2022 (11) TMI 668 - AT - Income Tax
Reopening of assessment u/s 147 - accommodation entries in the nature of sales/unsecured loans and share application money - HELD THAT:- Additional ground can be seen that from the perusal of assessment records that approval was sought prior to recording reasons, therefore, the additional ground taken by the assessee does not sustain hence dismissed. As regards, Ground No. 1 related to notice from the records presented by the Ld. D.R. before was it can be seen that the reasons were properly recorded and the notice was issued to the assessee.
In respect to the contention of the assessee that no cross-examination was done related to statement of Shri Praveen Jain it appears to be genuine as the Assessing Officer has not given any opportunity for the assessee to counter the statement made by Shri Praveen Jain. As regards, the merit of the case is concerned the assessee has provided all the details related to creditworthiness, identity and genuineness of the transaction thereby provided share application form, copy of Gold Resolution of the Company to invest in shares of assessee company of those two companies.
The assessee before the AO presented the bank statement of said company i.e. Yash V. Jewels Ltd. & Ostwal Trading India Pvt. Ltd. reflecting these transactions of investment in assessee’s company as well as the financial capacity of the said companies. In fact, no statement of the Directors of Creditors Company were recorded by the authorities and Praveen Jain was not the Director of the Creditor company. Nearly reliance on the statement of third party cannot be the sole criteria for making addition under Section 68 - Appeal of the assessee is partly allowed.