M/S BHAGWATI VINTRADE PRIVATE LIMITED ,KOLKATA vs. I.T.O.,WARD-10(4), KOLKATA

IN THE INCOME TAX APPELLATE TRIBUNAL KOLKATA ‘A’ BENCH, KOLKATA (Before Sri J. Sudhakar Reddy, Hon’ble Accountant Member & Sri Aby T. Varkey, Hon’ble Judicial Member) ITA No. 195/Kol/2020 Assessment Year: 2012-13 M/s. Bhagwati Vintrade Private Limited.....……………......................……………….......…....Appellant C/o Rajesh Mohan & Associates Unit No. 18 5th Floor Bagati House 34, Ganesh Chandra Avenue Kolkata - 700 013 [PAN : AADCB 5949 F] Vs. Income Tax Officer, Ward-10(4) Kolkata…............……..…..............................................Respondent Appearances by: Shri S.M. Surana, Advocate, appeared on behalf of the assessee. Shri Manish Kanojia, CIT, D/R, appearing on behalf of the Revenue. Date of concluding the hearing : February 10th, 2020 Date of pronouncing the order : February 24th, 2021 ORDER Per J. Sudhakar Reddy, AM :- This appeal filed by the assessee is directed against the order of the Learned Pr. Commissioner of Income Tax (Appeals)– 4, Kolkata, (hereinafter the “ld. Pr. CIT”), passed u/s. 263 of the Income Tax Act, 1961 (the ‘Act’), dt. 31/01/2020, for the Assessment Year 2012-13, wherein he set aside the order of the Assessing Officer passed u/s 263 r.w.s. 143(3) of the Act on 22/12/2017 for de novo assessment on the specified issue of addition u/s 68 of the Act of share capital received along with share premium. 2. The ld. Counsel for the assessee submitted that, the facts and circumstances of the case of this year are the same as that in the facts and circumstances of the assessee’s own case for the Assessment Year 2013-14. He also submitted that the assessment order and the order passed u/s 263 of the Act, are identical and the grounds, reasons and basis of that order are the same and hence, the arguments taken by him in that case, may be considered as the arguments of the assessee in this case as well. The ld. D/R agreed with the contentions of the assessee that the facts etc., of both the assessment years are identical and submitted that the arguments made by the ld. D/R in that case, may be considered as arguments of the revenue in this case as well and the case may be disposed off accordingly.

2 ITA No. 195/Kol/2020 Assessment Year: 2012-13 M/s. Bhagwati Vintrade Private Limited M/s. Bhagwati Vintrade Private Limited 3. After hearing rival contentions, we find that the facts and circumstances After hearing rival contentions, we find that the facts and circumstances After hearing rival contentions, we find that the facts and circumstances of the cases of both the Assessment Years 2013 cases of both the Assessment Years 2013-14 and 2012-13, the basis of 13, the basis of the assessment order and the order passed u/s 263 of the Act are identical assessment order and the order passed u/s 263 of the Act are identical assessment order and the order passed u/s 263 of the Act are identical. The arguments advanced being t being the same, we follow the order of the ITAT he same, we follow the order of the ITAT in the assessee’s own case for the Assessment Year 2013 assessee’s own case for the Assessment Year 2013-14, dt. 17/02/2021, wherein, the , dt. 17/02/2021, wherein, the ITAT had held as follows:-

“10. We have heard rival contentions. On careful consideration of the facts and We have heard rival contentions. On careful consideration of the facts and We have heard rival contentions. On careful consideration of the facts and circumstances of the case, perusal of the papers on record, orders of the authorities below as well e case, perusal of the papers on record, orders of the authorities below as well e case, perusal of the papers on record, orders of the authorities below as well as case law cited, we hold as follows: as case law cited, we hold as follows:- 11. The Assessing Officer in his order records that the assessee company has offered income The Assessing Officer in his order records that the assessee company has offered income The Assessing Officer in his order records that the assessee company has offered income u/s 115JB of the Act, by declaring book p u/s 115JB of the Act, by declaring book profits and this is a company which is doing business in rofits and this is a company which is doing business in the real sense. He also gives a finding that this is not a case of laundering of unaccounted income the real sense. He also gives a finding that this is not a case of laundering of unaccounted income the real sense. He also gives a finding that this is not a case of laundering of unaccounted income in the garb of share premium. He gave a specific finding that the investments made had every in the garb of share premium. He gave a specific finding that the investments made had every in the garb of share premium. He gave a specific finding that the investments made had every potential for appreciating in future and this justifies the share premium. At page 5 & 6, the al for appreciating in future and this justifies the share premium. At page 5 & 6, the al for appreciating in future and this justifies the share premium. At page 5 & 6, the Assessing Officer refers to the directions of the ld. Pr. CIT and the results of the enquiry done by Assessing Officer refers to the directions of the ld. Pr. CIT and the results of the enquiry done by Assessing Officer refers to the directions of the ld. Pr. CIT and the results of the enquiry done by him in compliance with these directions of the ld. Pr. CIT. He recor him in compliance with these directions of the ld. Pr. CIT. He records that summons were issued ds that summons were issued u/s 131 of the Act to the share holding company u/s 131 of the Act to the share holding company M/s. Lakshmi Dealmark Private Limited, for M/s. Lakshmi Dealmark Private Limited, for personal appearance. He gave a finding of fact that the share holding company is in investment personal appearance. He gave a finding of fact that the share holding company is in investment personal appearance. He gave a finding of fact that the share holding company is in investment activities and had undertaken several tran activities and had undertaken several transactions of investments. He recorded that sactions of investments. He recorded that departmental inspector was deputed for inspection and that the report of the inspector supports departmental inspector was deputed for inspection and that the report of the inspector supports departmental inspector was deputed for inspection and that the report of the inspector supports the claim of the assessee. He also gave details of his findings on examination of the various the claim of the assessee. He also gave details of his findings on examination of the various the claim of the assessee. He also gave details of his findings on examination of the various documents filed by the shareholder at pages 5 & 6 of his order. Statements were recorded on hareholder at pages 5 & 6 of his order. Statements were recorded on hareholder at pages 5 & 6 of his order. Statements were recorded on oath from the directors of the shareholder companies M/s. Lakshmi Dealmark Private Limited. oath from the directors of the shareholder companies M/s. Lakshmi Dealmark Private Limited. oath from the directors of the shareholder companies M/s. Lakshmi Dealmark Private Limited. After all these enquiries, the Assessing Officer accepted the claim of the assessee. After all these enquiries, the Assessing Officer accepted the claim of the assessee. After all these enquiries, the Assessing Officer accepted the claim of the assessee. The ld. Pr. CIT in his order u/s 263 of the Act dt. 29/02/2020, states that the Assessing . CIT in his order u/s 263 of the Act dt. 29/02/2020, states that the Assessing . CIT in his order u/s 263 of the Act dt. 29/02/2020, states that the Assessing Officer has not examined the details judiciously and that there were not enough enquiries made. Officer has not examined the details judiciously and that there were not enough enquiries made. Officer has not examined the details judiciously and that there were not enough enquiries made. This finding is factually incorrect. It is not the case of the ld. Pr. CIT that This finding is factually incorrect. It is not the case of the ld. Pr. CIT that this is a case of no this is a case of no enquiry or a case where the Assessing Officer has not applied his mind. It is settled law that an enquiry or a case where the Assessing Officer has not applied his mind. It is settled law that an enquiry or a case where the Assessing Officer has not applied his mind. It is settled law that an assessment order passed u/s 143(3) of the Act, cannot be revised on the ground that, in the assessment order passed u/s 143(3) of the Act, cannot be revised on the ground that, in the assessment order passed u/s 143(3) of the Act, cannot be revised on the ground that, in the opinion of the ld. Pr. CIT, the enquiries wer opinion of the ld. Pr. CIT, the enquiries were not adequate. The observations of the ld. Pr. CIT e not adequate. The observations of the ld. Pr. CIT demonstrates that his grievance is that the conclusions drawn by the Assessing Officer based on demonstrates that his grievance is that the conclusions drawn by the Assessing Officer based on demonstrates that his grievance is that the conclusions drawn by the Assessing Officer based on the examination of evidence are different from the conclusions that might have been drawn by the examination of evidence are different from the conclusions that might have been drawn by the examination of evidence are different from the conclusions that might have been drawn by him had he been the Assessing Officer. This is no ground for making a revisions. The recordings of the Assessing Officer. This is no ground for making a revisions. The recordings of the Assessing Officer. This is no ground for making a revisions. The recordings of the ld. Pr. CIT that the Assessing Officer has not examined the justification of fixing of share the ld. Pr. CIT that the Assessing Officer has not examined the justification of fixing of share the ld. Pr. CIT that the Assessing Officer has not examined the justification of fixing of share premium or that has not examined or enquired into the authenticity of the t premium or that has not examined or enquired into the authenticity of the transaction, and that ransaction, and that he has not enquired the possibility of the transaction being sham and the activity being a case of he has not enquired the possibility of the transaction being sham and the activity being a case of he has not enquired the possibility of the transaction being sham and the activity being a case of laundering of unaccounted income etc., is against facts. In fact, the Assessing Officer has in detail laundering of unaccounted income etc., is against facts. In fact, the Assessing Officer has in detail laundering of unaccounted income etc., is against facts. In fact, the Assessing Officer has in detail described the enquiries made by hi described the enquiries made by him and his findings on such enquiries. The ld. Pr. CIT further m and his findings on such enquiries. The ld. Pr. CIT further comments as follows:- “The interests of the revenue are not to be equate to rupees or paisa merely.” “The interests of the revenue are not to be equate to rupees or paisa merely.” “The interests of the revenue are not to be equate to rupees or paisa merely.” Then, he goes on to state that, the Commissioner may think that the order is prejudicial Then, he goes on to state that, the Commissioner may think that the order is prejudicial Then, he goes on to state that, the Commissioner may think that the order is prejudicial to the revenue administration. These observation are not in accordance with law as can be seen the revenue administration. These observation are not in accordance with law as can be seen the revenue administration. These observation are not in accordance with law as can be seen from various judgments which are dismissed by us. from various judgments which are dismissed by us. 12. This Bench of the Tribunal under identical circumstances, in the case of This Bench of the Tribunal under identical circumstances, in the case of This Bench of the Tribunal under identical circumstances, in the case of Amritrashi Infra Pvt. Ltd. vs. PCIT in ITA No. 838/Kol/2019, dt. 12/08/2020, held as follows: in ITA No. 838/Kol/2019, dt. 12/08/2020, held as follows:-

