Income Tax Appellate Tribunal - Delhi
M/S Brahmaputra Finlease (P) Ltd.,, New ... vs Dcit,, New Delhi on 15 January, 2020
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IN THE INCOME TAX APPELLATE TRIBUNAL, DELHI 'A' BENCH,
NEW DELHI
BEFORE SHRI BHAVNESH SAINI, JUDICIAL MEMBER, AND
SHRI N.K. BILLAIYA, ACCOUNTANT MEMBER
ITA No. 3333/DEL/2017
[Assessment Year: 2009-10]
&
ITA No. 3334/DEL/2017
[Assessment Year: 2010-11]
M/s Brahmaputra Finlease Pvt. Ltd Vs. The Dy. C.I.T.
Brahmaputra House, A- 17, NH - 8 Central Circle - 17
Mahipalpur Crossing, Mahipalpur New Delhi
New Delhi
PAN: AAACK 3691 G
[Appellant] [Respondent]
Date of Hearing : 09.01.2020
Date of Pronouncement : 15.01.2020
Assessee by : Shri Gautam Jain, Adv
Shri Piyush K. Kamal, Adv
Revenue by : Shri Sanjay Goyal, CIT-DR
ORDER
PER N.K. BILLAIYA, ACCOUNTANT MEMBER,
The above two captioned appeals by the assessee are preferred against two separate orders of the Commissioner of Income Tax 2 [Appeals] - 35, New Delhi dated 27.03.2017 pertaining to Assessment Years 2009-10 and 10-11.
2. The quarrel is in respect of additions made u/s 68 of the Income tax Act, 1961 [hereinafter referred to as 'The Act' for short] amounting to Rs. 2.30 crores in A.Y 2009-10 and Rs. 5.15 crores in A.Y 2010-11 in respect of sums received from the shareholders as share capital and share premium.
3. Since it was agreed upon by the representatives of both the sides that the underlying facts and issues in AYs. 2009-10 and 2010-11 are identical, representatives of both the sides were heard at length on the facts of ITA No. 3333/DEL/2017 for A.Y 2009-10 and on such concession, we have considered the facts in A.Y 2009-10.
4. Having heard the representatives of both the sides at length, the case records were carefully perused and with the assistance of the ld. Counsel, we have considered the relevant material evidences brought on record in the form of Paper Book in light of Rule 18(6) of ITAT Rules, 1962.
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5. During the course of scrutiny assessment proceedings, from the details submitted by the assessee and material available with the department, the Assessing Officer found that during F.Y. 2008-09, the assessee has raised share capital money to the tune of Rs. 2.30 crores as follows:
Sl. Nominal Premium
No Name and address of the No. of value of paid per Dated of
. Company Shares share (Rs.) share (Rs.) allotment
M/s T opline Finvest
1. Pvt. Ltd., 25,000l 2,50,000 (Rs. 47,50,000 30.03.2009
2, Lal Bazar Street, 10 per share) (Rs. 190 per
107C, Todi Chamber, share)
1 s t floor, Kolkata-700
001
2. M/s Spardan Vanijya 25,000 2,50,000 (Rs. 47,50,000 30.03.2009
Pvt. Ltd., 10 per share) (Rs. 190 per
9/12, Lai Bazar Str eet, share)
Block E-, 4 n d floor,
Kolkata-700 001
M/s Midnight Agencies
3. Pvt. Ltd., 25,000 2,50,000 (Rs. 47,50,000 30.03.2009
1, Raj Ballab Saha 10 per share) (Rs. 190 per
Lane, Howarh - 711101 share)
M/s Kokila Exports Pvt.
4. Ltd., 15,000 1,50,000 (Rs 28,50,000 30.03.2009
9/12, Lai Bazar Str eet, 10 per share) (Rs. 190 per
Block E-, 2 n d floor, share)
Kolkata-700 001
5. M/s Basukinath Vanijya 25,000 2,50,000 (Rs. 47,50,000 30.03.2009
Pvt. Ltd., 10 per share) (Rs. 190 per
9/12, Lai Bazar Str eet, share)
Block E-, 4 n d floor,
Kolkata-700 001
6. Accordingly, a questionnaire dated 31.08.2012 was issued and the assessee was confronted with the result of investigation made by the department in respect of share capital. 4
7. In response to the aforementioned questionnaire, the assessee filed confirmations, bank statements, copies of ITRs, balance sheets etc. of the investor companies.
8. The Assessing Officer examined these documents but was not satisfied in as much as the assessee has filed copies of these companies' ledger accounts appearing in the books of the assessee company duly confirmed by them whereas confirmations were required on the ledger account of the assessee in the books of the investor companies.
9. The Assessing Officer further analysed the returned income of the investor companies and found that the returned incomes were negligible to justify the amount paid by them towards purchase of shares in the appellant company.
