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Income Tax Appellate Tribunal, AHMEDABAD “D” BENCH
Before: Ms. Annapurna Gupta & Ms. Suchitra Kamble
IN THE INCOME TAX APPELLATE TRIBUNAL AHMEDABAD “D” BENCH (Conducted Through Virtual Court) Before: Ms. Annapurna Gupta, Accountant Member And Ms. Suchitra Kamble, Judicial Member ITA No. 3152 & 3384/Ahd/2014 Assessment Year 2011-12
M/s. Pramukh Cotpress The ITO, India Private Limited S.K. Ward 2, Survey No. 161, Nr. Vs Himatnagar Railway Station, At. & Po. Jadar, Ta. Idar, Dist. Sabarkantha M/s. Pramukh Cotpress PAN: AAFCP6788C Vs India Private Limited Survey No. 161, Nr. The ITO, Railway Station, At. & S.K. Ward 2, Himatnagar Po. Jadar, Ta. Idar, Dist. Sabarkantha PAN: AAFCP6788C (Appellant) (Respondent)
Appellant by : Shri Parimal Singh Parmar, A.R. Respondent by : Shri Mohd Usman, CIT/DR & Shri B.P. Srivastava, Sr.D.R. Date of hearing : 15-02-2022 Date of pronouncement : 06-05-2022 आदेश/ORDER PER : ANNAPURNA GUPTA, ACCOUNTANT MEMBER:-
The present cross appeal has been filed by the Assessee and the Revenue against the order passed by the Commissioner of Income Tax
I.T.A No. 3152 & 3384/Ahd/2014 A.Y. 2011-12 Page No 2 Ms. Pramukh Cotpress India Pvt. Ltd. vs.ITO (Appeals)-VIII, Ahmedabad, (in short referred to as CIT(A)), dated 19-09- 2014, u/s. 250(6) of the Income Tax Act, 1961(hereinafter referred to as the “Act”) pertaining to Assessment Year (A.Y) 2011-12.
We shall first be dealing with the assesses appeal in ITA No. 3152/Ahd/2014 (Assessee’s appeal) for A.Y. 2011-12
2.1 At the outset itself, it was stated that the solitary issue involved in the appeal related to disallowance of expenditure incurred in cash in violation of the provisions of Section 40A(3) of the Act. The effective ground raised by the assessee in this regard reads as under:
The learned CIT(A) has erred both in law and on the facts of the case in confirming disallowance of Rs.10,63,163/- made u/s 40A(30 of the Act in respect of light bill paid in cash to Uttar Gujarat Vij Company Ltd.
Ld. Counsel for the assessee pointed out from para 6A and 6B of the A.O.’s order that the disallowance was in respect of electricity expenses that the assessee had incurred in cash to UGVCL amounting to Rs. 9,96,163/- and further electrical expenses of Rs. 67,000/- incurred in cash. Ld. Counsel for the assessee stated that this issue stood squarely covered in favour of the assessee by the order of the ITAT in the case of Ramdev Profiles vs. ITO in ITA No. 2564/Ahd/2014 wherein he pointed out it was held that disallowance u/s. 40A(3) was not warranted in cases where cash payment had been made in respect of electricity expenses to Uttar Gujarat Vij Company Ltd. i.e. UGVCL. Copy of the order was placed before us.
I.T.A No. 3152 & 3384/Ahd/2014 A.Y. 2011-12 Page No 3 Ms. Pramukh Cotpress India Pvt. Ltd. vs.ITO
Ld. D.R. on the other hand relied on the order of the authorities below.
We have gone through the orders of the A.O. and the Ld. CIT(A) and have noted that the disallowance made on account of payment made in cash for electricity expenses incurred by the assesee paid to UGVCL was made by invoking the provisions of Section 40A(3) of the Act and was confirmed by the Ld. CIT(A) who noted that though the assesee had canvassed that the payment was made to Government Company and was thus excluded from the applicability of Section 40A(3) by virtue of Rule 6DD(b) of the Income Tax Rules 1962, yet the assessee had been unable to fulfill all the conditions prescribed therein, that of demonstrating that the payment was made to the Government and under the Rules framed by it such payment was required to be made in legal tender. The Ld. CIT(A) held that the assessee having been unable to demonstrate the requirement of making the payment in legal tender to the Government, it was not entitled to the benefit of exclusion from the rigors of Section 40A(3) of the Act by virtue of Rule 6DD(b) of the Rules. The relevant findings of the Ld. CIT(A) at para 4.3 of his order is as under: 4.3 Decision: I have carefully considered the facts of the case, the assessment -order and the written submission of the appellant. The AO has made disallowance under section 40A(3)of the Act as the appellant has made payment for certain expenses in cash. The appellant has submitted that payment of Rs.9961 63/- has been made to UGVCL for electric expenses. It has been submitted by the appellant that the Provisions of section 40 A(3) were not attracted in view of the Rule 6 DD of the income tax Rules as the payment has been made to a Government Company and an exception has been provided under the rule for the same.
I.T.A No. 3152 & 3384/Ahd/2014 A.Y. 2011-12 Page No 4 Ms. Pramukh Cotpress India Pvt. Ltd. vs.ITO
It has been submitted by the appellant that UGVC L is owned by Government of Gujarat and accordingly same should be treated as Government Company for the purpose of Rule 8D, Regarding other payment of Rs. 67,0007- appellant has accepted that it has committed a default and the disallowance made by the AO was acceptable to it. On a careful consideration of entire facts related to the issue it is noted that though the UGVCL is a Government Company and it does not mandatorily asks its customer/to make payment by cash. The Rule 6DD provides an exception in cases where the payment has been made to a Government organization arid the Rules prescribed in this behalf requires payment in cash compulsorily. The appellant has failed to establish such circumstance. It has not given any reasonable cause as to why the payment was made in cash in spite of the fact that appellant has a bank account from which all other expenses have been incurred. The Provisions of section 40A(3) are very clear and it provides specific exception to the Provision under Rule 6 DD. The case of the appellant is not covered under any of the exceptions provided in Rule 6 DD. The AO has therefore, rightly made the disallowance. In view of the above discussion the disallowance of Rs. 10,63,163/-made by the AO is upheld. The ground of appeal is accordingly, dismissed.
