2014 (9) TMI 168

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....cumstances of the case, the Income Tax Tribunal was right in applying the ratio of the decision of the Supreme Court in the case of CIT v. Lovely Exports Pvt. Ltd, 216 CTR 195 and the decision of the Delhi High Court in the case of CIT v. Value Capital Services Pvt. Ltd. 307 ITR 334, which is distinguishable from the present case? (ii) Whether on the facts and circumstances of the case, the Income Tax Tribunal was right in deleting the additions made by the Assessing Officer when the assessee has not discharged the onus, but merely provided the names, when the evidence available on record reveals that genuineness of the transactions is in doubt?" 2.1. The brief facts of the case are as under: The respondent in T.C.(A) No.309 of 2014 is a ....

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....n a decision of the Supreme Court in Commissioner of Income Tax v. Lovely Exports (p) Ltd., [2008] 216 CTR 195 (SC) and a decision of the Delhi High Court in Commissioner of Income Tax v. Value Capital Services Pvt. Ltd., 221 CTR 511 allowed the appeals filed by the assessees. 2.5. Aggrieved by the said order, the Revenue filed appeals before the Tribunal. The Tribunal dismissed the appeals holding that the share application money cannot be treated as unexplained income of the Spinning Mill and the Revenue is free to proceed against the alleged bogus share applicants in accordance with law; and since the share applicants are the same and they have confirmed the transaction of share application, it cannot be treated as unexplained investmen....

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....supra, applies on all fours to the present case, in view of the fact that out of 181 share applicants, 129 share applicants had appeared when summons were issued and they have accepted their investment. That apart, the names and identity of the share applicants is also available on record.  When the nature and source of the amount so invested is known, it cannot be said to be undisclosed income in the hands of the Spinning Mill. 7. Furthermore, as per the decision of the Delhi High Court in Value Capital Services P. Ltd. case, referred supra, the burden is on the Department to show that the investment made by the share applicants actually emanated from the coffers of the assessee, so as to enable it to be treated as the undisclosed in....