TaxTMI 
TaxTMI 
2012 (11) TMI 1115
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.... Officer u/s 68 of the Income Tax Act, 1961 . 2. That on the facts and circumstances of the case and in law, the Ld CIT(A) erred in ignoring the fact that the judgment of the Hon'ble Supreme Court in the case of Lovely Exports (P) Ltd. 216 CTR 199 (SC) cannot be extended to a situation where a mechanism has been formed to introduce unaccounted money in the books of accounts with the help of accommodation entry provider which has been exposed by deep and detailed investigation carried out by the Investigation Wing of the Department. Moreover, the facts in the present case are distinguishable from the above cited case. 3. The appellant craves to the allowed to add any fresh grounds of appeal and/or delete or amend any of....
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....anking channel and were duly recorded in the books of appellant as well and the said applicants were allotted shares and the respective amount was transferred to share capital account and return of allotment was filed with the Registrar of Companies. b) That during assessment proceedings, the assessee had filed through letters dated 15.10.2009 and 30.11.2009 share application form, confirmation, bank statements, copies of IT return and balance sheet and P&L account of the said companies. c) That the Assessing Officer without bringing out any adverse material from the details filed added back the amount of Rs. .10,00,000/- invoking the provisions of section 68 of the Act. d) That the Assessing Officer had made addi....
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.... etc. The shares were also allotted to the applicant company. The necessary evidences were provided to the Assessing Officer during course of assessment proceedings. The Assessing Officer has not made any investigation during assessment proceedings. The assessment order was passed on the basis of information received from Investigation Wing. The Assessing Officer has not brought any positive evidence on record to establish that the share application money was not genuine. Considering the judicial pronouncements quoted by the appellant, I find that the courts are liberal with reference to share capital applied by the Private Limited companies than the ordinary cash creditors. In the light of judicial pronouncements, I find that the evidence ....
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.... In that case, the assessee had accepted Rs. .30 lakhs as share application money from five companies and had filed confirmations, PAN Numbers, bank statement, balance sheet etc. with the Assessing Officer. The Assessing Officer did not conduct any enquiries and made the addition. The relevant observation of Hon'ble High Court are reproduced below:- "We have examined the said contention and find that the assessee during the course of assessment proceedings has filed confirmation letters from the companies, their PAN number, copy of bank statements, affidavits and balance sheet. Thereafter the Assessing Officer had asked the assessee to produce the said Directors/parties. Assessee expressed its inability to produce them. The Ass....