10. A final show cause notice dated 31.01.2013 was served upon the assessee once again asking the assessee to justify the payment towards shares purchased by the five companies mentioned elsewhere. The detailed questionnaire is extracted by the Assessing Officer in the body of the assessment order.
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11. The Assessing Officer further found that Shri Sampat Sharma has given a statement on oath on 28.09.2010 and the Assessing Officer was of the firm belief that in his statement, Shri Sharma had categorically admitted that he was not aware when the shares were purchased by the companies. The Assessing Officer further found that Shri Sharma had admitted that he was only a dummy director and knew nothing about the share transactions.
12. During the course of assessment proceedings, the Assessing Officer sent a letter to the ADIT, INV, UNIT III(3), Kolkata requesting him to send report to enable the Assessing Officer to complete the assessment. In its report, the INV Wing stated that most of the companies were found to be non-existent, therefore, further investigation did not bring any additional result and status of the report remains the same. The report further stated that these companies are jamakharchi companies of Kolkata, having no real business and formed for the purpose of providing accommodation entry in the form of share capital and unsecured loans mostly. 6
13. In the light of the aforestated notings/observations, the Assessing Officer made an addition of Rs. 2.30 crores in A.Y 2009-10 and Rs. 5.15 in A.Y 2010-11.
14. The findings of the Assessing Officer can be summarised as under:
i) Notices u/s 133(6) were not served.
ii) Confirmations of all the parties were not received.
iii) Companies were asked to attend the proceedings through their directors but all the directors did not attend the assessment proceedings.
iv) Statement of Shri Sharma is adverse as being director of the company, he had no knowledge of the shares purchased by the investor companies.
15. We find that vide reply filed on 22.02.2013, the assessee has furnished confirmation of accounts, bank statements, income tax returns and audited balance sheet of the investor company, Memorandum and Articles of Association, list of directors and master data of the investor company as appearing the Registrar of Companies, Kolkata, share allotment advice, certified true copy of the Resolution of Investee Company passed by the board of directors of the company 7 and copy of the resolution passed by the board of directors of investor company and copy of assessment orders of the investor company were also filed.
16. Vide reply dated 19.03.2013, the assessee once again filed all the documents requisitioned by the Assessing Officer. In the case of Finvest Pvt Limited, since on the earlier occasion, confirmation could not be filed, the assessee filed copy of the assessment order u/s 143(3) of the Act for A.Y 2006-07.
17. In so far as the share certificates are concerned, it was explained clearly that the appellant company had issued share certificates to all the share applicants and at present these companies were not their share holders/members as they have sold their shares. Since the assessee had no access to the share certificates, therefore, the same could not be filed.
18. Regarding producing the shareholder companies through their directors/authorised representatives for verification of genuineness of the investment, it was explained that two directors, namely Shri Sarat Agarwal and Shri Vinay Kumar Shah were produced for verification 8 /examination. It was further brought to the notice of the Assessing Officer that the directors waited for long hours and whole day was spent in recording the statement of only one director, namely, Shri Ajit Kumar Singh and it was requested that exact date and time may be given to produce the investor companies through their directors/authorised representatives for verification of genuineness of investment in shares by them as the directors had to come all the way from Kolkata/Howrah,
19. All these relevant parts of the reply of the assessee are exhibited at pages 61 to 68 of the paper book.
20. It appears that the Assessing Officer was heavily influenced by the statement of Shri Sampat Sharma who admittedly accepted that he was only a dummy director and knew nothing about the share allotment to these companies. However, we find that the Assessing Officer did nothing to do to bring on record who is the ultimate beneficiary of these transactions. If Shri Sampat Sharma categorically admitted that he is a dummy director, nothing prevented the Assessing Officer to lift the corporate veil. Having failed to lift the corporate 9 veil, we have to look at the transactions and not through the transactions.
21. Another adverse comment made by the Assessing Officer is in respect of returned income of the investor companies. In our considered opinion, substance over form should prevail. The returned income may be one of the factors, but it is not be all and and all. If the returned income is not sufficient to justify the credit worthiness of the share applicants, then the most important factor is to look at the net worth of the applicant.
