AALOK DEEP ENTERTAINMENTS PRIVATE LIMITED,BHOPAL vs. INCOME TAX OFFICER-1(1), BHOPAL

आयकर अपीलीय अधिकरण, इंदौर न्यायपीठ, इंदौर
IN THE INCOME TAX APPELLATE TRIBUNAL
INDORE BENCH, INDORE
BEFORE SHRI B.M. BIYANI, ACCOUNTANT MEMBER
AND SHRI PARESH M. JOSHI, JUDICIAL MEMBER
Assessment Year:2011-12
Aalok Deep Entertainments
Pvt. Ltd.,
G-2/119A, Gulmohur Colony,
Trilanga Road,
Bhopal
(Assessee/Appellant)
Vs.
ITO-1(1)
Bhopal
(Revenue/Respondent)
PAN:AAFCA8883P
Assessee by Shri Gagan Tiwari, AR
Revenue by Shri Ashish Porwal, Sr. DR
Date of Hearing
09.10.2025
Date of Pronouncement
10.10.2025
आदेश / ORDER
Per B.M. Biyani, A.M.:
Feeling aggrieved by order of first-appeal dated 22.09.2023 passed by learned Commissioner of Income-Tax (Appeals)-NFAC, Delhi [“CIT(A)”] which in turn arises out of assessment-order dated 27.03.2014 passed by learned ITO-1(1), Bhopal [“AO”] u/s 143(3) of Income-tax Act, 1961 [“the Act”] for Assessment-Year [“AY”] 2011-12, the assessee has filed this appeal on following grounds:
"1. That on the facts and in the circumstances of the case and in law the findings and the decision of the Ld. CIT(A) in sustaining the addition of Rs. 1,22,61,800/- u/s 68 are unlawful and unjustified and therefore the findings be quashed and it be held that the addition is unlawful and therefore be deleted.
2. That on the facts and in the circumstances of the case and in law it be held that the assessee had discharged its burden u/s 68 of the I.T. Act and therefore the addition of Rs. 1,22,61,800 and hence the addition of Rs. 1,22,61,800 be deleted.
3. That on the facts and in the circumstances of the case and in law it be held that sum of Rs. 1,21,61,800 do not represent in any manner the unexplained credit/ income of the assessee and therefore the addition of Rs. 1,22,61,800 be kindly deleted.
4. That on the facts and in the circumstances of the case and in law the levy of interest u/s 234A and 234B is unlawful and without juri iction and therefore be cancelled."
2. The background facts leading to present appeal are such that the assessee-company filed its return of AY 2011-12 declaring a total income of Rs. Nil. The case of assessee was selected for scrutiny and statutory notices u/s 143(2)/142(1) were issued. During proceedings, the AO observed that the assessee-company received share application money of Rs. 1,22,61,800/- from Shri R.K. Sharma. In order to verifying genuineness of transactions, the AO made queries from assessee and also recorded statements of Shri R.K. Sharma u/s 131, the AO has re-produced statements in Para 4 of assessment-order. Shri R.K. Sharma stated to have taken loans from M/s Avinash Chalana & Co. for making investment in share capital of assessee. However, on verification of bank statement of Shri R.K. Sharma, the AO observed that he received loans from M/s Gulmohar Traders and not from M/s Avinash Chalana & Co. The AO, therefore, being unsatisfied with explanation, concluded that the assessee-company had failed to establish genuineness of receipt of share application money. Ultimately, the AO made an addition of Rs. 1,22,61,800/- as unexplained cash credit u/s 68 and completed assessment. Aggrieved, the assessee carried matter in first-appeal but did not get any success. Now, the assessee has come in next appeal before us.
3. Ld. AR for assessee at first submitted that the AO is correct in observing that Shri R.K. Sharma took loans from M/s Gulmohar Traders, there is no mistake in observation of AO. So far as Shri R.K. Sharma's statement to have received loans from M/s Avinash Chalana & Co. is concerned, Ld. AR submitted that Shri R.K. Sharma took loans from multiple persons for making investment in multiple shares and there was a memory mistake as to the exact source for making investment in assessee-company. But the fact remains that Shri R.K. Sharma took loans through banking channel from M/s Gulmohar Traders and utilised the same for making investment in assessee. He submitted that there is nothing hidden, everything is clear-cut from bank statements of Shri R.K. Sharma and other documentary evidences.