We have gone through the order relied upon by the ld. Counsel before us in the case of Ramdev Profiles (supra) and note that in the facts of the said case, it was noted that assessee had contended that the electricity expenses were paid in cash to UGVCL, since the assessee was situated in a small village not served by Bank. In the present case no such business exigiency has been demonstrated or canvassed by the assessee. Ld. Counsel has simply sought to draw support from the order of the ITAT in the case of Ramdev Profiles for the proposition that payment made to UGVCL is not covered u/s. 40A(3) of the Act which we find is not the case. The ITAT has not laid down any such proposition in the said case but had allowed the assessee’s claim noting that since it was situated in a place not served by banks, it was required to make the payment in cash and following
I.T.A No. 3152 & 3384/Ahd/2014 A.Y. 2011-12 Page No 5 Ms. Pramukh Cotpress India Pvt. Ltd. vs.ITO the decision of the Hon’ble Gujarat High Court in Anupam Tele Services vs. ITO (2014) reported in 366 ITR 122 (Guj.) allowed the assessee’s claim. We therefore find no merit in the contention of the Ld. Counsel for the assessee that the issue is squarely covered by the decision of the ITAT in the case of Ramdev Profiles (supra). Since no other argument or contention was made before us, we are left with no choice but to uphold the order of the Ld. CIT(A) confirming the disallowance of electricity expenses paid to the tune of Rs. 9,96,163/- u/s. 40A(3) of the Act who has given a categorical finding that the assessee does not fall in the exceptions to section 40(A)(3) of the Act ,provided in Rule 6DD(b) of the Income Tax Rules,1962,since the assessee has not established that the payment in cash was made as prescribed by the Rules of the Government organization, which finding the Ld.Counsel for the assessee was unable to displace before us.
6.1 The balance disallowance of Rs.67,000/- pertaining to electric expenses incurred in cash ,we have noted, was conceded by the assessee before the Ld.CIT(A) itself.Further no arguments in support of this claim was made before us . Therefore disallowance of Rs.67,000/- u/s 40A(3) of the Act is also upheld. 6.2 In effect the order of the Ld.CIT(A) upholding the disallowance of Rs10,63,163/- u/s 40A(3) of the Act is upheld.
Ground of appeal no. 1 raised by the assessee is dismissed.
I.T.A No. 3152 & 3384/Ahd/2014 A.Y. 2011-12 Page No 6 Ms. Pramukh Cotpress India Pvt. Ltd. vs.ITO 8. In effect appeal of the assessee is dismissed.
We shall now take up the Revenue’s appeal in ITA No. 3384/Ahd/2014
The solitary issue in the present appeal of the revenue it was pointed out related to deletion of addition made of unsecured loans and share capital u/s. 68 of the Act amounting to Rs. 4,68,43,836/- and Rs. 37,500/- respectively . The grounds raised by the Revenue in this regard read as under: 1. The Ld.CIT(A) has erred in law and on facts in deleting the addition of Rs. 4,68,43,836/- made on account of unexplained cash credit u/s. 68 of the I.T. Act for unsecured loans without taking into consideration the continued non-compliance by the assessee during the assessment proceedings and considering the fact that the Ld. CIT(A) has not given any opportunity to the AO to verify the rejoinder submitted by the assessee on remand report submitted by the AO. 2. The Ld.CIT(A) has erred in law and on facts in deleting the addition of Rs. 49,37,500/- made on account of unexplained cash credit u/s. 68 of the I.T. Act in respect of share capital without taking into consideration the continued non-compliance by the assessee during the assessment proceedings and considering the fact that the Ld. CIT(A) has not given any opportunity to the AO to verify the rejoinder submitted by the assessee on remand report submitted by the AO. 3. On the facts and in the circumstances of the case, the Ld. CIT(A) ought to have upheld the order of the Assessing Officer. 4. It is, therefore, prayed that the order of the Ld. CIT(A) may be set aside and that ok the Assessing Officer may be restored to the above extent.
Briefly stated, during assessment proceedings, since the assessee was unable to furnish sufficient details to satisfactorily prove the genuineness of unsecured loans and share capital money accepted during the year, the A.O. treated the same as income of the assessee amounting to Rs.4,68,43,836/- and Rs.49,36,500/- respectively. During appellate proceedings, the assessee furnished all relevant information required to
I.T.A No. 3152 & 3384/Ahd/2014 A.Y. 2011-12 Page No 7 Ms. Pramukh Cotpress India Pvt. Ltd. vs.ITO prove the genuineness of the deposits and share application money, which were forwarded to the AO. for his comments as per Rule 46A of the Income Tax Rules, 1962. The A.O. was also given authority to make any further investigation as he deemed fit. The A.O. submitted his report vide letter dated 08.08.2014. The report was given to the assessee and his comments obtained thereon. After considering all of the above, the Ld. CIT(A) admitted the additional evidences filed by the assessee and thereafter deleted the entire addition made noting that the assessee had sufficiently proved the genuineness of the transactions. The ld. CIT(A) dealt with each share application money and deposit received pointing out the documents proving the identity, the creditworthiness and the genuineness of the transaction as well as the source of investment by the share applicants/depositors in a tabular form. The findings of the ld. CIT(A) at pages 175 to 196 of the order is as under: The AO has objected to the admission of new evidence on the ground that sufficient time was given to the appellant at the time of assessment proceedings by the AO. I have carefully considered the remand report submitted by the assessing officer. It is noted that the information which is now being produced by the appellant is nothing but further supporting evidence related to the deposits and share application money accepted. The information appear to be contemporary in nature and none of the evidence now submitted appear to fabricated or false It is noted that the money has been received through banking channel and none of the deposit or share application money was received in cash. The names of all the persons who have given the money were already there on record of the AO. In view of these facts I am of the considered opinion that the additional evidence submitted by the appellant during the course of appellate proceedings should be admitted. The same is accordingly admitted and considered for disposal of appeal. On a careful examination of the details submitted by the appellant it is noted that the appellant has given all required information related to share capital and deposits received during the year. All share applicants and depositors have PAN, the amount has been given through banking channel. Confirmations of all persons have been filed. The appellant has also given source of investment along
