ITO WD 11(1)(4), MUMBAI vs. UZURI JEWELS P.LTD, MUMBAI

O R D E R PER C.N. PRASAD (JM) This appeal is filed by the Revenue against the order of the Learned Commissioner of Income Tax (Appeals)-18, Mumbai [hereinafter in short “Ld.CIT(A)”] in Appeal No. CIT(A)-18/IT-403/ITO-11(1)(4)/15-16 dated 28.06.2017 for the Assessment Year 2010-11.

1. "On the facts and in the circumstances of the case and in law the learned CIT(A) erred in appreciating the fact that the A.O. has passed order

(A.Y: 2010-11) M/s. Uzuri Jewels Pvt. Ltd after making independent enquiries by sending notices u/s 136(6) to the bogus shareholders at addresses given by assessee, which are served but no reply is received. Neither these parties attended / replied in response to notice u/s 133(6) nor the assessee has produced these parties even after given multiple opportunities. Therefore, it cannot be said that the AO has merely relied upon third party statement." 2. "On the facts and in the circumstances of the case and in law, the Ld.CIT(A) erred on relying judicial decisions which has not attained finality (M/s. Reliance Corporation) or decisions which have different facts from the present case. 3. "On the facts and in the circumstances of the case and in law, the learned CIT(A) erred in deleting the addition of Rs.68,87,000/- u/s.68 of the Income-tax Act, 1961. The order of the Ld. CIT(A) is perverse and department is relying on the decision of Hon'ble Delhi High Court in the case of M/s. Nova Promoters & Finance (P) Ltd. dated 15.02.2012, in which the Hon'ble Delhi High Court discussed the case of M/s. Lovely Exports and after discussion it did not accepted the decision of the Hon'ble Supreme Court after differentiating the fact of the case and held that unexplained share application money received can be taxed u/s 68 of the Income-tax Act, 1961." 4 "On the facts and in the circumstances of the case and in law, the Ld.CIT(A) erred in appreciating the fact that identity of the shareholders cannot merely be established by furnishing PAN, copies of return of income alongwith all schedules, bank statement, request letter for application of shares etc. or assessment particulars did not establish the identity of the person, which only shows that the company has an identity and the fact remains that these were only paper companies and reliance is placed on the decision of ITAT, Indore in the case of Aggarwal Transport Corporation Pvt. Ltd. v/s. Addl. CIT Range 5, Indore in ITA No. 151/Ind./2009 dated 31.10.2011." 5 "On the facts and in the circumstances of the case and in law, the learned CIT(A) erred in appreciating the fact that by merely submitting that money was received through banking channels did not reflect genuine business activity and the companies merely routed money which was given back through bank account. The movement of the money through bank account is not sufficient to establish creditworthiness or even genuineness of the transactions."

(A.Y: 2010-11) M/s. Uzuri Jewels Pvt. Ltd 4. Departmental Representative also agreed with the above submission of the Authorized Representative of the assessee.

Order Pronounced in the Open Court on the 19th September, 2019.