4. Ld. AR next submitted that Shri R.K. Sharma expired on 28.08.2019 (death certificate is filed) and owing to that reason the assessee was not able to collect and submit evidences/documents of Shri R.K. Sharma to CIT(A) during first-appeal which has led the CIT(A) to uphold the addition made by AO. However, the assessee has now collected all requisite evidences and filed the same by way of an Application under Rule 29 of Income-tax Appellate Tribunal Rules, 1963. The Application filed by assessee/Ld. AR is scanned and re-produced below:
B
Aalok Deep Enrtainmnts Pvt. Ltd.
ITA No. 436/Ind/2023 - AY 2011-12
BEFORE THE INCOME TAX APPELLATE TRIBUNAL, INDORE
BENCH, INDORE
Appellant/Assessee : ALOKDEEP Entertainment Private Limited
V.
Respondent
Income Tax officer - 1 (1), Bhopal
APPLICATION UNDER RULE 29 OF APPELLATE TRIBUNAL
RULE, 1963 FOR PRODUCTION OF ADDITIONAL EVIDENCE
BEFORE THE TRIBUNAL
The Applicant humbly begs to submit as under:-
1. The aforesaid Appeal filed by the Appellant/ Applicant is fixed for hearing on 17/08/2025 before this Hon'ble Tribunal.
2. That the present Appeal, i.e., Appeal No. 436/IND/2023, has been filed before this Hon'ble Tribunal against the order dated 22/09/2023 passed by the Learned National Faceless Appeal Centre (NFAC), Delhi. By the said order, the Ld. NFAC has upheld the original Assessment Order dated
27/03/2024 passed under Section 143(3) of the Income-tax Act, 1961, and confirmed the addition of Rs 1,22,61,800/-.
3. That on 02/05/2025 the Appellant has filed paper book before this Hon'ble
Tribunal and following documents were submitted :--
S. No 01
02
Particulars of Documents
Copy of Response filed on 18/12/2013 during
Assessment proceedings before Ld. Assessing office
Copy of Second response filed on 06/01/2014 during
Assessment Proceedings before Ld. Assessing office
Page No.
1
02-09
Aalok Deep Enrtainmnts Pvt. Ltd.
ITA No. 436/Ind/2023 - AY 2011-12
03
Copy of Second response filed on 10/01/2014 during
Assessment Proceedings before Ld. Assessing office
10-13
04
Copy of Written Submission filed before First Appellate authority during First Appeal proceedings
14-18
05
Copy of Balance Sheet of Appellant company for A.Y
2011-12
19-24
06
Copy of ledger account of Rama Kant Sharma in the books of Account of Aalokdeep Entertainment Private limited
25
07
Copy of bank account of Gulmohar Traders
26-27
08
Copy of Share Application Form of Rama kant Sharma along with Form 16
28-29
09
Copy of Income Tax return of Rama Kant Sharma
30-34
10
Copy of Income Tax statement (Bank of India) of Ramakant Sharma for period 07/02/2008 to 09/08/2013
35-37
11
Copy of bank statement (HDFC) of Rama kant Sharma for period 07/02/2008 to 09/08/2013
38-40
12
Copy of bank statement (state bank of India) of Rama kant Sharma for period 07/02/2008 to 09/08/2013
41-43
13
Copy of Acknowledgment of Income Tax returns of M/s Gulmohar Traders for the period 2011-12
44
14
Copy of balance Sheet of Gulmohar Traders
45-71
15
Copy of ledger Account of Gangadeen Patel in the books of Gulmohar Traders
72-75
16
Copy of Ledger account of Mohar singh in the books of Gulmohar Traders
76-78
4. It is respectfully submitted that the documents listed at Serial Nos. 1 to 12
in the Paper Book filed on 02/05/2025 do not constitute additional evidence. These documents were duly submitted before the Learned
Assessing Officer during the assessment proceedings and also formed part of the record before the First Appellate Authority during appellate proceedings. Accordingly, the said documents are already on record and are being filed before the Hon'ble Tribunal solely for ease of reference and proper appreciation of the factual matrix of the case.