3 ITA No. 195/Kol/2020 Assessment Year: 2012-13 M/s. Bhagwati Vintrade Private Limited M/s. Bhagwati Vintrade Private Limited ““46. In the light of the afore-cited judicial precedents, let us examine cited judicial precedents, let us examine the case in hand and find out whether pursuant to the specific direction of First Ld. the case in hand and find out whether pursuant to the specific direction of First Ld. the case in hand and find out whether pursuant to the specific direction of First Ld. Pr. CIT, the second AO has Pr. CIT, the second AO has discharged his role as an investigator in respect of share discharged his role as an investigator in respect of share capital and premium collected by the assessee or whether the AO failed to enquire capital and premium collected by the assessee or whether the AO failed to enquire capital and premium collected by the assessee or whether the AO failed to enquire on this issue and whether his re on this issue and whether his re-assessment/second assessment order is a plausible assessment/second assessment order is a plausible view or it can be termed as an u view or it can be termed as an unsustainable view in law. We on a conjoint reading nsustainable view in law. We on a conjoint reading of the First Revisional Order of the First Pr. CIT dated 23.08.2016 and the of the First Revisional Order of the First Pr. CIT dated 23.08.2016 and the of the First Revisional Order of the First Pr. CIT dated 23.08.2016 and the reassessment /Second assessment of the AO dated 07.12.2016, the following facts reassessment /Second assessment of the AO dated 07.12.2016, the following facts reassessment /Second assessment of the AO dated 07.12.2016, the following facts can be discerned: can be discerned:- (a)The First Ld. Pr. CIT has (a)The First Ld. Pr. CIT has recorded a finding after perusal of the first recorded a finding after perusal of the first assessment records/folder that during the first round of scrutiny proceeding, the assessment records/folder that during the first round of scrutiny proceeding, the assessment records/folder that during the first round of scrutiny proceeding, the assessee company produced the following documents before the first AO in the assessee company produced the following documents before the first AO in the assessee company produced the following documents before the first AO in the original assessment to satisfy the AO in respect of original assessment to satisfy the AO in respect of identity, creditworthiness and identity, creditworthiness and genuineous of share subscribers: genuineous of share subscribers:- (i) audited financial statements; (ii) copy of Form filed with the ROC; (iii) copy of PAN Card of the assessee company; (iv) details and copy of share applicants; (v) bank statement reflecting the transaction; (vi) records relating to investors in order to establish identity, rds relating to investors in order to establish identity, genuineness and creditworthiness of the share subscribers. genuineness and creditworthiness of the share subscribers. 47. We note that the First Ld. Pr. CIT in his first revisional order, found that We note that the First Ld. Pr. CIT in his first revisional order, found that We note that the First Ld. Pr. CIT in his first revisional order, found that AO in the first assessment proceedings though has been p AO in the first assessment proceedings though has been provided with the aforesaid rovided with the aforesaid documents has not examined these documents, which according to him, should have documents has not examined these documents, which according to him, should have documents has not examined these documents, which according to him, should have been carried out by the AO. The First Ld. Pr. CIT at para (4) of his first revisional been carried out by the AO. The First Ld. Pr. CIT at para (4) of his first revisional been carried out by the AO. The First Ld. Pr. CIT at para (4) of his first revisional order has clearly made a finding that “ From the above discu order has clearly made a finding that “ From the above discussion it is evident that ssion it is evident that the assessment proceedings in the case of assessee was completed in a very casual the assessment proceedings in the case of assessee was completed in a very casual the assessment proceedings in the case of assessee was completed in a very casual manner and hurried manner flouting all established procedures. manner and hurried manner flouting all established procedures. The assessee had The assessee had discharged its onus by furnishing/documents before the AO discharged its onus by furnishing/documents before the AO.”Further .”Further, the First Ld. Pr. CIT mainly found fault with the AO’s order for non Pr. CIT mainly found fault with the AO’s order for non-issuance of notice u/s. 133(6) issuance of notice u/s. 133(6) of the Act to the shareholders. The First Ld. Pr. CIT found fault with the AO’ s order of the Act to the shareholders. The First Ld. Pr. CIT found fault with the AO’ s order of the Act to the shareholders. The First Ld. Pr. CIT found fault with the AO’ s order in not discussing the basis of evidence on which adverse inference in not discussing the basis of evidence on which adverse inference in not discussing the basis of evidence on which adverse inference was drawn against the assessee. Moreover, the First Ld. Pr. CIT found fault with the AO for not against the assessee. Moreover, the First Ld. Pr. CIT found fault with the AO for not against the assessee. Moreover, the First Ld. Pr. CIT found fault with the AO for not bothering to examine the contention of the assessee or to bring on record anything bothering to examine the contention of the assessee or to bring on record anything bothering to examine the contention of the assessee or to bring on record anything against the assessee and thus according to him, the AO with a pre against the assessee and thus according to him, the AO with a pre-determined determined mind has simply jumped to the conclusion that the share capital collected by assessee as has simply jumped to the conclusion that the share capital collected by assessee as has simply jumped to the conclusion that the share capital collected by assessee as unexplained cash credit u/s. 68 of the Act. Therefore, according to the First Ld. Pr. unexplained cash credit u/s. 68 of the Act. Therefore, according to the First Ld. Pr. unexplained cash credit u/s. 68 of the Act. Therefore, according to the First Ld. Pr. CIT, the first original assessment order framed u/s. 143(3) of the Act dated 26 CIT, the first original assessment order framed u/s. 143(3) of the Act dated 26 CIT, the first original assessment order framed u/s. 143(3) of the Act dated 26-03- 2015 was against the principle of natural justice and, therefore, he found it fit to 2015 was against the principle of natural justice and, therefore, he found it fit to 2015 was against the principle of natural justice and, therefore, he found it fit to order denovo assessment and gave specific direction in respect of share capital & order denovo assessment and gave specific direction in respect of share capital & order denovo assessment and gave specific direction in respect of share capital & premium collected by assessee. premium collected by assessee.

4 ITA No. 195/Kol/2020 Assessment Year: 2012-13 M/s. Bhagwati Vintrade Private Limited M/s. Bhagwati Vintrade Private Limited to do the following specific actions as directed in respect of share to do the following specific actions as directed in respect of share-applicants who applicants who applied for shares in assessee applied for shares in assessee-company. The specific directions of Ld. Pr CIT to AO company. The specific directions of Ld. Pr CIT to AO are as under: (i) To carry out proper examination of the books of accounts and bank To carry out proper examination of the books of accounts and bank To carry out proper examination of the books of accounts and bank account of the assessee; account of the assessee; ii) To carry out proper examination of the books of accounts and bank To carry out proper examination of the books of accounts and bank To carry out proper examination of the books of accounts and bank account of the investors; account of the investors; iii) AO to examine the source of the share applicants; AO to examine the source of the share applicants; iv)The AO to examine the identity of the investor and its genuineness; iv)The AO to examine the identity of the investor and its genuineness; iv)The AO to examine the identity of the investor and its genuineness; Sl. ITR Name of company Name of company CIN PAN N filed for o. AY 2012- 13 1. M/s. K. R. Overseas Pvt. M/s. K. R. Overseas Pvt. U51109WB1994PTC06196 AACCK0101B yes Ltd. 5 2. M/s. M/s. Kakrania Kakrania Trading Trading U70101WB1994PTC06213 AABCK151611 yes Pvt. Ltd. 7 3. M/s. AmbalaTrafin Pvt. M/s. AmbalaTrafin Pvt. U67120WB1995PTCO743 AACCA1184G yes Ltd. 97 U52190WB2011PTC15707 4. M/s. Subhiksha Pvt. Ltd. M/s. Subhiksha Pvt. Ltd. AAPCS2068E yes 3 5. M/s. M/s. Shivarshi Shivarshi U45400WB2011PTC17095 AAQCS7848M yes Construction Pvt. Ltd. Construction Pvt. Ltd. 7 6. M/s. Shivashiv Pvt. Ltd. M/s. Shivashiv Pvt. Ltd. U74999WB2012PTC AARCS0094C yes 173749 7. M/s. Flowtop Agency Pvt. M/s. Flowtop Agency Pvt. U52190WB2012PTC AABCF9036D yes Ltd. 173352 8. M/s. SukhSagar Residency M/s. SukhSagar Residency U45400WB2011PTC17095 AARCS1553N yes Pvt. Ltd. 8 9. M/s. M/s. Kamaldhan Kamaldhan U45400WB2011PTC17094 AAECK6810D yes Developers Pvt. Ltd. Developers Pvt. Ltd. 4 10 M/s. LabhdhanImpex Pvt. M/s. LabhdhanImpex Pvt. U51909WB2011PTC17152 AACCL2111J yes . Ltd. 4 11 M/s. SubhsreeImpex Pvt. M/s. SubhsreeImpex Pvt. U51909WB2011PTC17151 AARCS1845D yes . Ltd. 3 12 M/s. Maharaja Merchants M/s. Maharaja Merchants U51109WB2005PTC10234 AAECM224E yes . Pvt. Ltd. 3 13 M/s. Sristi Sales Pvt. Ltd. M/s. Sristi Sales Pvt. Ltd. U51109WB2005PTC10212 AAICS8900L yes . 1

5 ITA No. 195/Kol/2020 Assessment Year: 2012-13 M/s. Bhagwati Vintrade Private Limited M/s. Bhagwati Vintrade Private Limited v) The AO to complete the assessment at the earliest without waiting for the The AO to complete the assessment at the earliest without waiting for the The AO to complete the assessment at the earliest without waiting for the time barring date. time barring date. 50. In the second round before the AO for de novo re In the second round before the AO for de novo re-assessment, the second assessment, the second AO as per the specific direction of the First Ld. Pr. CIT (supra), conducted the AO as per the specific direction of the First Ld. Pr. CIT (supra), conducted the AO as per the specific direction of the First Ld. Pr. CIT (supra), conducted the reassessment proceeding. As per the specific direction of Ld. First Pr. CIT, the reassessment proceeding. As per the specific direction of Ld. First Pr. CIT, the reassessment proceeding. As per the specific direction of Ld. First Pr. CIT, the Second AO firstly su Second AO firstly summoned the director of the assessee company Shri NavinTahin mmoned the director of the assessee company Shri NavinTahin before him, who duly appeared and produced the books of account on 01.12.2016 before him, who duly appeared and produced the books of account on 01.12.2016 before him, who duly appeared and produced the books of account on 01.12.2016 and furnished the relevant details viz., (i) copy of ITR, (ii) audited accounts, (iii) and furnished the relevant details viz., (i) copy of ITR, (ii) audited accounts, (iii) and furnished the relevant details viz., (i) copy of ITR, (ii) audited accounts, (iii) details of directors, (iv) the details of directors, (iv) the details of the share-applicants, (v) details of business applicants, (v) details of business activity, (vi) details of increase in share capital, (vii) Form 2, (viii) Form 5, (ix) bank activity, (vi) details of increase in share capital, (vii) Form 2, (viii) Form 5, (ix) bank activity, (vi) details of increase in share capital, (vii) Form 2, (viii) Form 5, (ix) bank statements evidencing payment through banking transaction, which fact the AO statements evidencing payment through banking transaction, which fact the AO statements evidencing payment through banking transaction, which fact the AO has acknowledged in the reas has acknowledged in the reassessment order. [And here we should keep in mind sessment order. [And here we should keep in mind that the First Ld. Pr. CIT’s finding of fact after perusal of original assessment that the First Ld. Pr. CIT’s finding of fact after perusal of original assessment that the First Ld. Pr. CIT’s finding of fact after perusal of original assessment records that assessee in the first round before AO has produced PAN,ROC details, records that assessee in the first round before AO has produced PAN,ROC details, records that assessee in the first round before AO has produced PAN,ROC details, audited financial statements, details and co audited financial statements, details and copy of share applicants, bank statements py of share applicants, bank statements reflecting the transaction, records relating to investors to establish identity, reflecting the transaction, records relating to investors to establish identity, reflecting the transaction, records relating to investors to establish identity, creditworthiness & genuineness. And the finding of First Ld. Pr. CIT that assessee creditworthiness & genuineness. And the finding of First Ld. Pr. CIT that assessee creditworthiness & genuineness. And the finding of First Ld. Pr. CIT that assessee had discharged its onus by furnishing/documents befo had discharged its onus by furnishing/documents before the AO.]Secondly, after re the AO.]Secondly, after examining these documents, we also find that the second AO issued notices u/s. examining these documents, we also find that the second AO issued notices u/s. examining these documents, we also find that the second AO issued notices u/s. 133(6) of the Act to all the thirteen (13) share applicants and pursuant to the 133(6) of the Act to all the thirteen (13) share applicants and pursuant to the 133(6) of the Act to all the thirteen (13) share applicants and pursuant to the notice, all the shareholders have filed their respective (i) PAN de notice, all the shareholders have filed their respective (i) PAN details, (ii) CIN detail, tails, (ii) CIN detail, (iii) Audited Annual Report for FY 2011 (iii) Audited Annual Report for FY 2011-12 (AY 2012-13), (iv) ITR acknowledgment 13), (iv) ITR acknowledgment for AY 2012-13 which the AO acknowledges that he verified the same and thus we 13 which the AO acknowledges that he verified the same and thus we 13 which the AO acknowledges that he verified the same and thus we note that the identity of the investors were duly furnished by the asse note that the identity of the investors were duly furnished by the assessee’s director; ssee’s director; and the AO verified the veracity of the same from all the share applicants by issuing and the AO verified the veracity of the same from all the share applicants by issuing and the AO verified the veracity of the same from all the share applicants by issuing notice u/s 133(6) of the Act and moreover it is common knowledge that in this notice u/s 133(6) of the Act and moreover it is common knowledge that in this notice u/s 133(6) of the Act and moreover it is common knowledge that in this computer/digital era, the AO on a click of the mouse, could have easily ver computer/digital era, the AO on a click of the mouse, could have easily ver computer/digital era, the AO on a click of the mouse, could have easily verified the identity of the share applicant which is available in the website of Ministry of identity of the share applicant which is available in the website of Ministry of identity of the share applicant which is available in the website of Ministry of Corporate Affairs and the ITR Acknowledgments filed by them, will enable the AO to Corporate Affairs and the ITR Acknowledgments filed by them, will enable the AO to Corporate Affairs and the ITR Acknowledgments filed by them, will enable the AO to cross verify and collect details from the AO of the respective share applicants a cross verify and collect details from the AO of the respective share applicants a cross verify and collect details from the AO of the respective share applicants and independently from the Revenue’s departmental data base. We note that all the independently from the Revenue’s departmental data base. We note that all the independently from the Revenue’s departmental data base. We note that all the share subscribing parties filed all the documents called for by the AO [PB share subscribing parties filed all the documents called for by the AO [PB share subscribing parties filed all the documents called for by the AO [PB-2] and were also examined by the AO along with audited accounts from which these details were also examined by the AO along with audited accounts from which these details were also examined by the AO along with audited accounts from which these details show their identity. identity. 51. Thus, we note that the AO after verification as aforesaid, has not drawn any 51. Thus, we note that the AO after verification as aforesaid, has not drawn any 51. Thus, we note that the AO after verification as aforesaid, has not drawn any adverse opinion or doubted the adverse opinion or doubted the identity of the share applicants which view of AO is of the share applicants which view of AO is a possible view in the light of the documents referred to and we also by ap a possible view in the light of the documents referred to and we also by ap a possible view in the light of the documents referred to and we also by applying the presumption in section 114 of Indian Evidence Act 1872, we presume that the presumption in section 114 of Indian Evidence Act 1872, we presume that the presumption in section 114 of Indian Evidence Act 1872, we presume that the quasi-judicial act of the second AO have been regularly performed. Coming to the judicial act of the second AO have been regularly performed. Coming to the judicial act of the second AO have been regularly performed. Coming to the contention of Ld. CIT, DR, that order sheet maintained by the Second AO does not contention of Ld. CIT, DR, that order sheet maintained by the Second AO does not contention of Ld. CIT, DR, that order sheet maintained by the Second AO does not reveal that AO had issued notice u/s. 133(6) of the Act to the share subscribers, we l that AO had issued notice u/s. 133(6) of the Act to the share subscribers, we l that AO had issued notice u/s. 133(6) of the Act to the share subscribers, we note that the AO in his reassessment/second assessment order has clearly asserted note that the AO in his reassessment/second assessment order has clearly asserted note that the AO in his reassessment/second assessment order has clearly asserted that he had issued notice u/s. 133(6) of the Act to all the share applicants as that he had issued notice u/s. 133(6) of the Act to all the share applicants as that he had issued notice u/s. 133(6) of the Act to all the share applicants as directed by the First Ld. Pr. CIT and we note from the perusal of some letters he First Ld. Pr. CIT and we note from the perusal of some letters he First Ld. Pr. CIT and we note from the perusal of some letters written by the share applicants clearly referring to the AO’s sec. 133(6) notice written by the share applicants clearly referring to the AO’s sec. 133(6) notice written by the share applicants clearly referring to the AO’s sec. 133(6) notice (refer inter-alia page 32 of PB alia page 32 of PB-I). So, the clear assertion of the Second AO in his I). So, the clear assertion of the Second AO in his order that pursuant to h order that pursuant to his issue of notice u/s. 133(6), he received the documents is issue of notice u/s. 133(6), he received the documents called for cannot be disbelieved merely because he did not mention this event in the called for cannot be disbelieved merely because he did not mention this event in the called for cannot be disbelieved merely because he did not mention this event in the order sheet. Moreover, the assessee or the share applicants does not have any order sheet. Moreover, the assessee or the share applicants does not have any order sheet. Moreover, the assessee or the share applicants does not have any control over the order sheet main control over the order sheet maintained by the AO and the failure of AO to mention tained by the AO and the failure of AO to mention this action cannot be a reason to disbelieve the AO’s assertion that he issued notice this action cannot be a reason to disbelieve the AO’s assertion that he issued notice this action cannot be a reason to disbelieve the AO’s assertion that he issued notice u/s. 133(6) of the Act. Moreover, we have to examine the re u/s. 133(6) of the Act. Moreover, we have to examine the re-assessment/second assessment/second assessment order of AO and not the order assessment order of AO and not the order-sheet maintained by him which has not heet maintained by him which has not been negatively commented upon by the Second Ld Pr CIT and it is not the fault for been negatively commented upon by the Second Ld Pr CIT and it is not the fault for been negatively commented upon by the Second Ld Pr CIT and it is not the fault for which the Ld Pr CIT exercised his power u/s 263 of the Act. Thus, we note that which the Ld Pr CIT exercised his power u/s 263 of the Act. Thus, we note that which the Ld Pr CIT exercised his power u/s 263 of the Act. Thus, we note that

