TaxTMI 
TaxTMI 
2016 (1) TMI 565
X X X X Extracts X X X X
X X X X Extracts X X X X
.... as unexplained cash credit which was accounted as share application money by the assessee while the assessee has failed to prove that how he received such share application money and has booked the same only by way book entry." 2. Assessee company is engaged in business of printing and designing promotional material for film industry, production and distribution of films. Assessee electronically filed its return of income for assessment year under consideration on 30.09.2009 declaring loss of Rs. 2,13,71,520/-. Assessment was processed u/s.143(1) of the Act. The case of assessee was selected under scrutiny and after considering the submissions on behalf of assessee, assessment was completed by Assessing Officer u/s.143(3) vide order passe....
X X X X Extracts X X X X
X X X X Extracts X X X X
....sum of Rs. 7,20,20,026/- as unexplained cash credit appearing in books of account maintained by assessee company and added the same u/s.68 of the Act. In appeal CIT(A) observed that share application money of Rs. 3,64,00,000/- was received from M/s. Sonata Realty Pvt. Ltd. (a related entity) during A.Y. under consideration. Assessee furnished address and PAN of this party. In his remand report, Assessing Officer has not drawn any adverse inference with regards to genuineness of this transaction. In this regard, assessee vide letter dated 15.07.2013 submitted that Assessing Officer has cross verified the transaction from the records of M/s. Sonata Realty Pvt. Ltd., which is also assessed to tax with him. Thus, addition of Rs. 3,64,00,000/- ....
X X X X Extracts X X X X
X X X X Extracts X X X X
....,00,000/- have already been received by Assessing Officer thereby establishing the identity of said share applicants, their financial capacity and the genuineness of transactions. The onus cast upon the assessee in this regard, stood discharged. The mere fact that transfer of share application money to assessee has not taken place by way of cheque/cash but by way of book adjustment between assessee and its sister concern; M/s. Sonata Realty Pvt. Ltd. may not be a valid ground to sustain the addition made by Assessing Officer in this regard especially when the above amounts now stand credited in books of account of assessee in names of above parties and their confirmations are already on record. Under these circumstances, the addition of sum....