2012 (2) TMI 194 - HC - Income Tax

Unexplained credits – alleged bogus share application money received – assessment reopened on the basis of information received by A.O. from DIT (Investigation), furnishing information regarding entry operators/accommodation providers – statements of directors of company providing entry taken - Tribunal deleted addition made u/s 68 – assessee stating that documentary evidence regarding identity and creditworthiness of the share applicants and the genuineness of the transactions were produced - Held that:-The Tribunal, apart from adopting an erroneous legal approach, also failed to keep in view the material that was relied upon by the Assessing Officer. Involvement of the assessee in such modus operandi is clearly indicated by valid material made available to the A.O. as a result of investigations carried out by the revenue authorities into the activities of such “entry providers”. Therefore, we are unable to uphold the order of the Tribunal confirming the deletion of the addition made u/s 68 – Decided in favor of Revenue.