TaxTMI 
TaxTMI 
TaxTMI 
2019 (2) TMI 706
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....law, the ld. CIT(A) has erred in deleting the addition of Rs. 204 lacs u/s 68 of the Income-tax Act on account of non-genuine share capital. 2. On the facts and circumstances of the case and in law, the Ld. CIT(A) failed to appreciate the fact that the assessee failed to produce any subscriber for examination by the AO. 3. On the facts & circumstances of the case and in law. the Ld. CIT(A) failed to appreciate the fact that Shri Pravin Kumar Jain was indulged in issuing bogus accommodation entries in different forms including share capital. 4. On the facts & circumstance of the case and in law, the Ld. CIT(A) has erred in deleting the addition u/s 68 on account of non-genuine share capital received through the entities engaged in providing accommodation entries Oil commission basis on the basis of documentary evidences such as PAN. IT return. Confirmations, bank statement, etc. without considering the facts that subscriber was a paper company and not a genuine investor. 5. On the facts and circumstances of the case and iii law, the Ld. CIT(A) has erred in deleting the addition u/s 68 on account of non-genuine share capital received though the entities engaged in providing a....
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....e through the decisions relied on by the AO and the Ld. A.R. The appellant has received investments in shares only at face value of Rs. 10/- even though the AO talks of premium despite the submissions of the appellant before the AO to that extent. However, onus is on the assessee to prove the genuineness any amount credited in the books as per provisions of sec. 68. The provisions of sec.68 are reproduced as under: - Cash credits. 68. Where any sum is found credited in the books of an assessee maintained for any previous year, and the assessee offers no explanation about the nature and source thereof or the explanation offered by him is not, in the opinion of the Assessing Officer, satisfactory, the sum so credited may be charged to income-tax as the income of the assessee of that previous year : Provided that where the assessee is a company (not being a company in which the public are substantially interested), and the sum so credited consists of share application money, share capital, share premium or any such amount by whatever name called, any explanation offered by such assessee-company shall be deemed to be not satisfactory, unless- (a) the person, being a resident in....
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....se, however, as seen from the details filed before the AO, a set of which were also filed before me, the AO has relied much on the statements given by Praveen Jain without proving his stand independently. I do not find any inconsistency or incoherence in the receipt of share application money from the parties for the following reasons. Firstly, the appellant has filed all the documentary evidences to establish identity, creditworthiness of the creditors and genuineness of the transaction as required u/s 68 of the Act. which the AG has not doubted the details filed and not stated how the details like PAN, the IT returns, confirmation letters, bank statements of the creditors, audited balance sheet of the creditor are unbelievable and cannot be taken note of. Secondly, the transactions were made through banking channels and it is seen from the bank statements filed before me, the source cannot be doubted as sufficient balance was available in the account of the parties before giving loan to the appellant and they were running accounts Therefore, creditworthiness and geniuses of the transaction need not be doubted. Thirdly, even though, the transaction is form a tainted group, t....
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....all the details like confirmation, PAN details, IT returns (copy), balance sheet and P&L Account, Bank statements of these parties as sought by the AO and the assessee has discharged the primary onus casted on him, thereby prove the identity, creditworthiness of the parties and genuineness of transactions. It was contended that the learned Counsel that all the payments were made through banking channel and payments by cheques and shares were actually allotted to these shareholders. It was stated that the shareholders were required to prove the creditworthiness and not the assessee. He, further argued that the AO has excessively relied on the statement given by Shri Pravin Kumar Jain, during the course of search and he has not made any independent enquiry qua these parties. The learned Counsel for the assessee relied on the Tribunals decision in the case of ITO vs. IDM Agro Bio Tech Ltd. in ITA No. 5805/Mum/2017 for AY 2008-09 vide order dated 04.12.2017, wherein parties under consideration namely Kush Hindustan Entertainment Ltd. and Olive Overseas Pvt. Ltd were also considered by the Tribunal and deleted the addition. Similarly, the Tribunal in ITA No. 6492/Mum/2016 for AY 2007-08....