2010 (1) TMI 1183

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.... 3. Brief facts of the case are that the assessing officer made an addition of ₹ 50,90,000 contributed by the following persons as share capital of the assessee company: 1. Ramalinga Raju Rs.23 lakhs 2. J. Krishna Rao Rs.15.95 lakhs 3. Smt. Jeevitha Mala Rs.7 lakhs 4. Shri Sivarama Raju Rs.5 lakhs The addition was made on the grounds that identity and creditworthiness of the investors in the share capital application money is not proved. On appeal, the CIT(A) called for remand report from the assessing officer and wherein the remand report, the assessing officer failed to point out any reasons for rejecting identity as well as credit worthiness of the share applicants. On this reasons the CIT(A) deleted the addition. Before u....

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....rties and perused the material on record. In the present case, the CIT(A) called for Remand Report from the assessing officer. The assessing officer sent the remand report vide reference No.ITO.3(2)/RR/9/10 dated as follows: i) As seen from the Affidavit filed by Shri D. Ramalinga Raju, the entire amount of ₹ 23,00,000 has been invested in the company by way of transfer from his bank account. On perusal of the said bank account, it is seen that there are instances of cash deposits into his bank account on the day the transfer was affected. Shri D. Ramalinga Raju submitted the details of the sources for the cheques and the cash deposits in the bank account with ICICI bank, SR Nagar Branch, Hyderabad which are on record. Shri D. Ramali....