2007 (10) TMI 642

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....ssment year in question, the assessees declared a loss but were assessed at a positive income after making additions on account of unexplained share application money to the extent of Rs. 17.35 lakh in respect of the assessee-company in ITA No. 2549 of 2002 and Rs. 36.22 lakhs in respect of the assessee-company in ITA No. 2550 of 2002. 3. The Assessing Officer required the assessees to furnish details and documents. The assessees produced copies of sale and purchase bills of the share brokers through whom the transactions took place and photocopies of confirmations of persons who had contributed the fresh share application money. The assessees furnished the PAN (GIR) numbers of the applicants, the details of the cheque numbers and dates. T....

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....btained to make the deposits. Copies of Bank a/cs were furnished. These affidavits were notarized. There was no ground for disbelieving the contents of the affidavits. (v )If the Assessing Officer entertained any doubts regarding genuineness of the credits in respect of share application money, he could have issued summons to the subscribers or could have asked the assessee to produce them. This was not done. (vi)Most of the subscribers were companies incorporated with the Registrar of Companies. Proper enquiries would have revealed the true facts of the case. The appellant cannot be faulted if there was no time to give them an opportunity to rebut the Inspector's report made at the back of the appellant. (vii)The deposit were not of ....