESSES, EXTRACT FROM THE MINUTES OF BOARD MEETING INDICATING THAT RESOLUTION PASSED BY INVESTING COMPANIES TO INVEST IN SHARES OF PUBLIC/ PRIVATE LIMITED COMPANY, MEMORANDUM & ARTICLES OF ASSOCIATION OF INVESTING COMPANIES, CONFIRMATION LETTER DULY SIGNED BY AUTHORIZED PERSON AND CONFIRMING INVESTMENT IN ASSESSEE COMPANY, ROC WEBSITE PRINT OUT INDICATING THAT STATUS OF INVESTING COMPANIES ARE IN ACTIVE, COPY OF ACKNOWLEDGEMENT OF INCOME TAX RETURN CLEARLY INDICATING THE DETAIL OF WARD/ CIRCLE WHERE THE INVESTING PERSON IS ASSESSED TO INCOME TAX, AND COPY BANK STATEMENT ETC. INDICATING THAT AMOUNT IS INVESTED THROUGH BANKING CHANNEL. THE APPELLANT HAS SUBMITTED RELEVANT DETAILS IN -: 60: - 60 RESPECT TO EACH OF SHAREHOLDERS OF THE APPELLANT COMPANY TO ESTABLISH IDENTITY, GENUINENESS AND CREDITWORTHINESS OF SHARE APPLICANT. THE ASSESSING OFFICER HAS NOT BROUGHT ANYTHING ON RECORD TO DISPUTE THE DETAILS FURNISHED BY APPELLANT. ALL THE SHARE APPLICANTS ARE COMPANIES AND ARE ASSESSED TO INCOME TAX. THE AMOUNT RECEIVED IS THROUGH PROPER BANKING CHANNEL. THE ASSESSING OFFICER HAS NOT POINTED OUT ANY DISCREPANCY IN THE DOCUMENTS SUBMITTED BY APPELLANT. FURTHER THE ASSESSING OFFICER HAS ALSO NOT DISPUTED THE AUTHENTICITY OF THE EVIDENCE SUBMITTED BEFORE HIM. 14.2 IT APPEARS THAT NO INCRIMINATING MATERIAL WAS FOUND DURING THE COURSE OF SEARCH INDICATING THAT SHARE CAPITAL IS IN THE NATURE OF ACCOMMODATION ENTRY. IN THE ABSENCE OF ANY INCRIMINATING MATERIAL FOUND ADDITION CANNOT BE JUSTIFIED. THE AO HAS NOT BROUGHT -: 61: - 61 ANY EVIDENCE ON RECORD TO SHOW THAT INVESTMENT IN SHARE CAPITAL IN NAME OF THE DIFFERENT PERSONS ARE ASSESSEES OWN MONEY. THE APPELLANT IN THIS REGARD HAS PLACED RELIANCE UPON THE DECISION OF HON'BLE DELHI HIGH COURT IN THE CASE OF CIT VS. VALUE CAPITAL IN THIS REGARD HAS PLACED RELIANCE UPON THE SERVICES PVT. LTD. REPORTED AT 307 ITR 334 (DEL.). IN THE SAID JUDGMENT THE HON'BLE DELHI HIGH COURT HAS HELD THAT IN THE ABSENCE OF ANY EVIDENCE TO THE EFFECT THAT MONEY HAS FLOWN FROM COFFERS OF APPELLANT NO ADDITION U/S 68 OF I.T. ACT 1961 IN RESPECT TO SHARE CAPITAL CONTRIBUTION MADE WITH APPELLANT COMPANY CAN BE MADE. THE RATIO OF THIS JUDGMENT SQUARELY APPLIES TO THE FACTS OF THE APPELLANT. 14.3 IN THE PRESENT CASE, IT IS EVIDENT THAT SHARE APPLICATION MONEY HAS BEEN RECEIVED THROUGH CHEQUE, THROUGH PROPER BANKING -: 62: - 62 CHANNEL. THE CAPITAL CONTRIBUTION IS BY VARIOUS COMPANIES WHICH ARE REGISTERED COMPANIES WITH REGISTRAR OF COMPANIES AND WHICH ARE INDEPENDENTLY ASSESSED TO TAX AND ARE ALSO REGULARLY FILING THEIR RETURNS BEFORE THE ROC. ON THE BASIS OF ABOVE FACTS THERE IS SUFFICIENT EVIDENCE ON RECORD TO SHOW THAT IDENTITY, GENUINENESS AND CREDITWORTHINESS OF SHARE HOLDERS MAKING CONTRIBUTION TOWARDS SHARE CAPITAL. 