TaxTMI 
TaxTMI 
2013 (5) TMI 522
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....he Ld. CIT(A) has erred on facts and in law and on facts in deleting addition of Rs. 6,00,000/- on account of credits from M/s Integra Telecommunication & Software Ltd. (ITSL), ignoring that the copy of account of the assessee in the books of account of ITSL does not match with the confirmation filed by the assessee. 4. The Ld. CIT(A) has erred on facts and in law and on facts in deleting addition of Rs. 73,000/- on account of interest accrued but not declared as income, ignoring that the assessee failed to submit any reply during the course of assessment proceedings on a specific show cause on this issue. 5. The Ld. CIT(A) has erred on facts and in law and on facts in deleting addition of Rs. 4,76,000/- on account of amount received from M/s Global Info System Ltd. for the sale of non-existing fixed assets, ignoring that the assessee failed to submit any reply during the course of assessment proceedings on the specific show cause on this issue. 6. The Ld. CIT(A) has erred on facts and in law and on facts in deleting addition of Rs. 4,06,000/- on account of unexplained cash credits received from M/s Global Info System Ltd., ignoring that the assessee failed to submit any r....
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....cash in hand available in the books only. CIT(A) after duly verifying these facts and books of a/c has properly deleted the addition by following observations:- 3.2. Revenue's ground no. 2(iii) is against addition of 6 lacs on account of credits appearing in the account of M/s Integra Telecommunication & Software Ltd. (ITSL) The AO has added this amount vide his observations in para 2 at page 2*3 of the impugned assessment order. According to the AO, copy of account of Integra Telecommunication & Software Ltd. does not match with the confirmation of M/s Integra Telecommunication & Software Ltd. submitted by the assessee which raises serious doubts about the genuineness of the transactions entered by the assessee with M/s Integra Telecommunication & Software Ltd. The AO further observed that the assessee was asked to show cause why addition of Rs. 10 Lacs be not made on account of credits appearing in the account of, M/s Integra Telecommunication & Software Ltd. for which no satisfactory explanation had been filed, the AO added Rs. 6 Lacs as also added Rs. 4 Lacs on account of share application money separately. 3.3. Ld. Counsel contends that copy of account of M/s Integra Tel....
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....he appellant had filed letter dated 1/11/07 received by the appellant from M/s Integra Telecommunication & Software Ltd. Along with their bank statement which clearly shows debit of Rs. 9 Lacs in their bank account on 12/10/04. Copy of account of the appellant in the books of Integra Telecommunication & Software Ltd. was also filed before the AO and CIT(A) giving therein identity details and PAN No. AAACI9473Q. The above documentary evidence is on the file of the AO, therefore, the observations of the AO to the contrary are factually incorrect. A copy of account of Integra Telecommunication & Software Ltd. in the books of the assessee was also filed before the ASSESSING OFFICER. All these documentary evidence demonstrate that the account of Integra Telecommunication & Software Ltd. was an old account with an opening balance of Rs. 1,07,000/-. The appellant had sold shares worth Rs. 4,09,000/- to M/s Integra Telecommunication & Software Ltd. which were debited to their account. The appellant further received a cheque for RI. 9' Lacs as mentioned above out of which Rs. 5 Lacs were credited to their account in assessee's books on 12/10/04 and Rs. 4 Lacs had been credited to share a....
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.... of all parameters has rightly deleted the addition. 3.7. Apropos ground no. 5 in respect of M/s Global Info System Ltd. ("GISL"), both the parties agree that the correct figure is Rs. 8,06,000/- (not Rs. 4,06,000/- as mentioned in revenue's ground). Ld. Counsel for the assessee contends that the assessing officer made the addition by following observations:- "a) Copy of the account of M/s Global Info system Ltd. in the books of the appellant as filed before the AO is placed at page 51 which shows that there was debit balance of Rs. 9,26,000/- as on 18/09/04 and it was against such amount that the appellant had received cheque of Rs. 4,50,000/- and Rs. 4,76,000/- on 12/10/04. It was through oversight that against the credit of Rs. 4,76,000/-, the words "sale of fixed assets" was written by the appellant. This position could not be cleared before the AO. in view of the submissions made above with regard to various dates of hearing. This fact has now been clarified in the Affidavit of Shri Pawan Kumar Singhal." 3.8. It is pleaded that this amount being on running account, is verifiable from the accounts of GISL and the closing balance. Thus, the addition was made purely due ....
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....ited in their bank statement Rs. 3,99,000/-, placed on P.B. supports the claim of the assessee. 4. We have heard rival contentions and perused the material available on record. Revenue is not in appeal before us on the admission of additional evidence, besides CIT(A) called for remand report from assessing officer who chose not to submit his comments. In view of these facts and circumstances, we are unable to accede to the request of the ld. DR that the matter should be set aside. 4.1. Apropos ground no. 1, the addition was made by the assessing officer observing that the assessee's sale proceeds in cash from software are less than the cash deposits in bank for which the assessee ahs given satisfactory explanation about there being other receipts which are duly incorporated in the account books. In view of these facts we see no infirmity in the order of CIT(A) on this issue. This ground of the revenue is dismissed. 4.2. Apropos ground no. 2, i.e. addition on account of share application money, the major share applicant is ITSL who has contributed Rs. 4 lacs, which also find mention in ground no. 3 in respect of credit of Rs. 6 lacs. It is noteworthy that ITSL is not new to....
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.... we are of the view that the assessee has discharged its onus approving the share application money u/s 68. The addition is deleted. 4.3. Coming to remaining two minor share applications in respect of Davendra Kumar and Mool Chand, assessee has filed their confirmatory letters along with PAN numbers. This is further supported by the returns of past several years and statement of affairs. We are of the view that assessee has discharged its initial burden in terms of sec. 68 in respect of identity, creditworthiness and genuineness for these two share applicants who deposited Rs. 40,000/- each. In view thereof, we uphold the order of CIT(A) deleting this addition. Thus, ground no. 2 of the revenue's appeal is dismissed. 4.4. Coming to ground no. 3 in respect of balance credit of Rs. 6 lacs in account of ITSL, we have already held that the identity and creditworthiness of this party is established, transactions are through bank a/c. The assessee has received an amount of Rs. 5 lacs by a/c payee cheque no. 128813 dated 12-10-2004 and Rs. 1 lac by a/c payee cheque no. 128812 on 12-10-2004. the debit of these amounts is reflected in ITSL a/c and credited in the assessee's bank accou....