I.T.A No. 3152 & 3384/Ahd/2014 A.Y. 2011-12 Page No 8 Ms. Pramukh Cotpress India Pvt. Ltd. vs.ITO with copies of bank statement from which the money has been given. In majority of cases copies of Income Tax Returns have also been submitted. The persons who have given money appear to be genuine and are not apparently in the business of providing accommodation entries. In most of the cases the amounts have been given by withdrawing the investment made in earlier years in some other business concern or company. In this way the appellant has even explained the source of the money which has been received during the year. For the sake of convenience and clarity the information given by the appellant, in respect of all the share applicants and depositors, for explaining the amounts received during the year is reproduced hereunder: - Sr. No. Particulars of Depositors/share Remarks Holders 1 Specific Ceramics Limited > The creditors M/s. Specific Ceramics Limited is closely held limited company and incorporates under Companies Act 1956 and Unsecured Loan Rs.22000000/- registered at 04-29291 of 1996-97 w.e.f. 22.04.1996. > The company having registered office at C-601 / 602, Part C, Indraprasth Complex Tower, Thaltej Road, Ahmedabad and factory at Plot No. 50, Po. Karoli, Ta. Kalol Dist. Gandhinagar > The creditor PAN No. is AACCS1413N and assessed in Income Tax at Circle 8, Ahmedabad. > Copy of Contra Confirmation and ledger a/c. with Income Tax return with audit report and their annexure for three years. > Copy of Bank statement in which transactions were made. > Copy of Board Resolution for advances. [2] Genuineness of the Transaction:- > Rs.7000000/- received on 18.10.2010 by account payee cheque no. 398057 drawn in Axis Bank A/c. No. 003010200063708 which was cleared on 18.10.2010 to Dena Bank current A/c. No. 033011023810 of the appellant. > Rs. 15000000/- received on!2.11.2010 by account payee cheque no. 398132 drawn in Axis Bank A/c. No. 003010200063708 which was cleared on 12.11.2010 to Himatnagar Nagrik Sahkari Bank Ltd current A/c. No. 772 of the appellant. Detail of Repayment :- > Rs.7000000/- made on 21.10.2010 by account payee cheque no. 958266 drawn in Dena Bank current A/c. 033011023810 and which was cleared on same day in Axis Bank A/c. No. 003010200063708 of the creditor. > Rs.5000000/- made on 28.02.2011 by cheque no. 428124 through RTGS by Dena Bank cash credit A/c. 033013023907 which was cleared on same day in Axis Bank A/c. No. 003010200063708 of the creditor. > Rs.5000000/- made on 05.03.2011 by cheque no. 966545 through RTGS by Dena Bank cash credit A/c. 033013023907 which was cleared on same day in Axis Bank A/c. No. 003010200063708 of the creditor. > Rs.5000000/- repaid on 29.03.2011 by cheque no. 428167
I.T.A No. 3152 & 3384/Ahd/2014 A.Y. 2011-12 Page No 9 Ms. Pramukh Cotpress India Pvt. Ltd. vs.ITO through RTGS by Dena Bank cash credit A/c. 033013023907 and cleared on same day in Axis Bank A/c. No. 003010200063708 maintained by the creditor. [3] Creditworthiness of Creditor:- > M/s. Specific Ceramics Limited incorporates under Companies Act 1956 with authorised share capital of 6250000 equity shares and issued and subscribed 5900000 equity shares of Rs. 10 each fully paid up. Specific Ceramics Limited engaged in manufacturing of ceramics tiles and 'year under consideration shown turnover of Rs.73.96cr and declared Net Profit Rs.4.84cr. Company has earned EPS at 8.20 for the year under consideration. Cash and Bank balance as on 31.03.2010 of Rs.3.98cr which shows the company has sufficient liquid recourses from the beginning. The loan and advances of the company stood at Rs.6.36cr as on 31.03.2011 and cash and bank balance of the company is Rs. 80.64 lacs. In case of creditor, the bank's exposure was Rs.25.95cr as on 31.03.2011 which was Rs.19.29 corers as on 31.03.2010. It means even during the year the bank has increased its exposure up to Rs.6.66cr. this shows the creditworthiness of creditor. 2 Gauarv Hargovindbhai Dave (1) Identitv of the creditor:- > Shri Gaurangbhai Hargovindbhai Dave, residing at G-l, Parshwa Unsecured Loan Rs. 20163794/- Padmavati Apartment, Opp. Madhuvan Party Plot, Nr. Jivraj Hospital, Jivraj Park, Ahmedabad -9. > The creditor PAN No. is AAOPD7976L and assessed in Income Tax at Circle 8, Ahmedabad. > Copy of Contra Confirmation with ledger A/c... > Copy of Bank A/c. in which transaction were made. > Copy of Contra Confirmation with Ledger A/c. with bank a/c. in respect of source of investment. [2] Genuineness of the Transaction:- > As so far concern of genuineness of transaction, appellant has received loan by account payee cheques only through banking channel. A credit debit entries shown in both bank accounts i.e. appellant and creditor are maintained. > Rs.10000000/- received on 04.03.2011 through RTGS by HDFC Bank A/c. No. 12291930001025 which was cleared on 04.03.2011 to Dena Bank cash credit A/c. No. 033013023907 of appellant. > Rs.5000000/- received on 07.03.2011 through RTGS by HDFC Bank A/c. No. 12291930001025 which was cleared* on 04.03.2011 to Dena Bank cash credit A/c. No. 033013023907 of the appellant. > Rs.5153794/- received on 15.03.2011 through RTGS by HDFC Bank A/c. No. 12291930001025 which was cleared on 15.03.2011 to Dena Bank cash credit A/c. No. 033013023907 of the appellant. [3] Creditworthiness and Source of Investment > Mr. Gaurangbhai Hargovindbhai Dave has invested
