Home Case Index All Cases Income Tax Income Tax + AT Income Tax - 2016 (12) TMI AT This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2016 (12) TMI 1816 - AT - Income TaxReopening of assessment - Addition u/s 68 - non independent application of mind - HELD THAT:- AO had issued notice u/s 148 of the Act only on the basis of information received from CIT, Central-1, New Delhi and not on the basis of reasons recorded by him by applying his own mind. Therefore notice issued u/s 148 of the Act was not valid and the reassessment framed deserves to be quashed. As regards to the merit of the case is concerned, it is not in dispute that the assessee furnished the confirmation from the share applicants to whom shares were allotted, the amount was received by the assessee through banking channels. The addition was made simply on this basis that the notice issued u/s 133(6) were received back and the assessee was unable to produce principal officer/director of the investor companies. However, the explanation of the assessee that the shares earlier allotted to the companies M/s MARRASS Industries Pvt. Ltd. and M/s BSA Fincap Pvt. Ltd. were already sold to other parties and those companies were not the shareholders of the assessee at the time of date of inquiry, was brushed aside. In the instant case, the assessee furnished documentary evidences in support of the receipt of the share application money which was through banking channels from the companies and also stated that those corporate entities were duly assessed to tax. But the AO held that even when the share capital had been received through banking channels and from corporate entities who were duly assessed to tax was not enough to accept the claim of the assessee. However, it was not brought on record to substantiate that the share application money was in fact the money of the assessee which rotated through banking channels. Therefore, the addition made by the AO and sustained by the ld. CIT(A) was not justified. Accordingly, the same is deleted. In the result, the appeal filed by the assessee is allowed.
|