Home Case Index All Cases Income Tax Income Tax + AT Income Tax - 2017 (4) TMI AT This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2017 (4) TMI 464 - AT - Income TaxAddition on share application money - proof of credit worthiness and genuineness - Held that:- Assessee has received share application money from two Pvt. Ltd. Companies amounting to ₹ 1,95,00000/- A.O. has examined the directors of these companies. From the said examination reproduced in the assessment order it is clear that these directors were totally unaware of the transactions of the company. From their statements the A.O. has brought on record that they could not corroborate the identity of this transactions the genuineness, credit worthiness. We find that just because these share applicant are companies and the money has been received through banking channel it doesn’t mean that the identity credit worthiness and genuineness and the transactions are disclosed. The A.O. has made elaborate enquiry and has examined the directors of these companies which has clearly brought on record that these are accommodation entries. In such circumstances in our considered opinion the order of Ld. CIT-A is not at all sustainable. Accordingly as regards the issue of addition on share application money we set aside order of Ld. CIT-A and restored the A.O’s order. Unsecured loan - AO has brought on record the statement of the directors and proprietors of the loan givers and on that basis he has come to the conclusion that the unsecured loans were actually accommodation entries. Ld. CIT-A has deleted the addition on the ground that some of the assessee’s are assessed to tax in the same range. Hence their identities is not in doubt. That the balance sheet are on record hence this transactions are proved. We find that Ld. CIT-A here again has ignored the evidences and the statements obtain by the A.O. It is also not the case that Ld. CIT-A has examined the parties or the accounts himself. Hence the conclusion regarding the genuineness of these loans drawn by the Ld. CIT-A is also not at all sustainable. Thus we find that the deletion of addition unsecured loan by the Ld. CIT-A is not based upon any cogent finding. Only with regard to M/s. Nisha Enterprises where Ld. CIT-a has given a finding that a sum of the ₹ 25,50000/- was and opening balance which was already added u/s. 68 in the assessment year 2006-07. Hence except deletion of 25,50,000/- of this account we set aside the order by the CIT-A on the issue of deletion of unsecured loan. Hence, the addition by the AO in this regard is confirmed except for a sum of ₹ 25,50,000/- as deleted above. - Decided partly in favour of revenue
|