6 ITA No. 195/Kol/2020 Assessment Year: 2012-13 M/s. Bhagwati Vintrade Private Limited M/s. Bhagwati Vintrade Private Limited second AO issued sec. 133(6) notice and collected documen second AO issued sec. 133(6) notice and collected documents running more than ts running more than 352 pages. Moreover, the First Ld. Pr. CIT while setting aside the first AO’s order has 352 pages. Moreover, the First Ld. Pr. CIT while setting aside the first AO’s order has 352 pages. Moreover, the First Ld. Pr. CIT while setting aside the first AO’s order has returned a finding that assessee in the first round itself has filed the relevant returned a finding that assessee in the first round itself has filed the relevant returned a finding that assessee in the first round itself has filed the relevant documents to prove the identity, creditworthiness and genuineness documents to prove the identity, creditworthiness and genuineness documents to prove the identity, creditworthiness and genuineness of the share capital and that assessee had discharged its onus by filing the same. So we find that capital and that assessee had discharged its onus by filing the same. So we find that capital and that assessee had discharged its onus by filing the same. So we find that during the second round, the AO issued notices to share during the second round, the AO issued notices to share-holders u/s. 133(6) and holders u/s. 133(6) and after perusing their replies and supporting documents and thereafter having after perusing their replies and supporting documents and thereafter having after perusing their replies and supporting documents and thereafter having verified their veracity, the second AO was satisfied with the explanation of assessee verified their veracity, the second AO was satisfied with the explanation of assessee verified their veracity, the second AO was satisfied with the explanation of assessee in respect to the nature and source of share capital which view of second AO cannot in respect to the nature and source of share capital which view of second AO cannot in respect to the nature and source of share capital which view of second AO cannot be faulted. And we also note that all the share be faulted. And we also note that all the share-holders are regular income tax holders are regular income tax assessee’s. Therefore in the light of the aforesaid documents discussed their ee’s. Therefore in the light of the aforesaid documents discussed their ee’s. Therefore in the light of the aforesaid documents discussed their identity cannot be disbelieved and the AO’s satisfaction in respect of identity of the cannot be disbelieved and the AO’s satisfaction in respect of identity of the cannot be disbelieved and the AO’s satisfaction in respect of identity of the shareholders is a possible view and cannot be termed as unsustainable in law or shareholders is a possible view and cannot be termed as unsustainable in law or shareholders is a possible view and cannot be termed as unsustainable in law or facts. 52. Coming to the creditworthiness of the shareholders, our attention was of the shareholders, our attention was drawn to the balance sheet of the shareholders (PB drawn to the balance sheet of the shareholders (PB- 2) which was filed before the 2) which was filed before the AO and the Ld. Pr. CIT and we note that their source of investment and net worth as AO and the Ld. Pr. CIT and we note that their source of investment and net worth as AO and the Ld. Pr. CIT and we note that their source of investment and net worth as per balance sheet as on 31 per balance sheet as on 31.03.2012 as well as the sum invested by them in the .03.2012 as well as the sum invested by them in the assessee is discernible as under: assessee is discernible as under: Name Source of investment Source of investment Capital & Sum invested in Sum invested in assessee’s business assessee’s business Reserves M/s. K. R. Page 8 Paper Book Page 8 Paper Book-2 Rs.66,77,47,921 Rs.1,30,000/ Rs.1,30,000/- Overseas Pvt. Ltd. (page 22 PB-2) M/s. Kakrania Page 45Paper Book Page 45Paper Book-2 Rs.66,52,71,914 Rs.1,39,00,000/ Rs.1,39,00,000/- Trading Pvt. Ltd. (page 62 PB-2) M/s. Page 88Paper Book Page 88Paper Book-2 Rs.624,711,003 Rs.4,40,00,000/ Rs.4,40,00,000/- AmbalaTrafinpvt. (page 101 PB-2) Ltd. M/s. Subhiksha Page 115Paper Boo Page 115Paper Book- Rs.222,397,317 Rs.45,00,000/ Rs.45,00,000/- Pvt. Ltd. 2 (page 128 PB-2) M/s. Shivarshi Page 146Paper Book Page 146Paper Book- Rs.53,89,95,046 Rs.4,66,00,000/ Rs.4,66,00,000/- Construction Pvt. 2 (page 153 PB-2) Ltd. M/s. Shivashiv Page 170Paper Book Page 170Paper Book- Rs.14,29,56,146 Rs.6,55,00,000/ Rs.6,55,00,000/- Pvt. Ltd. 2 (page 178 PB-2) M/s. Flowtop Page 193Paper Book Page 193Paper Book- Rs.15,38,94,946 Rs.4,49,00,000/ Rs.4,49,00,000/- Agency Pvt. Ltd. 2 (page 200 PB-2) M/s. Sukh Sagar Page Page 212 212 Paper Paper Rs.56,18,93,960 Rs.2,31,00,000/ Rs.2,31,00,000/- Residency Pvt. Book-2 (page 220 PB-2) Ltd. M/s. Kamaldhan Page246-247Paper 247Paper Rs.56,18,94,080 Rs.12,54,00,000/ Rs.12,54,00,000/- Developers Pvt. Book-2 (page 254 PB-2) Ltd. M/s. Labhdhan Page 270PaperBook Page 270PaperBook- Rs.56,18,94,080 Rs. 3,80,00,000/ Rs. 3,80,00,000/-

7 ITA No. 195/Kol/2020 Assessment Year: 2012-13 M/s. Bhagwati Vintrade Private Limited M/s. Bhagwati Vintrade Private Limited Impex Pvt. Ltd. 2 (page 277 PB-2) M/s. SubhsreeI Page 290 of paper Page 290 of paper Rs.76,60,93,960 Rs. 2,76,00.000/ Rs. 2,76,00.000/- mpex Pvt. Ltd. book (page 297 PB-2) M/s. Maharaja - Rs.1,54,58,399 Rs. 50,00,000/ Rs. 50,00,000/- Merchants Pvt. (page 313 PB-2) Ltd. M/s. Sristi Sales - Rs.1,12,25,632 Rs.50,00,000/ Rs.50,00,000/- Pvt. Ltd. (page 336 PB-2)

(i) On perusal of the paper book On perusal of the paper book-2, it reveals that the documents are 2, it reveals that the documents are placed at page 12 to 37 of share applicant placed at page 12 to 37 of share applicant M/s. K.R. Overseas Pvt. M/s. K.R. Overseas Pvt. Limited Limited which is a Private Limited Company, and which has which is a Private Limited Company, and which has Permanent Permanent Account Account No. No. AACCK0101B AACCK0101B and CIN U51109WB1994PTC061965 U51109WB1994PTC061965 and its Net-worth as on 31.03.2012 (in worth as on 31.03.2012 (in total) total)- share capital & reserve is to the tune of Rs.66,77,47,921/ share capital & reserve is to the tune of Rs.66,77,47,921/- (PB page 22) and the investment made in the assessee page 22) and the investment made in the assessee-company including company including the share premium comes to Rs.1,30,00 the share premium comes to Rs.1,30,00,000/-. The payment has been . The payment has been made made made through through through banking banking banking channel channel channel and and and deposit deposit deposit amount amount amount of of of Rs.1,05,00,000/ Rs.1,05,00,000/- took place as on 01.03.2012 by NEFT and took place as on 01.03.2012 by NEFT and Rs.25,00,000/ Rs.25,00,000/- as on 06.03.2012. The Board Resolution for investment as on 06.03.2012. The Board Resolution for investment of the Company is filed and the share application of the Company is filed and the share application of the Company is filed and the share application form, ITR acknowledgment, Bank statement, explanation of source of funds as acknowledgment, Bank statement, explanation of source of funds as acknowledgment, Bank statement, explanation of source of funds as well as financial statements have been filed by the assessee at P. B well as financial statements have been filed by the assessee at P. B well as financial statements have been filed by the assessee at P. B page 3 page 3-37and thus we note that the assessee had duly discharged its 37and thus we note that the assessee had duly discharged its