22. The five applicant companies are namely,
i) Basukinath vanijya Pvt Ltd
ii) Midnight Agencies Pvt Ltd
iii) Spardan Vanijya Pvt Ltd
iv) Topline Finvest Pvt Ltd
v) Kokila Export Pvt Ltd 10
23. The net worth of these companies are as under:
i) M/S BASUKINATH VANIJA (P) LTD Address :1A, GRANT LANE, 1st FLOOR, KOLKATA 700012 No. of shares : 25,000 PAN: AADCB2084K Sr. No. Cheque No./ RTGS Date Amount (Rs)
i) RTGS 30.03.2009 50,00,000 TOTAL 50,00,000 Return Filed on : 25.09.2009 Auditors of Company: Debabrata & Associates Net Worth of the company :
Particulars As on As on
31.03.2009 31.03.2008
Shareholders Fund
53,86,200 42,82,200
Share capital _________
Reserve & Surplus 10,09,29,025 7,99,52,678
Total 10,63,15,225 8,42,34,878
Application of Funds
Current Assets Loans & advances
Stock of shares 8,25,30,300 7,85,85,000
Cash and bank balance 1,65,3549 4,23,164
Loans & Advances 2,20,50,007 54,43,063
Less: Current Liabilities & Provisions Liabilities 4,500 1,03,500 Provisions 5,545 2,19,965 Total 10,045 3,23,465 Net Current Assets 10,62,23,811 8,41,27,762 Miscellaneous expenditure to the extent not written i off or adjusted _____________________________________________ Deferred Revenue Expenditure 84,200 99,000 Total 10,63,15,225 8,42,34,878 115-
115-116) M/S MIDNIGHT AGENCIES (P) LTD Address : 1, RAJA BALLAV SAHA LANE HOWRAH, WEST BENGAL 711101 No. of shares : 25,000 PAN: AABCM6864G 11 Sr. No. Cheque No./ RTGS Date Amount (Rs)
i) 121780 13.08.2008 50,00,000 TOTAL 5 0, 00, 00 0 Return Filed on : 25.09.2009 Auditors of Company: Debabrata & Associates Provisions As on As on Particulars 3 1. 03. 20 09 3 1. 03. 20 08 Shareholders Fund Share capital 1,77,50,000 1,13,17,500 Reserve & Surplus 22,24,31,344 10,02,07,019 Total 2 4, 01, 81 ,31 1 1 1, 15, 24 ,51 9 Application of Funds .....
Current Assets Loans & advances Stock of shares 22,37,17,500 9,21,51,370 Cash and bank balance 9,06,731 13,72,394 Loans & Advances 1,07,30,909 1,67,95,281 Other Current Assets 48,00,000 12,00,000 Less: Current Liabilities & Provisions Liabilities 4,264 4,263 Provisions 7,564 6763 Total 11,828 11,026 Net Current Assets 24,01,43,311 111508019 Deferred Revenue Expenditure 38,000 16500 Total 24,01,81,311 11524519 M/S SPANDAN VAN1JA (P) LTD Address : 9/12, LAL BAZAAR STREET? BLOCK - E,2nd FLOOR KOLKATA, WEST BENGAL 700001 No. of shares : 25,000 PAN: AAJCS5887K Sr. No. Cheque No./ RTGS Date Amount (Rs)
i) 121780 13.08.2008 50,00,000 TOTAL 50,00,000 Return Filed on : 25.09.2009 Auditors of Company: Manabendra Bhattacharyya & Co 12 Particulars As on As on 31.03.2009 31.03.2008 Shareholders Fund Share capital 85,02,500 16,55,000 Reserve & Surplus 16,05,26,756 3,04,24,383 Total 16,90,29,256 3,20,79,383 Application of Funds Current Assets Loans & advances Stock of shares 14,43,57,000 1,61,47,000 Cash and bank balance 1,39,2625 49,280 Loans & Advances 1,28,70,884 57,45,237 Other Current Assets 10,70,0361 1,05,00,361 Less: Current Liabilities & Provisions Liabilities 2,005 2,003 Provisions 3,98,709 3,98,341 Total 4,00,714 4,00,344 Net Current Assets 1,68,92,0156 3,20,41,533 Deferred Revenue Expenditure 1,03,400 31,200 Preliminary Expenses 5,700 6,650 16,90,29,256 3,20,79,383 M/S TOPLINE FINVEST (PI LTD Address : 107C TODI CHAMBER 2, LAL BAZAAR STREET, KOLKATA, WEST BENGAL 700001 No. of shares : 25,000 PAN:
AAACT9954B Payments made Via 13 Sr. No. Cheque No./ RTGS Date Amount (Rs) 0 RTGS 30.03.2009 50,00,000 TOTAL 50,00,000 Return filed on 24.09.2009 Auditors of Company: Pawan Maun a & Co 50,00,000 Particulars As on As on 31.03.2009 31.03.2008 Shareholders Fund Share capital 2,29,31,000 1,60,93,500 Reserve & Surplus 22,78,93,579 9,79,58,325 Total 25,08,24,579 11,40,51,825 Application of Funds Current Assets Loans & advances Stock of shares 21,61,06,516 8,92,31,400 Cash and bank balance 19,35,218 1220148 Loans & Advances 1,95,87,189 2,08,98,545 Other Current Assets 1,31,70,875 27,00,000 Less: Current Liabilities & Provisions Liabilities 2,021 2,020 Provisions 7,998 7,548 Total 10,019 9,568 Net Current Assets 25,07,89,779 11,40,40,525 Deferred Revenue Expenditure 34,800 11,300 Total 25,08,24,579 11,40,51,825 MTSlCOKILA EXPORTS PRIVATE LIMITED Address : 9/12, LAL BAZAAR STREET, KOLKATA, WEST BENGAL 700001 No. of shares : 15,000 PAN: AABCK1178G Payments made Via Sr. No. Cheque No./ RTGS Date Amount (Rs)
i) 129093 16.06.2008 30,00,000 TOTAL 30,00,000
24. A perusal of the aforementioned statements giving total net worth of share applicant companies speaks for their credit worthiness.
