2018 (6) TMI 1755

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....1-12 on 22.01.2013 admitting a total income of Rs. 17,88,100. During the assessment proceedings u/s 143(3) of the Act, from the books of account of the assessee, the AO noticed that the assessee has shown to have received share application money of Rs. 48.00 lakhs during the year from three parties namely Axiom Goods Pvt. Ltd, Kolkata, Uplink Vyapar Pvt. Ltd, Kolkata and Basukinath Developers Pvt. Ltd, Kolkata. The assessee was asked to prove the genuineness of the above share application money received during the year. 3. In response to the same, on 18.02.2014, the assessee filed a statement of share application money along with confirmation letters of only Basukinath Developers Pvt Ltd and Axiom Goods Pvt. Ltd. The assessee did not men....

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....the assessee has not been able to prove the genuineness of the transactions and creditworthiness of the parties. Therefore, he treated the entire sum of Rs. 48.00 lakhs as unexplained credit u/s 68 of the Act and brought it to tax. Aggrieved, the assessee preferred an appeal before the CIT (A) who confirmed the order of the AO and the assessee is in secondappeal before us. 5. The learned Counsel for the assessee, while reiterating the submissions made before the authorities below, submitted that the assessee had received the share application money through banking channels through RTGS as is recorded by both the AO and the CIT (A). Therefore, according to him, the assessee has proved the genuineness of the transactions and also had given....

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....om Goods Pvt. Ltd and Basukinath Developers Pvt. Ltd. Copies of the confirmation letters are also filed before us at pages 55 and 56 of the paper book and we find that the PAN of the said companies is also given in the said letters. The AO has recorded that there is no response from Basukinath Developers (P) Ltd, inspite of service of notice, and the notices to other parties has been returned unserved. There is no evidence on record that this fact has been confronted to the assessee and that the assessee was asked to produce the parties and prove the creditworthiness of the said parties. In such circumstances, when the assessee is not confronted with the return of notices, it is not understandable as to how the assessee is expected to disch....