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2020 (7) TMI 300 - AT - Income TaxReopening u/s 148 - Unexplained cash credit u/s 68 - HELD THAT:- Reasons recorded by the AO that the assessee company received share capital from the entry operator proved to be incorrect based on the facts. Attributing the entry of ₹ 7,00,000 /- to the share capital of the company by the AO to the increased share capital of ₹ 99,00,000 /- found to be incorrect based on the details of the share capital received by the company from the five entities. We find that the information available with the Assessing Officer pertains to receipt of ₹ 7,00,000/- from two entities namely, Manimala and Virgin Capital whereas the AO made addition of ₹ 14,00,000/- u/ s 68 of the Act. AO has not mentioned whether this ₹ 14,00, 000/- is on account of share capital or loans or expenses. No details of these entries have been given. The AO has failed to examine whether the amount of ₹ 14,00, 000/- credited in the books of the assessee or not, if so under what head. The AO has made addition of ₹ 7, 00,000/- received by M/s Jindal Dal Mills Pvt. Ltd. in the hands of the assessee company. The addition has to be rightly made in the hands of M/s Jindal Dal Mills Pvt. Ltd. instead of the assessee company. It was also not proved that the assessee company whose name figured in the diary entries and shares of an equivalent amounts have been allotted to the common Directors, Sh. Anil Kumar Jindal. Addition has been made without specifying as to the nature of the amounts and also without examining the credits in the books of the assessee, we hereby allow the appeal of the assessee on grounds of Section 148 and Section 68 - Decided in favour of assessee.
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