14.4 THE A.O., WITH A VIEW TO EXAMINE GENUINENESS OF SHARE APPLICATION MONEY HAS CALLED FOR INFORMATION U/S 133(6) OF INCOME TAX ACT 1961 AND HAS ALSO ISSUED SUMMONS U/S 131 OF THE INCOME-TAX ACT, 1961. THE AO HAS OBSERVED IN THE ASSESSMENT ORDER FOR ASSTT. YEAR 2010-11 THAT INVESTORS DID NOT FURNISH THE I NFORMATION AND DID NOT ATTEND ON THE DATE FIXED, WHICH DOES NOT APPEAR TO BE CORRECT. IT IS SEEN FROM RECORD THAT MANY OF -: 63: - 63 SHAREHOLDERS HAD SUBMITTED DETAILS CALLED FOR, IN PURSUANCE TO SUMMON ISSUED U/S 131 OF INCOME- TAX ACT, 1961. MAY BE IN SOME CASES, AFTER THE DATE GIVEN BY THE ASSESSING OFFICER. IN FACT MANY SHARE HOLDERS HAD GIVEN REPLY OF NOTICE ISSUED U/S 133(6) OF INCOME-TAX ACT WHICH ARE PLACED IN PAPER BOOK SUBMITTED. MERELY BECAUSE NOTICE ISSUED TO SOME SHARE HOLDERS WAS NOT RESPONDENT WITHIN DUE DATE, THEIR SHARE APPLICATION MONEY CANNOT BE TREATED AS UNEXPLAINED AMOUNT. IN FACT THIS ISSUE HAS BEEN EXAMINED AGAIN BY THE A.O. DURING REMAND PROCEEDINGS AND HE HAS SUBMITTED A REMAND REPORT VIDE LETTER DATED 12.04.2013, IN WHICH NO DOUBTS HAS BEEN RAISED, ABOUT THE GENUINENESS OF THE TRANSACTION OR ABOUT THE IDENTITY OF THE PERSON AND THEIR CAPACITY. 14.5 IN ASSESSMENT ORDER FOR ASSTT. YEAR 2010-11 , THE AO HAS REFERRED TO STATEMENT -: 64: - 64 OBTAINED FROM B.K. CHOUDHARY, C. A. PROPRIETOR OF GHOSAL & CO., CHARTERED ACCOUNTANTS. THE ADDRESS OF AFORESAID C.A. AND ADDRESS OF FOUR COMPANIES WHO HAVE CONTRIBUTED TO SHARE CAPITAL WITH CERTAIN COMPANIES OF BANSAL GROUP ARE SAME. C.A. HAS DENIED HAVING KNOWLEDGE ABOUT EXISTENCE OF FOUR COMPANIES WHO HAVE CONTRIBUTED TO SHARE CAPITAL. THE PERUSAL OF ROC DETAILS SUBMITTED IN RESPECT TO AFORESAID FOUR COMPANIES WOULD INDICATE THAT ADDRESSES MENTIONED IN ROC MASTER DETAILS ARE DIFFERENT FROM THAT WHICH IS UNDER OCCUPATION BY SHRI B.K. CHOUDHARY. THE PERUSAL OF ROC DETAILS SUBMITTED IN RESPECT TO AFORESAID FOUR COMPANIES WOULD INDICATE THAT ADDRESSES MENTIONED IN ROC MASTER DETAILS ARE DIFFERENT FROM THAT WHICH IS UNDER OCCUPATION BY SHRI B.K. CHOUDHARY. IN VIEW OF ABOVE FACT IT IS EVIDENT THAT ENQUIRY CONDUCTED BY AO IS AT -: 65: - 65 DIFFERENT ADDRESS THAN THAT INDICATED IN ROC WEBSITE. ANOTHER INCIDENT OBSERVED BY AO IS WITH REGARD TO SHRI RAM BILASH SINGH. IT IS SEEN THAT INSPECTOR OF INCOME TAX HAS FOUND ONE SHRI SANJAY SINGH AND INFORMATION SOLICITED FROM SUCH PERSON WHO INFORMED THAT HE HAS NO KNOWLEDGE OF ANY SHRI RAM BILASH SINGH. HOWEVER, THE STATEMENT OF SHRI SANJAY SINGH ALONE DOES NOT PROVE THAT SHRI RAM BILASH SINGH WAS NOT EXISTENCE AND THAT HE DID NOT MAKE INVESTMENT IN SHARE