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2021 (7) TMI 56 - AT - Income TaxUnexplained cash credit u/s 68 - CIT-A deleted the addition - HELD THAT:- CIT(A) called for the assessment rcord from M/s M.L. Singhi & Associates Private Limited for AY 2012-13 and found that the AO has completed the assessment u/s 143(3) of the Act for AY 2012-13. From the said assessment record he also found that detailed questionnaire was issued by the AO, who examined the source of funds available with the same entity for investment in shares of the assessee company and after being satisfied accepted the claim of the assessee company. It is the settled proposition of law that powers of the learned CIT(A) are co-terminus with that of the Assessing Officer. The learned CIT(A) can do which the AO has failed to do. Since, the learned CIT(A) in the instant case after verification of the assessment record of M/s M.L. Singhi & Associates Private Limited, whose assessment was done by the very same Assessing Officer found that it has fully explained the source for making investment in the shares of the assessee company, therefore, we do not find any infirmity in his order in deleting addition. Remaining eleven persons i.e. individuals and corporate entities - we find the AO basically made the addition on the ground that in absence of reply to notice u/s 133(6) of the Act, he could not verify the information/documents filed by the assessee in respect of amount received on account of share capital - as per assessee that all those details were available with the assessee on 31st March, 2015 and the Authorized Representatives of the assessee went to the AO for filing of the same but the AO refused to accept for which those documents were sent by speed post on 31st March, 2015 itself. Although the learned CIT(A) has given a finding that all these concerns are promoters of the assessee company and have sufficient funds available with them and are regular taxpayers, however, due to non receipt of the information u/s 133(6) of the Act, the AO could not verify these details. We deem it proper to restore the issue relating to the remaining 11 parties to the file of the AO with a direction to conduct such enquiries as he deems fit pursuant to the notice u/s 133(6)The grounds raised by the Revenue are partly allowed for statistical purposes.
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