TaxTMI 
TaxTMI 
2011 (10) TMI 602
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....g the findings u/s 68 recorded by the A.O. in the assessment order with respect to the credit worthiness and identity of creditors and genuineness of the transactions. 3. The appellant craves leave to add, alter or amend any ground of appeal raised above at the time of hearing." 2. The return declaring an income of Rs. 4,25,942/- was filed by the assessee on 30th October, 2002 which was processed. Upon receipt of an information from the Investigation Wing of Delhi, the re-assessment proceedings were initiated vide notice issued u/s 148 dated 26th March, 2009. The information revealed that the assessee had received accommodation entries from the entry operators after paying unaccounted cash The information revealed that the followin....
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....ed persons that was denied on the ground that the assessee itself had expressed its inability to produce its own shareholders for examination and the assessee can insist on such cross examination only after discharging the onus which is placed upon it in the light of the statements made by Shri Mahesh Garg. It is further recorded in the assessment order that the share applicants carried no other activity besides providing the accommodation entries and from the modus operandi adopted by them, it is clear that the transactions were not genuine. Considering the explanation submitted by the assessee unsatisfactory, ld. Assessing Officer has applied the provisions of Section 68 and made the addition of Rs. 55,01,125/-. The aforementioned additio....
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....the assessee at any time during the financial year from Shri Vishnu Kumar Jain. Therefore, he held that the issue to be decided was only with respect to a sum of Rs. 45 lac and not Rs. 55,01,125/-. The revenue has also agitated the addition made with respect to the share application money and its grounds of appeal is restricted to a sum of Rs. 45 lac. Learned CIT (A) has further found that to support the genuineness of the share application money the assessee has submitted the following documentary evidence:- a. Copy of share application form b. Confirmation of share capital Contribution from the above shareholders, giving copies of the cheques and bank accounts through which the share application has been made. c. PAN details and ....
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....arged and no addition could be sustained in view of the evidence placed by the assessee on record:- CIT vs. Lovely Export (P) Ltd. (SC); CIT vs. Stellar Investment Ltd. 251 ITR 263 (SC); DCIT vs. GSV Investment (P) Ltd. 146 ITD 36 (ITAT); CIT vs. Ashwani Gupta 2010 ITA No.1264/2008 (Delhi High Court) ITO vs. Orbital Communication (P) Ltd. (2010) 38 SOT 6 Delhi (URO); Shree Barkha Synthetic Ltd. vs. ACIT (2006) 155 Taxman 286 (Raj High Court); & CIT vs. Victor Electrodes Ltd. (2010) 329 ITR 271 (Delhi). 6. Against these findings of learned CIT (A) the revenue is aggrieved, hence, in appeal. 7. After narrating the facts and relying upon the assessment order, it was the submission of the learned DR that the Assessing Of....
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....test position of the shares which have been allotted to the aforementioned share applicants. Accordingly, the learned AR has furnished the affidavit of the Director of M/s Royal Credits (P) Ltd. in which it has been stated that they had applied for 80,000 shares and had provided share application money of Rs. 8 lac on 4th August, 2001 through cheque/DD/P.O No.011357 from the current account maintained by the said concern with the State Bank of Patiala, Darya Ganj, New Delhi. The said affidavit is notarized on 7th August, 2010. The learned AR has also filed certificate dated 24th October, 2011 given by the Director of the assessee company in which it has been certified that the aforementioned seven share applicants are holding the shares til....