CAPITAL. IN FACT SHRI RAM BILASH SINGH HAS SUBMITTED AN AFFIDAVIT WHEREIN HE HAS SOLEMNLY AFFIRMED INVESTMENT WITH COMPANY OF BANSAL GROUP AND HAS ALSO PROVIDED ACKNOWLEDGEMENT OF INCOME TAX RETURN INDICATING DETAILS OF WARD/CIRCLE WHERE HE HAS ASSESSED TO INCOME TAX AND BALANCE SHEET WHEREIN AMOUNT INVESTED IN COMPANIES OF BANSAL GROUP IS SHOWN ON ASSET SIDE. AFORESAID -: 66: - 66 DETAILS SUBMITTED ARE ON RECORD OF AO. ON THE FACT OF LEGAL EVIDENCE ON RECORD I AM OF THE OPINION THAT THERE IS NO JUSTIFICATION FOR TAKING ANY ADVERSE VIEW WITH REGARD TO INFORMATION OBTAINED BY INSPECTOR OF INCOME TAX FROM SHRI SANJAY SINGH. IN FACT IN THE REMAND REPORT, THE AO, HAS NOT MADE ANY SUCH OBSERVATION. IN VIEW OF THE ABOVE VARIOUS OBSERVATIONS OF TAKING ADVERSE INFERENCE BY MAKING ENQUIRIES FROM SHRI B.K.CHOUDHARY AND SHRI SANJAY SINGH ARE NOT JUSTIFIED. 14.6 THE AO IN THE ASSESSMENT ORDER FOR ASSESSMENT YEAR 2010-11 HAS OBSERVED THAT PHYSICAL EXISTENCE OF SHARE APPLICANTS IS NOT ESTABLISHED. THE APPELLANT HAS SUBMITTED DETAILS OF PAN OF EACH AND EVERY SHAREHOLDERS AND ACKNOWLEDGEMENT OF INCOME TAX RETURN CLEARLY INDICATING THE DETAIL OF WARD/CIRCLE WHETHER SHARE APPLICANT IS ASSESSED TO INCOME TAX WHICH IS PLACED IN PAPER BOOK. IT IS -: 67: - 67 SEEN THAT ALL THE SHARE APPLICANTS ARE ASSESSED TO INCOME TAX AND ARE MAKING REGULAR COMPLIANCE UNDER THE PROVISIONS OF INCOME-TAX ACT, 1961. ON THE FACE OF ABOVE UNDISPUTED FACTUAL POSITION THE PHYSICAL EXISTENCE OF SHARE APPLICANTS CANNOT BE QUESTIONED. IN VIEW OF THE ABOVE, THE OBSERVATION OF AO THAT SHARE APPLICANT HAS NO PHYSICAL EXISTENCE OR CONTRIBUTION OF SHARE CAPITAL IS MERELY ACCOMMODATION ENTRY IS UNJUSTIFIED. 14.7 THE HON'BLE APEX COURT IN THE CASE OF CIT VS LOVELY EXPORTS HAS HELD THAT ONCE THE NAME OF SHARE HOLDERS ARE PROVIDED TO AO IT CANNOT BE REGARDED AS UNDISCLOSED INCOME UNDISCLOSED INCOME OF THE APPELLANT. THE RATIO AS LAID DOWN HAS BEEN FOLLOWED BY HON'BLE DELHI HIGH COURT IN THE CASE OF DWARKADISH INVESTMENT PVT. LTD. -: 68: - 68 IN ITS JUDGMENT DATED 2 ND AUGUST 2010. IN THE AFORESAID JUDGMENT OF HON'BLE DELHI HIGH COURT IT HAS BEEN HELD THAT DECISION RENDERED BY APEX COURT IN THE CASE OF LOVELY EXPORTS IS A BINDING PRECEDENT AND APPELLANT HAVING ESTABLISHED IDENTITY OF SHAREHOLDERS NO ADDITION IN RESPECT TO SHARE CAPITAL CAN BE MADE AT THE HANDS OF COMPANY. IN THE CASE OF APPELLANT COMPANY IDENTITY, GENUINENESS AND CREDITWORTHINESS OF SHARE HOLDERS HAVING BEEN ESTABLISHED NO ADDITION IN RESPECT TO SHARE CAPITAL CONTRIBUTION CAN BE MADE BY AO AND IS SUSTAINABLE IN THE LIGHT OF DECISION OF HON'BLE APEX COURT IN THE CASE OF LOVELY EXPORTS PVT. LTD. 14.8 DURING THE COURSE OF APPELLATE PROCEEDINGS