TaxTMI 
TaxTMI 
2021 (10) TMI 876
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....count of unexplained cash credit u/s. 68 of the I.T. Act, 1961, ignoring the fact that the assessee had failed to discharge its onus of establishing the genuineness and creditworthiness of source of funds received." 3. The assessee filed e-return dated 26/9/2012 declaring income of Rs. 2,35,290/-. The assessee Company was engaged in the business of job of work of stainless steel circle and sheets. The Assessing Officer observed that from the balance-sheet of the assessee, it reveals that the assessee company has received share application money during the year amounting to Rs. 1,98,50,000/- and Rs. 15,00,000/- received in the previous years as well as Rs. 3,00,000/- was un-allotted share application money to the share applicants mentione....
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....eived from 17 parties in his order, the addition u/s. 68 has been made only in respect of share capital received during the year from 12 parties. The list of the said 12 parties and the share capital received from them is mentioned at Page-3 of order of CIT(A). On the directions of the Assessing Officer, in discharge of its primary onus, the assessee had submitted the (i) Copy of Acknowledgment of the Return of Income filed by the Party for A.Y. 2012-13; (ii) Party's Bank Account statement evidencing the payment through banking channel and (iii) Confirmed copy of account of the Parties (confirmations). The Assessing Officer issued notices u/s. 133(6) of the Act to all the share applicants and independently obtained the Confirmations fro....
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....d para from top of page 13 of the Assessment Order. Further, the last of the enquiry by Inspector was conducted by the Inspector on 23.05.2015 and the Assessment Order was passed on the next day on 24.03.2015 without any further action. The Assessment Order is full of vague presumptions and conclusions made without any basis. This is not a case where any report has been received from Investigation Wing of the Department or any such agencies. No cash has been deposited in the share applicants' bank accounts. All payments have been made through banking channels. Most of the Share Applicants are very much assessed to tax in Delhi jurisdiction itself. They had sufficient bank balances when the payments were made to the assessee. The additio....
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....of the Assessee cross-verified directly from the Share Applicants as well as from the Bankers by issuing notices u/s. 133(6) of the Act. He had received replies from all the share applicants/shareholders and had not found anything to reject evidences filed by the Assessee. In spite of that, he directed the Assessee to produce the Director/Principal officers of the Share applicants and on the failure to do so, finalised the asst order by making addition u/s. 68 of the Act which is against established principles of law. The Ld. AR submitted that Revenue's appeal is devoid of any merit as the order of CIT(A) is well reasoned and takes into account the principles of law as pronounced by the Hon'ble Supreme Court as well as by the jurisd....
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....e summons u/s. 131 by the creditor cannot be held against the assessee as it is for the AO to take necessary action for non- compliance the Appellant relies upon the ratio of the following: a. CIT vs. Kamdhenu Steel and Alloys Ltd., & Ors. 361 ITR 220 (Del.). b. CIT Vs. Orissa Corporation Pvt. Ltd. (3986) 159 ITR 78 (SC) For the proposition that mere non-production of Directors/Principal officers of the Share applicant companies without anything more and where all relevant documents are placed on records which remained uncontroverted specifically, cannot justify adverse inference u/s. 68 of the Act, the Ld. AR relied upon the decision of the Hon'ble Delhi High Court in case of Commissioner of Income Tax - V vs. Nipu....