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2013 (5) TMI 329 - HC - Income TaxReopening of assessment - Whether Hon’ble ITAT was correct in deleting the addition of Share Application Money u/s 68 of Act, when the AO had comprehensively proved that the applicants had no creditworthiness and their genuineness & identity was also doubtful? In light of cash deposits in accounts of applicants, their own admittance of providing accommodation entries whether Hon‟ble ITAT was correct in holding that genuineness of the transactions was established? Whether in view of report of Investigation Wing, the onus of assessee gets discharged in normal course by merely paper documents like PAN card, ROC documents, IT returns etc.? Held that:- In the present case the Tribunal, ought to have adverted to the attempts made by the assessing officer to probe into the matter deeper by issuing notices/ summons to the subscriber-companies which evoked no response. The assessee no doubt submitted documentary evidence to show that the companies which subscribed to its shares were income tax assesses and they had also prepared profit and loss account, balance sheet, etc. but the evidentiary value of these on which the Tribunal has relied, ought to have been examined in the light of the stand taken by those companies in their assessment proceedings for the same assessment year. We have extracted a specimen letter written by the Director of Ethnic Creations Pvt. Ltd. wherein it has been admitted that the company carries on the business of providing accommodation entries for commission. Identically worded letters were written by the other companies to their respective assessing officer, which are all reproduced in the assessment order. It seems that the Tribunal has looked at only the evidence adduced by the assessee and has not adverted to the attempts made by the assessing officer in the course of the assessment proceedings to examine the evidence and discredit the same. Therefore the impugned order is set aside. The substantial questions of law are answered in favour of the revenue. The appeal is remitted to the Tribunal for being disposed of afresh.
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