In so far as Kokila Exports is concerned, its director Shri Ajay Kumar 14 Singh appeared before the Assessing Officer who examined him but did not put any question towards net worth of the company nor asked the director to furnish its financial details. Once the company was represented through its directors, it was incumbent upon the Assessing Officer to specify his queries and the assessee cannot be held responsible once he has established the source.
25. In our considered opinion, whether the assessee has discharged the initial burden cast upon him by provisions of section 68 of the Act or not, is purely a question of fact and the facts on record, as discussed hereinabove, clearly demonstrate that the assessee has prima facie discharged the initial onus cast upon it by provisions of section 68 of the Act.
26. As mentioned elsewhere, the Assessing Officer has observed that these share applicant companies are non-existent and this observation was based upon the report of the INV Wing, Kolkata. We fail to understand that if these share applicant companies were non-existent, then how come they were assessed to Income tax, which is evident from their assessment orders placed in the paper book. 15
27. It would be pertinent to mention here that the applicant's premises were searched and not a single document was found during the course of search proceedings which could suggest that the assessee has purchased cheques by way of cash from these share applicant companies. Each of the shareholders from whom share capital was raised/received are duly identifiable corporate entities and assessed to tax as well. The entire share capital has been subscribed through banking channels and there was no material found during the search which proves that the money came from the coffers of the appellant company. Financial statements of each share holder company exceeds its net worth, thereby establishing the credit worthiness of the share applicant companies to make investment in shares of the applicant company. Further, each share holder has independently confirmed their investment in response to notices u/s 133(6) of the Act.
28. In our considered opinion, suspicion can be no basis to make addition. Moreover, the Revenue in the case of shareholder companies has accepted their independent identity, source of income and carrying on business of investments and disinvestments. Therefore, the ratio laid down by the Hon'ble Supreme Court in the case of Lovely Exports Pvt Ltd 319 ITR 5 squarely applies on the facts of the case in 16 hand. In fact, in the case of Stellar Investments Ltd 251 ITR 263 wherein the decision of the Hon'ble High Court of Delhi in 192 ITR 287 was upheld wherein it was held that in the case of a company, even if the subscribers to the share capital are not genuine, then too, it would not be regarded as undisclosed income of the assessee company.
29. The ld. DR placed heavy reliance on the decision in the case of NRA Iron and Steel 103 Taxmann.com 48 wherein the Hon'ble Supreme Court has reversed the order of the lower authorities holding that where there was failure on the part of the assessee to establish credit worthiness of investor companies, then merely because the assessee company had filed all the primary evidences, it would not suffice and the onus upon the assessee is not discharged
30. We have explained the facts of the case in hand and have also extracted the net worth of the share applicant companies. Therefore, the facts of the case in hand are clearly distinguishable from the facts of the case in NRA Iron and Steel [supra] in as much as in that case, the assessee failed to explain the net worth of share applicants. 17
31. Similarly, the facts of NDR Promoters Pvt Ltd [2019]-TIOL--172- High Court-DEL-IT, Prem Castings [P] Ltd 88 Taxmann.com 189 and Navodaya Castle P. Ltd 367 ITR 306 are clearly distinguishable from the facts of the case in hand as explained elsewhere.
32. In the case of Navodaya Castle [supra], the assessee was unable to produce the directors and principal officers of the share holder companies and there were adverse remarks in respect of the bank account, which raised doubt on the identity and credit worthiness of the share holders. As mentioned elsewhere, the assessee did produce some directors of the share applicant companies but the Assessing Officer could record statement of only one director. Thereafter, the Assessing Officer did not ask the assessee nor forced the attendance of the directors of the share applicant companies and there are no adverse findings in so far as the bank accounts are concerned.
33. Similarly, in the case of NR Portfolio Pvt Ltd 42 Taxmann.com 339, the Hon'ble High Court of Delhi observed that if the Assessing Officer doubts the documents produced by the assessee, the onus shifts on the assessee to further substantiate the facts. In the case in hand, the assessee did file net worth of all the share applicant 18 companies and further corroborated the share transactions with master data filed with Registrar of Companies.