A REMAND REPORT WAS CALLED FOR, FROM THE A.O. BEFORE THE AO IN THIS REGARD HAS SUBMITTED A REPORT DATED 02.04.2013 THAT IT IS READY TO COOPERATE IN MAKING -: 69: - 69 WHATEVER ENQUIRIES OR COMPLIANCES. THE ASSESSEE ALSO SUBMITTED THAT HE IS ALSO WILLING TO PRODUCE, ANY OR ALL THE SHARE HOLDERS FOR EXAMINATION AT THE CONVENIENCE OF THE AO. THE AO IN THIS REGARD HAS SUBMITTED A REPORT DATED 12.04.2013, WHICH HAS BEEN REPRODUCED IN THE FOREGOING PARAGRAPHS. FROM THE PERUSAL OF THIS REPORT AS ALSO THE MATERIAL PRODUCED BY THE APPELLANT, IT MAY BE CONCLUDED THAT SUFFICIENT EVIDENCE HAS BEEN BROUGHT ON RECORD TO PROVE THAT INVESTMENT TOWARDS SHARE CAPITAL BY DIFFERENT COMPANIES IS EXPLAINED. HOWEVER, IN THE INTEREST OF JUSTICE AND FOR CLARITY, I FEEL IT NECESSARY AND APPROPRIATE TO DISCUSS EACH CASE INDIVIDUALLY AND TO SEE WHETHER THE INVESTMENTS MADE BY THE PERSON CONCERNED WAS EXPLAINED OR NOT. (I) M/S. ARTLINE FISCAL SERVICES PRIVATE LIMITED : THIS COMPANY HAS MADE INVESTMENT OF RS 4,50,000/- AS SHARE CAPITAL DURING THE YEAR. IT -: 70: - 70 IS GATHERED THAT THIS COMPANY HAS BEEN ASSESSED TO TAX REGULARLY FOR INCOME TAX AND THE AMOUNT IS PAID THROUGH CHEQUE AND IS DULY REFLECTED IN THE BANK STATEMENT OF THE COMPANY. THE COMPANY FURTHER FILED A CONFIRMATION, OWNING OF THE TRANSACTION AND ALSO SUBMITTED ITS BALANCE SHEET, MEMORANDUM OF ASSOCIATION AND ARTICLES OF ASSOCIATION. FURTHER, THE ITO, WARD 1(4), KOLKATA MADE NECESSARY ENQUIRY FROM THIS COMPANY, ON THE BASIS OF NOTICE ISSUED BY ACIT, CIRCLE SATNA AND ON ENQUIRY, THE TRANSACTION WAS CONFIRMED BY THIS COMPANY. IF THAT BE THE CASE, THEN NOTHING MORE NEED TO BE PROVED BY THE ASSESSEE, THE ENTIRE TRANSACTION IS STAND PROVED IN TERMS OF IDENTITY OF THE COMPANY, ITS CREDITWORTHINESS AND GENUINENESS OF TRANSACTION. SINCE THIS FACT HAS BEEN RE-VERIFIED BY THE ASSESSING OFFICER DURING THE COURSE OF REMAND PROCEEDINGS AND REPORT IS SUBMITTED VIDE LETTER DATED 12.04.2013 STATING THAT THESE TRANSACTIONS WERE CONFIRMED, I FEEL THAT NO -: 71: - 71 REASON AS TO WHY THIS ADDITION SHOULD HAVE BEEN OR COULD HAVE BEEN MADE BY THE ASSESSING OFFICER. I AM OF THE CONSIDERED OPINION THAT THE ASSESSEE HAS DISCHARGED THE ONUS IN THIS REGARD AND THEREFORE ADDITION OF RS. 4,50,000/- AS UNEXPLAINED SHARE CAPITAL IN THE NAME OF M/S. ARTLINE FISCAL SERVICES PVT.LTD. IS DIRECTED TO BE DELETED. (II) SMT. MIRA DEVI DOKANIA: THIS PERSON HAS MADE AN INVESTMENT OF RS 5,50,000/- IN THE CASE OF THE ASSESSEE COMPANY DURING THE YEAR. THE AMOUNT HAS BEEN INVESTED THROUGH CHEQUE AND A COPY OF BANK STATEMENT OF THE ASSESSEE WAS RODUCED BEFORE THE AO. SMT. MIRA DEVI DOKANIA HAS BEEN ASSESSED TO TAX REGULARLY. FURTHER, NECESSARY ENQUIRY