2010 (7) TMI 147

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....rder dated 5th December, 2008 passed by the Income Tax Appellate Tribunal (in short "ITAT") in ITA No. 1970/Del/2005, for the assessment year 2000-2001. 2. Ms. Rashmi Chopra, learned counsel for Revenue submitted that ITAT had erred in law and on merits in deleting the addition of Rs. 1,32,72,500/- on account of bogus share capital under Section 68 of Act, 1961. She contended that the assessee-company had failed to prove the identity, genuineness and creditworthiness of the share applicants. 3. However, upon a perusal of impugned order, we find that out of 42 persons who had invested in the share capital of the assessee-company, 39 persons had appeared before the assessing officer and their statements had been recorded by the inspector.....

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....t.) Ltd. and of Delhi High Court in the case of Sophia Finance Ltd., Stellar Investment Ltd. and AGR Investments Ltd. (supra). Hon'ble Courts have laid down following main parameters. (1) When the identity of the shareholder is established by the assessee no addition in respect of share application money received by the assessee can be made u/s 68. (2) If some of the summons come unserved, no adverse inference can be drawn. 28. In our view, the assessee has discharged its onus in terms of parameters laid down by these courts. This is so inasmuch as in investigations, assessee could produce a number of persons who appeared in person and confirmed having made the share application money. In respect of persons not produced confirmatory d....