34. The other decisions relied upon by the ld. DR are also distinguishable on facts of the case in hand.
35. As mentioned at the beginning that the underlying facts in issues in A.Y 2010-11 are identical to those of A.Y 2009-10, for the sake of completeness we will extract the networth of share applicant companies for A.Y 2010-11 as under:
Name and address of the No. of Nominal value Premium paid Dated of SI. Company Shares of share (Rs.) per share (Rs.) allotment No.
1. M/s Kokila Exports Pvt. 12,500 1,25,000 (Rs. 23,75,000 (Rs. 30.03.2009 Ltd., 10 per share) 190 per share) 9/12, Lai Bazar Street, Block E-, 2nd floor, Kolkata-700 001
2. M/s Abhilasha Exports 25,000 2,50,000 (Rs. 47,50,000 (Rs. 30.03.2009 Pvt. Ltd., 10 per share) 190 per share) Saklat Palace, Kolkata-72
3. M/s Ambika Vimcom 10,000 1,00,000 (Rs. 19,00,000 (Rs. 30.03.2009 Pvt. Ltd., 10 per share) 190 per share) 1, Mahindra Nath Roy Bye Lane, Howrah-711101
4. M/s Deesha Tie Up Pvt. 15,000 1,50,000 (Rs. 28,50,000 (Rs. 30.03.2009 Ltd., 10 per share) 190 per share) 1, Raj Ballab Saha Lane, Howarh - 711.101
5. M/s Madam Agencies 25,000 2,50,000 (Rs. 47,50,000 (Rs. 30.03.2009 Pvt. Ltd., 10 per share) 190 per share) 9/12, Lai Bazar Street, Block E-, 2nd floor, Kolkata-700 001
6. M/s Puspadant 50,000 5,00,000 (Rs. 95,00,000 (Rs.
Infrastructure Ltd., th 10 per share) 190 per share) 52, Weston Street, 4 floor, Kolkata-13 19
7. M/s Pushpanjali 25,000 2,50,000 (Rs. 47,50,000 (Rs.
Commotrade Pvt. Ltd., 10 per share) 190 per share) 3, Saklat Palace, Kolkata-72 8, M/s Ranisati Stockist Pvt. 12,500 1,25,000 (Rs. 23,75,000 (Rs.
Ltd., 10 per share) 190 per share) 1A, Grand Lane, 1st floor, Kolkata-700 012
9. M/s Sahej Tie Up Pvt. 10,000 1,00,000 (Rs. 19,00,000 (Rs Ltd., 9/12, Lai Bazar 10 per share) 190 per share) Street, Block E-, 2nd floor, Kolkata-700 001
10. M/s Sankat Mojchan 12,500 1,25,000 (Rs. 23,75,000 (Rs.
Vinimay Pvt. Ltd., 10 per share) 190 per share) 9/12, Lai Bazar Street, Block E-, 2nd floor,
11. Kolkata-700 M/s 001 Shree Sudarshan 25,000 2,50,000 (Rs. 47,50,000 (Rs. Casting Pvt. Ltd., 10 per share) 190 per share) 9/12, Lai Bazar Street, Block E-, 2nd floor,
12. Kolkata-700 M/s Skylight 001 Distributors 25,000 2,50,000 (Rs. 47,50,000 (Rs. Pvt. Ltd., 10 per share) 190 per share) 3, Saklat Palace, Kolkata-
700 072
13. M/s Tarakeshwar 10,000 1,00,000 (Rs. 19,00,000 (Rs.
Commercial Pvt. Ltd., 10 per share) 190 per share) 9/12, Lai Bazar Street, Block E-, 2nd floor, Kolkata-700 001 1 Sr. M/s RANISATI STOCKISTS PR Name of Entities No. IVATE LIMITED Amount Address: 1A, Grant Lane Kolkat-72 No. of Shares: 12,500 PAN No. (Rs-
(Rs-) AAECR1291D Payments made Via 25,00,000 Sr. No. Cheque No./ RTGS Date Amount (Rs)
i) 893862 23.09.2009 25,00,000 TOTAL 25,00,000 Bank Name: Syndicate Bank Ward: ITO WD 39(3)/WBG/W/139/3 Return filed on: 17.09.2010 Auditors of the Company: Pawan Maurya & Co. 20
PARTICULARS As on 31.03.2010 As on 31.03.2009 Shareholders Fund Share capital 57,60,000 57,60,000 10,75,40,000 10,75,40,000 Total 11,33,00,000 11,33,00,000 Application of Funds Current Assets Loans & advances Stock of shares 9,98,50,000 11,30,00,000 Cash and bank balance 1,84,461 1,80,531.66 Loans & Advances 1,60,25,554 -
Other Current Assets 1,00,000 -
