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2014 (10) TMI 420 - AT - Income TaxAddition on share capital Shares issued to Shri Deepak Gupta Unexplained cash credits Held that:- The assessee has not given any details with regard to the share capital of ₹ 1 lakh, not even the name of the shareholder and the confirmation of the shareholder - Before the CIT(A), the assessee explained that it had received the sum of ₹ 10,10,000/- by cheque from Shri Anupam Nagalia, out of which, ₹ 50,000/- is credited to the share capital account of Shri Anupam Nagalia, ₹ 50,000/- to the share capital account of Shri Deepak Gupta and balance ₹ 9,10,000/- in the loan account - Except this explanation, no confirmation from anybody was produced and moreover, why the cheque received from Shri Anupam Nagalia was credited by share capital by Shri Deepak Gupta is explained - the matter needs proper examination at the end of the AO. So far as cash deposit in the bank is concerned, the only explanation of the assessee is cash withdrawal from the banks two and half months before - the assessee has not produced the cash book from which the AO may verify whether the cash withdrawn two and half months back is available - The assessee is a company which is in the business of real estate revenue rightly pointed out that it needs to be verified whether no expenditure is incurred by the assessee company during the two and half month period. Similarly, with regard to mutation expenses, no vouchers for the expenses are submitted. The only explanation of the assessee is that the payment has been made by M/s Vatika Limited and the expenses were incurred for identification of land, inspection thereof, searching of registrar's record, expenses incurred on reports from advocates, brokerages etc. - Now, if a third party is debiting some account in the name of the assessee, the third party would certainly give the details to the assessee to whom they have made the payment and for which purpose - No such vouchers/details or evidence are produced before the AO either in original assessment proceedings or in remand proceedings despite assurance given to CIT(A) - before the CIT(A), the assessee agreed that he will produce the books of account and supporting evidence for verification before the AO and the CIT(A) directed the AO to call for the relevant vouchers and books of account for verification revenue rightly contended that the entire matter needs complete relook and re-examination by the AO thus, the order of the CIT(A) is set aside and the matter is remitted back to the AO for fresh adjudication Decided in favour of assessee.
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