2019 (6) TMI 1408

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....e decision of the CIT (A) deleting the addition of Rs. 2,66,05,000/- made under Section 68 of the Income Tax Act, relying on the decision of the Bombay High Court in the case of Creative World (2011) 15 taxmann.com 183 (Bom), ignoring the recent decision of the Supreme Court of India in the case of Navodaya Castle (P) Limited (2015) 56 taxmann.com18 (SC), wherein the Apex Court has upheld the Delhi High Court decision holding that certificate of incorporation, PAN etc., were not sufficient for purpose of identification of subscriber company. (b) Whether on the facts and in the circumstances of the case, the Tribunal was correct in law, in upholding the decision of the CIT(A) deleting the addition of Rs. 2,66,05,000/- made under Sec....

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....m had filed their income tax return, in which computation of their income for the assessment of 2010- 11 was also available. CIT (Appeal) therefore held that transactions were genuine and that the Assessee had established source and credit worthiness of the lenders. 5. Revenue carried the matter before the Tribunal. The Tribunal by its impugned Judgment dismissed the Revenue's Appeal ordering following observations : " We have heard the rival contentions, perused the materials on record and the case laws relied on by the assessee. The Assessing Officer made addition u/s. 68 of the Act in respect of 12 parties holding that the creditors have not appeared in response to the summon issued u/s.131 of the Act and he also held tha....

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....first deposits are received through bank transfers from the lenders accounts and thereafter they were given to the assessee company by account payee cheque. It is the finding of the Ld. CIT(A) that Assessing Officer has not disputed the above facts nor has brought any material on record to suggest that the said transfers are not genuine transfers as and the lenders also confirmed giving funds to the assessee through account payee cheque and shares were also allotted by the assessee company against such funds. Therefore, the Ld. CIT(A) concluded that assessee has established not only the credit worthiness and identity of the said creditors but also established the genuineness of the transaction. None of the finding of the Ld. CIT(A) has been....