I.T.A No. 3152 & 3384/Ahd/2014 A.Y. 2011-12 Page No 10 Ms. Pramukh Cotpress India Pvt. Ltd. vs.ITO Rs.14500000/- for F.Y. 2009-10 in Crystal Ceramics Industries Private Limited (formally known as Crystal Glazes) and considering the interest and TDS on interest, balance as on 31.03.2010 of Rs.l51S3794/-. > Mr. Dave has also made deposit of Rs.10000000/-for F.Y. 2009-10 in Specific Ceramics Limited. > For the year under consideration, Mr. Dave has withdrawn deposit from Crystal Ceramics Industries Private Limited by account payee cheques on 03.03.2011 and 14.03.2011 drawn on Punjab National Bank of Rs.15153794/- and invested appellant company through bank on various dates as mention herein above. > Further Mr. Dave has withdrawn deposit from Specific Ceramics Limited by account payee cheques on 18.02.2011 and 05.03.2011 drawn on Axis Bank Ltd. A/c. No. 003010200063708 of Rs.10000000/- and invested appellant company through bank on various dates as mention herein above. 3 Ghanshyambhai K. Patel [1] Identity of the creditor:- Unsecured Loan Rs. 343500/- > Shri Ghanshyambhai Kachrabhai Patel, residing at 39, Rambag Society, Opp. Limbach Temple, Sahkari Jin Road, Mahavirnagr, Himatnagar 383001. > The creditor PAN No. is BIDPP8590C. > Copy of Contra Confirmation with Ledger A/c. > Copy of Ledger A/c. in respect of Source of Investment. > Copy of Bank Statement in which transaction were made. > Copy of Agriculture land proof with crop sales bills in respect of source of investment. [2] Genuineness of the Transaction:- > As so far concern of genuineness of transaction, appellant has received loan by account payee cheques only through banking channel. A credit / debit entries shown in both bank accounts i.e. appellant and creditor are maintained. > > Rs.343500/- received on 19.11.2010 by cheque no. 5031 1 1 drawn on Bank of Baroda A/c. No. 12420100009620 at Himatnagar branch which was cleared on 19.1 1.2010 to Dena Bank current A/c. No. 03301 1023810 of the appellant. Detail of Repayment :- > Rs.343500/- made on 05.02.201 1 by account payee cheque no. 428156 drawn in Dena Bank cash credit A/c. 033013023907 and which was cleared on same day in Bank of Baroda A/c. No. 12420100009620 of the creditor. [3] Creditworthiness and Source of Investment > Ghanshyambhai K. Patel has invested Rs. 343500/- in F.Y. 2007- 08 in Specific Ceramics Limited and for the year under consideration, Mr. Patel has withdrawn deposit from Specific Ceramics Limited by account payee cheque no. 398217 dtd.08.11.2010 drawn in Axis
I.T.A No. 3152 & 3384/Ahd/2014 A.Y. 2011-12 Page No 11 Ms. Pramukh Cotpress India Pvt. Ltd. vs.ITO Bank A/c. No. 003010200063708 and invested in appellant company by cheque no.203112 dtd.l9.11.2010 which was cleared in Dena Bank current A/c. No. 033011023810 of the appellant. > Further Ghanshyambhai K Patel having 8.16 acres agriculture land at Vijapur, Dist Mehsana and income from agriculture for the year under consideration of Rs.l 75000/- approx. > Considering the above fact and source of investment it is proved that the creditor has capacity to made advances in appellant company. 4 Bhupendrakumar Prahaladbhai [1] Identity of the creditor:- Patel > Shri Bhupendrakumar Praheldbhai Patel, residing at 41, Rambag Society, Opp. Limbach Temple, Sahkari Jin Road, Mahavirnagr, Unsecured Loan Rs. 230000/- Himatnagar 383 001. > The creditor PAN No. is AFJPP0774N. > Copy of Contra Confirmation with Ledger A/c. > Copy of Bank Statement > Copy of Ledger a/c. in respect of source of investment. [2] Genuineness of the Transaction:- > As so far concern of genuineness of transaction, appellant has received loan by account payee cheques only through banking channel. A credit / debit entries shown in both bank accounts i.e. appellant and creditor are maintained. > Rs.230000/- received on 19.11.2010 by cheque no. 7895 drawn on Bank of India, A/c. No. 240110100000733 at Himatnagar branch which was cleared on 19.1 1.2010 to Dena Bank current A/c. No. 03301 1 02381 0 of the appellant. [3] Creditworthiness and Source of Investment > Bhupendrakumar P. Patel has invested Rs.230000/- in F.Y. 2007- 08 in Specific Ceramics ' Limited and for the year under consideration, Mr. Patel has withdrawn deposit from Specific Ceramics Limited by account payee cheque no. 398215 dtd.08.11.2010 drawn in Axis Bank A/c. No. 003010200063708 and invested in appellant company by cheque no.7895 dtd.19.11.2010 which was cleared in Dena Bank current A/c. No. 033011023810 of the appellant. > Considering the above fact and source of investment it is proved that the creditor has capacity to made advances in appellant company. 5 Harekrishna K. Patel [1] Identity of the creditor:- > Shri Harekrishna Kachrabhai Patel, residing at 18, Rambag Unsecured Loan Rs. 100000/- Society, Opp. Limbach Temple, Sahkari Jin Road, Mahavirnagr, Himatnagar 383 001. > The creditor PAN No. is AFJPP0773M. > Copy of Contra Confirmation with Ledger A/c. > Copy of Ledger a/c. in respect of source of investment. > Copy of Bank Statement. > Copy of abstract of Agriculture land and crop sales Bills. [2] Genuineness of the Transaction:- > As so far concern of genuineness of transaction, appellant has
I.T.A No. 3152 & 3384/Ahd/2014 A.Y. 2011-12 Page No 12 Ms. Pramukh Cotpress India Pvt. Ltd. vs.ITO received loan by account payee cheques only through banking channel. A credit / debit entries shown in both bank accounts i.e. appellant and creditor are maintained. > Rs.100000/- received on 19.11.2010 by cheque no. 612063 drawn on Oriental Bank of Commerce A/c. No. 2849 at Himatnagar branch which was cleared on 19.11.2010 to Dena Bank current A/c. No. 033011023810 of the appellant Detail of Repayment:- > Rs.100000/- repaid on 23.03.2011 by account payee cheque no. 428157 drawn in Dena Bank cash credit A/c. 033013023907 which was cleared on same day in Oriental Bank of Commerce A/c. No.2849 of creditor. [3] Creditworthiness and Source of Investment > Harekrishna K. Patel has invested Rs.100000/- in F.Y. 2007-08 to Specific Ceramics Limited and for the year under consideration, Mr. Patel has withdrawn deposit from Specific Ceramics Limited by cfccount payee cheques no. 398219 dtd.08.11.2010 drawn in Axis Bank A/c. No. 003010200063708 and same was reinvestment in appellant company by ch. no.612063 dtd.19.11.2010 which was cleared on same date in Dena Bank current A/c. No. 033011023810 of the appellant. > Further Harekrishna K Patel having 7.25 acres agriculture land at Dalpur, Dist Sabarkantha and income from agriculture for the year under consideration of Rs.225000/- approx. 6 Vipulkumar P. Patel [1) Identity of the creditor:- Unsecured Loan Rs. 1,56,500/- > Shri Vipulkumar Prahiadbhai Patel, residing at 41, Rambag Society, Opp. Limbach Temple, Sahkari Jin Road, Mahavirnagr, Himatnagar 383 001. > The creditor PAN No. is AIBPP0615R. > Copy of Contra confirmation with Ledger A/c. > Copy of Bank Statement > Copy of ledger a/c. in respect of source of investment. > Copy of Income Tax Return with their enclosures. [2] Genuineness of the Transaction:- > Appellant has received Rs.156500/- received on 19.11.2010 by cheque no. 407422 drawn on Bank of India A/c. No. 240110100001427 at Himatnagar branch which was cleared on 19.11.2010 to Dena Bank current A/c. No. 033011023810 of the appellant Detail of repayments:- > Rs.156500/- repaid on 23.03.2011 by account payee cheque no. 428158 drawn in Dena Bank cash credit A/c. 033013023907 and cleared on - same day in Bank of India A/c. No. 240110100001427 of the creditor. [3] Creditworthiness and Source of Investment > Vipulkumar P. Patel has invested Rs.156500/- in F.Y. 2007-08 fo Specific Ceramics Limited and for the year under consideration, Mr. Patel has withdrawn deposit from Specific Ceramics Limited by account payee cheques no. 398225 dtd.08.11.2010 drawn in Axis Bank A/c. No. 003010200063708 and same was reinvested in
