TaxTMI 
TaxTMI 
2023 (6) TMI 1453
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....n of addition of Rs. 2,70,30,857/- by ld. CIT(A) has made by the AO u/s 68 of the Act on account of share application/share premium being unexplained. 3. The facts in brief are that the return was filed electronically on 28.09.2012 declaring loss of Rs. 1,20,129/-. The case of the assessee was selected for scrutiny and the statutory notices were duly issue and served upon the assessee. During the assessment proceeding, the ld. AO called for details/information in respect of share subscribers who invested in the share capital of the assessee company during the year which were duly filed before the AO by the representative of the assessee Shri N.K. Banka. Besides the AO issued summon u/s 131 to the directors of the assessee company on 04.03.....
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....inancial statements, bank statements and confirmations etc. confirming these transactions. We also observe that the AO has issued summons to directors of the assessee company u/s 131 of the Act to produce the directors of share subscribing companies in case of corporate entities and individuals, in case of individual investors. We note that no notice u/s 133(6) or summon u/s 131 of the Act were issued to the share subscribers/lenders by the AO. We also observe that out of 15 allottees/share subscribers, 6 were individuals and remaining nine were bodies corporate. We note that out of six individuals two were directors of the assessee company and remaining four subscribers were relatives of the directors. Upon going through the paper book fil....
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....espondent had given the names and addresses of the alleged creditors. It was in the knowledge of the Revenue that the said creditors were income-tax assessees. Their index numbers were in the file of the Revenue. The Revenue, apart from issuing notices under Section 131 at the instance of the respondent, did not pursue the matter further. The Revenue did not examine the source of income of the said alleged creditors to find out whether they were creditworthy. There was no effort made to pursue the so-called alleged creditors. In those circumstances, the respondent could not do anything further. In the premises, if the Tribunal came to the conclusion that the respondent had discharged the burden that lay on it, then it could not be said that....
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.... shall be assumed that the assessee failed to prove the existence of the creditors or for that matter creditworthiness. As rightly pointed out by the learned counsel that the Ld. CIT(A) has taken the trouble of examining of all other materials and documents viz., confirmatory statements, invoices, challans and vouchers showing supply of bidi as against the advance. Therefore, the attendance of the witnesses pursuant to the summons issued in our view is not important. The important is to prove as to whether the said cash credit was received as against the future sale of the product of the assessee or note. When it was found by the Ld. CIT(A) on fact having examined the documents that the advance given by the creditors have been established t....
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....een spared to up set the fact finding of the Ld. CIT(A) that there are materials to show the cash credit was received from various persons and supply as against cash credit also made. Hence, the judgment and order of the Tribunal is not sustainable. Accordingly, the same is set aside. We restore the judgment and order of the Ld. CIT(A). The appeal is allowed." 9. The case of is also covered by the decision of the coordinate bench by ITO Vs M/s Cygnus Developers India Pvt. Ltd. (ITA No. 282/Kol/2012) the operative part whereof is extracted below: "8. We have heard the submissions of the learned D.R, who relied on the order of AO. The learned counsel for the assessee relied on the order of Ld. CIT(A) and further drew our attention to the....