2015 (1) TMI 880

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....question of law sought to be urged is that the ITAT and CIT(A) erred in holding that Section 148 did not apply in the facts and circumstances of the case. 2. The assessee at the relevant time in A.Y. 2001-02, filed its return declaring a sum of Rs. 2860/-. The assessee was engaged in the business of investment in shares and fixed deposit in banks, and derived income from dividend and interest. Initially, the return was processed under Section 143(1), thereafter assessment notice was issued to the assessee. On consideration of the material, the A.O. held that fresh share capital to the extent of Rs. 28.40 lac had to be added. This sum is sought to be brought to tax under Section 68 by the A.O. holding that the assessee did not furnish any....

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....that the AO without discussing the defects in the details submitted by the share applicant directly to him in response to notice received u/s 133(6) of the Act, has just observed that these details are incomplete. According to the Ld. CIT(A) assessee has proved the identity of the creditors by giving the PAN No. confirmation, copy of the income tax return etc. AO has the information which can only give rise a suspicion about the details submitted by the assessee, effectively AO could not rebut the details submitted by the assessee. Ld. CIT(A) thereafter put reliance upon the authoritative pronouncements of Hon'ble Delhi High Court in the case of CIT vs. Value Capital Services reported in 307 ITR 334, DCIT vs. Divine Leasing and Finance Ltd.....

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....d, and in the facts of the case, unless material in the form of bills and statements of the investors on oath were provided by the assessee, the latter could not be said to have discharged the onus that initially lay upon it under Section 68. Learned counsel relied upon the judgment of this Court reported as CIT vs. Empire Builtech 2014 366 ITR 110 and also judgment reported as CIT vs. Nova Promotors & Finlease (2012) 342 ITR 169. In those cases this Court had occasion to deal with the ruling of the Supreme Court in CIT V. Lovely Exports (P) Ltd. 216 ITR 195. 5. This Court has carefully considered the submissions of the revenue. Whilst the revenue could have legitimately relied upon the statement of Mahesh Garg, which sought to implicate....