TaxTMI 
TaxTMI 
2015 (8) TMI 1463
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....g the commission payment estimated by the AO. 2. I heard the parties and perused the record. The assessee was subjected to search and seizure operations under section 132 of the Act on 18.1.2006. Consequently, the present assessment was framed under section 153A of the Act. The AO noticed that the assessee has received share application money of Rs. 10.00 lakhs from a company named M/s Dakcon Impex Private Limited. Before the AO, the assessee furnished details like addresses of the parties, copy of the acknowledgement of ereturn filed by it, the copies of bank statement and copy of accounts in order to prove the genuineness of the share application money received by it. The AO, however, issued summon to the above said company, but the sa....
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....ments furnished by the assessee and noticed that the assessee has declared a sum of Rs. 552/- only for assessment year 2006-07. Further, he also noticed from the bank account of the share applicant company that heavy deposits were made on daily basis before issuing the cheque of Rs. 10 lakhs to the assessee. Based on this facts, the ld. CIT(A) came to the conclusion that the assessee has only availed the accommodation entries. He also held that the assessee has also failed to prove creditworthiness of the share applicant company. Accordingly, the ld. CIT(A) confirmed the addition of Rs. 10 lakhs and also the addition of Rs. 10,000/- relating to estimated commission payment. Aggrieved, the assessee has filed this appeal before this Tribunal.....
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....td (2008) 216 CTR 195(SC) The ld.AR further submitted that the decision rendered by the Hon'ble Supreme Court in the case of Lovely Exports P.Ltd (supra) was followed by the Hon'ble Bombay High Court in the case of CIT V/s Creative World Telefilms Ltd (2011)333 ITR 100 (Bom) 5. On the contrary, the ld. DR placed reliance on the order passed by the ld. CIT(A). 6. We have heard the rival contentions and perused the record. From the observations made by the tax authorities, I notice that the assessee has furnished details to prove the identity of the share applicant company, its credit worthiness and genuineness of the transactions. As stated earlier, the AO made the addition on the basis of a statement alleged to have been given by t....
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.... funds to the tune of Rs. 8.89 crores. The above said documents and confirmation letter filed by the share applicant company would show that the identity and credit worthiness of the transactions stand proved. Since the impugned sum of Rs. 10.00 lakhs was received through banking channels, the genuineness of the transactions also stand proved. Thus I notice that the assessee has discharged the initial burden of proof placed upon it. 9. As noticed earlier, the Ld CIT(A) has examined the copy of income tax returns, which may not throw light about the credit worthiness. Further the copy of bank statement also shows that there are continuous transactions of deposits and withdrawals. Hence, in my view, the observations made by the Ld CIT(A) t....