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2018 (3) TMI 45 - AT - Income TaxUnexplained cash credit u/s 68 - share application money - shell companies - non adherence to necessary enquiry - Held that:- The facts and circumstances of the case clearly mandated that where the learned CIT-A was not satisfied with the enquiry made by the assessing officer, he should have himself made the necessary enquiry. It is settled law that powers of learned CIT-A are coterminous with that of the assessing officer. Furthermore honourable apex court has held in the case of Kapoorchand Shrimal [1981 (8) TMI 2 - SUPREME Court] that it is the duty of the appellate authority to correct the errors in the order's of the authorities below. The issue in this case needs to be remitted to the file of the assessing officer. Assessing officer is directed to make further enquiries by issuing necessary summons to the shell companies operated by Shri Praveen Kumar Jain who are said to have contributed share application money in assessee company. This is necessary in view of the background finding of revenue that the share applicant’s companies are bogus companies. Furthermore, thousands of such companies have been struck from the register of companies. The assessing officer should also make reference to the action taken by the Finance Ministry in this regard, as to whether names of these companies appear in the list of such struck off companies. The issue stands remitted to the file of the assessing officer. - Decided in favour of revenue for statistical purposes.
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