8 ITA No. 195/Kol/2020 Assessment Year: 2012-13 M/s. Bhagwati Vintrade Private Limited M/s. Bhagwati Vintrade Private Limited onus to prove the identity of the share app onus to prove the identity of the share applicants by adducing PAN as licants by adducing PAN as well as income well as income-tax returns. The financial statement shows that the tax returns. The financial statement shows that the share applicant had enough funds to invest in the assessee share applicant had enough funds to invest in the assessee share applicant had enough funds to invest in the assessee-company and the transaction has happened through banking channel. Further, and the transaction has happened through banking channel. Further, and the transaction has happened through banking channel. Further, it is noted that the share a it is noted that the share applicant had furnished the source of pplicant had furnished the source of investment made in the assessee investment made in the assessee-company after getting the notice company after getting the notice under section 133(6) of the Act. under section 133(6) of the Act. (ii) We note from a perusal of the paper book We note from a perusal of the paper book-2 pages 38 to 77 38 to 77, the details of share applicant of share applicant M/s. Kakrania Trading Pvt. Ltd. It is a Private It is a Private Limited Company which has a PAN Limited Company which has a PAN AABCK151611and its CIN number and its CIN number is U70101WB1994PTC062137 U70101WB1994PTC062137 and the Net worth of this company as and the Net worth of this company as on 31.3.2012Rs.66,52,71,914/ on 31.3.2012Rs.66,52,71,914/- (PB-page62) and investment made in page62) and investment made in the assessee company is to the tune of Rs. the assessee company is to the tune of Rs.1,39,00,000/- and this share applicant has made the transaction through banking channel four applicant has made the transaction through banking channel four applicant has made the transaction through banking channel four times on 01.03.2012 Rs.30,00,000 through NEFT; and by cheque on times on 01.03.2012 Rs.30,00,000 through NEFT; and by cheque on times on 01.03.2012 Rs.30,00,000 through NEFT; and by cheque on 02.03.2012a sum of Rs. 59,00,000/ 02.03.2012a sum of Rs. 59,00,000/-; and on 7.3.2012 and by cheque on ; and on 7.3.2012 and by cheque on 12.3.2012 Rs. 25 lakh each. T 12.3.2012 Rs. 25 lakh each. There is board resolution for investment in here is board resolution for investment in assessee’s company and Share Application Form, Bank statement, ITR assessee’s company and Share Application Form, Bank statement, ITR assessee’s company and Share Application Form, Bank statement, ITR acknowledgement, and explanation of source of fund as well as acknowledgement, and explanation of source of fund as well as acknowledgement, and explanation of source of fund as well as financial statement available in the PB financial statement available in the PB-page 39 to 77. This share page 39 to 77. This share applicant regularl applicant regularly filed Income Tax Return (ITR) and it has filed its y filed Income Tax Return (ITR) and it has filed its Bank statement. This company has furnished the details of source of Bank statement. This company has furnished the details of source of Bank statement. This company has furnished the details of source of Funds and has duly filed financial statements and thus we note that Funds and has duly filed financial statements and thus we note that Funds and has duly filed financial statements and thus we note that the assessee had duly discharged its onus to prove the identity of the assessee had duly discharged its onus to prove the identity of the assessee had duly discharged its onus to prove the identity of the share applicant by adducing PAN as well as income share applicant by adducing PAN as well as income-tax returns. The tax returns. The financial statement shows that the share applicants had enough funds financial statement shows that the share applicants had enough funds financial statement shows that the share applicants had enough funds to invest in the assessee to invest in the assessee-company and the transaction has happened company and the transaction has happened through banking channel. Further, it is noted tha through banking channel. Further, it is noted that the share applicant t the share applicant had furnished the source of investment made in the assessee had furnished the source of investment made in the assessee had furnished the source of investment made in the assessee-company after getting the notice under section 133(6) of the Act. after getting the notice under section 133(6) of the Act. (iii) We note from a perusal of the paper book (iii) We note from a perusal of the paper book-2 pages 2 pages78 to 111, the details of share applicant details of share applicant M/s. Ambala Trafin Pvt. Ltd. It is a Private Limited Company which has a PAN Limited Company which has a PAN AACCA1184G and its CIN number is and its CIN number is U67120WB1995PTCO74397 U67120WB1995PTCO74397 and the Net worth of this company as on and the Net worth of this company as on 31.3.2012 Rs.62,47,11,003 31.3.2012 Rs.62,47,11,003- (PB-page101) and investment made in the ) and investment made in the assessee company is to the assessee company is to the tune of Rs. 4,40,00,000/- and this share and this share applicant has made the transaction through banking channel on applicant has made the transaction through banking channel on applicant has made the transaction through banking channel on 01.03.2012 Rs. 25 lakhs; and on 03.03.2012 Rs. 40 lakhs through NEFT; 01.03.2012 Rs. 25 lakhs; and on 03.03.2012 Rs. 40 lakhs through NEFT; 01.03.2012 Rs. 25 lakhs; and on 03.03.2012 Rs. 40 lakhs through NEFT; and by cheque on Rs. 3,75,00,000/ and by cheque on Rs. 3,75,00,000/-on 27.3.2012 . There is board on 27.3.2012 . There is board resolution for inv resolution for investment in assessee’s company and Share Application estment in assessee’s company and Share Application Form, Bank statement, ITR acknowledgement, explanation of source of Form, Bank statement, ITR acknowledgement, explanation of source of Form, Bank statement, ITR acknowledgement, explanation of source of fund as well as financial statement available in the PB fund as well as financial statement available in the PB-page 79 to 111 page 79 to 111 in the PB in the PB-II. This share applicant regularly filed Income Tax Ret II. This share applicant regularly filed Income Tax Return (ITR) and it has filed its Bank statement. This company has furnished (ITR) and it has filed its Bank statement. This company has furnished (ITR) and it has filed its Bank statement. This company has furnished the details of source of Funds and has duly filed financial statements. the details of source of Funds and has duly filed financial statements. the details of source of Funds and has duly filed financial statements. Thus we note that the assessee had duly discharged its onus to prove Thus we note that the assessee had duly discharged its onus to prove Thus we note that the assessee had duly discharged its onus to prove the identity of the share applicants by a the identity of the share applicants by adducing PAN as well as income dducing PAN as well as income- tax returns. The financial statement shows that the share applicant had tax returns. The financial statement shows that the share applicant had tax returns. The financial statement shows that the share applicant had enough funds to invest in the assessee enough funds to invest in the assessee-company and the transaction has company and the transaction has happened through banking channel. Further, it is noted that the share happened through banking channel. Further, it is noted that the share happened through banking channel. Further, it is noted that the share applicants ha applicants had furnished the source of investment made in the assessee d furnished the source of investment made in the assessee- company after getting the notice under section 133(6) of the Act. company after getting the notice under section 133(6) of the Act. company after getting the notice under section 133(6) of the Act. (iv) We note from a perusal of the paper book pages (iv) We note from a perusal of the paper book pages-2,112 to 137 112 to 137, the details of share applicant details of share applicant M/s. Subhiksha Pvt. Ltd. It is a P It is a Private Limited Company which has a PAN Limited Company which has a PAN AAPCS2068E and its CIN number is and its CIN number is

9 ITA No. 195/Kol/2020 Assessment Year: 2012-13 M/s. Bhagwati Vintrade Private Limited M/s. Bhagwati Vintrade Private Limited U52190WB2011PTC157073 U52190WB2011PTC157073 and the Net worth of this company as on and the Net worth of this company as on 31.3.2012 Rs.22,23,97,317/ 31.3.2012 Rs.22,23,97,317/- (PB-page 128.) and investment made in page 128.) and investment made in the assessee company is to the tune of Rs. 45,00,000/ the assessee company is to the tune of Rs. 45,00,000/- and this share applicant has made the transaction through banking channel on applicant has made the transaction through banking channel on applicant has made the transaction through banking channel on 02.03.2012 a sum of Rs.45 lakhs through NEFT. There is board 02.03.2012 a sum of Rs.45 lakhs through NEFT. There is board 02.03.2012 a sum of Rs.45 lakhs through NEFT. There is board resolution for investment in assessee’s company and Share Application resolution for investment in assessee’s company and Share Application resolution for investment in assessee’s company and Share Application Form Bank statement, ITR acknowledgement, expl Form Bank statement, ITR acknowledgement, explanation of source of anation of source of fund as well as financial statement available in the PB fund as well as financial statement available in the PB-page 113 to 137 page 113 to 137 in the PB. This share applicant regularly filed Income Tax Return (ITR) in the PB. This share applicant regularly filed Income Tax Return (ITR) in the PB. This share applicant regularly filed Income Tax Return (ITR) and it has filed its Bank statement. This company has furnished the and it has filed its Bank statement. This company has furnished the and it has filed its Bank statement. This company has furnished the details of source of Fu details of source of Funds and has duly filed financial statements and nds and has duly filed financial statements and thus we note that the assessee had duly discharged its onus to prove the thus we note that the assessee had duly discharged its onus to prove the thus we note that the assessee had duly discharged its onus to prove the identity of the share applicants by adducing PAN as well as income identity of the share applicants by adducing PAN as well as income identity of the share applicants by adducing PAN as well as income-tax returns. The financial statement shows that the share applicant returns. The financial statement shows that the share applicant returns. The financial statement shows that the share applicant had enough funds to invest in the assessee enough funds to invest in the assessee-company and the transaction has company and the transaction has happened through banking channel. Further, it is noted that the share happened through banking channel. Further, it is noted that the share happened through banking channel. Further, it is noted that the share applicants had furnished the source of investment made in the assessee applicants had furnished the source of investment made in the assessee applicants had furnished the source of investment made in the assessee- company after getting the notice under s company after getting the notice under section 133(6) of the Act. ection 133(6) of the Act.

(v) We note from a perusal of the paper book (v) We note from a perusal of the paper book-2, pages 138 to 159 the 2, pages 138 to 159 the details of share applicant details of share applicant M/s. Shivarshi Construction Pvt. Ltd M/s. Shivarshi Construction Pvt. Ltd. It is a Private Limited Company which has a PAN AAQCS7848M and its CIN Private Limited Company which has a PAN AAQCS7848M and its CIN Private Limited Company which has a PAN AAQCS7848M and its CIN number is U45400WB2011P number is U45400WB2011PTC170957 and the net worth of this TC170957 and the net worth of this company as on 31.3.2012 Rs.53,89,95,046/ company as on 31.3.2012 Rs.53,89,95,046/- (PB-page 153) and page 153) and investment made in the assessee company is to the tune of Rs. investment made in the assessee company is to the tune of Rs. investment made in the assessee company is to the tune of Rs. 4,66,00,000/ 4,66,00,000/- and this share applicant has made the transaction and this share applicant has made the transaction through banking channel on 29.03. through banking channel on 29.03.2012 Rs.4,66,00,000/ 2012 Rs.4,66,00,000/-through Cheque. There is board resolution for investment in assessee’s company Cheque. There is board resolution for investment in assessee’s company Cheque. There is board resolution for investment in assessee’s company and Share Application Form Bank statement, ITR acknowledgement, and Share Application Form Bank statement, ITR acknowledgement, and Share Application Form Bank statement, ITR acknowledgement, explanation of source of fund as well as financial statement available in explanation of source of fund as well as financial statement available in explanation of source of fund as well as financial statement available in the PB the PB-page 139 to 159 in the PB. This share applicant regularly filed o 159 in the PB. This share applicant regularly filed Income Tax Return (ITR) and it has filed its Bank statement. This Income Tax Return (ITR) and it has filed its Bank statement. This Income Tax Return (ITR) and it has filed its Bank statement. This company has furnished the details of source of Funds and has duly filed company has furnished the details of source of Funds and has duly filed company has furnished the details of source of Funds and has duly filed financial statements. This share applicant regularly filed Incom financial statements. This share applicant regularly filed Incom financial statements. This share applicant regularly filed Income Tax Return (ITR) and it has filed its Bank statement and thus we note that Return (ITR) and it has filed its Bank statement and thus we note that Return (ITR) and it has filed its Bank statement and thus we note that the assessee had duly discharged its onus to prove the identity of the the assessee had duly discharged its onus to prove the identity of the the assessee had duly discharged its onus to prove the identity of the share applicants by adducing PAN as well as income share applicants by adducing PAN as well as income-tax returns. The tax returns. The financial statement shows that the share financial statement shows that the share applicant had enough funds to applicant had enough funds to invest in the assessee invest in the assessee-company and the transaction has happened company and the transaction has happened through banking channel. Thus the assessee has discharged the onus to through banking channel. Thus the assessee has discharged the onus to through banking channel. Thus the assessee has discharged the onus to prove the identity, creditworthiness and genuineness of the prove the identity, creditworthiness and genuineness of the prove the identity, creditworthiness and genuineness of the transactions. Further, it is no transactions. Further, it is noted that the share applicants had ted that the share applicants had furnished the source of investment made in the assessee furnished the source of investment made in the assessee- -company after getting the notice under section 133(6) of the Act. getting the notice under section 133(6) of the Act. (vi) We note from a perusal of the paper book pages (vi) We note from a perusal of the paper book pages-2, 160 to 184 the 2, 160 to 184 the details of share applicant details of share applicant M/s. Shivashiv Dealcom Pvt. Ltd s. Shivashiv Dealcom Pvt. Ltd. It is a Private Limited Company which has a PAN AARCS0094C and its CIN Private Limited Company which has a PAN AARCS0094C and its CIN Private Limited Company which has a PAN AARCS0094C and its CIN number is U74999WB2012PTC 173749 and the net worth of this number is U74999WB2012PTC 173749 and the net worth of this number is U74999WB2012PTC 173749 and the net worth of this company as on 31.3.2012 Rs.14,29,56,146/ company as on 31.3.2012 Rs.14,29,56,146/-(PB-page 178) and page 178) and investment made in the assessee co investment made in the assessee company is to the tune of mpany is to the tune of Rs.6,55,00,000/ Rs.6,55,00,000/- and this share applicant has made the transaction and this share applicant has made the transaction through banking channel on 29.03.2012 Rs.6,55,00,000/ through banking channel on 29.03.2012 Rs.6,55,00,000/ through banking channel on 29.03.2012 Rs.6,55,00,000/- through Cheque. There is board resolution for investment in assessee’s company Cheque. There is board resolution for investment in assessee’s company Cheque. There is board resolution for investment in assessee’s company and Share Application Form Ba and Share Application Form Bank statement, ITR acknowledgement, nk statement, ITR acknowledgement,

