2016 (6) TMI 32

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.... of mind and having any reason to believe that there was escapement of income. Hence, the assessment so completed is ab inito void. 2. Under the facts and circumstances of the case the ld. CIT(A) has erred in confirming the addition of Rs. 5,01,250/- treating the share capital subscribed by M/s. Enpol (P) Ltd. amounting to Rs. 5,01,250/- as undisclosed income of the company. 2.1 During the course of hearing, the ld. AR of the assessee has not pressed the Ground No. 1. Hence, the same is dismissed being not pressed. 3.1 Apropos Ground No. 2, brief facts of the case are that information Investigation Wing, Delhi was received that the assessee had received share application money from one Shri Deepak Gupta. The assessee was called on ....

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.... wing that he was providing accommodation entries in the name of some concerns including Enpol (P) Ltd. are sufficient to hold against assessee. Appellant only relied upon the fact that it received money by cheque and Enpol (P) Ltd. is having PAN and therefore, existing appellant also argued that cross examination of Shri Deepak Gupta was not provided. When the person who has given credit to the appellant does not exist and it is admitted by the arranger of the fund that he was only giving accommodation entries, appellant's arguments become secondary. When Assessing Officer did not find the person in whose name credit is appearing, onus is on the appellant to prove the identity, creditworthiness and genuineness which cannot be proved by sub....

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....like confirmation letter, PAN and other relevant details to establish that share application money transaction was explained. (iv) It is settled law that any addition without cross examination of the alleged creditor is baseless. Reliance is placed of ITAT Mumbai in the case of ITO vs. M/s. Superline Construction (P) Ltd. another (ITA No. 3645/Mum/2014 for the assessment year 2007-08 dated 30th Nov. 2015) in which similar additions in batches of appeals have been deleted. (v) The existence of the share applicant company was found on the website of Ministry of Corporate Affairs which is similar assessee's case and cross examination of share money applicant was not provided. The ITAT in support of it relied on following case laws. ....