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2014 (7) TMI 389 - ITAT DELHIIncome from unexplained sources - Creditworthiness and genuineness of the transaction - Share application money received – Commission paid – Held that:- The case was reopened u/s 148 of the Act on the basis of information from Investigation Wing that assessee is a beneficiary of accommodation entry providers - The assessee submitted the documents in respect of each of the share applicants like share application form, confirmation of share application, bank statement showing relevant transaction, copy of cheques/drafts of which payment was received, copy of income-tax return of the share applicant, PAN of each applicant and also affidavits and Board resolution – AO has not done any verification with regard to the documents to know veracity of the documents - AO has also not issued summons u/s 131 of the Act to the share applicants for their personal presence - Delhi High Court in the case of CIT vs. Gangeshwari Metal P. Ltd. [2013 (1) TMI 624 - DELHI HIGH COURT] has held that there are two types of cases, one in which the AO carries out the exercise which is required in law and the other in which the AO ‘sits back with folded hands’ till the assessee exhausts all the evidence or material in his possession and then comes forward to merely reject the same on the presumptions. The assessee’s case falls in the second category as the AO has not made any investigation with regard to the verification of the documents submitted by the assessee before him - there was a clear lack of enquiry on the part of the AO - no addition can be sustained u/s 68 of the Act - the assessee has adduced adequate evidence/material which are sufficient to discharge the prima facie burden casted upon it by section 68 of the Act – thus, the CIT (A) was not justified to sustain the addition – Decided in favour of assessee.
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