Singhal Sunrise Steels Pvt. Ltd., Ghaziabad V. ITO, Ghaziabad

MA 183/DEL/2020

• Counselvise Citation: [2022] 104 COUNSELVISE.COM (IT) 2618 (ITAT-DELHI)
• Duration Of Justice: 2 year(s) 2 month(s) 13 day(s)
• Appeal Type: Miscellaneous Application
• Pronouncement Date: 29-09-2022
• Appeal Filed By: Assessee
• Order Result: Dismissed
• Bench Allotted: G
• Next Hearing Date: 14-07-2022
• Assessment Year: 2010-2011
• Appeal Filed On: 16-07-2020
• Result in Favour of: Revenue
• Court: TRIBUNAL
• Keywords: Onus to prove
• Section: 68; 133(6); 254(2)

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL DELHI BENCH ‘G’, NEW DELHI Before Dr. B. R. R. Kumar, Accountant Member Sh. Anubhav Sharma, Judicial Member MA No. 183/Del/2020 (in ITA No. 3103/Del/2015 : Asstt. Year : 2010-11) Singhal Sunrise Steels Pvt. Ltd., 241, Loha Mandi, Ghaziabad Vs Income Tax Officer, Ward-2(3), Ghaziabad (APPELLANT) (RESPONDENT) PAN No. AAJCS7938P Assessee by : Sh. Akarsh Garg, Adv. Revenue by : Sh. S. L. Anuragi, Sr. DR Date of Hearing: 15.07.2022 Date of Pronouncement: 30.09.2022 ORDER Per Dr. B. R. R. Kumar, Accountant Member: The Miscellaneous Application has been filed by the assessee arising out of the order in ITA No. 3103/Del/2015 vide order dated 18.09.2019. 2. The relevant part of the MA of the assessee is as under: “6. Your honours in Para 7 at page 4-5 of the order have tabulated that the assessee has submitted the list of companies along with their addresses from whom share application money was received along with their addresses during the relevant financial year as under. MA No. 183/Del/2020 Singhal Sunrise Steels Pvt. Ltd. 2 7. That during the course of the hearing, the Ld. AR of the assessee filed the minutes of the proceedings of extra ordinary general meeting of the assessee, ITR of the share applicant companies, the confirmations, the ROC records, P&L and balance sheet of the share applicant companies, copies of the application of the equity shares and submitted that these were submitted before the authorities which has been summarily rejected without giving due consideration. The copy of paper book running up to 331 pages was also filed. 8. However, Your Honours have in this para 20 at page 23 of the order held as below: "20. We find that the assessee has miserably failed to give the basic details like the correct address of the applicant companies to the Assessing Officer. The addresses given initially and subsequently have been found to be bogus. The assessee has submitted documentation like ITR of the share applicant companies, the confirmations, the ROC record, P&L and balance sheet of the share applicant companies, copies of the application of the equity shares which cannot be primarily taken as sacrosanct when weighed against the concrete evidences collected and confronted by the revenue to the assessee before making the addition...............” 3. The assessee pleaded that enquiries have not been done in the manner prescribed in the law and documents/evidences submitted by the assessee at various stages needs to be taken on record for advancement of substantial justice and hence, a mistake apparent from record in accordance with Section 254(2) of the Act has been crept in and hence the order needs to be recalled for restoring the file to the AO for thorough investigation and verification. MA No. 183/Del/2020 Singhal Sunrise Steels Pvt. Ltd. 3 4. We have gone through the relevant operative portion which incorporated the thorough and complete enquiries and investigation conducted by the revenue which are as under: “20. We find that the assessee has miserably failed to give the basic details like the correct address of the applicant companies to the Assessing Officer. The addresses given initially and subsequently have been found to be bogus. The assessee has submitted documentation like ITR of the share applicant companies, the confirmations, the ROC record, P&L and