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2010 (1) TMI 936 - AT - Income TaxUnexplained income - Share application money - unexplained expenditure in respect of the commission for arranging the share application money - as per DR evidence produced also does not show any evidence to prove the purchase of shares from the assessee - it cannot be said that the assessee has discharged the onus cast upon it to prove the identity, genuineness or creditworthiness of the share applicants and the purchasers of the shares held as investment by the assessee company - Held that:- As it cannot be said that the assessee has discharged the onus cast upon it to prove the identity, genuineness or creditworthiness of the share applicants and the purchasers of the shares held as investment by the assessee company. However a perusal of the assessment order shows that the assessee has not been given adequate opportunity to produce the share applicants and the purchasers of the shares. This is because summons u/s 131 had been issued on 29.11.2007 to the share applicants and to the persons who had purchased the shares. On 6.12.2007 on their failure, the show cause notice has been issued to the assessee and the assessment has been completed on 14.12.2007. Thus, it cannot be said that the mandatory provision for natural justice being a minimum of 15 days has been given to the assessee in respect of the summons issued u/s 131. Thus, a procedural lapse has taken place in the assessment. In these circumstances, these issues must be restored to the file of the A.O. for providing the assessee adequate opportunity to produce the share applicants as also the purchasers of the shares from the assessee.
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