TaxTMI 
TaxTMI 
2012 (12) TMI 25
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....reditors has not been submitted during the assessment proceedings, therefore, their identity, credit worthiness and genuineness of the transaction has not been established as required u/s 68 of the Income Tax Act, 1961. 2. During hearing of this appeal, we have heard Shri Darshan Singh, learned CIT DR and Shri P.K. Jain, ld. Counsel for the assessee. The crux of arguments on behalf of the Revenue is identical to the ground raised by pointing out that the Tribunal while deciding the appeal of the assessee (ITA No. 185/Ind/2012) for the same assessment year remanded the issue back to the file of the learned Assessing Officer to consider the same afresh and the evidences filed by the assessee with respect to share application money, therefo....
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....s submitted that if the Assessing Officer was not satisfied with the information filed by the assessee, he could have exercised powers to enforce the attendance of each allottee of share, therefore, the addition of the entire capital of Rs.8,99,00,000/- to the income of the assessee is not warranted to the total income of the assessee by treating the same as unexplained cash credit u/s 68 of the Act. The ld. Counsel for the assessee placed reliance on the decision in CIT vs. Orissa Corporation (P) Limited; 159 ITR 78 (SC), Gauhati High Court in the case of Khandelwal Construction vs. CIT; 227 ITR 900, Jatia Investment Company vs. CIT; 206 ITR 718 (Cal); CIT vs. Durga Prasad More; 82 ITR 540 (SC), Bedi & Company Private Limited v. CIT; 144 I....
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....s outstanding as on 31.3.2007 from 3 sundry creditors, namely, Khusi Cotton Corporation (Rs. 72,85,970/-), Narendra Cot Fibre Industries (Rs. 23,76,467/-) and Fateh Guru Govind Singh & Company (Rs. 17,31,523/-) out of which transferred Rs.70 lacs to the share application account in the case of Khushi Cotton Corporation, Rs.22 lacs in the case of Narendra Cot Fibre Industries and Rs. 7 lacs in the case of Fateh Guru Govind Singh & Company. The amounts are summarised as under :- Name of the sundry creditor Credit balance outstanding as at 31.3.2007 Rs. Amount transferred to share application money account Rs. Khushi Cotton Corporation 72,85,970 70,00,000 Narendra Cotfibre Industeries 23,76,367 22,00,000 Fathe Guru Gov....
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....d, the process is known to the law and right from assessment stage to the stage of the Tribunal, no such application/form was filled by such alleged sundry creditors. Such creditors have never asked the assessee to issue shares of the assessee company to them, meaning thereby no such facts have been brought on record. In such a situation, it is difficult to say whether these are share application money or a formula has been devised by the assessee to give it a colour of share application money. So far as the contention of the ld. Counsel for the assessee that the Assessing Officer was free to invoke the powers vested with the Assessing Officer to examine such creditors is concerned, we are of the view that the assessee is trying to thrus....