IN THIS CASE WAS MADE BY THE JURISDICITONAL A.O. AND REPORT WAS VERIFIED BY THE ASSESSING OFFICER VIDE HIS LETTER DATED 7.12.2011. IN VIEW OF THESE FACTS, I FEEL THAT THIS TRANSACTION OF INVESTMENT I N -: 72: - 72 SHARE CAPITAL STAND PROVED AND THE ADDITION OF RS. 5,50,000/- MADE BY THE ASSESSING OFFICER IS DIRECTED TO BE DELETED. (III) M/S. TAJ VINCOM PVT. LTD. THIS COMPANY HAS MADE AN INVESTMENT IN THE ASSESSEE COMPANY. IN THIS REGARD NECESSARY ENQUIRY HAS BEEN CARRIED OUT BY THE ASSESSING OFFICER DURING THE COURSE OF ASSESSMENT PROCEEDINGS AS ALSO LATER ON DURING THE COURSE OF REMAND PROCEEDINGS. IT IS GATHERED THAT THIS COMPANY IS BEING ASSESSED TO TAX REGULARLY AND FILED INCOME TAX RETURNS. ITS STATUS BEFORE THE REGISTRAR OF COMPANIES IS BEING SHOWN AS ACTIVE. IN THIS REGARD THE COMPANY FILED EXTRACT OF MINUTES OF BOARD MEETING FOR MAKING THE ABOVE INVESTMENT AND COPY OF BANK STATEMENT SHOWING THIS PARTICULAR INVESTMENT MADE THROUGH THEIR BANK ACCOUNT. SINCE THE MATTER IS BEING RE-VERIFIED BY THE ASSESSING OFFICER DURING THE COURSE OF REMAND PROCEEDINGS AND NOTHING UNTOWARD HAS BEEN NOTICED, THE ADDITION MADE -: 73: - 73 BY THE ASSESSING OFFICER DURING THE ASSESSMENT, APPEARS TO BE WITHOUT ANY SUFFICIENT BASIS. THE SAME IS, THEREFORE, DIRECTED TO BE DELETED. (IV) M/S. VERTEX SUPPLIERS PVT.LTD. : THIS COMPANY HAS MADE INVESTMENT OF RS. 5,00,000/- IN SHARE CAPITAL. DURING THE COURSE OF ENQUIRY BY THE ITO WARD 9(2), KOLKATA, THIS COMPANY SUBMITTED COPY OF BANK STATEMENT, INCOME TAX RETURN FILED BY IT, COPY OF BALANCE SHEET ETC. SHOWING THE POSITION OF RESERVES AND COPY OF MINUTES OF BOARD MEETING. IT APPEARS THAT THE COMPANY IS BEING ASSESSED TO TAX REGULARLY AND SUFFICIENT RESERVES AND BALANCE TO MAKE ABOVE INVESTMENT AND FURTHER THE AMOUNT HAS MADE THROUGH CHEQUE, THROUGH NORMAL BANKING PROCEDURE. THEREFORE, THE INVESTMENT CANNOT BE TREATED AS UNEXPLAINED. CONSIDERING THE ABOVE FACTS, THE ADDITION OF RS 5,00,000/- MADE BY THE ASSESSING OFFICER IS DIRECTED TO BE DELETED. -: 74: - 74 (V) M/S. GANGAUR PROPERTIES PVT.LTD. : THIS COMPANY HAS MADE INVESTMENT OF RS. 5,00,000/- IN SHARE CAPITAL. DURING THE COURSE OF ENQUIRY BY THE ITO WARD 3(3), KOLKATA, THIS COMPANY SUBMITTED COPY OF BANK STATEMENT, INCOME TAX RETURN FILED BY IT, COPY OF BALANCE SHEET ETC. SHOWING THE POSITION OF RESERVES AND COPY OF MINUTES OF BOARD MEETING. IT APPEARS THAT THIS COMPANY IS BEING ASSESSED TO TAX REGULARLY AND SUFFICIENT RESERVES AND BALANCE TO MAKE ABOVE INVESTMENT AND FURTHER THE AMOUNT HAS MADE THROUGH CHEQUE, THROUGH NORMAL BANKING PROCEDURE. THEREFORE, THE INVESTMENT CANNOT BE TREATED AS UNEXPLAINED. CONSIDERING THE ABOVE FACTS, THE ADDITION OF RS. 5,00,000/- MADE