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2006 (1) TMI 603 - HC - Income TaxApplications for allotment of shares - camouflage transactions / accommodation entries - Whether, the Tribunal was justified in reversing the findings of the CIT(A), when the appellant has produced the books of accounts to show the application made by the assessee by different applicants for allotment of shares”? - HELD THAT:- We notice that whenever a company invites applications for allotment of shares from different applicants, there is no procedure contemplated to find out the genuineness of the address or the genunity of the applicants before allotting the shares. If for any reasons the address given in the applications were to be incorrect or for any reasons if the said applicants have changed their residence or the notices sent by the assessing officer has not been received by such applicants, the assessee/company cannot be blamed. Therefore, we are of the view that the Tribunal was not justified in allowing the appeal of the revenue only relying upon the statement of Sri Anil Raj Mehta, a Chartered Accountant. It is also seen by us that he has opened a joint account with three applicants viz., Sri Radheshyam. Sri Ramesh N Bothra and Sri Jabbar Singh. At the First instance he has denied the connection with that of the 10 persons and later on when he was confronted with the introductory forms of the bank accounts of aforesaid persons, he has admitted that he had opened joint account with three persons and introduced remaining some of them to the bank while opening the accounts. From this it is clear that the Tribunal so also the assessing officer could not have relied upon the sworn statement of Sri Anil raj Mehta. Thus, we allow this appeal and set aside the order passed by the Tribunal as well as the assessing officer and confirmed the order passed by the CIT (A) by answering the question of law framed in favour of the assessee.
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