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2015 (3) TMI 1209 - AT - Income TaxReopening of the assessment - Held that:- The notice u/s 148 issued on 25.03.2011 was duly served on the assessee well within the limitation prescribed by the Act. The assessee has responded to the notice and submitted that return filed earlier should be treated as the return filed u/s 147 and the copy of the said return was also enclosed. The assessee has sought copy of reasons recorded u/s 147. The assessee company was provided reasons for reopening vide letter dated 28.09.2011 and these objections were disposed off by an order dated 02.09.2011. Therefore, in our considered view, there are no legal and procedural lacunae in the re-assessment proceedings. This reopening was based on the information received from the Investigation Wing of the Income-tax Department with regard to the beneficiary of accommodation entries. Addition on account of share capital and share application money received - Held that:- Since the assessee has not done any business during the year there cannot be any occasion to generate unaccounted funds which can be routed back to the assessee company in the form of share application money. The assessee has submitted all the relevant papers before the Assessing Officer which include share application forms, confirmations, affidavits, balance sheets, certificate issued to the Board Resolution, confirmations from the party, bank statements of the parties, Copy of ITRs, balance sheets and profit & loss account, copy of certificate of incorporation and Memorandum and Articles of Association, copy of PAN card. Therefore, primarily, the assessee was able to discharge the onus casted upon it. It was on Assessing Officer to verify the veracity of these documents and if found not satisfactory, then only the burden shifts on the assessee. The assessee has submitted the correct address of the parties. Latest assessment particulars of these parties were also filed which includes the PAN number, assessment details, the Assessing Officer’s details and bank account details. The money has been received through the regular bank accounts of these companies. All these companies have shown name of the assessee company in their ‘schedule’ of investment. Once adequate evidence and material given by the assessee, which would prima facie discharge the burden of the assessee in proving the identity of shareholders, genuineness of the transaction and creditworthiness of the shareholders, thereafter, in case such evidence is to be discarded or it is proved that the assessee has created evidence, the revenue is supposed to make thorough probe before it could nail the assessee and fasten the assessee with such a liability u/s 68/69 of the Act. Considering all these aspects, we set aside the orders of the authorities below and allow the assessee’s appeal on this ground.
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