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2022 (6) TMI 888 - AT - Income TaxUnexplained Cash Credit u/s 68 - share application money pending allotment treated as undisclosed money - creditworthiness of the parties from whom the assessee company received share application money and the genuineness of the transactions proved or not? - CIT (A) has held that AO has not made any further enquiry and he has deleted the addition - HELD THAT:- This order of ld. CIT (A) is devoid of any application of mind whatsoever. Even for argument sake, it is accepted that assessee has given the details with the AO, nothing stopped the ld. CIT (A) in doing the enquiry himself. There is not a whisper in the order of ld. CIT (A) that he examined the financials of these companies who have given share application money and found any cogency in that. It is settled law that ld. CIT (A) has co-terminus power to that of AO. Though we are not in agreement with the ld. CIT (A)’s finding that everything was submitted before the AO and AO has falsely passed the assessment order that nothing was submitted before the AO, as it is not the case that ld. CIT (A) has called for the assessment records and found that AO has made false observation. The manner in which ld. CIT (A) passed the appellate order needs much to be desired. It was incumbent upon the ld. CIT(A) to give a finding upon the financial statements of the parties reportedly copies of which have been given to the ld. CIT (A). The mystery of the parties responding through assessee and not coming or appearing before AO also needs to be solved. Ld. CIT (A)’s order is palpably wrong. In our considered opinion, in the interest of justice, the issue requires to be remitted to the file of ld. CIT (A). Ld. CIT (A) is directed to give cogent finding as to how the identity, creditworthiness and genuineness of the transactions is established in this case. Appeal of the Revenue stands allowed for statistical purposes
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