2018 (6) TMI 1113

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...., the learned Commissioner (Appeals) has erred in confirming addition of Rs. 69,00,000 to the total income as unexplained cash credits u/s 68 of the Act. 2. That on the facts and circumstances of the case, the learned Commissioner (Appeals) has erred in not considering the statement of facts submitted before him in totality. The addition made by A.O. on the grounds of purported receipt of share application money from companies belonging to Mr. Praveen Jain group, which is factually incorrect. In fact the appellant never received any share application money from Mr. Praveen Jain group and however the amount was received on third parties behalf in the books of the appellant." 3. The only dispute is with regard to the addition of a....

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....Assessing Officer. However, the Assessing Officer was not convinced with the claim of the assessee. Referring to a statement recorded from one Shri Nilesh Parmar, under section 131 of the Act, proprietor of M/s. Mohit International, who allegedly was working for Shri Pravin Jain, the Assessing Officer ultimately concluded that the assessee has failed to prove the genuineness of transaction relating to share application money of Rs. 69 lakh. He also observed that the assessee failed to prove the creditworthiness of the concerned parties. Accordingly, he added back the amount of Rs. 69 lakh under section 68 of the Act. Though, the assessee challenged the addition before learned Commissioner (Appeals), he also sustained the addition. 5. The....

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.... rival submissions and perused materials on record. It is evident, the Assessing Officer has treated the alleged share application money of Rs. 69 lakh as unexplained cash credit under section 68 of the Act at the hands of the assessee relying upon certain information obtained in course of search and seizure operation conducted in case of Shri Pravin Kumar Jain and Group. On a reading of the assessment order, it is noted that as per the information available with the Assessing Officer, assessee has received share application money from eight parties totaling to Rs. 69 lakh. However, in course of assessment proceedings, the assessee vide letter dated 26th February 2016, had submitted that the said amount of Rs. 69 lakh was received from thre....