BY THE ASSESSING OFFICER IS DIRECTED TO BE DELETED. -: 75: - 75 (VI) M/S.MANUBHAWAN DISTRIBUTORS PVT.LTD. THIS COMPANY HAS MADE INVESTMENT OF RS. 5,00,000/- IN SHARE CAPITAL. DURING THE COURSE OF ENQUIRY, THIS COMPANY SUBMITTED COPY OF BANK STATEMENT, INCOME TAX RETURN FILED BY IT, COPY OF BALANCE SHEET ETC. SHOWING THE POSITION OF RESERVES AND COPY OF MINUTES OF BOARD MEETING. IT APPEARS THAT THIS COMPANY IS BEING ASSESSED TO TAX REGULARLY AND SUFFICIENT RESERVES AND BALANCE TO MAKE ABOVE INVESTMENT AND FURTHER THE AMOUNT HAS MADE THROUGH CHEQUE, THROUGH NORMAL BANKING PROCEDURE. THEREFORE, THE INVESTMENT CANNOT BE TREATED AS UNEXPLAINED CONSIDERING THE ABOVE FACTS THE ADDITION OF RS. 5,00,000/- MADE BY THE ASSESSING OFFICER IS DIRECTED TO BE DELETED. 21. WE HAVE HEARD THE RIVAL CONTENTIONS OF BOTH TH E PARTIES. LOOKING TO THE FACTS AND CIRCUMSTANCES OF THE CASE, WE FIND THAT BEFORE THE CIT(A), THE ASSESSEE HAS GIVEN ALL THE DETAILS. THE LD. CIT(A) HAS CALLED FO R -: 76: - 76 REMAND REPORT AND DURING THE REMAND PROCEEDINGS, TH E ASSESSEE ESTABLISHED THE CREDITWORTHINESS, GENUINEN ESS AND IDENTITY OF THE TRANSACTIONS WERE ESTABLISHED. THE LD. CIT(A) IN HIS DETAILED ORDER HAS CONSIDERED THE REMAND REPORT AND HAS DELETED THE ADDITION. WE FOUN D THAT IN EACH OF THE COMPANY I.E. M/S. ARTLINE FISCA L SERVICES PRIVATE LIMITED, SMT. MIRA DEVI DOKANIA, M /S. VERTEX SUPPLIERS PVT.LTD., M/S. GANGAUR PROPERTIES PVT.LTD.,AND M/S.MANUBHAWAN DISTRIBUTORS PVT.LTD, HAD THE BANK STATEMENTS, INCOME TAX RETURNS, COPIES OF THE BALANCE SHEET. MOREOVER, POSITION OF RESERVES A ND COPY OF BOARDS MEETING AND THE LD. CIT(A) HELD THA T ALL THESE COMPANIES ARE ASSESSED TO TAX REGULARLY AND T HEY HAVE SUFFICIENT RESERVES AND BANK STATEMENTS TO MAK E THE INVESTMENT AND ALL THE INVESTMENT IS MADE THROU GH BANKING CHANNEL AND THE LD. CIT(A) HAS RE-VERIFIED ALL THESE AND HE HAS DELETED THE ADDITION. 22. DURING THE COURSE OF HEARING, THE LD. SENIOR D.R. COULD NOT BRING ANY CONTRARY EVIDENCE AGAINST THE -: 77: - 77 FINDING OF THE CIT(A). THEREFORE, THE LD. CIT(A) HA S NO ALTERNATIVE EXCEPT TO ENDORSE THE ACTION OF THE LD. CIT(A). 23. IN THE RESULT, THE APPEAL OF THE DEPARTMENT IS DISMISSED. 24. CROSS OBJECTION FILED BY THE ASSESSEE IS MERELY IN SUPPORT OF THE APPEAL. THE CROSS OBJECTION IS DISMI SSED AS IT IS SUPPORTIVE. 25. IN THE RESULT, THE APPEAL OF THE DEPARTMENT IS DISMISSED AND CROSS OBJECTION IS ALSO DISMISSED. THIS ORDER IS PRONOUNCED IN ACCORDANCE WITH RULE 34(4) OF I.T.A.T. RULES, BY PUTTING THE COPY OF THE SAME ON NOTICE BOARD ON 25 TH JUNE, 2015. SD/- (B. C. MEENA) ACCOUNTANT MEMBER SD/- ( D.T.GARASIA) JUDICIAL MEMBER DATED :25 TH JUNE, 2015. CPU* -: 78: - 78 11226