2012 (10) TMI 320

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.... the assessee on account of sale of shares, alleging the same to be accommodation entries.  3. Brief facts are: Assessee company claimed to have sold following shares to one M/s Batra Investment: (1) 50000 shares of  M/s PCB Consultants Pvt. Ltd. = Rs. 5,00,000/- (2) 50000/- shares of M/s MMSL               = Rs. 5,00,000/- 3.1. The assessee produced copy of credit note received from M/s Batra Investment. According to Assessing Officer, the Investigating Wing had intimated that said M/s Batra Investment seemed to be connected with the Mahesh Batra named companies. Assessee replied as under: (1) The purchase of these shares were in earlier years through....

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....h one Shri Mahesh Batra. Assessee had explained that it had not carried out any transaction with Mahesh Batra. M/s Batra Investment was proprietary concern of Shri Satish Kumar and merely because the names were identical or there were allegations the amount cannot be added as unexplained cash credit u/s 68 in the hand of assessee without disproving the evidence. 4.2. It has not been disputed that the shares were purchased in earlier years and accepted accordingly by department. Assessee produced the purchase notes and sale note of Shri Satish Kumar. The sale amount was received through banking channels and shares were purchased also by banking channels. 5.3. The addition cannot be made as unexplained cash credit merely on surmises and....

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....d by the Tribunal that the sale of shares to M/s Silver Streaks Trading Pvt. Ltd. was reflected in the books of the assessee and that these amounts were also shown as advance in the balance sheet of the assessee company and a s a credit in the balance of M/s Silver Streaks Trading Pvt. Ltd. as on the 31st March, 2003. Concerning the payment made by M/s Silver Streaks Trading Pvt. Ltd. it was found that the same was made in October November, 2003 by Account payee cheques and a certificate from Corporate Bank in this regard was produced before the Assessing Officer in the remand proceedings, which was forwarded to the Commissioner of Income Tax (Appeals). By the Assessing Officer. Therefore, the Tribunal came to the conclusion that it was cle....