I.T.A No. 3152 & 3384/Ahd/2014 A.Y. 2011-12 Page No 13 Ms. Pramukh Cotpress India Pvt. Ltd. vs.ITO appellant company by ch. no.407422 dtd.19.11.2010 same was cleared on same date in Dena Bank current A/c. No. 033011023810 of the appellant. > Further Vipulkumar Patel has assessed in income tax at ITO Ward -3, Himatnagar and year under consideration declared total income of Rs. 155160/-
7 Hanifmohmed Sharemohmed [11 Identity of the creditor:- Memon > Shri Hanifmohmed Sharemohmed Memon, residing at 261, B/h. Unsecured Loan Rs. 625000/- Hasannagar Masjeed, Himatnagar 383 001. Share Capital Rs. 875000/- > The creditor PAN No. is AJPPM4638J. > Copy of Bank Statement > Copy of ledger a/c. in respect of source of Investment > Copy of Income Tax Return with their enclosures. [2] Genuineness of the Transaction:- > Appellant has received Rs.625000/- as unsecured loan and Rs.875000/- as share capital by account payee cheques No. 12 and 13 of Kotak Mahindra Bank Ltd. A/c. No. 08140140024403 at Himatnagar branch and cleared on 24.11.2010 to HDFC Bank Ltd. A/c. No. 04052320001542 and 30.12.2010 to Dena Bank cash credit A/c. 033011023907 of the appellant. [31 Creditworthiness and Source of Investment > Hanifmohmed Sharemohmed Memon is partner • of M/s. V.H. Enterprise and investment made from partnership firm. > Further Hanifmohmed Sharemohmed Memon has assessed in income tax at ITO Ward -3, Himatnagar and year under consideration declared total income of Rs. 186080/- 8. Vinubhai Bababhai Patel m Identity of the cr^ditor:- UnsecuredLoan Rs. 1,48,000/- > Shri Vinubhai Bababhai Patel, residing at 17, Green Park Society, Mahavirnagar, Himatnagar Himatnagar 383 001. > The creditor PAN No. is ACRPP4542K. > Copy of contra confirmation with ledger a/c. > Copy of Bank Statement > Copy of confirmation a/c. in respect of source of investment > Copy of Income Tax return with their enclosures for last two years. [2] Genuineness of the Transaction:- > Appellant has received Rs.462000/- for the year under consideration, detail is as under. > Rs.25000/- by Ch. No. 141203 dtd.16.10.2010 drawn on Bank of Baroda a/c. no. 12420100006753 which was cleared in Dena Bank current a/c. no. 033011023810 of the appellant. > Rs.323000/- by Ch. No.815444 dtd.26.10.2010 drawn on Sabarkantha Dist. Co.Op. Bank Ltd. a/c. no. 01097 which was cleared in Dena Bank current a/c. no. 033011023810 of the appellant. > Rs.110000/- by Ch. No.15021 dtd.17.11.2010 drawn on Axis Bank a/c. No. 283010100043546 which was cleared in Dena Bank current
I.T.A No. 3152 & 3384/Ahd/2014 A.Y. 2011-12 Page No 14 Ms. Pramukh Cotpress India Pvt. Ltd. vs.ITO a/c. no. 033011023810 of the appellant. [3] Creditworthiness and Source of Investment > Vinubhai B. Patel is employee of Gujarat Seed Certification Agency as Asst. Seed Certified officer and salary income for the year under consideration of Rs. 418704/-. > Mr. Patel has invested Rs.336000/- in F.Y. 2007-08 to Specific Ceramics Limited and for the yearunder consideration, he had withdrawn such deposit and made investment in appellant company. > Further Vipulkumar Patel has assessed in income tax at ITO Ward -3, Himatnagar and year under consideration declared total income of Rs.308395/-. > Considering *the above fact and source of investment it is proved that the creditor has capacity to made advances in appellant company. 9 Lilachandbhai Becharbhai Patel [1] Identity of the creditor:- Unsecured Loan Rs. 312500/- > Shri Lilachand Bahecharbhai Patel, residing at Sudrasan, Ta. Idar, Share Capital Rs. 437500/- Dist. Sabarkantha. > The creditor PAN No. is APYPP0017M. > Copy of Contra confirmation with ledger a/c. > Copy of Bank Statement > Copy of Income Tax Return with their enclosures for last two years > Copy of abstract of agriculture land along with copy of crop sales bills [2] Genuineness of the Transaction:- > Appellant has received Rs.750000/- for the year under consideration, detail is as under. > Rs.150000/- by Ch. No. 126164 dtd.22.09.2010 drawn on Central Bank of India a/c. no. 1 2640951 55 and which was cleared in Dena Bank current a/c. no. 03301 1 02381 0 of the appellant. > Rs.500000/- by Ch. No.126163 dtd.22.09.2010 drawn on Central Bank of India a/c. no. 1 2640951 55 and which was cleared in Dena Bank current a/c. no. 03301 1023810 of the appellant. > Rs.150000/- by Ch. No. 126 165 dtd. 13. 10.2010 drawn on Central Bank of India a/c. No. 1 2640951 55 and which was cleared in Dena Bank current a/c. no. 03301 1 02381 0 of the appellant. [31 Creditworthiness and Source of Investment > Lilachand Bechardas Patel is employee of Dev Bio International PAN No. AAGFDP8836R. Himatnagar and income from Salary for the year under consideration of Rs.144000/-. >Shri L.B. Patel has also income from other sources of Rs.l 387897- for the year under consideration. >Mr. Patel has also agriculturist and declared net income for the year under consideration of Rs.398200/-. >Further Lilachand Bechardas Patel assessed in income tax at ITO Ward -3, Himatnagar and year under consideration declared total income of
