TaxTMI 
TaxTMI 
2016 (5) TMI 461
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....enue is also aggrieved for deleting of addition of Rs. 1,01,39,592/- made on account of loan taken from M/s Akhil Marketing Pvt. Ltd.. 3. Rival contentions have been heard and record perused. Facts in brief are that the assessee is engaged in the business of execution of projects in the infrastructure sector. During the course of assessment, the AO observed that during the year there was increase in share capital by Rs. 14 crores and the amount had been received from following three parties :- i) All-in-one Finance & investments Pvt. Ltd.- Rs.2,00,00,000/- ii) Yamuna Estate Pvt. Ltd. Rs.6,00,00,000/- iii) Akash Organics Pvt. Ltd. Rs.6,00,00,000/- The AO found that in the case of All-in....
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.... parties had shown worth however. in effect nothing was there as duly evidenced from the bank statements where balance was not even Rs. 1.00,000/- (iv) All the above three companies appeared simply or, paper. These companies do not have any business whatsoever. (v) All the three parties have shown huge increase in share capital and share premium. however, no party had paid ROC fees and majority amount was received as share premium. (vi) Out of total share capital & share premium taken of Rs. 14 crores. Rs. 60 lacs only has been received by cheque and balance amount was received though Book entries. Therefore, balance amount of Rs. 1340 lacs was credited merely by book entries without any corresponding fund transfer. Therefore entire share c....
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....ed to income-tax. Copies of income-tax returns have also been filed. The evidence which has been relied by the learned CIT (A) for deleting the addition is copy of confirmation letter, copy of bank ITA Nos.3852, 3853 & 3854/D/2009 statement, return acknowledgement of SOPL, the balance sheet of SOPL and the allotment of share to SOPL in subsequent years. The Assessing Officer has not pointed out any discrepancy in the said evidence and has just applied Section 68. Learned CIT (A) has rightly held that the assessee has discharged its initial onus to prove the identity, credit worthiness and genuineness of the transaction and his such findings are based on the material made available by the assessee to the Assessing Officer. The relevant evide....
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....d that effectively balance of not more than Rs. 1 lakh had been maintained for five consecutive days. Number of cash deposits and cash withdrawals were reflected and looking to the number of cheques issued and deposited in the bank account it was concluded that company exists only on paper and effectively no business whatsoever has been carried out. The entire amount due to M/s. Akhil Marketing Pvt. Ltd. of Rs. 1,01,39,592/- was treated as unexplained cash credit and accordingly taxed u/s.68. 7. By the impugned order the CIT(A) deleted the addition after having the following observations :- "4.4 The submission has been considered. The A.O. had held that-as the entries are by cheuqes the transaction relates to unsec....
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....e effect that these companies were assessed with I.T. Department for several years. The identity and genuineness of the transaction was duly accepted. The detailed finding recorded by CIT(A) are as per material on record. Moreover the issue is also covered by the decision of the coordinate bench in the case of Sinhal Products (P) Ltd., ITA No.3852/Del/2009, dated 7-3-2012, wherein under similar facts and circumstances, the Tribunal has held that the assessee has discharged its initial onus to prove the identity, creditworthiness and genuineness of the transaction. We also found that it is not a case where department has received any information with regard to the fact that the share application were bogus entry or it is in the shape of acco....