ORDER

PER R.K. PANDA, AM:

This appeal filed by the Revenue is directed against the order dated 3^rd November, 2017 of the CIT(A)-26, New Delhi, relating to assessment year 2010- 11.

2. The assessee has filed the CO against the appeal filed by the Revenue. For the sake of convenience, these were heard together and are being disposed of by this common order.

3. Facts of the case, in brief, are that the assessee is a company and belongs to MM Aggarwal Group of cases and is engaged in the business of preparation, manufacturing, packing and sale of soft drinks on the basis of concentrate and other raw material procured from Coca Cola in the capacity of bottler and distributor of Coca Cola products in India. It filed its original return of income on 08.09.2010 declaring an income of Rs.1,96,490/-. A search action u/s 132 of the Act was conducted in the case of M.M. Aggarwal group of cases on 28^th March, 2015 during which the case of the assessee was also covered. During the course of search carried out at different premises located in India in M.M. Aggarwal group of cases, documents and data storage devices, etc., belonging to the assessee were found and seized. In response to the notice u/s 153A, the assessee filed its return of income on 15^th June, 2016 declaring the total income of the assessee at Rs.1,96,490/-.

4. During the course of assessment proceedings, the AO observed that the assessee company has received share capital and share premium of Rs.1,65,00,000/- from the following five companies:-

5. He observed that this company has shown to have received share capital in each of the previous years relevant to 2009-10 to 2015-16. With a view to verify the capacity of the investor companies and to ascertain their financial credentials to make such huge investments, information about turnover, profit etc., as declared in their IT returns by some of the major purported investors was downloaded from ITD database and analysed. He observed that no such data was available in respect of Competent Infoways Pvt. Ltd., Passion IT Solutions Pvt. Ltd., Prince IT Solutions Pvt. Ltd. and Sterling Foils Ltd.. So far as Sidhbhoomi Alloys Ltd. is concerned, he noted that the turnover and share capital of the above company for the F.Y. 2008-09 and 2009-10 are as under:

6. The AO, therefore, asked the assessee to substantiate with evidence to his satisfaction regarding the identity and credit worthiness of the investor companies and genuineness of the transactions. The AO also referred to the statement recorded of Shri Narender Kumar Jain, recorded u/s 132(4) of the Act on 28.03.205, the statement of Shri M.M. Aggarwal, director of the flagship company of MM group M/s Moon Beverages Ltd., Shri Krishan Kumar, GM (Finance) of M/s Moon Beverages Ltd., the statement of Shri Sanjiv Agrawal, promoter of M/s M.M. Group and asked the assessee to establish the identity and credit worthiness of the investors who have subscribed to the share capital in the assessee company and genuineness of the transaction.

7. The assessee filed the details like confirmation, ITR, assessment particulars, MOA, audited financial results, bank statements, MCA site data, extract of all such investor companies to establish the identity, creditworthiness and genuineness of such investor companies. It was further submitted that all the investor companies are group companies who were allotted shares by the assessee company during the relevant period under consideration. The assessee also f