2011 (6) TMI 748

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.... 3. In this case Assessing Officer made the addition of Rs. 35 lacs regarding share application money received u/s 68 of the IT Act. The reasons given by the Assessing Officer in this case in brief are as under:- i) Share applicants are established entry operators and letters furnished by them prove that a) Such persons were engaged in such business of providing accommodation entries. b) They had no other business other than this money laundering business. c) They cannot explain the source of the money transferred to various beneficiaries. d) Such persons use to take commission for routing such kind of money. ii) None of the share applicants appeared in response to notices issued and in some cases notices got unserved. ....

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.... M/s Polo Leasing & Finance Pvt. Ltd. A-24, Tagore Market, Kirti Nagar, New Delhi 5,00,000/- Copies of application for shares and confirmation letter were filed. Date of incorporation is 03.08.1995 PAN : 5. M/s MV Marketing Pvt. Ltd. WZ-134, Plot No. 170 Vishnu Garden, New Delhi 5,00,000/- Copies of application for shares and confirmation letter were filed. Date of incorporation is 11.12.1992 PAN : AAACM 8918J 6. M/s FNS Consultancy Pvt. Ltd. A-4/181, Sector-17, Rohini, Delhi -110085 5,00,000/- Copies of application for shares, IT return, ack., P&L account, balance sheet and confirmation letter were filed. Date of incorporation is 27.02.1989 (PAN : AAACF 4979Q) 4.1 Ld. Commissioner of Income Tax ....

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....f application for shares, income tax return, acknowledgement, profit and loss account, balance sheet and confirmation letter, date of incorporation and PAN numbers. Thus, it is clear that assessee has provided necessary details to establish the identity of the share applicants. However, Assessing Officer has not verified these details and he has also not disputed these details. Thus, we are in agreement with the finding of the Ld. Commissioner of Income Tax (Appeals) that the assessee has provided necessary details including the Ward/ Circle where the share applicants were assessed to income tax and discharged the onus cast on it. We find that Hon'ble Apex Court in the case of C.I.T. vs. Lovely Exports P Ltd. (216 CTR 195) held that if t....