Less: Current Liabilities & Provisions 29,54,835.77 1,000 Net Current Assets 11,32,05,179.23 11,31,79,531.66 Preliminary Expenditure To the extent not written off or adjusted 5,320.20 7,093.60 Deferred Revenue Expenditure 65,400 87,200 Profit & Loss Account 24,100.57 26,174.74 Total 11,33,00,000 11,33,00,000 M S SAHAJ TIE UP PRIVATE LIMITED Address: D/12, Lai Bazar Street, Block E, 2nd Floor Kolkata-700001 No of Shares: 10,000 PAN No. AAECR1291D Pavments made Via Sr. No. Cheque No./ RTGS Date Amount (Rs)
i) RTGS 05.09.2009 20,00,000 TOTAL 20,00,000 Bank Name: Axis Bank Auditors of the Company:
Agrawal Singhania & Co.21
PARTICULARS As on As on
31.03.2010 31.03.2009
Shareholders Fund
Share capital 1,38,15,000 1,38,15,000
Reserve & Surplus 23,25,53,263 23,25,53,263
Total 24,63,68,263 24,63,68,263
Application of Funds
Investment 24,03,00,000 -
Current Assets Loans & advances Stock of shares 21,96,50,000 Cash and bank balance 41,65,522 12,64,145 Loans & Advances 13,64,702 1,94,74,476 Other Current Assets 1688804 1,58,93,117 Less: Current Liabilities & Provisions 1201899 99,81,815 Net Current Assets Preliminary Expenditure Deferred Revenue Expenditure 30,000 51998 Profit & Loss Account 21,135.54 16,342 Total 24,63,68,263 24,63,68,263 MS S A N K AT MQCHAN VINIMAY PRIVATE LIMITED Address: 9/12, Lal Bazar Street, Block E 4th Floor, Kolkata No. of Shares: 12,500 PAN No. AAECR1291D Sr. No. Cheque No./ RTGS Date Amount (Rs)
i) 894016 23.09.2009 25,00,000 TOTAL 25,00,000 Auditors of the Company:
H.K. Saha & Co.22
PARTICULARS As on As on
31.03.2010 31.03.2009
Shareholders Fund
Share capital 41,55,000 41,55,000
Reserve & Surplus 77,045,000 77,045,000
PARTICULARS As on As on
31.03.2010 31.03.2009
Shareholders Fund
Share capital 41,55,000 41,55,000
Reserve & Surplus 77,045,000 77,045,000
Total 8,12,00,000 8,12,00,000
Application of Funds
Current Assets Loans & advances Stock of shares 6,85,72,600 9,65,10,000 Cash and bank balance 279,188.23 1,00,039.66
-
Loans & Advances 1,17,71,297
-
Other Current Assets 5,00,000
Less: Current Liabilities &
Provisions 3,073 1,55,12,000
Net Current Assets 8,11,20,012.23 8,10,98,039.66
Preliminarv Expenditure
To the extent not written off or adjusted 5,320.20 7,093.60
Deferred Revenue Expenditure 53,400 71,200
Profit & Loss Account 21,267.57 23,666.74
Total 8,12,00,000 8,12,00,000
M/s Skylight Distributors Pvt Ltd Address 9/12, Lal Bazar Street, Block E 4th Floor, Kolkata No. of Shares: 12,500 PAN No. AAECR1291D Payments made Via Bank Name: Syndicate Bank Ward: ITO Ward 1(4) 23 Sr. No. Cheque No./ RTGS Date Amount (Rs)
i) 197440 04.03.2010 50,00,000 TOTAL 50,00,000 Net Worth of the Company PARTICULARS As on 31.03.2010 As on 31.03.2009 Shareholders Fund Share capital 1,54,44,290 41,00,000 Reserve & Surplus 48,51,15,879 15,60,00,000 Total 50,05,60,169 16,01,00,000 Application of Funds Current Assets Loans & advances Stock of shares 40,53,48,000 14,00,00,000 Cash and bank balance 3,07,03,679 -
Loans & Advances 65,552 2,00,93,380 Other Current Assets 6,44,27,648 -
Less: Current Liabilities &
Provisions 1,32,920 87,001
Net Current Assets 50,04,11,959 16,00,06,379
Miscellaneous Expenditure
Preliminary Expenses 1,48,210 93,330
Profit & Loss Account -
291
Total 50,05,60,169 16,01,00,000
M/S TARKESHWAR COMMERCIAL PRIVATE LIMITED Address: 9/12, Lai Bazar Street, E Block, 4th Floor, Kolkata- 700001 No. of Shares: 10,000 PAN No. AADCT0358A Payments made Via Sr. No. Cheque No./ RTGS Date Amount (Rs)
i) 894086 24.09.2009 2,000,000 Bank Name: Syndicate Bank Auditors of the Company:
Pawan Maurya & Co.
