2007 (4) TMI 226

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....hase of shares. The Assessing Officer asked for a confirmation to be filed and the assessee filed a confirmation from M/s. First Global Finance Pvt. Ltd. but not from Ms. Devina Mehra. The Assessing Officer then asked Ms. Devina Mehra to confirm the transaction but she did not respond. On these facts, the Assessing Officer asked the assessee to show cause why the amount be not added to its income since the transaction did not appear to be genuine. The assessee did not respond but a letter was received by the Assessing Officer from M/s. Khanna and Co. claiming to be the chartered accountant of Ms. Devina Mehra in which it was stated that she had given a loan to the assessee on behalf of M/s. First Global Finance Pvt. Ltd. in which she was....

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....ersions on record, the Assessing Officer was not satisfied about the genuineness of the transaction and, therefore, concluded that the amount of Rs. 80 lakhs credited in the accounts of the assessee was the unexplained income of the assessee. On appeal by the assessee, the Commissioner of Income-tax (Appeals) concluded that in the absence of a clear cut explanation with regard to the source of Rs. 80 lakhs, the nature of the transaction between the assessee, M/s. First Global Finance Pvt. Ltd. and Ms. Devina Mehra and the failure of the assessee to show the genuineness of the transaction, the addition of Rs. 80 lakhs was quite justified. The assessee then preferred a further appeal before the Tribunal but that appeal was dismissed wit....