balance sheet of the share applicant companies, copies of the application of the equity shares which cannot be primarily taken as sacrosanct when weighed against the concrete evidences collected and confronted by the revenue to the assessee before making the addition. The addresses have been proved wrong, the notices u/s 133(6) of the Act have come back unserved, correct address of the Directors was not provided. There has been change of Directors and a set of persons taken as Directors and different companies. Approximately, 15 concerns are floated or taken over by a set of persons having same addresses and common Directors/Proprietors as below: S. No. Name of companies Owner's/Director 1 Rachita Buildcon Private Limited DA/4,106, Dua Business Centre, Main Vikas Marg, Shakarpur Delhi Anil Agrawal Sanjay Agrawal 2 Kabir Enterprises Room No.-204, 21St Century Business Centre, D-64, Shakarpur, New Delhi Anil Agrawal Rajeev Kumar Bansal 3 Anubhav Buiidmart Private Limited DA/4,106, Dua Business Centre, Main Vikas Marg, Shakarpur Delhi Rajeev Kumar Bansal Dushyant Agarwal 4 Focus Tradimpex Private Limited D-lll, South Ganesh Nagar, Mandawali, New Delhi Sumit Kumar Verma Lokesh Garg 5 Monitor Sprint Elevators Private Limited. DA/4,106, Dpa Business Center, Main Vikas Marg, Shakarpur, New Delhi Anil Agrawal Dushyant Agarwal 6 Naman Lam Private Limited Room No.204 D-64 21St Century Business Centre Shakarpur Delhi Rajeev Kumar Bansal ‘ Dushyant Agarwal 7 Safari Tradex Private Limited S-556, 2nd Floor School Block, Shakarpur, New Delhi Yogendra Kumar Vinod Sharma 8 Visit India Voyages Private Limited 108, M J Shopping Centre Veer Savarkar Block, Shakarpur New Delhi Anil Agrawal, Madhukar Dubey Surendra Kumar Garg, 9 True way network & Marketing 206, M J Shopping Centre, 3,Veer Savarkar Block, Shakarpur, New Delhi Prop. Akhilesh Sharma 10 Thakurji Sales Corporation, 202, 23, Veer Savarkar Block, Shakapur, Delhi Prop. Madhukar Dubey 11 BR Gupta & Co. Pvt. Ltd., 202, 23, Veer Savarkar Block, Shakapur, Delhi and 108, M J Shopping Centre, Veer Savarkar Block, Shakapur, Delhi Anil Agrawal Rajeev Kumar Bansal 12 Harshit Textiles, 301, 23, Veer Savarkar Block, Shakapur, Delhi Prop.Madhukar Dubey 13 Sona Electrical Services Pvt.Ltd 202 ,23, Veer Savarkar Block, Delhi -110092 Madhukar Dubey 14 J K SALES CORPORATION 301 23 Veer Savarkar Block, Delhi Mahukar Dubey 15 Accord sales & Tradex Pvt. Ltd. Yogendra Kumar D-lll, South Ganesh Nagar, Mandawali, New Delhi Vinod Sharma MA No. 183/Del/2020 Singhal Sunrise Steels Pvt. Ltd. 4 21. Further, from the study of the bank statement, it can be found that M/s Harshit textiles, M/s True way network & Marketing, M/s Thakurji Sales Corporation, M/s BR Gupta & Co. Pvt. Ltd., and M/s Harshit Textile have been used to deposit cash and the same has subsequently been transferred to other accounts on almost same date to provide entries. Trail of transaction for providing entry to the assessee company has been established by the way of following chart: Cash Rs.9,00,000/- 12.11.2009 True way Network & Mkg Kotak Mahindra Bank 900000 13.11.2009 Visit India Voyges Pvt. Ltd. Kotak Mahindra Bank 1400000 13.11.2009 Singhal Sunrise Cash Rs.2,00,000/- 12.11.2009 B R Gupta & Co Pvt. Ltd. Kotak Mahindra Bank 200000 13.11.2009 Cash 3,00,000 12.11.2009 Thakur Ji Sales Corporation Kotak Mahindra Bank 300000 13.11.2009 25 Lacs 28.10.2009 J K SALES CORPORATION ING Vysya Bank, 800000 29.10.2009 Sona Electrical Services Pvt. Ltd. ING Vysya Bank, 800000 29.10.2009 Naman Lam Pvt. Ltd. 800000 29.10.2009 Singhal Sunrise 4,00,000 30.11.2009 Ravi Sales Corporation South Indian Bank 09334172388 Cash 50,000 21.11.2009 Cash 50,000 30.11.2009 4,00,000 Naman Lam Pvt. Ltd. 500000 30.11.2009 Singhal Sunrise cash 9,00,000 28.10.2009 Harshit Textiles, 13508630000087 900000 cash 1,00,000 28.10.2009 Rachita Buildcon Pvt. Ltd. HDFC Bank 1000000 31.10.2009 Singhal Sunrise 1000000 30.10.2009 