I.T.A No. 3152 & 3384/Ahd/2014 A.Y. 2011-12 Page No 15 Ms. Pramukh Cotpress India Pvt. Ltd. vs.ITO Rs.279164/- and agriculture income of Rs.398200/- for rate purpose. Source of Investment Opening Bank Balance as on 01.04.2010 Rs. 462127.00 Salary for the year Rs. 144000.00 Income from Other Sources for the year Rs. 138789.00 Income from Agriculture Total Investment in appellant company 10 Nareshbhai Lilachand Patel [1] Identity of the creditor: - Unsecured Loan Rs. 230000/- > Shri Nareshbhai Lilachand residing at Sudrasan, Ta. Idar, Dist. Sabarkantha. > The creditor PAN No. is APYPP0018E and Election card. > Copy of Contra Confirmation with ledger A/c. > Copy of Bank statement. > Copy of Income Tax Return with their enclosures. > Copy abstract of agriculture land and crops sales bills. [2] Genuineness of the Transaction:- > Rs.230000/- for the year under consideration by account payee cheque No. 146930 drawn on Axis Bank Ltd and credited Dena Bank current a/c. no. 033011023810 of the appellant. [31 Creditworthiness and Source of Investment > Nareshbhai Lilachand Patel is partner of M/s. Dev Bio International, PAN No. AAGFD8836R Himatnagar and having income fronn Business and Profession and Income from other sources. > Mr. Patel has also agriculturist and declared net income for the year under consideration of Rs.305000/-. >'Further Nareshbhai Lilachand Patel assessed in income tax at ITO Ward -2, Himatnagar and year under consideration declared total income of Rs.264664/- and agriculture income of Rs.305000/-for rate purpose. > Nareshbhai L Patel has received unsecured loan from Vanitaben N. Patel of Rs.230000/- and made investment in appellant company, copy of bank statement attach herewith for your reference. > Considering the above fact and source of investment it is proved that the creditor has capacity to made advances in appellant company. Source of Investment Withdrawal from partnership Firm M/s. Dev Bio international Loan received from Mrs. Vinitaben N. Patel Rs. 230000.00 Income from Agriculture Investment in appellant company Rs. 230000.00 11 Smt. Jytokaben M. Shah [1] Identity of the creditor:-
I.T.A No. 3152 & 3384/Ahd/2014 A.Y. 2011-12 Page No 16 Ms. Pramukh Cotpress India Pvt. Ltd. vs.ITO Unsecured Loan Rs. 125000/- > Smt. Jyotikaben M. Shah, residing at Khed Tasiya Share Capital Rs. 175000/- Road, Gokulnagar, Himatnagar, Himatnagar 383 001. > The creditor PAN No. is BHAPS6448C and Election Card. > Copy Contra confirmation with ledger a/c and bank statement. > Copy of Confirmation in respect of source ofinvestment with Bank Statement. [2] Genuineness of the Transaction:- > Appellant has received Rs.300000/- for the year under consideration, detail is as under. > Rs.200000/- by Ch. No. 125812 dtd. 14.10.2010drawn on Central Bank of India a/c. no. 1264007509 and credited Dena Bank current a/c.no. 033011023810 maintained by the appellant. > Rs.100000/- by Ch. No.125811 dtd.14.10.2010 drawn on Central Bank of India a/c. no. 1264007509 and credited Dena Bank current a/c. no. 033011023810 maintained by the appellant. [3] Creditworthiness and Source of Investment > Creditor Smt. Jyotikaben M. Shah has received ' Rs.150000/- by cheque no. 733042 drawn on HDFC Bank dtd. 12.10.2010 from Mrs. Pinka D. Shah residing at B-204, Subh Building, 60ft Road Bhayandar(W.) Mumbai. Copy of confirmation letter with bank statement attach herewith for your verification. * > Further Rs.150000/-, Mrs. Shah has received by cheque no. 733042 drawn on HDFC Bank dtd.12.10.2010 from M/s. V.H. Enterprise, 17/18 GIDC, Motipura, Nr. Star City Cinema, Himatnagar. Copy of confirmation letter with bank statement attach herewith for your verification. > Mrs. Shah has invested such amount in appellant company by ch. no.125812 and 125811 dtd.14.10.2010 same was cleared on same date in Dena Bank current A/c. No. 033011023810 maintain by the appellant. Source of Investment Loan received from Mrs. Pinka D. Shah Rs.150000.00 Withdrawal from V.H. Enterprise Total Investment in appellant company Rs. 300000.00 12 Mandaben Virendrabhai Shah [1]Identity of the creditor:- Unsecured Loasn Rs. 125000/- > Smt. Mandaben V. Shah, residing at Khed Tasiya Share Capital Rs. 175000/- Road, Gokulnagar, Himatnagar, Himatnagar 383 001. > The creditor PAN No. is BHAPS6452A. > Copy of Contra Confirmation with ledger A/c. > Copy of Bank Statement > Copy of Ledger A/c. with Bank Statement in respect of source of investment. [2] Genuineness of the Transaction:- > Appellant has received Rs.300000/- for the year under consideration, detail is as under. > Rs.200000/- by Ch. No. 125802 dtd.l4.10.2010
I.T.A No. 3152 & 3384/Ahd/2014 A.Y. 2011-12 Page No 17 Ms. Pramukh Cotpress India Pvt. Ltd. vs.ITO drawn on Central Bank of India a/c. no. 1264031258 and credited Dena Bank current a/c. no. 033011023810 maintained by the appellant. > Rs.100000/- by Ch. No.125801 dtd. 14.10.2010 . drawn on Central Bank of India a/c. no. 1264031258 and credited Dena Bank current a/c. no. 033011023810 maintained by the appellant. [3] Creditworthiness and Source of Investment > Creditor Smt. Mandaben V. Shah has received Rs.150000/- by cheque no. 238923 drawn on HDFC Bank dfd.l 2.10.2010 from Mrs. Prafulaben R. Shah residing at 207, Chankya Appartment, B/h. Dwarkadhish Market Nr. Taxshila Appartment, Bus Stand Road, Junagadh -362001. > Further Rs.150000/-, Mrs. Shah has received by cheque no. 238923 drawn on HDFC Bank dtd.12.10.2010 from M/s. V.H. Enterprise, 17/18 GIDC, Motipura, Nr. Star City Cinema, Himatnagar. > Mrs. Shah has invested such amount in appellant company by ch. no.125802 and 125801 dtd.14.10.2010 same was cleared on same date in Dena Bank current A/c. No. 033011023810 maintain by the appellant. Source of Investment Loan received from Mrs. Prafula R. Shah Rs. 150000.00 Withdrawal from V.H. Enterprise Total Investment in appellant company Rs. 300000.00 13 Shah Fatelal Babulal [11 Identity of the creditor: - Unsecured Loan Rs. 250000 > Shah Fatelal Babulal, residing at & po. Ranasan, Share Capital Rs. 350000/- Ta. Talod, Dist. Sabarkantha > The creditor PAN No. is ADAPS7161F. > Copy of contra confirmation with ledger a/c. > Copy of Bank Statement > Copy of Income Tax Return with their enclosures. [2] Genuineness of the Transaction:- > Appellant has received Rs.600000/- for the year under consideration, detail is as under. > Rs.200000/- by Ch. No. 706114 dtd.18.10.2010 drawn on Sabarkantha Dist. Co.Op Bank Ltd. a/c. no. 23951 and credited Dena Bank no. 033011023810 maintained by the > Rs.200000/- by Ch. No.784451 dtd. 31.10.2010 drawn on Sabarkantha Dist. Co.Op. Bank Ltd. a/c. no. 23951 and credited Dena Bank current a/c. no. 033011023810 maintained by the appellant. > Rs.100000/- by Ch. No.70116 dtd.04.11.2010 drawn on Sabarkantha Dist. Co.Op. Bank Ltd. a/c. no. 23951 and credited Dena Bank current
