2021 (12) TMI 309

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....ssee being not able to prove genuineness and credit worthiness of share capital and securities premium." 2. The appellant prays that the order of the Ld.CIT (A) on the above grounds be set aside and that of the AO be restored. 3. The appellant craves leave to amend or alter any grounds or add a new ground which may be necessary. 2. At the outset, the ld. Authorised Representative (ld. AR for short) for the assessee has submitted that the assessee is not pressing the transfer of appeal to Goa jurisdiction and he seeks to withdraw the application filed by the assessee for the purposes. In view of the statement given by the ld. AR, the application for transfer of appeal is dismissed as withdrawn. 3. The ld. AR had submi....

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....ters, the summary of the confirmation letters are as under: Sr. No. Name Amount Description Date of outstanding of amount 1 Mrs. Anjali Pathak Rs. 12,50,000/- For issue of shares at Rs. 10/- for 1,25,000 shares date is not mentioned 2 Mr. Mahendra Mehar Singh Gujral Rs. 12,50,000/- For issue of shares at Rs. 10/- for 1,25,000 shares date is not mentioned 3 M/s. Star Bio Source Private Limited Rs. 25,00,000/- Investment in equity shares 30.12.2005 4 M/s. Michigan Traders Pvt. Ltd. Rs. 25,00,000/- Investment in equity shares 04.01.2006 5 M/s. Plasticon Industries Limited Rs. 25,00,000/- Investment in equity shares 05.01.2006 6 M/s. Jajodia Textiles....

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....ue merely on the basis of the judgement relied upon by the ld. AR and vague finding of the CIT(A) . 8. The ld. CIT(A) has merely relied upon the confirmation letter given by the respective shareholders, confirming the transaction along with the loan transactions before us as well as before the ld. CIT(A). No books of accounts of the assessee were produced before us showing credit entry of the amounts invested in the shares prior to the previous years. For the purposes of section 68, it is essential that there must be credit entry in the books of account in the previous year for which the addition are sought to be made. However, the ld. CIT(A) without verifying the credit entry in the books of the assessee, have deleted the addition merel....

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..... We note that as discussed above the A0 at Mumbai proceeded to complete the assessment u/s. 144 of the Act. Amongst the additions made by the AO the assessee made contentions before the CIT(A) regarding the additions made on account of Share Capital and Share Premium and considering the same, the CIT(A) deleted the same vide para 3.3 of the impugned order. Regarding the other addition made on account of other loans were confirmed due to the fact that there were no details filed by the assessee before the AO nor in the First Appellate proceedings. The assessee filed evidences in the form of confirmations loans, copy of Income Tax returns of two Directors by way of paper book before us and on examination of the same, we note that the said ev....