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2012 (9) TMI 156 - AT - Income TaxAddition u/s 68 - share application money - addition made on ground that there was no compliance of the notices issued - debit entries are mostly same as credit entries - debit entries and credit entries in the bank statement are mostly in round figures - multitude of companies from same addresses - outright refusal of the assesse to furnish details to the satisfaction of AO as requirement of section 68 - no compliance to produce the Principle Officers of such companies who had allegedly furnished funds the ascertain the genuineness and creditworthiness of such parties – Held that:- CIT(A) while deleting the addition, took into consideration the orders passed by the ITO/CIT(A)/ITAT in respect of share applicant companies and further taking into consideration that in A.Y. 2007-08 the AO had accepted the allotment as genuine, deleted the addition. Admittedly, these details were not before the AO and CIT(A) also did not even call for a remand report from the AO in respect of these documents. Thus, there was a clear violation of mandatory requirements of Rule 46A. Further we find that the confirmations filed by various share applicants are all undated and these confirmations have been given mostly by one person on behalf of various entities except in one or two cases. Under such circumstances, unless the directors were produced before the AO, he could not carry out further investigations. Since CIT(A) has taken into consideration fresh evidence, which was not confronted to the AO and by not producing the directors assessee installed all further enquiry into the matter, it would be in the interest of justice that the mater be restored back to AO for denovo considerations.
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