2015 (12) TMI 1687

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.... Smt. Vimalamma. 3. The facts of the case are that there was survey u/s.133A on 03.06.2008. During the course of survey it was found that the assessee had purchased land from Smt. Vimalamma and paid Rs. 3,71,70,255 on 17.06.2006. The value of the property was fixed at Rs. 5,60,00,000/- and the balance unpaid amount was brought into the books of assessee as Share application money pending allotment. It was stated by the Managing Director of the assessee company that Smt. Vimalamma had applied for shares for a value of Rs. 1,88,00,000/-. On examination of Smt. Vimalamma, she stated that she had received a total consideration of Rs. 3,75,00,000/- and there was no investment in the form of share application money of assessee company. Hence, ....

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....d her ignorance of having invested any amount in any company towards shares. In her letter dated 30.6.2011 in response to summons u/s. 131 of the Act issued by the AO, she has admitted the sale consideration of Rs. .5,60,00,000/- in her return of income and stated that the balance amount (Rs. 1,85,00,000) has not been paid by the purchaser of the property i.e., the assessee. She has also stated that she has not given any consent or agreed to deem the difference as share application money by Cosmo Foundations Ltd. Based on these details, the AO has submitted his remand report dt.06.01.2012 through proper channel received in this office on 10.01.2012 stating that Smt. Vimalamma has not given any consent to treat the difference as share applic....

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....wed as share application money in the name of Smt. Vimalamma and accordingly deleted the addition made by the Assessing Officer. Against this, the Revenue is in appeal before us. 5. We have heard both the sides and perused the material on record. As per the sale deed of property dated 17th March, 2006 the sale consideration was Rs. 5.6 crores. As per sale deed Smt. Vimalamma received full sale consideration of Rs. 5.6 crores and there was no mention about the allotment of share in lieu of share consideration. Further, on few occasions, she narrated in earlier para that she had denied making any investment in assessee company. However, the Commissioner of Income Tax (Appeals) gave a finding that Rs. 2.85 crores was made as investment by S....