2008 (4) TMI 1

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....hich was processed under Section 143(1)(a) of the Act on the same figure. Subsequently, notice under Section 143(2) of the Act was issued and regular assessment proceedings under Section 143(3) of the Act were taken up. During the course of assessment proceedings, the Assessing Officer noticed an increase in the share application money account as compared to the preceding assessment year and vis-'-vis the account of Shri Sanjay Gupta who is the Director of the Assessee company, it was noticed that a sum of Rs.11.82 lacs had been received during the previous year under consideration. It was noted by the Assessing Officer that in fact no shares were allotted during the previous year under consideration and the share application money retained....

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..... 5 lacs.  5. Being dissatisfied with the decision of the Assessing Officer, the Assessee filed an appeal before the CIT(A). However, the CIT(A) dismissed the appeal filed by the Assessee. 6. Thereafter, the Assessee challenged the order passed by the CIT(A) before the Tribunal and vide impugned order it has dismissed the appeal filed by the Assessee with regard to these additions. 7. It is contended by learned counsel for the Assessee that all the amounts credited in the account of Sanjay Gupta in the books of the Assessee have come directly from the account of Sanjay Gupta in M/s Indwheels by cheques and Sanjay Gupta is a partner in the firm M/s Indwheels and he has explained the sources of amounts deposited in cash with Ind....

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....997-98 and the return for the assessment year 1998-99 has been filed only when the enquiry started with regard to the deposit in the petitioner company. Therefore, Sh. Sanjay Gupta was not an Assessee on record at the relevant time. 10. M/s Indwheels firm was not located at the given address as is evident from the inspector's report dated 13-7-01. Only copy of account of M/s.  Indwheels is not sufficient to explain the source and credit worthiness of Sh.Sanjay Gupta. 11. The main plank of the Assessee arguments is that the source of the source cannot be examined. In the present case, the Revenue has seen through the ploy of the Assessee whereby substantial amount have been deposited in cash purportedly in the books of M/s Indwhee....

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....posit and as such the addition should be confirmed. 15. With regard to Rajiv Agarwal, the Inspector's report dated 30^th July, 2001 has made it clear that Sh. Rajiv Aggarwal on being contacted was unable to produce the bank pass book and avoided to produce the same.  16. In the case of Mr.Mayank Jain there are categorical findings of the tax authorities that at one point of time he was working with Sh.Rajiv Agarwal but later on took up employment in a co-operative bank at Meerut and in spite of having a bank account, Sh.Mayank Jain chose to deposit the sum of Rs.2 lacs in cash. 17. In the present case, the above transactions have been done in cash even though the said creditors had bank account and on some occasions they have ....