10 ITA No. 195/Kol/2020 Assessment Year: 2012-13 M/s. Bhagwati Vintrade Private Limited M/s. Bhagwati Vintrade Private Limited explanation of source of fund as well as financial statement available in explanation of source of fund as well as financial statement available in explanation of source of fund as well as financial statement available in the PB the PB-page 161 to 184 in the PB. This share applicant regularly filed page 161 to 184 in the PB. This share applicant regularly filed Income Tax Return (ITR) and it has filed its Bank statement. This Income Tax Return (ITR) and it has filed its Bank statement. This Income Tax Return (ITR) and it has filed its Bank statement. This company ha company has furnished the details of source of Funds and has duly filed s furnished the details of source of Funds and has duly filed financial statements and thus we note that the assessee had duly financial statements and thus we note that the assessee had duly financial statements and thus we note that the assessee had duly discharged its onus to prove the identity of the share applicants by discharged its onus to prove the identity of the share applicants by discharged its onus to prove the identity of the share applicants by adducing PAN as well as income adducing PAN as well as income-tax returns. The financial st tax returns. The financial statement shows that the share applicant had enough funds to invest in the shows that the share applicant had enough funds to invest in the shows that the share applicant had enough funds to invest in the assessee assessee-company and the transaction has happened through banking company and the transaction has happened through banking channel. Thus the assessee has discharged the onus to prove the channel. Thus the assessee has discharged the onus to prove the channel. Thus the assessee has discharged the onus to prove the identity, creditworthiness and genuineness of the tra identity, creditworthiness and genuineness of the transactions. Further, nsactions. Further, it is noted that the share applicants had furnished the source of it is noted that the share applicants had furnished the source of it is noted that the share applicants had furnished the source of investment made in the assessee investment made in the assessee-company after getting the notice company after getting the notice under section 133(6) of the Act. under section 133(6) of the Act.

(vii) We note from a perusal of the paper book (vii) We note from a perusal of the paper book-2, pages 185 to 206 the 2, pages 185 to 206 the details of share applicant details of share applicant M/s. Flowtop Agency Pvt. Ltd. It is a Private . It is a Private Limited Company which has a PAN AABCF9036D and its CIN number is Limited Company which has a PAN AABCF9036D and its CIN number is Limited Company which has a PAN AABCF9036D and its CIN number is U52190WB2012PTC 173352and the net worth of this company as on U52190WB2012PTC 173352and the net worth of this company as on U52190WB2012PTC 173352and the net worth of this company as on 31.3.2012 Rs.15,38,94,946/ 31.3.2012 Rs.15,38,94,946/- (PB-page 200 ) and investment made in estment made in the assessee company is to the tune of Rs. 4,49,00,000/ the assessee company is to the tune of Rs. 4,49,00,000/- and this share applicant has made the transaction through banking channel on applicant has made the transaction through banking channel on applicant has made the transaction through banking channel on 30.03.2012 Rs.4,49,00,000/ 30.03.2012 Rs.4,49,00,000/- through Cheque. . There is board through Cheque. . There is board resolution for investment in assessee’s com resolution for investment in assessee’s company and Share Application pany and Share Application Form, Bank statement, ITR acknowledgement, explanation of source of Form, Bank statement, ITR acknowledgement, explanation of source of Form, Bank statement, ITR acknowledgement, explanation of source of fund as well as financial statement available in the PB fund as well as financial statement available in the PB-page 186 to 206 page 186 to 206 n the PB. This share applicant regularly filed Income Tax Return (ITR) n the PB. This share applicant regularly filed Income Tax Return (ITR) n the PB. This share applicant regularly filed Income Tax Return (ITR) and it has filed i and it has filed its Bank statements and thus we note that the assessee ts Bank statements and thus we note that the assessee had duly discharged its onus to prove the identity of the share had duly discharged its onus to prove the identity of the share had duly discharged its onus to prove the identity of the share applicants by adducing PAN as well as income applicants by adducing PAN as well as income-tax returns. The tax returns. The financial statement shows that the share applicant had enough funds to financial statement shows that the share applicant had enough funds to financial statement shows that the share applicant had enough funds to invest in the assessee t in the assessee-company and the transaction has happened company and the transaction has happened through banking channel. Thus the assessee has discharged the onus to through banking channel. Thus the assessee has discharged the onus to through banking channel. Thus the assessee has discharged the onus to prove the identity, creditworthiness and genuineness of the prove the identity, creditworthiness and genuineness of the prove the identity, creditworthiness and genuineness of the transactions. Further, it is noted that the share applicants had transactions. Further, it is noted that the share applicants had transactions. Further, it is noted that the share applicants had furnished the source of investment made in the assessee rnished the source of investment made in the assessee- -company after getting the notice under section 133(6) of the Act. getting the notice under section 133(6) of the Act. (viii) We note from a perusal of the paper book pages (viii) We note from a perusal of the paper book pages-2,207 to 226 the 2,207 to 226 the details of share applicant details of share applicant M/s. SukhSagar Residency Pvt. Ltd. M/s. SukhSagar Residency Pvt. Ltd. It is a Private Limited Company which has a PAN AARCS1553N and its CIN Private Limited Company which has a PAN AARCS1553N and its CIN Private Limited Company which has a PAN AARCS1553N and its CIN number is U45400WB2011PTC170958and the net worth of this number is U45400WB2011PTC170958and the net worth of this number is U45400WB2011PTC170958and the net worth of this company as on 31.3.2012 Rs.56,18,93,960/ company as on 31.3.2012 Rs.56,18,93,960/-(P.B-2 pages 2 pages-220) and investment made in the assessee company is to the tune of investment made in the assessee company is to the tune of investment made in the assessee company is to the tune of Rs.2,31 Rs.2,31,00,000/- and this share applicant has made the transaction and this share applicant has made the transaction through banking channel on 31.3.2012 Rs. 2,31,00,000/ through banking channel on 31.3.2012 Rs. 2,31,00,000/ through banking channel on 31.3.2012 Rs. 2,31,00,000/- through NEFT. There is board resolution for investment in assessee’s company NEFT. There is board resolution for investment in assessee’s company NEFT. There is board resolution for investment in assessee’s company and Share Application Form, Bank statement, ITR acknowledgemen and Share Application Form, Bank statement, ITR acknowledgemen and Share Application Form, Bank statement, ITR acknowledgement, explanation of source of fund as well as financial statement available in explanation of source of fund as well as financial statement available in explanation of source of fund as well as financial statement available in the PB the PB-page 208-226 in the PB. This share applicant regularly filed 226 in the PB. This share applicant regularly filed Income Tax Return (ITR) and it has filed its Bank statement. This Income Tax Return (ITR) and it has filed its Bank statement. This Income Tax Return (ITR) and it has filed its Bank statement. This company has furnished the details of source o company has furnished the details of source of Funds and has duly filed f Funds and has duly filed financial statements and thus we note that the assessee had duly financial statements and thus we note that the assessee had duly financial statements and thus we note that the assessee had duly discharged its onus to prove the identity of the share applicants by discharged its onus to prove the identity of the share applicants by discharged its onus to prove the identity of the share applicants by adducing PAN as well as income adducing PAN as well as income-tax returns. The financial statement tax returns. The financial statement

11 ITA No. 195/Kol/2020 Assessment Year: 2012-13 M/s. Bhagwati Vintrade Private Limited M/s. Bhagwati Vintrade Private Limited shows that the share applic shows that the share applicant had enough funds to invest in the ant had enough funds to invest in the assessee assessee-company and the transaction has happened through banking company and the transaction has happened through banking channel. Thus the assessee has discharged the onus to prove the channel. Thus the assessee has discharged the onus to prove the channel. Thus the assessee has discharged the onus to prove the identity, creditworthiness and genuineness of the transactions. Further, identity, creditworthiness and genuineness of the transactions. Further, identity, creditworthiness and genuineness of the transactions. Further, it is noted tha it is noted that the share applicants had furnished the source of t the share applicants had furnished the source of investment made in the assessee investment made in the assessee-company after getting the notice company after getting the notice under section 133(6) of the Act. under section 133(6) of the Act.

