Case Law Details
Ancon Chemplast P. Ltd. Vs ITO (ITAT Delhi)
Conclusion: Merely because the some Directors did not appear in the case of assessee would not be a ground to have an adverse inference against the assessee, therefore, there was no justification to sustain the addition of Rs.45 lakhs under section 68 and addition of Rs.90,000/- under section 69C.
Held: AO had received information that search and seizure operation was conducted at various premises of Shri Shirish C. Shah who happened to be main persons engaged in providing bogus accommodation entries like long term capital gains, share capital, share premium and loan etc. Shri Shirish C. Shah directly and indirectly controlled more than 200 companies which include some of the public limited companies also. It was seen from the impounded material that assessee company had received Rs.45 lakhs in three transactions. AO noticed that in assessment year under appeal assessee had received Rs.45 lakhs as share capital/share premium from the Investor Companies, therefore, reasons recorded for reopening of the assessment under section 147/148. It was held that in the case of M/s. Bharat Securities (P) Ltd., the Indore Bench of the Tribunal had considered the fact that the Director of the Investor Company and others were examined in which they had confirmed the transaction with the assessees in that case. Therefore, merely because the same Directors did not appear in the case of assessee would not be a ground to have an adverse inference against the assessee. Considering the totality of the facts and circumstances of the case in the light of above decision, There was no justification to sustain the addition of Rs.45 lakhs under section 68 and addition of Rs.90,000/- under section 69C.
FULL TEXT OF THE ORDER OF ITAT DELHI
This appeal by Assessee has been directed against the Order of the Ld. CIT(A)-1, New Delhi, Dated 18.03.2019, for the A.Y. 2010-2011, challenging the reopening of the assessment under section 147/148 of the I.T. Act, 1961, addition of Rs.45 lakhs under section 68 of the I.T. Act, 1961 being share capital received from M/s. Prraneta Industries Ltd., and addition of Rs.90,000/- under section 69C of the I.T. Act, 1961 on account of commission.
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