2018 (3) TMI 529

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....the amount in question was received by it as share application money, by two foreign nationals. The AO rejected the explanation after considering the evidence led before him. The CIT(A), to whom the assessee appealed, rejected its request for adducing additional evidence. However, the Appellate Commissioner had sought a remand report. The assessee appealed to the ITAT which has allowed its plea. 3. The Revenue urges that the ITAT fell into error in not noticing that the assessee had persistently shown debit balance and that along with the returns adequate documents or material had not been led to establish the genuineness, creditworthiness and identity of the share applicants. It is also contended that adducing additional evidence was of....

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....ourse of the appellate proceedings, appellant filed an application under Rule 46A of the Income Tax Rules, and alongwith the application, appellant filed the Tax Returns of both the individuals. That from the perusal of the aforesaid return of income, it would be seen that for the period 06.04.2011 to 05.04.2012, Mr. Curran has shown an income of 1,52,289/- (placed at page 287-289 of PB) and Mr. Gregory stofeldt of AUD 80,217/- which clearly show that such persons are man of means and have sufficient creditworthiness for making investment in the appellant company. In respect of Mr. Patrick Brian Joseph, appellant also filed the confirmation from the bank (placed at page 326-328 of PB) showing that overdraft facility has been granted to him ....