TaxTMI 
TaxTMI 
2020 (10) TMI 1089
X X X X Extracts X X X X
X X X X Extracts X X X X
....ds: - 1. On the facts and circumstances of case and in law, the Ld. CIT(A) erred in deleting the addition of Rs. 1,95,00,000/- u/s. 68 of the Act, on account of share capital and share premium as Unexplained cash credit. 2. On the facts and circumstances of case and in law, the Ld. CIT(A) erred in deleting the addition of Rs. 1,95,00,000/- being the amount received by the assessee on account of Share Application Money/Share Capital and Share Premium from M/s. Advance Technologies Ltd. Prabhav Industries Ltd. and Yantra Natural Resources Ltd., without appreciating the fact that neither the genuineness of the share premium amount nor the creditworthiness of the above companies has been established by the assessee company. 3. On the facts and circumstances of case and in law, the Ld. CIT(A) erred in not appreciating the fact that Mr. Shirish C. Shah, in his statement recorded on oath u/s. 132(4) of the Act, stated that the above listed companies are managed and controlled by him and he had used these companies for providing accommodation entries of share Capital/Premium, share application and unsecured loans. 4. The Appellant prays that the order of....
X X X X Extracts X X X X
X X X X Extracts X X X X
.... time wherein the assessee was, inter-alia, directed to prove the identity as well as creditworthiness of the share applicants & also the genuineness of the transactions. 4.3 In response, the assessee filed various documents viz. Form-2-Return of Share allotment filed by the assessee with Registrar of Companies (ROC), details of entities to whom the shares were allotted and compliance certificate from Company Secretary regarding share allotment compliances. To prove the identity, genuineness & creditworthiness of the 3 investor entities, the assessee filed copies of share application forms, relevant extracts from bank statements of 3 entities showing movement of funds from banking channels. The assessee also filed copies of Board resolutions passed by respective investor entities authorizing them to make the aforesaid investment. Further, the assessee also filed copies of Income Tax Return acknowledgements as well as audited financial statements of the investor entities to demonstrate fulfilment of primary ingredients of Sec.68. The confirmation of accounts was also placed on record. The aforesaid documents have also been placed before us also in the paper-book and we have pe....
X X X X Extracts X X X X
X X X X Extracts X X X X
....AO who opined that the plea of cross-examination would not hold good as the assessee had already been asked to produce the parties to prove the genuineness of the transactions but the assessee failed to discharge the obligation. It was the duty of the assessee to prove the genuineness of the transactions. Finally, disregarding assessee's documentary evidences as well as explanation, the aforesaid amount was added back to the income of the assessee u/s 68 as unexplained cash credit. 4.7 Upon further appeal, Ld. CIT(A) deleted the same by noticing that upon receipt of share application money, shares were ultimately issued to the applicants and the share applicants became shareholders as per record of Registrar of Companies. All required details vis. Share application, details of payment received, shares issued, copies of annual return filed with ROC was placed on record. Further, in terms of the decision of Hon'ble Bombay High Court in CIT V/s Gagandeep Infrastructure P. Ltd. (ITA No. 1613 of 2014 dated 20/03/2016), proviso to Sec.68 requiring assessee to prove the source of source was applicable only from AY 2013-14 onwards only and therefore, the additions so made by Ld. AO were....
X X X X Extracts X X X X
X X X X Extracts X X X X
....that the assessee had established the identity, creditworthiness and genuineness of share application money. Upon further appeal to Tribunal, the matter was restored back to Ld. AO for fresh assessment after examining the aforesaid parties and allowing the assessee an opportunity to cross-examine the same. Pursuant to the said directions, an assessment was framed u/s 143(3) r.w.s. 254 on 30/12/2019. During the course of fresh assessment proceedings, the assessee had filed an affidavit dated 20/12/2019 of Shri Shirish Chandrakant Shah in support of the transactions. In the said affidavit, Shri Shah, inter-alia, denied having provided any accommodation entries to the assessee. The assessee had relied upon favorable decision of Hon'ble High Court of Madhya Pradesh in the case of Pr.CIT V/s Chain House International Ltd. (408 ITR 561). The special leave petition (SLP) filed by the department against the same was dismissed by Hon'ble Supreme Court vide SLP No. 1992/2109 dated 18/02/2019. After due consideration of assessee's submissions, Ld. AO chose not to make any additions in the hands of the assessee. Similar are the facts in this year since there is allegation by Ld. AO that the th....