TaxTMI 
TaxTMI 
2015 (12) TMI 379
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.... relating to asstt. Year 2006-07. Common grounds have been raised in both the appeals, therefore, they were heard together and are being disposed of by a consolidated order for the sake of convenience. ITA no. 4426/Del/2010: 2. Brief facts of the case are that the assessee company filed its return of income declaring loss of Rs. 583/-. The AO noticed that during the year the assessee company had not carried out any business activity. The AO, after considering the assessee's submissions made addition of Rs. 15,00,000/- on account of unexplained cash credit u/s 68 in respect of share capital received from M/s Well Wish credits Pvt. Ltd. 3. Ld. CIT(A) deleted the addition, inter alia, following the decision of Hon'ble Supreme Court in....
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....om the postal authorities. This fact was informed to the assessee and he was required to produce the party, give correct address of M/s Well Wish credits Pvt. Ltd. to prove that this was not an accommodation entry. The AO has observed in para 3 of his order that assessee neither furnished the latest address nor produced the above party nor proved its creditworthiness. Instead, vide letter dated 24-12-2008 the assessee submitted that it had already filed confirmation, copy of ITR, certificate of incorporation and bank statement of the said company and, therefore; amount received from M/s Well Wish Credits Pvt. Ltd. should not be added u/s 68. The AO after considering the assessee's submissions made addition of Rs. 15,00,000/- by observing as....
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....sary details in order to establish the identity of the share applicant. Therefore, it was fair to conclude that the share applicant was an existing party and the payments were made through banking channel. The AO did not point out any discrepancy in the evidences relied upon by assessee. 6. Ld. DR submitted that the findings of ld. CIT(A) are based on earlier orders. He referred to the decision of Hon'ble Delhi High Court in the case of Nova Promoters & Finlease (P) Ltd. 342 ITR 169 and pointed out that the law on this issue has been succinctly elaborated. He submitted that in this case the AO had made inquiries and when the notice u/s 133(6) was received back, the assessee was required to produce the party but the same was not done. He ....
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....ss the assessee had claimed that the investor company was assessed to tax. However, as rightly pointed out by ld. CIT(DR), the investor had returned income of Rs. 530/-. Therefore, it is necessart6y that what was the source of investment of the investor has to be clearly brought on record. Mere filing of return cannot establish the creditworthiness.Therefore, we restore this matter to the file of AO to provide one more opportunity to assessee to establish the genuineness and creditworthiness of M/s Well Wish Credits Pvt. Ltd., as requested by ld. counsel for the assessee. 9. In the result, revenue's appeal is allowed for statistical purposes. ITA no. 4427/Del/2010: 10. Brief facts of the case are that the assessee company filed its....