I.T.A No. 3152 & 3384/Ahd/2014 A.Y. 2011-12 Page No 18 Ms. Pramukh Cotpress India Pvt. Ltd. vs.ITO a/c. no. 033011023810 maintained by the appellant. R > Rs.100000/- by Ch. No.777481 dtd.15.11.2010 drawn on Dena Bank a/c. no. 072910031580 and credited Dena Bank current a/c. no. 033011023810 maintained by the appellant. [3] Creditworthiness and Source of Investment > Mr. Shah has received unsecured loan from Sanjay S. Shah of Rs.100000/- and Rs.120000/-from Taraben Shah and made investment in appellant company by Ch. No. 706114 and 706116 drawn on Sabarkantha Dist. Co. Op. Bank Ltd. Ranasan Branch. Source of Investment Loan received from Taraben Shah Rs. 120000.00 Loan received from Sanjay S, ShahRs. 100000.00 14 Maheshkumar Shantilal Patel [1] Identity of the creditor:- Unsecured Loan Rs. 250000/- > Mahendrakumar B. Patel, residing at 138/Gaytri Park Society, Share Capital Rs. 350000/- Mahavirnagar, Himatnagar 383 001. > The creditor PAN No. is AFBPP0287N. > Copy of contra confirmation with ledger a/c. > Copy of Bank Statement > Copy of Income Tax Return with their enclosures in respect of proof of source of investment. > Copy of bank statement with abstract of Agriculture Land and Income Tax Return of source of source in respect of source of investment [21 Genuineness of the Transaction:- Appellant has received Rs.600000/- for the year under consideration, detail is as under. > Rs.400000/- by Ch. No. 404161 dtd.22.09.2010 drawn on Bank Himatnagar Nagrik Sahkari Bank a/c. no. 32385 and credited Dena Bank current a/c. no. 033011023810 maintained by the appellant. [3] Creditworthiness and Source of Investment > Mahendrakumar Shantilal Patel is an employee of The Forward High school At. & Po. Vijapur, Dist. Mehsana and salary income for the year under consideration^ Rs.224064/-. > Mr. Patel has received Rs.200000/- from his father Shr. Shantibhai Meghjibhai Patel, who is also an employee of Dist. Helth Officer, Sabarkantha Dist. Panchyat. Shri S.M. Patel has withdrawn GPF of Rs.l 25000/- for the year under consideration. > Further Mahendrakumar Patel has assessed in income tax at ITO Ward -4, Mehsana and year under consideration declared total income of Rs.110625/-. > Further father of the creditor, Shri S.M. Patel assessed in Income Tax at ITO ward-3, Himatnagar and income for the year of Rs.426924/ 15 Patel Hitendrakumar Jethabhai [1] Identity of the creditor:- Unsecured Loan Rs. 1240000/- > Shri Hitendrabhai Jethabhai Patel, residing at &. Share Capital Rs. 700000/- po. Aroda, Ta. Idar. > The creditor PAN No. is ABNPP5792Q and assessed in Income Tax at ITO Ward 7(4),
I.T.A No. 3152 & 3384/Ahd/2014 A.Y. 2011-12 Page No 19 Ms. Pramukh Cotpress India Pvt. Ltd. vs.ITO Ahmedabad. > Copy of Contra confirmation with ledger a/c. > Copy of Bank Statement > Copy of Income Tax return with their enclosures > Copy of confirmation in respect of source of investment > Copy of abstract of agriculture land with crop sales bills. [2] Genuineness of the Transaction:- > Appellant has received Rs.600000/- by Ch.No.0544742 drawn on HDFC Bank A/c. No. 00061000127030 and cleared on 01.10.2010 to Dena Bank cash credit A/c. No. 033013023907 maintained by the appellant. > Rs.600000/- received on 15.10.2010 Ch. No. 0544740 drawn on HDFC Bank A/c. No. 00061000127030 and cleared on 15.10.2010 to Dena Bank cash credit A/c. No. 033013023907 maintained by the appellant. > Rs.740000/- received on 18.10.2010 by Ch.No. 0544743 drawn on HDFC Bank A/c. No. 00061000127030 and cleared on 18.10.2010 to Dena Bank cash credit A/c. No. 033013023907 maintained by the appellant. [31 Creditworthiness and Source of Investment > Hitendrakumar Jethabhai Patel has received unsecured loan from Ramchandra K. Patel of Rs.1340000/- on 29.09.2010 and 15.10.2010 by ch. No. 321372 and 321373 drawn on Himatnagar Nagrik Sahkari Bank Ltd. and invested in appellant company. > Mr. Ramchandra K. Patel has partner of M/s. Sun Industries and withdrawn capital for the year under consideration of Rs.1340000/- and given loan to Hitendrabhai J. Patel. > Further Mr. Patel has withdrawn deposit of Rs.598585/- from Sun Industries and invested in appellant company. 16 Kiritkumar K. Patel [1] Identity of the creditor:- Unsecured Loan Rs. 519542/- > Appellant has received unsecured loan from Share Capital Rs. 350000/- Kirtikumar K. Patel, residing at & po. Aroda, Ta. Idar. > Copy of election card attach herewith in respect of Identity of the creditor. > Copy of contra confirmation with ledger a/c. > Copy of Bank Statement in respect of source of investment [21 Genuineness of the Transaction:- > Appellant has received Rs.520000/- by Ch.No.5187905 drawn on Dena Bank DKCC A/c. No. 033313001491 and cleared on 16.10.2010 to Dena Bank cash credit A/c. No. 033013023907 maintained by the appellant. > Rs.50000/- received on 29.10.2010 by Cheque drawn on Dena Bank DKCC 0333130014941 and cleared on 29.10.2010 to Dena Bank cash credit A/c. No. 033013023907 maintained by the appellant. [3] Creditworthiness and Source of Investment
I.T.A No. 3152 & 3384/Ahd/2014 A.Y. 2011-12 Page No 20 Ms. Pramukh Cotpress India Pvt. Ltd. vs.ITO > Kirtikumar K. Patel has received DKCC loan from Dena Bank Jadar Branch, however a/c. maintained in name of Parvatiben Kodarbhai Patel, mother of kirtikumar K Patel and invested in appellant company. 17 Mennaben J. Patel [1] identity of the creditors Unsecured Loan Rs. 25000/- > Smt. Meenaben J. Patel, residing at 50, Saivilla Bun glows Nr. Jain Acharya School, Mahakali Mandir, Himatnagar. > The creditor PAN No. is AOGPP1665N and assessed in Income Tax at ITO Ward -3, Himatnagar. > Copy of contra confirmation with ledger a/c. > Copy of Bank Statement in respect of source of Investment > Copy of abstract of agriculture land [2] Genuineness of the Transaction:- > Appellant has received Rs.200000/- by Ch.No.342243 drawn on HDFC Bank A/c. No. 04051000031491 and cleared on 21.09.2010 to Dena Bank cash credit A/c. No. 033013023907 maintained by the appellant. [3] Creditworthiness and Source of Investment > Meenaben J. Patel has received Rs.150000/- from his husband Shri Jagdishbhai B. Patel by Ch. No. 65343 and remaining amount of Rs.50000/- invested out of his personal savings. 18 Madhuben Prakashchandra [1] Identity of the creditor:- Tated > Smt. Madhuben Prakashchandra Tated residing at 20, Share Capital Loan Rs. 300000/- Shardakunj Society, Nr. Vaishali Cinema, Motipura, Himatnagar > The creditor PAN No. is ADFPT7563D and assessed in Income Tax at ITO Ward -3, Himatnagar > Copy of Income Tax return with their enclosures. > Copy of ledger a/c. in respect of source of investment. [2] Genuineness of the Transaction:- > Appellant has received Rs.300000/- by account payee cheque drawn on Axis bank on 21.09.2010 and Rs.500000/- on 29.10.2010 and cleared on same day in to Dena Bank cash credit A/c. No. 033013023907 maintained by the appellant. [3] Creditworthiness and Source of Investment > Madhuben P Tated has made investment of Rs.800000/- out of his withdrawal from M/s. Jaymala Finance. 19. Nipam J. Patel > [1J Identity of the creditor:- Share Capital Rs. 700000/- > Shri Nipam J. Patel residing at Aroda, Po. Idar, Dist. Sabarkantha. > The creditor PAN No. is AQTPP0892L and assessed in Income Tax at ITO Ward -2, Himatnagar. > Copy of Income Tax return with their enclosures. > Copy of Bank statement in respect of source of investment. [2] Genuineness of the Transaction:-
