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7|Page M/s Shri Ganesh Cement Pvt. Ltd.

A.Y. 2012-13 Rs.50,50,00,000/-. Form no. 5 was filed with ROC West Bengal on 28.11.2011. The appellant company had paid ROC fees of Rs.25,85,000/- for increasing authorised share capital by Rs.50,30,00,000/-. The payment was made vide demand draft No. 024621 dated 26.11.2011 which was deposited on 28.11.2011. The Board of Directors subsequently vide resolution dated 28.11.2011 had resolved to issue 5 crores equity shares of Rs.10/- each equivalent to share capital of Rs.50 crores in favour of SKJ Coke Industries Ltd in lieu of purchase of the undertaking namely M/s Jupiter Cement Industries from the said company. The respective Form 2 has been filed with ROC West Bengal and ROC fees paid on 07.12.2011. In Form No. 2, it was clearly mentioned that the shares were allotted for consideration otherwise than cash. The appellant company had also amended its object laws in the Memorandum of Association of the Company to incorporate the acquisition of M/s Juptier Cement Industries and filed respective Form 23 along with fees with ROC West Bengal on 19.12.2011.

9|Page M/s Shri Ganesh Cement Pvt. Ltd.

A.Y. 2012-13 On appeal the Ld. CIT(A) has called for remand report (twice) and has reproduced the remand report (final remand report) (supra) from which it is discerned that the Ld. A.R of the assessee Shri R. Dubey appeared before the AO and had filed details and documents in support of claim and thereafter on 19.01.2017, the promoter directors of the assessee company namely Shri Hansraj Jain, Shri Sanjay Jain, Shri Ajay Kumar Jain and Shri Navin Kr. Jain appeared before the AO and in support of its claim had furnished copy of respective Aadhar Cards to substantiate their identities. Further, the AO notes that the assessee had filed on 19.10.2017 (i) copy of relevant PAN cards, (ii) copy of ITR for AY 2012-13, (iii) copy of relevant balance sheet along with copy of computation of total income, copy of ledger showing investment in shares of M/s Shri Ganesh Cement Pvt. Ltd. and (iv) copy of letter disclosing source of funds for payment of relevant application in respect of all the four directors of the assessee company. Be that as it may be, we note the following facts as found by the Ld CIT(A) that the assessee company has abided with all the legal formalities/requirements under the Companies Act, 1956, while increasing its authorized share capital and for the allotment of shares by cash and consideration other than cash. The assessee company Sri Ganesh Cement Pvt Ltd. was incorporated on 25.11.2011 as per Certificate of Incorporation issued by ROC West Bengal with authorized share capital of Rs.20 lakhs. And the Directors of the assessee company are Shri Hansraj Jain, Sri Sanjay Jain, Sri Ajay Kumar Jam and Sri Navin Kumar Jain. These four directors are also the directors of M/s SKJ Coke Industries Pvt Ltd. [Share-allotted company]. So, it is an intra-group incident, so question of identity of the directors of M/s SKJ Coke Industries Pvt Ltd need not be doubted since all of them are directors of assessee company and is an intra-group arrangement. Further it is noted that the Board of Directors of the assessee company vide Resolution dated 26.11.2011 resolved to increase the authorized share capital from Rs.20 lakhs to Rs.50,50,00,000/-. And Form no. 5 was duly filed with ROC West Bengal on 28.11.2011. The assessee company had paid ROC fees of Rs.25,85,000/- for increasing authorized share capital by Rs.50,30,00,000/-. The payment was made vide demand draft No. 024621 dated 26.11.2011 which was deposited on 28.11.2011. The Board of Directors subsequently vide resolution dated 10 | P a g e M/s Shri Ganesh Cement Pvt. Ltd.

A.Y. 2012-13 28.11.2011 had resolved to issue 5 crores equity shares of Rs.10/- each equivalent to share capital of Rs.50 crores in favour of M/s SKJ Coke Industries Ltd in lieu of purchase of the undertaking namely M/s Jupiter Cement Industries from the said company. The respective Form 2 has been filed with ROC West Bengal and ROC fees paid on 07.12.2011. In Form No. 2, it was clearly mentioned that the shares were allotted for consideration otherwise than by cash. The assessee company had also amended its objects in the Memorandum of Association of the Company to incorporate the control/management of M/s Juptier Cement Industries and filed respective Form 23 along with fees with ROC West Bengal on 19.12.2011. The Ld CIT(A) has given a finding of fact based on the aforesaid facts that 'evidence produced by the assessee during assessment, appellate and remand stages, all point to the fact that the identity of the share applicants, genuineness of the transactions and creditworthiness of the applicants could not be disputed''. We note the revenue has not controverted or assailed these finding of facts and moreover, there is no evidence/material on record to hold such finding of Ld CIT(A) to be perverse.