24
Net Worth of the Company
PARTICULARS As on
As on 31.03.2010 31.03.2009
Shareholders Fund
Share capital 5,810,000 5,810,000
Reserve & Surplus 108,490,000 108,490,000
Total 114,300,000 114,300,000
Application of Funds
Current Assets Loans & advances Stock of Shares 90,470,000 101,000,000 Cash & Bank Balance 277,900.36 180,526 Loans & Advances 16,412,027 13,000,000 Other Current Assets 7,950,000 Total 115,109,927.36 114,180,526 Less: Current Liabilities & Provisions Liabilities 902,000 1,000 Provision 1,492 -
Total 903,492 1,000 Net Current Assets 114,206,435.36 114,179,526 Preliminary Expenditure
(To the extent not written off or adjusted) 5,320.20 7,093.60 Deferred Revenue Expenditure 65,400 87,200' Profit & Loss 22,844.44 26,180.40 Total 114,300,000 114,300,000 M/S ABH1LASHA EXPORTS PRIVATE LIMITED Address: 95A C R Avenue, Kolkata, West Bengal 700073 No. of Shares: 25,000 PAN No. AAHCA5909J Sr. No. Cheque No./ RTGS Date Amount (Rs)
i) 894086 24.09.2009 50,00,000 TOTAL 50,00,000 PARTICULARS As on As on 31.03.2010 31.03.2009 Shareholders Fund Share capital 3626,460 100,000 Reserve & Surplus 172,956,542.15 Total 176,583,002.15 100,000 Application of Funds 25 Current Assets Loans & advances Stock-in-Trade 124,650,000 -
Sundry Debtors 1,104,666 - Cash & Bank Balances 10,106,506.65 81,437 Loans & Advances 41,210,007 - Total 177,071,179.65 81,437
Less: Current Liabilities & Provisions Net Current Assets 559,937.50 501 176,511,242.15 80,936 Miscellaneous Expenditure (To the extent not written off or adjusted) Preliminary Expenditure 71,760 15,930 Profit & Loss -
3,134 Total 176,583,002.15 100,000 M/S AMBIKA VINCOM PRIVATE LIMITED Address: 1, Mahendra Nath Roy Bye Lane, Howrah, West Bengal - 711101 No. of Shares:
10,000 PAN No. AAHCA3091P Sr. No. Cheque No./RTGS Date Amount (Rs)
i) 894086 24.09.2009 20,00,000 TOTAL 20,00,000 Bank Name: Syndicate Bank Auditors of the Company: Pawan Maurya & Co.
PARTICULARS As on
31.03.2010 As on 31.03.2009
Shareholders Fund
Share capital 8,760,000 8,760,000
Reserve & Surplus 164,547,063.02 164,540,698.64
Total 173,307,063.02 173,300,698.60
'
Application of Funds
Current Assets Loans & advances Stock of shares 140,460,000 159,900,000 Cash & Bank Balances 221,920.82 157,866 Loans & Advances 32,541,982 13,127,021 Total 173,223,902.82 173,184,887 Less: Current Liabilities & Provisions Liability 2,000 1,000 Provision 3,560 1,482 Total 5,560 2,482 26 Net Current Assets 173,218,342.82 173,182,405 Preliminary Expenditure (To the extent not written off or adjusted) 5,320.20 7,093.60 Deferred Revenue Expenditure 83400 111200 Total 173,307,063.02 173,307,063.02 M/s Deesha Tie Pvt Ltd Address: 1, Raj Ballav Saha Lane, Howrah, West Bengal - 711101 No. of Shares: 15000 PAN No. AABCD7985M Sr. No. Cheque No./RTGS Date Amount (Rs)
i) 894086 05.09.2009 30,00,000 TOTAL 30,00,000 Bank Name:Axis Bank Auditors of the Company:
Agrawal Singhania & Co.