I.T.A No. 3152 & 3384/Ahd/2014 A.Y. 2011-12 Page No 21 Ms. Pramukh Cotpress India Pvt. Ltd. vs.ITO > Appellant has received Rs.700000/- by account payee cheque drawn on Himatnagar Nagrik Sahkari Bank 01/10/2010 and cleared on same day in to Dena Bank cash credit A/c. No. 033013023907 maintained by the appellant. [31 Creditworthiness and Source of Investment > Shri Nipam J. Patel has made investment of Rs.700000/- out of his withdrawal from M/s. Sun Corporation. It is clear from the above details that the appellant has sufficiently discharged its onus of proving the identity, genuineness and the capacity of the person from whom share application money and deposits have been accepted during the year. The AO in the remand report has also not pointed out any substantial discrepancy in the details submitted by the appellant in the appellate proceedings. The AO has also sought to place reliance on certain judgments of different High Courts and ITAT. I have, carefully perused the same. However, it is noted that the facts of the present case are different as the appellant has clearly explained the source of the share application money and deposits. The judgments would therefore, be not applicable in the case of the appellant. The same are accordingly, respectfully distinguished. In view of the above discussion, the addition made by the AO in respect of the share application money and unsecured loan is directed to-be deleted.
The contention of the Ld.D.R. before us was that the additional evidences had been wrongly admitted by the ld. CIT(A) in gross violation of Rule 46A of the Income Tax Rules,1962, particularly when the assessee had been given sufficient opportunity during assessment proceedings to adduce the same. He further stated that the ld. CIT(A) had erred in deleting the addition without seeking the comments of the A.O. on the rejoinder of the assessee to the A.O’s remand report.
The ld. Counsel for the assessee on the other hand drew our attention to the findings of the Ld. CIT(A) while admitting the additional evidences noting that the information was nothing but supporting evidences relating to the deposits/share application money and were contemporary in
I.T.A No. 3152 & 3384/Ahd/2014 A.Y. 2011-12 Page No 22 Ms. Pramukh Cotpress India Pvt. Ltd. vs.ITO nature. He further drew our attention to the remand report of the A.O., reproduced at page 5 of the CIT(A) order, categorically stating that the evidences were “nothing new to be called as additional evidences “. He therefore stated that the additional evidences had been rightly admitted by the ld. CIT(A). As for not seeking the comments of the A.O. on the rejoinder of the assessee to the remand report of the A.O., he stated that there was no provision in law for seeking any report on the comments of the assessee and the provision only related to seeking comments of the A.O. on evidences filed by the assessee.
We have heard both the parties and we have also gone through the orders of the ld. CIT(A). Undoubtedly, the addition made u/s. 68 of share application money received and deposits was deleted by the ld. CIT(A), after considering all the evidences filed by the assessee proving the identity, genuineness the creditworthiness of the depositors as also their source of making investments in the assessee company. The ld. CIT(A) we have noted has exhaustively pointed out in the case each depositor and share applicant, the documents proving each of the above ingredients. The ld. D.R. was unable to point out any infirmity in the same. Therefore as far as the genuineness of the share application money and unsecured loans is concerned, there is no doubt that it has been sufficiently proved by evidences filed by the assessee before the ld. CIT(A).
The only grievance of the revenue is that the evidence ought not to have been admitted. Firstly, the ld. CIT(A) we have noted admitted these
I.T.A No. 3152 & 3384/Ahd/2014 A.Y. 2011-12 Page No 23 Ms. Pramukh Cotpress India Pvt. Ltd. vs.ITO evidences noting that nothing new had been filed by the assessee and they were all contemporary evidences. Our attention was also drawn to this finding of the A.O. himself vis-à-vis the additional evidences in his remand report. Therefore, when the documents were all contemporary as per the AO himself, where is the question of objecting to their admission in appellate proceedings. The department before us seems to be blowing hot and cold on the issue admitting to the fact that the additional evidences were not new but at the same time, objecting to their admission also. Even before us, the ld. D.R. was unable to point out which particular additional evidence was admitted by the ld. CIT(A) in violation of Rule 46A of the Rules. Therefore the grievance of the Revenue vis-à-vis the admission of additional evidences, we find is without any substance and is therefore dismissed.
As per the objection of the Revenue regarding the Ld CIT(A) not having sought the A.O. comments on the rejoinder of the assessee to the remand report filed by the A.O, we find that except for stating so, the Revenue has been unable to point out to us, what exactly it wanted to state to the ld. CIT(A) in its rejoinder in support of the disallowance made u/s. 68 of the Act, which it was not so allowed to make. Even otherwise the Rules require comments to be sought from the A.O. on the additional evidences filed and it is the prerogative and satisfaction of the Appellate Authority if he wants any further rejoinder from the A.O. on the comments of the assessee for bringing completion to his appellate proceedings. Therefore
I.T.A No. 3152 & 3384/Ahd/2014 A.Y. 2011-12 Page No 24 Ms. Pramukh Cotpress India Pvt. Ltd. vs.ITO this contention of the Revenue also deserves no consideration and is dismissed.
In view of the above, the grounds raised by the Revenue are dismissed.
In effect appeal filed by the Revenue is dismissed.
In effect both the appeals filed by the Assessee and the Revenue are dismissed.
Order pronounced in the open court on 06 -05-2022
Sd/- Sd/- (SUCHITRA KAMBLE) (ANNAPURNA GUPTA) JUDICIAL MEMBER True Copy ACCOUNTANT MEMBER Ahmedabad : Dated 06/05/2022 आदेश क� ��त�ल�प अ�े�षत / Copy of Order Forwarded to:- 1. Assessee 2. Revenue 3. Concerned CIT 4. CIT (A) 5. DR, ITAT, Ahmedabad 6. Guard file. By order/आदेश से, उप/सहायक पंजीकार आयकर अपील�य अ�धकरण, अहमदाबाद