TaxTMI 
TaxTMI 
2022 (11) TMI 270
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.... Act, received as Share application money from M/s. Talent Infoways Ltd. The learned CIT(A) erred in not appreciating the submissions made by Appellant to the effect that it has discharged it's onus with regards to identity of the party, creditworthiness of the party and genuineness of the transaction. Thus entire additions of Rs 5 lakhs u/s 68 confirmed by the learned CIT(A) is bad-in-law and must be deleted. 2. On the facts and circumstances of the case and in law, the learned CIT(A) NO erred in confirming the addition of Rs.1,46,379/- towards Interest on Term loan with Shamrao Bank which is pertaining to F.Y 2003-04 under the head prior period adjustments. The Learned CIT(A) erred in not appreciating that the Appellant has not claimed the said expenses while calculating the Taxable Income since the appellant has started the computation of business income/ (loss) by considering profit / (loss) before tax and before the said prior period adjustment. Thus, the addition made on account of the same is bad-in-law and must be deleted." 3. The issue arising in ground No. 1, raised in assessee‟s appeal, is pertaining to addition of Rs. 5,00,000, made by the Assessing Officer....
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....see's submission is carefully considered. The same is not accepted. The address given on the share application of M/s. Talent Infoway Ltd. is Santacruz (East), Mumbai-400055. The assessee has not produced the Director of M/s. Talent Infoway Ltd., for supporting it's claim. Assessee has also failed to produce copy of Balance sheet of M/s. Talent Infoway Ltd. Assessee has claimed in reply that bank statement of subscriber is filed but it is not correct. As per the reply of assessee dated 28/01/2011 (same is on record) the said shares were sold by M/s. Talent Infoway Ltd. to M/s. Aditya Share Dealing & Trading Pvt. Ltd. on 19/04/2008 for a consideration of Rs.50,000/- Except the share application form and copy of the cheque, nothing is filed by the assessee to establish the share allotted of Rs.5,00,000/- to M/s. Talent Infoway Ltd., is the genuine transaction. The department has evidence by way of statement of Shri Mukesh Choksey that it is a mere accommodation entry. The modus operandi is already described in para no.03 above. The assessee failed to establish credit worthiness of M/s. Talent Infoway Ltd. and genuineness of transaction. 7. .......... 8. In view of the above, the ....
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....reason to interfere with the action of the A.O. and the addition made by the A.O. is sustained. Accordingly, the ground of appeal is treated as disposed off and dismissed." Being aggrieved, the assessee is in appeal before us. 6. During the course of, learned Authorised Representative ("learned AR‟) submitted that by furnishing the name, address, PAN number of the share Applicant, the assessee proved the identity of the share Applicant. It was further submitted that the assessee also furnished the board resolution resolving for making investment in the shares of the assessee and also share application form and details of allotment made. The details regarding the cheque payment and credit of the same in the bank accounts of the assessee was also furnished before the lower authorities in order to justify the genuineness of the transaction. The learned AR submitted that the copy of financials of 11 entities were furnished, who had also contributed in share capital of the assessee with premium, however, audited financials of M/s Talent Infoways Ltd could not submitted by the assessee during the reassessment proceedings and therefore, the AO made the addition in respect of share....
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....ities, who had also contributed in share capital of the assessee, were submitted. However, since the copy of audited financial of M/s Talent Infoways Ltd. could not be submitted, in absence of same, the AO made the addition of Rs. 5,00,000 received from M/s Talent Infoways Ltd., under section 68 alleging it to be unexplained cash credit by assuming the same as accommodation entry. The assessee, accordingly, prayed for admission of the additional evidence. In view of submission made during the hearing, we admit the aforesaid additional evidence filed by the assessee. We further find that the assessee vide various letters, forming part of the paper book from page No. 57 - 60, has requested the AO to provide the statement recorded of Shri Mukesh Choksi. However, the said statement was not provided to the assessee. Though, in the case of Shir Mukesh Choksi, and the companies run by him it has been established that they were engaged in providing accommodation entries to its beneficiaries, however, the statement recorded of Shri Mukesh Choksi, was not provided to the assessee despite various requests. Further, it is the plea of the assessee that in absence of the aforesaid statement no c....