2016 (8) TMI 1463

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....000-2001, the assessee, an incorporated company increased its share capital by almost Rs. 8 crores. It was subjected to assessment in the ordinary course. Initially, the assessment was framed without scrutiny under Section 143(3). Subsequently, on the basis of search on entry operators and survey of the asseesee company's premises-during the course of which, on the basis of materials and statements, the AO was of the opinion that the assessee in this case had withheld particulars that resulted in failure to disclose income etc. leading to escapment of income; thus reassessment procedures were initiated under Section 147/143. After completion of the enquiries, the AO passed the final order adding back 3.85 crores. The CIT (A) considered ....

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....ion in these companies. The Learned CIT(Appeals) has noted further that there is no nexus between the additions of Rs. 3.85 crores and survey material that could support the addition. The addition was made not on the basis of any evidence found during the course of survey but on the basis of statements of Shri Arvind Kumar Gupta recorded during the survey. Shri Arvind Kumar Gupta on the basis of whose statements, the addition is made has specifically admitted in question Nos. 18 & 21 of the statements that details and genuineness of share capital is as per the shareholders register and there is no incriminating material found during survey. Also that the very basis of question No. 22 that cheques are accommodation entries in ,lieu of cash d....

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....bank statements of the subscribers and all the share holders share application form, board's resulation etc. Besides, the shareholders have confirmed the share money transaction which were produced before the Assessing Officer. At the conclusion of the paragraph, the Learned CIT(Appeals) has directed the Assessing Officer to delete the addition on the basis that the assessee has established the identity of the 16 share-subscribers, their creditworthiness and genuineness of the share transactions with documentary evidence as per law." Learned counsel relied upon the decision of this court in CIT Vs. Jansampark Advertising & Marketing Private Limited, (2015) 56 Taxmann 286 (Del) and submits that whereas the assessee might have establish....