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2018 (5) TMI 2034 - AT - Income TaxAddition u/s 68 - share application money received by the assessee from different entities were declared by the Sales Tax Department of Maharashtra as to be hawala dealer and the entities also did not respond to inquiries made by AO - HELD THAT:- The proviso to section 68 has clearly and unambiguously been held to be prospective and not retrospective. Admittedly the same is not applicable in the assessment year which has been considered here, i.e., assessment year 2010 - 11. Hence, adverse inference taken by the assessing officer that assessee could not produce the share applicants and also could not produce their books of account, is not sustainable. We find that the ld. CIT (Appeals) has given a clear finding that in respect of the said share applications, genuineness of the transaction, identity and the capacity of the parties are examined and found to be in order. We find that the above finding of the ld. CIT (Appeals) is duly corroborated by the various details submitted in respect of the above said corporate entities which include name, addresses, permanent account number, financial statements, bank statements and income tax return copies and confirmations given. The Income Tax Inspector has also given in affirmative his report regarding the address of some of the shareholders inspected by him. The requisitions given by assessing officer in the remand proceedings have been duly complied with by all parties except for one party namely M/s. Empower Industries India Ltd. Addition deleted by the ld. Commissioner of Income Tax (Appeals) are in accordance with the above precedent's except for one share applicant namely Jagdamba Coplex Private Limited. In the case of this company according to the submissions of the Ld counsel of the assessee himself the name of the company has been struck off from the website of Ministry of Corporate Affairs. The Ministry of Corporate Affairs has struck off some of the shell companies/companies which are inactive with no activity for a long time. However, we also note that in a number of such cases where names have been struck off, fresh applications have been made by the CBDT with the Company Law Tribunal for restoration of those companies whose name has been struck of so that Department can pursue appeals related to them. In light of these facts, we deem it appropriate to remit the issue of addition in the case of Jagdamba Complex Private Limited to the file of the assessing officer so that assessing officer shall examine this case afresh. In the case of M/s. Empower Industries India Limited we find that all the findings of the ld. Commissioner of Income Tax (Appeals) are identical as in case of all other share applicants, except that in this case there has been no reply to the requisition of the assessing officer under section 133(6). All the relevant details like name, address, PAN no., financial statements, income tax returns, bank statements were duly submitted. his issue also needs to be remitted to the file of assessing officer for fresh consideration. Hence, we remit this issue also to the file of assessing officer for fresh examination.
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