Ellora Buildtech Pvt. Ltd. Ltd. Syndicate Bank 1000000 30.10.2009 Anubhav Buildmart Pvt. Ltd. Development Credit Bank a/c no.093200000365 1000000 31.10.2009 Singhal Sunrise Yes Bank Chanakya puri 011-66569000 Accord Sales & Tradex Pvt. Ltd. a/c no3883800000743 Yes Bank, Rajori Garden 6,00,015 19.11.2009 Focus Tradimpex Pvt. Ltd. Yes Bank a/cno.003083800001942 6,00,000 20.11.2009 Singhal Sunrise Deposited 20,00,000 on 19.11.2009 and transferred to four concerns Accord Sales & Tradex Pvt. Ltd. a/c no.3883800000743 Yes Bank, Rajori Garden 6,00,040 19.11.2009 Safari Tradex Pvt. Ltd. Yes Bank 003083800001942 6,00,000 20.11.2009 Singhal Sunrise 25 Lacs 28.10.2009 J K SALES CORPORATION ING Vysya Bank, Sona Electrical Services Pvt. Ltd. 631011000076 ING \/ysya Bank, Preet Vihar 10,00,000 29.10.2009 Monitor Sprint Elevators Private Limited. ING Vysya Bank 634011001681 10,00,000 29.10.2009 Singhal Sunrise 27.11.2009 Ankay Associates Pvt. Ltd. Standard Chartered Bank 10,00,000 27.11.2009 Kabir Enterprises Private Limited. Standard Chartered Bank A/c no.53205035447 10,00,000 27.11.2009 Singhal Sunrise 22. Further, the revenue could prove the linkage of various entities to the share applicant companies which are as below: MA No. 183/Del/2020 Singhal Sunrise Steels Pvt. Ltd. 5 S. No. Company Share application money/share holders Anubhav Buildmart Pvt. Ltd. Ankay Associates Pvt Ltd. B.R Gupta & Company Pvt. Ltd. Kabir Enterprises Pvt. Ltd Ellora Buildtech Pvt Ltd Moniter Sprint Elevators Pvt. Ltd. Naman Lam Pvt. Ltd. Porter Buildcon Pvt. Ltd. Rachita Buildcon Pvt. Ltd. Seven Heaven Infrabuild Pvt. Ltd. SLB Finlease Pvt. Ltd. Sona Electrical Services Pvt. Ltd. Sun Vision Advertising & Mrktng Pvt. Ltd. Visit India Voyages Pvt. Ltd Green Value Agrofarm S Pvt. Ltd Kabir Enterprises Pvt. Ltd. S.L.B. Finlease Pvt. Ltd. Sona Electrical Services Pvt. Ltd. Sunvision Advertising & Markg Pvt. Ltd. Ankay Associates Pvt. Ltd. Monitor Sprint Elevators Pvt. Ltd. Ankay ASsOciates Pvt Ltd. B.R Gupta & Company Pvt. Ltd. Ellora Bulldtech Pvt Ltd Porter Buildcon Pvt. Ltd. Rachita Buildcon Pvt. Ltd. Anubhav Buildmart Private Limited Naman Lam Pvt. Ltd. Porter Buildcon Pvt. Ltd. Anubhav Buildmart Private Limited, Ellora Buildtech Pvt. Ltd. Ankay Associates Private Limited, BRGupta & Co. Private Limited, Rachaita Buildcon Private Limited, Visit India Voyages Pvt. Ltd. Ankay Associates Pvt. Ltd. B.R Gupta & Company Pvt. Ltd. Ellora Buildtech Pvt. Ltd orter Buildcon Pvt. Ltd. SLB Finlease Pvt. Ltd. Thakur Ji Sales Corporation 23. Further, the turnover and profits of the share applicant company do not give any credence to the investments done with the assessee company while the revenue has brought on record all the evidences to prove that these share applicant entities are in fact shell companies. Rotation of the amount amongst the interconnected companies to provide share application money to each other has been clearly unraveled by the revenue. In view of the entire facts and circumstances of the case, it is hereby held that the assessee has failed to discharge the primary onus to prove identity, creditworthiness and genuineness of transactions. Hence, relying on the facts enumerated above and judgments relied upon by the revenue, the addition made by the revenue u/s 68 of the Act is hereby confirmed.” MA No. 183/Del/2020 Singhal Sunrise Steels Pvt. Ltd. 6 5. Since, the order is based on the detailed enquiries conducted by the revenue and since the plea of the assessee doesn’t confirm to and beyond the provisions of section 254(2), the MA filed by the assessee is liable to be dismissed. 6. In the result, the MA of the assessee is dismissed. Order Pronounced in the Open Court on 30/09/2022. Sd/- Sd/- (Anubhav Sharma) (Dr. B. R. R. Kumar) Judicial Member Accountant Member Dated: 30/09/2022 *Subodh Kumar, Sr. PS* Copy forwarded to: 1. Appellant 2. Respondent 3. CIT 4. CIT(Appeals) 5. DR: ITAT ASSISTANT REGISTRAR