PARTICULARS As on
31.03.2010 As on 31.03.2009
Shareholders Fund
Share capital 24,908,500 24,908,500
Reserve & Surplus 443,501,525.39 443,496,297.59
Total 468,410,025.39 468,404,797.59
Application of Funds
Current Assets Loans & advances Stock of shares 444,282,971.97 442,261,455 Cash & Bank Balances 346,431.92 892,722.41 Loans & Advances 10,578,339 20,804,524 Total 468,807,742.89 473,458,701.41 Current Liabilities & Provisions Liability 502,264.50 5,190,691.82 Provision 6,453 11,212 Total 508,717.50 5,190,691.82 Net Current Assets 468,299,025.39 468,256,797.59 Miscellaneous Expenditure (To the extent not written off or adjusted) _________________________ 111,000 148,000 Deferred Revenue Expenditure Total 468,410,025.39 468,404,797.59 27 M/S PUSHPADANT INFRASTRUCTURE LIMITED Address: 10A, Hospital Street, 2nd Floor, Room No. 205, Kolkata, West Bengal 700072 No. of Shares: 50000 PAN No. AAFCP1441G Sr. No. Cheque No./ RTGS Date Amount (Rs)
i) 190442 25.02.2010 50,00,000
ii) 09.03.2010 50,00,000 TOTAL 100,00,000 Bank Name: Axis Bank Auditors of the Company: S. Sadhu & Assciates Net Worth of the Company PARTICULARS Shareholders Fund Share capital 15,500,000 Reserve & Surplus 735,347,864.15 Total 750, 847, 864.15 Application of Funds Current Assets Loans & advances Stock-in-trade 654,810,000 Sundry Debtors 36,594,799 Cash & Bank Balances 21,964,900.15 Loans & Advances 191,811,281 Total 905, 180, 980.15 Less: Current Liabilities & Provisions 154,499,796 Net Current Assets 750, 681, 184.15 Miscellaneous Expenditure (To the extent not written off or adjusted) ______________________ Preliminary Expenses 166,680 Profit & Loss Account Total 750, 847, 864.15 M/S PUSHPANJALI COMMQ TRADE PRIVATE LIMITED Address: 3 Saklat Place, Kolkata, West Bengal 700072 No. of Shares: 25000 PAN No. AAECP9727C 28 Cheque Sr. No. No./RTGS Date Amount (Rs)
i) 198364 09.03.2010 50,00,000 TOTAL 50,00,000 Shareholders Fund Share capital 10,100,000 100,000 Reserve & Surplus 490,095,030 Total 500,195,030 Application of Funds Current Assets Loans & advances Stock-in-trade 419,862,600 Sundry Debtors 14,911,033 Cash & Bank Balances 9,886,846.50 81,414 Loans & Advances 61,266,165.50 Total 505,926,645 81,414 Less: Current Liabilities & Provisions 5,874,025 501 Net Current Assets 500,052,620 80,913 Miscellaneous Expenditure (To the extent not written off or adjusted) Preliminary ______ _______________ Expenses 142,410 15,930 Profit & Loss Account 3,157 Total 500,195,030 100,000 Bank Name: Axis Bank Auditors of the Company:
H.K. Saha & Co.
Net Worth of the Company 11 M/S KQKILA EXPORTS (PI LTD Address: 9/12, Lai Bazar Street, Block-E, 2nd Floor, Kolkata^00001 No. of Shares: 12500 PAN No. AABCK1178K Cheque No./ Sr. No. RTGS Date Amount (Rs)
i) 17.04.2009 25,00,000 TOTAL 25,00,000 29 12 M/S MADSAN AGENCIES (P) LTD Address: nd 9/12, Lai Bazar Street, Block-E, 2 No. of Floor, Kolkata - 700001 Shares: 25000 PAN No. AACCM059K Sr. No. Cheque No./ Date Amount (Rs)
i) RTGS 08.07.2009 50,00,000 TOTAL 50,00,000 M/S SLDHARSHAN CASTING tPl LTD Address: 9/12, Lai Bazar Street, Block-E, 2nd Floor, Kolkata - 70000 No. of Shares: 25000 PAN No. AADCS9429B Cheque No./ Sr. No. RTGS Date Amount (Rs)
i) 08.07.2009 50,00,000 TOTAL 50,00,000
36. It can be seen from the aforementioned net worth of the share applicant companies, only net worth of three companies is not available, namely, Kokila Exports, M/s Madsan Agencies P. Ltd and M/s Sudharshan Casting [P] Ltd. However, we find that the directors of these companies, namely, Shri Ajit Singh for Kokila Exports and Shri Vinay Kumar Shah for Madsan Agencies and Sudharshan Casting appeared before the directors incompliance to summons u/s 131 of the Act. We are of the considered view that the assessee has prima facie discharged the initial onus cast upon it successfully.30
37. Considering the facts of the case as explained hereinabove, we are of the considered opinion that the assessee has successfully discharged the initial onus cast upon it by provisions of section 68 of the Act.
38. In the result, both the appeals filed by the assessee in ITA Nos.
3333 & 3334/DEL/2017 are allowed.
The order is pronounced in the open court on 15.01.2020.
Sd/- Sd/-
(BHAVNESH SAINI) (N. K. BILLAIYA)
JUDICIAL MEMBER ACCOUNTANT MEMBER
Dated: 15th January, 2020.
VL/
Copy forwarded to:
1. Appellant
2. Respondent
3. CIT Asst. Registrar
4. CIT(A) ITAT, New Delhi
5. DR
31
Date of dictation
Date on which the typed draft is placed before the dictating Member Date on which the typed draft is placed before the Other Member Date on which the approved draft comes to the Sr.PS/PS Date on which the fair order is placed before the Dictating Member for pronouncement Date on which the fair order comes back to the Sr.PS/PS Date on which the final order is uploaded on the website of ITAT Date on which the file goes to the Bench Clerk Date on which the file goes to the Head Clerk The date on which the file goes to the Assistant Registrar for signature on the order Date of dispatch of the Order