AALOK DEEP ENTERTAINMENTS PVT. LTD.
DIRECTOR
5. That following documents mentioned at Serial 13 to 16 in compilation of paper Book are additional documents :-- i.
Copy of Acknowledgment of Income Tax returns of M/s Gulmohar
Traders for the period 2011-12 (Mention At Serial No. 13 of paper
Book) ii.
Copy of balance Sheet of Gulmohar Traders (Mention at Serial No.
14 of paper Book) iii.
Copy of ledger Account of Gangadeen Patel in the books of Gulmohar Traders (Mention at Serial No. 15 of paper Book) iv. Copy of Ledger account of Mohar singh in the books of Gulmohar
Traders (Mention at Serial No. 16 of paper Book)
6. That in support of the above additional documents, the Assessee is filing the present application under Rule 29 of the Income Tax (Appellate
Tribunal) Rules, 1963. 7. In the present case, the Original Assessment Order was passed on 27.03.2014 by the Income Tax Officer-1(1), Bhopal, adding Rs.
1,22,61,800/- to the Appellant company's income. Aggrieved, the Appellant filed an appeal on 24.04.2014 before the Commissioner of Income Tax
(Appeals), Bhopal. The appeal was subsequently transferred to the National Faceless Appeal Centre (NFAC) and was finally decided by the NFAC on 22.09.2023, after a delay of more than nine years.
8. It is respectfully submitted that the documents mentioned at Serial Nos. 13
to 16, now being placed on record before this Hon'ble Tribunal, are third- party documents which were not in the possession or control of the Appellant during the course of the assessment proceedings or during the appellate proceedings before the National Faceless Appeal Centre
(NFAC), New Delhi. It is further submitted that during the pendency of the appeal, the investor, Shri Rama Kant Sharma, expired on 18.09.2019,
AALOK DEEP ENTERTAINMENTS PVT. LTD.
Page 7 of 12
Aalok Deep Enrtainmnts Pvt. Ltd.
ITA No. 436/Ind/2023 - AY 2011-12
due to which the Appellant company could not obtain these documents.
Copy of Death Certificate is marked as Annexure (A/1). That, the Appellant has no direct connection with Shri Gangadeen Patel and Shri Mohar Singh, who had advanced loans to the investor, Shri Rama Kant Sharma, and therefore was unable to procure these documents.
9. These documents pertain to third parties, namely Shri Gangadeen Patel and Shri Mohar Singh, and became available only after the filing of the present Appeals. The said additional documents were handed over to the arguing counsel through the Chartered Accountant of the said third parties.
The documents establish that Shri Rama Kant Sharma had obtained a loan from the partners of M/s Gulmohar Traders, namely Shri Gangadeen Patel and Shri Mohar Singh, and that the payments were made by M/s Gulmohar
Traders on behalf of their partners. Upon the Assessee's request, the Chartered Accountant of the said third parties has now produced these documents after procuring them from the records of M/s Gulmohar
Traders, Bhopal. It is respectfully submitted that the Assessee had no direct relationship or financial dealings either with M/s Gulmohar Traders,
Bhopal, or with its partners, and that these documents are being placed on record solely to clarify the true source of funds standing in the name of Shri
Rama Kant Sharma as share Application Money.
10. It is submitted that these documents are highly relevant and material for the proper adjudication of the present appeal, as they clearly substantiate the source of funds invested by the investor Shri Rama Kant Sharma in the Assessee Company and go to the root of the matter under consideration.
11. In these circumstances, the Appellant respectfully prays that the documents referred to in paragraph 5 above (filed through the Paper Book dated 02.05.2025, Serial Nos. 13 to 16) may kindly be taken on record as additional evidence. Their non-submission at the earlier stages was solely due to the fact that they pertain to a third party and were not in the possession or control of the Appellant at the relevant time, and that the Investor expired in 2019 during the pendency of the first appeal, which prevented the Appellant from obtaining them. Allowing their admission would be in the larger interest of justice and ensure a fair adjudication of the matter.
AALOK DEEP ENTERTAINMENTS PVT. LTD.
Aalok Deep Enrtainmnts Pvt. Ltd.