(ix) We note from a perusal of the paper book (ix) We note from a perusal of the paper book-2, pages 227 to 261 the 2, pages 227 to 261 the details of share applicant details of share applicant M/s. Kamaldhan Developers Pvt. Ltd aldhan Developers Pvt. Ltd. It is a Private Limited Company which has a PAN AAECK6810D and its CIN Private Limited Company which has a PAN AAECK6810D and its CIN Private Limited Company which has a PAN AAECK6810D and its CIN number is U45400WB2011 PTC 170944 and the net worth of this number is U45400WB2011 PTC 170944 and the net worth of this number is U45400WB2011 PTC 170944 and the net worth of this company as on 31.3.2012 Rs.56,18,94,080/ company as on 31.3.2012 Rs.56,18,94,080/- and investment made in and investment made in the assessee company is to th the assessee company is to the tune of Rs.12,54,00,000/- and this share applicant has made the transaction through banking channel on applicant has made the transaction through banking channel on applicant has made the transaction through banking channel on 31.03.2012 Rs. 12,54,00,000/ 31.03.2012 Rs. 12,54,00,000/- through NEFT. There is board resolution through NEFT. There is board resolution for investment in assessee’s company and Share Application Form, Bank for investment in assessee’s company and Share Application Form, Bank for investment in assessee’s company and Share Application Form, Bank statement, statement, ITR acknowledgement, explanation of source of fund as well ITR acknowledgement, explanation of source of fund as well as financial statement available in the PB as financial statement available in the PB-page 228 to 261 in the PB. page 228 to 261 in the PB. This share applicant regularlyfiled Income Tax Return (ITR) and it has This share applicant regularlyfiled Income Tax Return (ITR) and it has This share applicant regularlyfiled Income Tax Return (ITR) and it has filed its Bank statement. This company has furnished th filed its Bank statement. This company has furnished th filed its Bank statement. This company has furnished the details of source of Funds and has duly filed financial statements. This share source of Funds and has duly filed financial statements. This share source of Funds and has duly filed financial statements. This share applicant regularly filed Income Tax Return (ITR) and it has filed its applicant regularly filed Income Tax Return (ITR) and it has filed its applicant regularly filed Income Tax Return (ITR) and it has filed its Bank statement. This company has furnished the details of source of Bank statement. This company has furnished the details of source of Bank statement. This company has furnished the details of source of Funds and has duly filed financial Funds and has duly filed financial statements. The financial statement statements. The financial statement shows that the share applicant had enough funds to invest in the shows that the share applicant had enough funds to invest in the shows that the share applicant had enough funds to invest in the assessee assessee-company and the transaction has happened through banking company and the transaction has happened through banking channel. Thus the assessee has discharged the onus to prove the channel. Thus the assessee has discharged the onus to prove the channel. Thus the assessee has discharged the onus to prove the identity, creditworthines identity, creditworthiness and genuineness of the transactions. Further, s and genuineness of the transactions. Further, it is noted that the share applicants had furnished the source of it is noted that the share applicants had furnished the source of it is noted that the share applicants had furnished the source of investment made in the assessee investment made in the assessee-company after getting the notice company after getting the notice under section 133(6) of the Act. under section 133(6) of the Act. (x) We note from a perusal of the paper book (x) We note from a perusal of the paper book-2, pages 262 to 283 the 2, pages 262 to 283 the details of share applicant details of share applicant M/s. Labhdhan Impext Pvt. Ltd. M/s. Labhdhan Impext Pvt. Ltd. It is a Private Limited Company which has a PAN AACCL2111J and its CIN Private Limited Company which has a PAN AACCL2111J and its CIN Private Limited Company which has a PAN AACCL2111J and its CIN number is U51909WB2011PTC171524 and the net worth of thi number is U51909WB2011PTC171524 and the net worth of thi number is U51909WB2011PTC171524 and the net worth of this company as on 31.3.2012 Rs.56,18,94,080/ company as on 31.3.2012 Rs.56,18,94,080/- (P.B-2, page 277) and 2, page 277) and investment made in the assessee company is to the tune of investment made in the assessee company is to the tune of investment made in the assessee company is to the tune of Rs.3,80,00,000/ Rs.3,80,00,000/- and this share applicant has made the transaction and this share applicant has made the transaction through banking channel on 31.03.2012 a sum of Rs.3,80,00,000/ through banking channel on 31.03.2012 a sum of Rs.3,80,00,000/ through banking channel on 31.03.2012 a sum of Rs.3,80,00,000/- through NEFT. There is board resolution for investment in assessee’s through NEFT. There is board resolution for investment in assessee’s through NEFT. There is board resolution for investment in assessee’s company and Share Application Form, Bank statement, ITR company and Share Application Form, Bank statement, ITR company and Share Application Form, Bank statement, ITR acknowledgement, explanation of source of fund as well as financial acknowledgement, explanation of source of fund as well as financial acknowledgement, explanation of source of fund as well as financial statement available in the PB statement available in the PB-page 163-283 in the PB. This s 283 in the PB. This share applicant regularly filed Income Tax Return (ITR) and it has filed its applicant regularly filed Income Tax Return (ITR) and it has filed its applicant regularly filed Income Tax Return (ITR) and it has filed its Bank statement. This company has furnished the details of source of Bank statement. This company has furnished the details of source of Bank statement. This company has furnished the details of source of Funds and has duly filed financial statements. The financial statement Funds and has duly filed financial statements. The financial statement Funds and has duly filed financial statements. The financial statement shows that the share applicant had enoug shows that the share applicant had enough funds to invest in the h funds to invest in the assessee assessee-company and the transaction has happened through banking company and the transaction has happened through banking channel. Thus the assessee has discharged the onus to prove the channel. Thus the assessee has discharged the onus to prove the channel. Thus the assessee has discharged the onus to prove the identity, creditworthiness and genuineness of the transactions. Further, identity, creditworthiness and genuineness of the transactions. Further, identity, creditworthiness and genuineness of the transactions. Further, it is noted that the share a it is noted that the share applicants had furnished the source of pplicants had furnished the source of investment made in the assessee investment made in the assessee-company after getting the notice company after getting the notice under section 133(6) of the Act. under section 133(6) of the Act.

12 ITA No. 195/Kol/2020 Assessment Year: 2012-13 M/s. Bhagwati Vintrade Private Limited M/s. Bhagwati Vintrade Private Limited (xi) We note from a perusal of the paper book (xi) We note from a perusal of the paper book-2 pages 284 to 303 the 2 pages 284 to 303 the details of share applicant details of share applicant M/s. Subhsree Impex Pvt. Ltd. It is a Private Limited Company which has a PAN AARCS1845D and its CIN number is Limited Company which has a PAN AARCS1845D and its CIN number is Limited Company which has a PAN AARCS1845D and its CIN number is U51909WB2011PTC171513 and the net worth of this company as on U51909WB2011PTC171513 and the net worth of this company as on U51909WB2011PTC171513 and the net worth of this company as on 31.3.2012 Rs.76,66,93,960/ 31.3.2012 Rs.76,66,93,960/- (P.B-2, page-297)and investment made in 297)and investment made in the assessee company is to the tune the assessee company is to the tune of Rs.2,76,00,000/- and this share applicant has made the transaction through banking channel on applicant has made the transaction through banking channel on applicant has made the transaction through banking channel on 31.03.2012 a sum of Rs.2,76,00,0000/ 31.03.2012 a sum of Rs.2,76,00,0000/-through NEFT. There is board through NEFT. There is board resolution for investment in assessee’s company and Share Application resolution for investment in assessee’s company and Share Application resolution for investment in assessee’s company and Share Application Form , Bank statement Form , Bank statement, ITR acknowledgement, explanation of source of , ITR acknowledgement, explanation of source of fund as well as financial statement available in the PB fund as well as financial statement available in the PB-page 285 page 285-303 in the PB. This share applicant regularly filed Income Tax Return (ITR) the PB. This share applicant regularly filed Income Tax Return (ITR) the PB. This share applicant regularly filed Income Tax Return (ITR) and it has filed its Bank statement. This company has furnished the and it has filed its Bank statement. This company has furnished the and it has filed its Bank statement. This company has furnished the details of source of Funds and has duly filed financial statements. The details of source of Funds and has duly filed financial statements. The details of source of Funds and has duly filed financial statements. The financial statement shows that the share applicant had enough funds to financial statement shows that the share applicant had enough funds to financial statement shows that the share applicant had enough funds to invest in the assessee invest in the assessee-company and the transaction has happened company and the transaction has happened through banking channel. Thus the assessee has d through banking channel. Thus the assessee has discharged the onus to ischarged the onus to prove the identity, creditworthiness and genuineness of the prove the identity, creditworthiness and genuineness of the prove the identity, creditworthiness and genuineness of the transactions. Further, it is noted that the share applicants had transactions. Further, it is noted that the share applicants had transactions. Further, it is noted that the share applicants had furnished the source of investment made in the assessee furnished the source of investment made in the assessee- -company after getting the notice under section 133(6) getting the notice under section 133(6) of the Act. (xii) We note from a perusal of the paper book (xii) We note from a perusal of the paper book-2, pages 304 to 326 the 2, pages 304 to 326 the details of share applicant details of share applicant M/s. Maharaja Merchants Pvt. Ltd. M/s. Maharaja Merchants Pvt. Ltd. It is a Private Limited Company which has a PAN AAECM224E and its CIN Private Limited Company which has a PAN AAECM224E and its CIN Private Limited Company which has a PAN AAECM224E and its CIN number is U51109WB2005PTC102343 and th number is U51109WB2005PTC102343 and the net worth of this e net worth of this company as on 31.3.2012 Rs.1,54,58,399/ company as on 31.3.2012 Rs.1,54,58,399/-(page 313 of P.B (page 313 of P.B-2)and investment made in the assessee company is to the tune of Rs.50 lakhs investment made in the assessee company is to the tune of Rs.50 lakhs investment made in the assessee company is to the tune of Rs.50 lakhs and this share applicant has made the transaction through banking and this share applicant has made the transaction through banking and this share applicant has made the transaction through banking channel on 28.02.2012 a sum of Rs.50 channel on 28.02.2012 a sum of Rs.50lakhs through Cheque. There is lakhs through Cheque. There is Share Application Form, Bank statement, ITR acknowledgement, Share Application Form, Bank statement, ITR acknowledgement, Share Application Form, Bank statement, ITR acknowledgement, financial statement available in the PB financial statement available in the PB-page 304 to 326 in the PB. This page 304 to 326 in the PB. This share applicant regularly filed Income Tax Return (ITR) and it has filed share applicant regularly filed Income Tax Return (ITR) and it has filed share applicant regularly filed Income Tax Return (ITR) and it has filed its Bank statement. its Bank statement. The financial statement shows that the share The financial statement shows that the share applicant had enough funds to invest in the assessee applicant had enough funds to invest in the assessee-company and the company and the transaction has happened through banking channel. Thus the assessee transaction has happened through banking channel. Thus the assessee transaction has happened through banking channel. Thus the assessee has discharged the onus to prove the identity, creditworthiness and has discharged the onus to prove the identity, creditworthiness and has discharged the onus to prove the identity, creditworthiness and genui genuineness of the transactions. Further, it is noted that the share neness of the transactions. Further, it is noted that the share applicants had furnished the source of investment made in the assessee applicants had furnished the source of investment made in the assessee applicants had furnished the source of investment made in the assessee- company after getting the notice under section 133(6) of the Act. company after getting the notice under section 133(6) of the Act. company after getting the notice under section 133(6) of the Act.

(xiii)We note from a perusal of the paper book (xiii)We note from a perusal of the paper book-2 pages 327 to 352 the s 327 to 352 the details of share applicant details of share applicant M/s. Sristi Sales Pvt. Ltd. It is a Private Limited It is a Private Limited Company which has a PAN AAICS8900L and its CIN number is Company which has a PAN AAICS8900L and its CIN number is Company which has a PAN AAICS8900L and its CIN number is U51109WB2005PTC 102121 and the net worth of this company as on U51109WB2005PTC 102121 and the net worth of this company as on U51109WB2005PTC 102121 and the net worth of this company as on 31.3.2012 Rs.1,12,25,612/ 31.3.2012 Rs.1,12,25,612/- and investment made in the assessee company ent made in the assessee company is to the tune of Rs.50 lakhs and this share applicant has made the is to the tune of Rs.50 lakhs and this share applicant has made the is to the tune of Rs.50 lakhs and this share applicant has made the transaction through banking channel on 28.02.2012 a sum of Rs. 50 lakhs transaction through banking channel on 28.02.2012 a sum of Rs. 50 lakhs transaction through banking channel on 28.02.2012 a sum of Rs. 50 lakhs through Cheque. There is Share Application, Bank statement, ITR through Cheque. There is Share Application, Bank statement, ITR through Cheque. There is Share Application, Bank statement, ITR acknowledgement, acknowledgement, financial statement available in the PB-2, page 328 to 2, page 328 to 352. This share applicant regularly filed Income Tax Return (ITR) and it 352. This share applicant regularly filed Income Tax Return (ITR) and it 352. This share applicant regularly filed Income Tax Return (ITR) and it has filed its Bank statement. The financial statement shows that the share has filed its Bank statement. The financial statement shows that the share has filed its Bank statement. The financial statement shows that the share applicant had enough funds to invest in the assessee applicant had enough funds to invest in the assessee-company and the company and the transaction has happened through banking channel. Thus the assessee has transaction has happened through banking channel. Thus the assessee has transaction has happened through banking channel. Thus the assessee has discharged the onus to prove the identity, creditworthiness and discharged the onus to prove the identity, creditworthiness and discharged the onus to prove the identity, creditworthiness and

