TaxTMI 
TaxTMI 
2014 (1) TMI 889
X X X X Extracts X X X X
X X X X Extracts X X X X
....bsp; "The appellant assessee is a private limited company incorporated under the provisions of Companies Act and is engaged in the business of job work. During the year the assessee company had shown receipt of money on sale of shares from 10 persons amounting to Rs.23,45,000/-. The Assessing Officer received information ;from the Investigation Wing of the department that the persons who purchased the shares from the appellant company were involved in providing accommodation entries. In view of the specific information, the Assessing Officer initiated action u/s 148 and completed the assessment on 31.12.2010 determining the total income at Rs.25,79,730/- disbelieving the sale proceeds of shares amounting to Rs.23,45,000/-." ....
X X X X Extracts X X X X
X X X X Extracts X X X X
....cer". 4. Mrs.Y.Kakkar, Ld.Sr.D.R. represented the Revenue and Shri Pramod Jain, C.A. represented the assessee. 5. The Ld.D.R. submitted that there is only one issue i.e. genuineness of the sale of shares made by the assessee. The sum and substance of her submissions is that credits are received on sale of shares, and these credits have not been explained as to the identity, credit worthiness and genuineness of the transaction. She relied on a number of case laws including the decision of Hon'ble Delhi High Court in the case of Nova Promoters, 340 ITR 160 (Del). She further submits that the shares purchased have not been produced before the ld.AO. She raised questions as to why the assessee has not invested in reputed companies. She al....
X X X X Extracts X X X X
X X X X Extracts X X X X
....hether the genuineness of the sale of the shares, has been demonstrated by the assessee or not. The assessee in this case has filed copies of the confirmation letters, affidavit, confirmation of account etc. in support of the fact that the sales made were genuine. PAN number of the purchasers of shares was also given. The Ld.Commissioner of Income Tax (Appeals) has summarized the evidences at para 10 at pages 3 and 4 of his order. For the sake of brevity we do not extract the same. In fact the assessee produced these documents before the Assessing Officer, is evident from the recording in page 2 of the assessment order. The defects pointed out by the Ld.AO in the evidences filed, were explained before the Ld.Commissioner of Income Tax (Appe....
X X X X Extracts X X X X
X X X X Extracts X X X X
....usual with the transaction of sale and the amount does not represent unexplained cash credit u/s 68." 9.2. Hon'ble Delhi High Court in the case of CIT vs. Medshave Health Care Ltd. at paras 5 and 6 held as follows. "5. The Tribunal noticed that the assessee had filed the confirmation letter of M/s Ramesh Chand Industries Ltd. before the CIT(A). Further, the assessee had produced a copy of the ledger account in the case of M/s Ramesh Chand industries Ltd. in the books of M/s Silver Streaks Trading P.Ltd. before the Assessing Officer in remand proceedings. Further more, it was noticed by the Tribunal that the sale of the assessee and that these amounts were also shown as advance in the balance sheet of the assessee company ....