TaxTMI 
TaxTMI 
2012 (11) TMI 755
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.... to be set aside. 2. On the facts and circumstances of the case and in law, the Ld. CIT(A) has erred in deleting the addition of Rs. 1,20,00,000/- made by the AO on account of income from undisclosed sources u/s 68 of the IT Act 1961. 3. On the facts and circumstances of the case and in law, the Ld. CIT(A) has erred in deleting the addition of Rs. 2,40,000/- made by the AO on account of unexplained expenditure. 2. Brief facts are: The assessee company in this year received an amount of Rs. 1,20,00,000/- by way of share capital. The assessee's return originally was accepted u/s 143(1). Subsequently, on an information passed on by the Investigation Wing to the AO alleging that the antecedents of share applicants was doubtful, assessm....
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....editworthiness also, it was held that statements of audited accounts of the share applicants, filed by assessee, were only instrument of window dressing and not credible. The above share application money was added accordingly as unexplained cash credits u/s 68. 2.3. Aggrieved, assessee preferred first appeal before the CIT(A), wherein it reiterated its submissions and relied on following judgments - CIT vs. Steller Investment Ltd. (1991) 192 ITR 287 (Del.) - CIT Vs. Divine Leasing & Finance Ltd. order dated 21-1-08 by the Supreme Court in Appeal no. CC 375/2008. - CIT Vs. General Export Credit Ltd. order dated 10-3-2008 of the Supreme Court in CC no. 21349/2007. - CIT Vs. Lovely Exports (P) Ltd. order dated 1-1-2008 of the S....
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....cord judicial pronouncements of the jurisdictional High Court and Hon'ble Supreme Court it can be concluded that the appellant has undoubtedly proved the identity of the share applicant. Once the identity of these share applicants is proved, no addition can be made in the hands of the appellant even if the share applicants have been found to be persons of no means until and unless it is otherwise proved by the revenue. The revenue could not prove that the money received by the appellant in the form of share application money has come from its own sources. In view of the discussion made above the addition of Rs. 1.20 crores is deleted. However, the AO is free to take appropriate action as may be permissible under the law in the case of va....
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....worthiness is duly discharged. (iii) Genuineness of the transaction: Assessee has filed copies of the bank accounts of the share applicants. The share applications, allotments and confirmations have been filed. All these evidences clearly demonstrate the genuineness of the transaction. 4.1. AO on the basis of surmises and suspicion has held that assessee has not discharged the burden, which is not tenable. CIT(A) relying on various judgments has held that the burden as contemplated by sec. 68 is duly discharged by the assessee and the addition has been deleted. Reliance is placed on the judgment of Hon'ble Delhi High Court in the case of CIT Vs. Dwarkadhish Investment P. Ltd. & Anr. (2011) 330 ITR 298, holding as under: "In our opi....
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.... the assessee yet once he proves the identity of the creditors/ share applicants by either furnishing their PAN number or income-tax assessment number and shows the genuineness of transaction by showing money in his books either by account payee cheque or by draft or by any other mode, then the onus of proof would shift to the Revenue. Just because the creditors/ share applicants could not be found at the address given, it would not give the Revenue the right to invoke section 68. One must not lose sight of the fact that it is the Revenue which has all the power and wherewithal to trace any person. Moreover, it is settled law that the assessee need not to prove the source of source." 4.2. Further reliance is placed on Hon'ble Delhi High ....