13 ITA No. 195/Kol/2020 Assessment Year: 2012-13 M/s. Bhagwati Vintrade Private Limited M/s. Bhagwati Vintrade Private Limited genuineness of the transactions. Thus from the discussion above, it is noted genuineness of the transactions. Thus from the discussion above, it is noted genuineness of the transactions. Thus from the discussion above, it is noted except the last two invest except the last two investors the other eleven (11) share applicants out of ors the other eleven (11) share applicants out of thirteen (13) share thirteen (13) share-holders had furnished the source of investment made in holders had furnished the source of investment made in the assessee the assessee-company after getting the notice from second AO under company after getting the notice from second AO under section 133(6) of the Act. Thus we note that the AO on the basi section 133(6) of the Act. Thus we note that the AO on the basi section 133(6) of the Act. Thus we note that the AO on the basis of the aforesaid documents has taken a plausible view and did not draw any aforesaid documents has taken a plausible view and did not draw any aforesaid documents has taken a plausible view and did not draw any adverse inference against the assessee, and the view thus taken by the AO adverse inference against the assessee, and the view thus taken by the AO adverse inference against the assessee, and the view thus taken by the AO cannot be termed as unsustainable in law. cannot be termed as unsustainable in law. 54. So, from the aforesaid facts revealed during the second So, from the aforesaid facts revealed during the second round, we note that round, we note that AO has discharged his duty as an Investigator and enquired as per the direction of AO has discharged his duty as an Investigator and enquired as per the direction of AO has discharged his duty as an Investigator and enquired as per the direction of the First Ld. Pr. CIT dated 23.08.2016 u/s. 263 of the Act (First 263 order) and the First Ld. Pr. CIT dated 23.08.2016 u/s. 263 of the Act (First 263 order) and the First Ld. Pr. CIT dated 23.08.2016 u/s. 263 of the Act (First 263 order) and further we note that the Second Ld. Pr. CIT while issuing the Show Cau further we note that the Second Ld. Pr. CIT while issuing the Show Cau further we note that the Second Ld. Pr. CIT while issuing the Show Cause Notice while exercising his revisional jurisdiction for second time has not made even a while exercising his revisional jurisdiction for second time has not made even a while exercising his revisional jurisdiction for second time has not made even a single allegation about the non single allegation about the non-compliance/failure on the part of Second AO in compliance/failure on the part of Second AO in respect of the specific direction given by the First Ld. Pr. CIT dated 23.08.2016 wh respect of the specific direction given by the First Ld. Pr. CIT dated 23.08.2016 wh respect of the specific direction given by the First Ld. Pr. CIT dated 23.08.2016 while setting aside the original assessment order passed by the AO dated 26.03.2016. In setting aside the original assessment order passed by the AO dated 26.03.2016. In setting aside the original assessment order passed by the AO dated 26.03.2016. In other words, in the impugned order the second Ld. Pr. CIT has not found fault with other words, in the impugned order the second Ld. Pr. CIT has not found fault with other words, in the impugned order the second Ld. Pr. CIT has not found fault with the action of the second AO in giving effect to the specific directions given by him the action of the second AO in giving effect to the specific directions given by him the action of the second AO in giving effect to the specific directions given by him while passing the first revisional order on 23.08.2016. Thus, we note that when the hile passing the first revisional order on 23.08.2016. Thus, we note that when the hile passing the first revisional order on 23.08.2016. Thus, we note that when the second AO while framing the reassessment order pursuant to the specific direction second AO while framing the reassessment order pursuant to the specific direction second AO while framing the reassessment order pursuant to the specific direction of the First Ld. Pr. CIT’s order dated 23.08.2016 (first revisional order) has complied of the First Ld. Pr. CIT’s order dated 23.08.2016 (first revisional order) has complied of the First Ld. Pr. CIT’s order dated 23.08.2016 (first revisional order) has complied with the specific directions of the First Ld. Pr. CIT and based on the inquiry th the specific directions of the First Ld. Pr. CIT and based on the inquiry th the specific directions of the First Ld. Pr. CIT and based on the inquiry conducted and after perusal of the documents running more than 352 pages which conducted and after perusal of the documents running more than 352 pages which conducted and after perusal of the documents running more than 352 pages which reveals the identity, creditworthiness and genuineness of the share capital and reveals the identity, creditworthiness and genuineness of the share capital and reveals the identity, creditworthiness and genuineness of the share capital and premium collected by premium collected by the assessee from the share subscribers, the satisfaction of AO the assessee from the share subscribers, the satisfaction of AO as envisaged in sec. 68 of the Act is a plausible view and the fact that the share as envisaged in sec. 68 of the Act is a plausible view and the fact that the share as envisaged in sec. 68 of the Act is a plausible view and the fact that the share subscribers responded to sec. 133(6) notice and produced all documents along with subscribers responded to sec. 133(6) notice and produced all documents along with subscribers responded to sec. 133(6) notice and produced all documents along with the audited financial sta the audited financial statements and other documents referred supra, the assessee tements and other documents referred supra, the assessee had discharged the onus upon it about the identity creditworthiness and had discharged the onus upon it about the identity creditworthiness and had discharged the onus upon it about the identity creditworthiness and genuineness of the share capital and premium collected by the assessee from the genuineness of the share capital and premium collected by the assessee from the genuineness of the share capital and premium collected by the assessee from the respective share subscribers. Since the afores respective share subscribers. Since the aforesaid exercise was carried out by the aid exercise was carried out by the second AO in the reassessment proceedings and the documents referred to above second AO in the reassessment proceedings and the documents referred to above second AO in the reassessment proceedings and the documents referred to above are in the assessment folder, the Second Ld. Pr. CIT erred in holding the are in the assessment folder, the Second Ld. Pr. CIT erred in holding the are in the assessment folder, the Second Ld. Pr. CIT erred in holding the reassessment order of the AO in respect of share capital and premium reassessment order of the AO in respect of share capital and premium reassessment order of the AO in respect of share capital and premium collected by the assessee as erroneous as well as prejudicial to the interest of the revenue. In the the assessee as erroneous as well as prejudicial to the interest of the revenue. In the the assessee as erroneous as well as prejudicial to the interest of the revenue. In the light of the aforesaid discussions and on perusal of the documents, we are of the light of the aforesaid discussions and on perusal of the documents, we are of the light of the aforesaid discussions and on perusal of the documents, we are of the view that AO’s view to accept the identity, creditworthiness and genuin view that AO’s view to accept the identity, creditworthiness and genuin view that AO’s view to accept the identity, creditworthiness and genuineness of the share capital and premium collected from the share subscribers was a plausible share capital and premium collected from the share subscribers was a plausible share capital and premium collected from the share subscribers was a plausible view and at any rate can be termed as an unsustainable view on law or facts view and at any rate can be termed as an unsustainable view on law or facts view and at any rate can be termed as an unsustainable view on law or facts

14 ITA No. 195/Kol/2020 Assessment Year: 2012-13 M/s. Bhagwati Vintrade Private Limited M/s. Bhagwati Vintrade Private Limited satisfied and wanted to interfere invoking jurisdiction u/s. 263 of the Act, he has to satisfied and wanted to interfere invoking jurisdiction u/s. 263 of the Act, he has to satisfied and wanted to interfere invoking jurisdiction u/s. 263 of the Act, he has to show that the enquiry conducted by AO was flawed or the enquiry conducted by AO show that the enquiry conducted by AO was flawed or the enquiry conducted by AO show that the enquiry conducted by AO was flawed or the enquiry conducted by AO was on a wrong direction or on wron was on a wrong direction or on wrong assumption of fact/law or that the AO g assumption of fact/law or that the AO misdirected himself in factual investigation or applied the law erroneously in misdirected himself in factual investigation or applied the law erroneously in misdirected himself in factual investigation or applied the law erroneously in respect of the facts collected by him. For doing so, in the facts discussed supra, he respect of the facts collected by him. For doing so, in the facts discussed supra, he respect of the facts collected by him. For doing so, in the facts discussed supra, he second (Ld. Pr. CIT) should himself had conducted a second (Ld. Pr. CIT) should himself had conducted an enquiry or at least conducted n enquiry or at least conducted a preliminary enquiry and was able to bring some evidence/material on record to a preliminary enquiry and was able to bring some evidence/material on record to a preliminary enquiry and was able to bring some evidence/material on record to upset the AO’s satisfaction in respect of identity, creditworthiness or genuineness of upset the AO’s satisfaction in respect of identity, creditworthiness or genuineness of upset the AO’s satisfaction in respect of identity, creditworthiness or genuineness of the share subscribers and thus recorded a finding of fact the share subscribers and thus recorded a finding of fact that the decision of AO’s that the decision of AO’s enquiry was faulted or wrong and in that process tried to show that it has resulted enquiry was faulted or wrong and in that process tried to show that it has resulted enquiry was faulted or wrong and in that process tried to show that it has resulted in a view which is “unsustainable in law” which would have justified his action of in a view which is “unsustainable in law” which would have justified his action of in a view which is “unsustainable in law” which would have justified his action of passing the impugned order u/s. 263 of the Act, which unfort passing the impugned order u/s. 263 of the Act, which unfortunately is not the case. unately is not the case. Since the AO’s view on the facts collected and discussed is definitely a possible view, Since the AO’s view on the facts collected and discussed is definitely a possible view, Since the AO’s view on the facts collected and discussed is definitely a possible view, so in the factual background discussed in detail, we are of the considered opinion so in the factual background discussed in detail, we are of the considered opinion so in the factual background discussed in detail, we are of the considered opinion that Ld. second Pr. CIT ought not to have interfered with th that Ld. second Pr. CIT ought not to have interfered with the AO’s reassessment e AO’s reassessment order which in any case can be classified as ‘unsustainable in law’ since it is in line order which in any case can be classified as ‘unsustainable in law’ since it is in line order which in any case can be classified as ‘unsustainable in law’ since it is in line with plethora of judicial decisions of the subject. with plethora of judicial decisions of the subject. 56. To sum up, we find from the above said facts that the Second AO has To sum up, we find from the above said facts that the Second AO has To sum up, we find from the above said facts that the Second AO has conducted enquiry as d conducted enquiry as directed by the First Ld. Pr. CIT on the specific subject matter irected by the First Ld. Pr. CIT on the specific subject matter i.e. share capital and premium collected by the assessee i.e. share capital and premium collected by the assessee-company. Therefore, the company. Therefore, the finding of Second Pr. CIT that the Second AO has not conducted enquiry is incorrect finding of Second Pr. CIT that the Second AO has not conducted enquiry is incorrect finding of Second Pr. CIT that the Second AO has not conducted enquiry is incorrect and is flowing from suspici and is flowing from suspicion only. And as discussed, the allegation/fault pointed on only. And as discussed, the allegation/fault pointed out by the Second Ld. Pr. CIT that the Second AO failed to collect total facts also out by the Second Ld. Pr. CIT that the Second AO failed to collect total facts also out by the Second Ld. Pr. CIT that the Second AO failed to collect total facts also cannot be accepted for the simple reason that Ld. Pr. CIT has not spelt out in the cannot be accepted for the simple reason that Ld. Pr. CIT has not spelt out in the cannot be accepted for the simple reason that Ld. Pr. CIT has not spelt out in the impugned order what he meant by impugned order what he meant by total facts or in the alternative when the total facts or in the alternative when the assessee has discharged its onus, as required by the law in force in this AY 2012 assessee has discharged its onus, as required by the law in force in this AY 2012 assessee has discharged its onus, as required by the law in force in this AY 2012-13, then the Ld. Pr. CIT ought to have called for which ever additional then the Ld. Pr. CIT ought to have called for which ever additional then the Ld. Pr. CIT ought to have called for which ever additional documents/materials or issued summons or issued notices and documents/materials or issued summons or issued notices and collected those facts collected those facts which according to Second Ld. Pr. CIT, the AO omitted to collect and then which according to Second Ld. Pr. CIT, the AO omitted to collect and then which according to Second Ld. Pr. CIT, the AO omitted to collect and then demonstrated that those actions/documents which he collected in that process demonstrated that those actions/documents which he collected in that process demonstrated that those actions/documents which he collected in that process gave result to a different finding of fact which will turn upside down the claim gave result to a different finding of fact which will turn upside down the claim gave result to a different finding of fact which will turn upside down the claim of the assessee and thus able to show that the actions/omission of AO in conducting the assessee and thus able to show that the actions/omission of AO in conducting the assessee and thus able to show that the actions/omission of AO in conducting the investigation was erroneous, which unfortunately is not the case before us. And the investigation was erroneous, which unfortunately is not the case before us. And the investigation was erroneous, which unfortunately is not the case before us. And equally bad is the bald allegation/fault that second AO has not collected total facts equally bad is the bald allegation/fault that second AO has not collected total facts equally bad is the bald allegation/fault that second AO has not collected total facts cannot be accepted being vague and based on conjectures and surmises and so cannot be accepted being vague and based on conjectures and surmises and so cannot be accepted being vague and based on conjectures and surmises and so meritless. Since the assessee company has discharged its onus as discussed supra, meritless. Since the assessee company has discharged its onus as discussed supra, meritless. Since the assessee company has discharged its onus as discussed supra, and still if the Second Pr. CIT had to find the order of Second AO erroneous for lack and still if the Second Pr. CIT had to find the order of Second AO erroneous for lack and still if the Second Pr. CIT had to find the order of Second AO erroneous for lack of enquiry or for not collecting the entire facts, then the Second Pr. CIT ought to or for not collecting the entire facts, then the Second Pr. CIT ought to or for not collecting the entire facts, then the Second Pr. CIT ought to have called for the additional facts which he thinks that the Second AO has not have called for the additional facts which he thinks that the Second AO has not have called for the additional facts which he thinks that the Second AO has not collected from the assessee or the shareholders and then explained in his impugned collected from the assessee or the shareholders and then explained in his impugned collected from the assessee or the shareholders and then explained in his impugned order as to what eff order as to what effect those additional documents would have made on the second ect those additional documents would have made on the second assessment order/reassessment order or in other words the impact on the decision assessment order/reassessment order or in other words the impact on the decision assessment order/reassessment order or in other words the impact on the decision making process of framing the second assessment order due to the failure of second making process of framing the second assessment order due to the failure of second making process of framing the second assessment order due to the failure of second AO’s omission to collect the ad AO’s omission to collect the additional documents. However, we note that the ditional documents. However, we note that the Second Pr. CIT has not carried out any such exercise or even spelled out in his Second Pr. CIT has not carried out any such exercise or even spelled out in his Second Pr. CIT has not carried out any such exercise or even spelled out in his impugned order, which all documents the second AO failed to collect for considering impugned order, which all documents the second AO failed to collect for considering impugned order, which all documents the second AO failed to collect for considering the total facts; and even if we presume he has the total facts; and even if we presume he has conducted such an exercise, then he conducted such an exercise, then he has not been able to bring out any adverse factual finding to upset the view of has not been able to bring out any adverse factual finding to upset the view of has not been able to bring out any adverse factual finding to upset the view of Second AO. So we find no merit in the vague allegation of second Pr. CIT that the Second AO. So we find no merit in the vague allegation of second Pr. CIT that the Second AO. So we find no merit in the vague allegation of second Pr. CIT that the second AO has not collected the full facts necessary to d second AO has not collected the full facts necessary to decide the issue of share ecide the issue of share capital & premium.So we note that the Second AO, the assessing authority who is a capital & premium.So we note that the Second AO, the assessing authority who is a capital & premium.So we note that the Second AO, the assessing authority who is a quasi- judicial office has discharged his dual role as an investigator as well as an judicial office has discharged his dual role as an investigator as well as an judicial office has discharged his dual role as an investigator as well as an adjudicator. Looking from another angle of doctrine of merger ca adjudicator. Looking from another angle of doctrine of merger canvassed before us, nvassed before us, we note from the facts of this case that the we note from the facts of this case that the second Ld. Pr. CIT – 4 by passing the 4 by passing the second revisional order dated 14.03.2019 has substituted the First Pr. CIT’s order second revisional order dated 14.03.2019 has substituted the First Pr. CIT’s order second revisional order dated 14.03.2019 has substituted the First Pr. CIT’s order passed u/s. 263 of the Act dated 23.08.2016 with his own order which he passed u/s. 263 of the Act dated 23.08.2016 with his own order which he passed u/s. 263 of the Act dated 23.08.2016 with his own order which he cannot do