ITA No. 436/Ind/2023 - AY 2011-12
AALOK DEEP ENTERTAINMENTS PVT. LTD.,
Indore
16/09/2025
DIRECTOR
M/s ALOKDEEP Entertainment Private Limited, Bhopal
(2) That I have originals
(3) That I have not filed any similar Application before any other
Court/Tribunal.
AALOK DEEP ENTERTAINMENTS PVT. LTD.
रामजीपाल
DEPONEN DIRECTOR
BEFORE THE INCOME TAX APPELLATE TRIBUNAL, INDORE BENCH,
INDORE
Appellant/Assessee :
ALOKDEEP Entertainment Private Limited-
V.
Respondent
Income Tax officer - 1 (1), Bhopal
AFFIDAVIT
I, Ram Ji Pal S/o Jay Ram Pal, Age about 26 years, R/o A/26, Sehatganj
Kharbai, Kharwai, Raisen Madhya Pradesh - 464551 do hereby solemnly affirm and state as follows:
(1) That I am the Authorised Signatory of Appellant Company and hence competent to swear this affidavit on oath.
(2) That I have read and understood the contents of the Application being drafted and filed on my instructions and I say and submit that the facts stated therein are true and correct to the best of my knowledge and belief and derived from the records of the case and the submissions made therein are on advice which I believe to be true. The annexures being filed are true copies of their respective originals.
(3) That I have not filed any similar Application before any other
Court/Tribunal.
AALOK DEEP ENTERTAINMENTS PVT. LTD.
रामजीपाल
DEPONEN DIRECTOR
VERIFICATION
I, Ram Ji Pal S/o Jay Ram Pal, the deponent, do hereby verify that the contents of this affidavit are true and correct to the best of my knowledge and the information derived from the official records and no part of it is false and nothing material has been concealed therefrom.
VERIFIED TODAY THE 18 th DAY OF September, 2025
DENTIFIED BY ME
NAME Lokesh Dange
ADDRESS.
GNATURE..
Jokesh..
AALOK DEEP ENTERTAINMENTS PVT. LTD.
WORN BEFORE ME TH
WITHEN NAMED
692025
GHULAM NIZAMUDDIN
ANWAR SIDDIQUI
RYADVOCATE, BHOPAL (M.P.)
रामजीपाल
DEPONENT DIRECTOR
Aalok Deep Enrtainmnts Pvt. Ltd.
ITA No. 436/Ind/2023 - AY 2011-12
5. Ld. AR submitted that the requisite evidences/documents are also filed at Pages 44 to 78 of Paper-Book and the assessee is further ready and willing to make a proper representation before CIT(A) if an opportunity is given and prays that the present matter should be remanded to the file of CIT(A) for a proper adjudication of the grounds/issues raised by assessee in first-appeal.
6. Ld. DR for revenue agrees with the prayer of Ld. AR but makes a request to direct the assessee to represent his case before CIT(A) and do not seek unnecessary adjournments.
7. In view of above submissions of parties; having regard to the principle of natural justice and also bearing in mind that no prejudice would be caused to revenue if the present matter is restored at the level of CIT(A), we remand this matter back to the file of CIT(A) for adjudication afresh after examining of evidences filed by assessee and further submissions as may be made by assessee. Needless to mention that the CIT(A) shall give necessary opportunity of hearing to assessee and pass an appropriate order uninfluenced by his earlier order. The assessee is also directed to remain vigilant and ensure participation in the hearings as may be fixed by CIT(A) and do not seek unnecessary adjournments failing which the CIT(A) shall be at liberty to pass appropriate order in accordance with law. Ordered accordingly.
8. Resultantly, this appeal is allowed for statistical purpose.
Order pronounced in open court on 10/10/2025 (PARESH M. JOSHI)
JUDICIAL MEMBER
Indore
दिनांक/Dated : 10/10/2025
Patel/Sr. PS
Copies to: (1)
The appellant
(2)
The respondent
(3)
CIT
(4)
CIT(A)
(5)
Departmental Representative
(6)
Guard File (B.M. BIYANI)
ACCOUNTANT MEMBER
By order
Sr. Private Secretary
Income Tax Appellate Tribunal
Indore Bench, Indore