15 ITA No. 195/Kol/2020 Assessment Year: 2012-13 M/s. Bhagwati Vintrade Private Limited M/s. Bhagwati Vintrade Private Limited since the second assessment order/re since the second assessment order/re-assessment of the Second AO dated assessment of the Second AO dated 07.12.2016 was pursuant to the first revisional order of the First Ld. Pr. CIT and on 07.12.2016 was pursuant to the first revisional order of the First Ld. Pr. CIT and on 07.12.2016 was pursuant to the first revisional order of the First Ld. Pr. CIT and on the very same subject matter on which specific directions/instructions were given the very same subject matter on which specific directions/instructions were given the very same subject matter on which specific directions/instructions were given by the First Ld. Pr.CIT, which direction since having been complied by the AO, brings e First Ld. Pr.CIT, which direction since having been complied by the AO, brings e First Ld. Pr.CIT, which direction since having been complied by the AO, brings into operation the doctrine of merger the subject matter i.e. share capital & into operation the doctrine of merger the subject matter i.e. share capital & into operation the doctrine of merger the subject matter i.e. share capital & premium collected by assessee company. Resultantly the second Ld. Pr.CIT, again premium collected by assessee company. Resultantly the second Ld. Pr.CIT, again premium collected by assessee company. Resultantly the second Ld. Pr.CIT, again cannot rake-up th up the same subject matter without the second Ld. Pr.CIT in the second e same subject matter without the second Ld. Pr.CIT in the second revisional order spells out where the error happened to second AO as an revisional order spells out where the error happened to second AO as an revisional order spells out where the error happened to second AO as an investigator or adjudicator, which exercise the Second Ld. Pr.CIT has not done, so investigator or adjudicator, which exercise the Second Ld. Pr.CIT has not done, so investigator or adjudicator, which exercise the Second Ld. Pr.CIT has not done, so the second Ld. Pr. CIT cannot be the second Ld. Pr. CIT cannot be permitted to again ask the AO to start the permitted to again ask the AO to start the investigation in the way he thinks it proper on the very same subject on which investigation in the way he thinks it proper on the very same subject on which investigation in the way he thinks it proper on the very same subject on which merger has taken place by virtue of the order of First Ld. Pr. CIT. And if this practice merger has taken place by virtue of the order of First Ld. Pr. CIT. And if this practice merger has taken place by virtue of the order of First Ld. Pr. CIT. And if this practice is allowed, then there will be no end to the is allowed, then there will be no end to the assessment proceedings meaning no assessment proceedings meaning no finality to assessment proceedings and that is exactly why the Parliament in its finality to assessment proceedings and that is exactly why the Parliament in its finality to assessment proceedings and that is exactly why the Parliament in its wisdom has brought in safe wisdom has brought in safe-guards, restrictions & conditions precedent to be guards, restrictions & conditions precedent to be satisfied strictly before assumption of revisional jurisdiction satisfied strictly before assumption of revisional jurisdiction. Be that as it may be, as . Be that as it may be, as discussed above, we find that the Second Ld. Pr. CIT without satisfying the discussed above, we find that the Second Ld. Pr. CIT without satisfying the discussed above, we find that the Second Ld. Pr. CIT without satisfying the condition precedent u/s 263 of the Act has invoked the revisional jurisdiction condition precedent u/s 263 of the Act has invoked the revisional jurisdiction condition precedent u/s 263 of the Act has invoked the revisional jurisdiction (second time), so all his actions are ab initio void.” (second time), so all his actions are ab initio void.” 13. In the case on hand, the Assessing Officer has at page 5, considered the specific hand, the Assessing Officer has at page 5, considered the specific directions given by the ld. CIT(A) in his order u/s 263 of the Act dt. 23/08/2016 and based on the directions given by the ld. CIT(A) in his order u/s 263 of the Act dt. 23/08/2016 and based on the directions given by the ld. CIT(A) in his order u/s 263 of the Act dt. 23/08/2016 and based on the same had issued questionnaires to the assessee company which is in Annexure same had issued questionnaires to the assessee company which is in Annexure same had issued questionnaires to the assessee company which is in Annexure-A of the assessment order. Summons were issued u/s 131 of the Act to the directors of the share holding ssment order. Summons were issued u/s 131 of the Act to the directors of the share holding ssment order. Summons were issued u/s 131 of the Act to the directors of the share holding company M/s. Lakshmi Dealmark Private Limited. The actions taken in compliance with the M/s. Lakshmi Dealmark Private Limited. The actions taken in compliance with the M/s. Lakshmi Dealmark Private Limited. The actions taken in compliance with the directions given by the ld. Pr. CIT are given at page 5 to 7 of the assessmen directions given by the ld. Pr. CIT are given at page 5 to 7 of the assessment order. A perusal of t order. A perusal of the same demonstrates that the directions were carried out. This is not a case of non the same demonstrates that the directions were carried out. This is not a case of non the same demonstrates that the directions were carried out. This is not a case of non- applicability of mind or non applicability of mind or non-verification. The Assessing Officer has taken a possible view. When verification. The Assessing Officer has taken a possible view. When the Assessing Officer follows the direction of the the Assessing Officer follows the direction of the ld. Pr. CIT, in his order passed u/s 263 of the Act, ld. Pr. CIT, in his order passed u/s 263 of the Act, no revision can be done u/s 263 of the Act on the ground that the Assessing Officer has not no revision can be done u/s 263 of the Act on the ground that the Assessing Officer has not no revision can be done u/s 263 of the Act on the ground that the Assessing Officer has not travelled beyond these directions. travelled beyond these directions. 14. The Hon’ble Delhi High Court in the case of CIT vs. K.L. Ahuja (supra), The Hon’ble Delhi High Court in the case of CIT vs. K.L. Ahuja (supra), The Hon’ble Delhi High Court in the case of CIT vs. K.L. Ahuja (supra), has approved the following observations of the Tribunal: following observations of the Tribunal:- “When the Income “When the Income-tax Officer passes an order in his own discretion and that order is tax Officer passes an order in his own discretion and that order is found to be erroneous or prejudicial to the interests of the Revenue under found to be erroneous or prejudicial to the interests of the Revenue under found to be erroneous or prejudicial to the interests of the Revenue under Section 263 is the power to the Commissioner of Income is the power to the Commissioner of Income-tax to rectify it but when an Income tax to rectify it but when an Income-tax Officer passes an order not in his own discretion or wisdom but following the Officer passes an order not in his own discretion or wisdom but following the Officer passes an order not in his own discretion or wisdom but following the directions of the Commissioner of Income directions of the Commissioner of Income-tax who follows in turn the direction of the tax who follows in turn the direction of the Central Board of Direct Taxes, to whom both' of them are subordinate, the Board of Direct Taxes, to whom both' of them are subordinate, the Board of Direct Taxes, to whom both' of them are subordinate, the Commissioner of Income Commissioner of Income-tax who succeeds the Commissioner of Income tax who succeeds the Commissioner of Income-tax who had issued the impugned instructions in a circular letter to the Inspecting Assistant issued the impugned instructions in a circular letter to the Inspecting Assistant issued the impugned instructions in a circular letter to the Inspecting Assistant Commissioner cannot treat th Commissioner cannot treat the order of the Income-tax Officer as erroneous or tax Officer as erroneous or prejudicial to the interests of the Revenue because it would in fact amount to prejudicial to the interests of the Revenue because it would in fact amount to prejudicial to the interests of the Revenue because it would in fact amount to reviewing his predecessor's order which is not permissible under reviewing his predecessor's order which is not permissible under reviewing his predecessor's order which is not permissible under Section 263. We accordingly hold that the impugned order passed by the learned Commissioner of accordingly hold that the impugned order passed by the learned Commissioner of accordingly hold that the impugned order passed by the learned Commissioner of Income-tax was without jurisdiction. Under the circumstances, we cancel the said tax was without jurisdiction. Under the circumstances, we cancel the said tax was without jurisdiction. Under the circumstances, we cancel the said order.” 15. Applying the propositions of law laid down in the case Applying the propositions of law laid down in the case-law referred above to t law referred above to the facts of the case, we have to necessarily hold that the exercise of the revisionary powers by the ld. Pr. CIT the case, we have to necessarily hold that the exercise of the revisionary powers by the ld. Pr. CIT the case, we have to necessarily hold that the exercise of the revisionary powers by the ld. Pr. CIT u/s 263 of the Act vide order dt. 21/02/2020, is bad in law. Hence, we quash the same. u/s 263 of the Act vide order dt. 21/02/2020, is bad in law. Hence, we quash the same. u/s 263 of the Act vide order dt. 21/02/2020, is bad in law. Hence, we quash the same. In the result appeal of the assessee is allowed.” 16. In the result appeal of the assessee is allowed.”

16 ITA No. 195/Kol/2020 Assessment Year: 2012-13 M/s. Bhagwati Vintrade Private Limited M/s. Bhagwati Vintrade Private Limited 4. Consistent with the view taken therein, we hold that the Consistent with the view taken therein, we hold that the exercise of the exercise of the revisionary powers by the ld. Pr. CIT u/s 263 of the Act vide order dt. 31/01/2020, is revisionary powers by the ld. Pr. CIT u/s 263 of the Act vide order dt. 31/01/2020, is revisionary powers by the ld. Pr. CIT u/s 263 of the Act vide order dt. 31/01/2020, is bad in law. Hence, we quash the same. bad in law. Hence, we quash the same.

Kolka Kolkata, the 24th day of February, 2021.

Sd/- Sd/- J. Sudhakar Reddy] [Aby. T. Varkey] [J. Sudhakar Reddy Judicial Member Judicial Member Accountant Member Accountant Member Dated : 24.02.2021 {SC SPS} Copy of the order forwarded to: 1. M/s. Bhagwati Vintrade Private Limited M/s. Bhagwati Vintrade Private Limited C/o Rajesh Mohan & Associates C/o Rajesh Mohan & Associates Unit No. 18 5th Floor Bagati House 34, Ganesh Chandra Avenue Kolkata - 700 013 2. Income Tax Officer, Ward-10(4) Kolkata 10(4) Kolkata 3. CIT(A)- 4. CIT- , 5. CIT(DR), Kolkata Benches, Kolkata. Kolkata.