TMI Blog2008 (8) TMI 391X X X X Extracts X X X X X X X X Extracts X X X X ..... mpany has filed confirmation in respect of all the three share applicants the amount of which was received by account payee cheques. All these documents clearly establish not only identity of the share applicants but also the source from which they have given the money to the assessee company in the form of share capital. Hon'ble Supreme Court in case of Lovely Exports (P) Ltd.[ 2008 (1) TMI 575 - SC ORDER] has clearly laid down that if the share application money is received by the assessee company from the alleged bogus shareholders, whose names are given to the AO then the Department is free to proceed to reopen their individual assessments in accordance with law, however, no addition is to be made in the hands of the company. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... mply routed order in another fashion, that Assessing Officer can verify the transaction of share application money, accordingly learned CIT(A) has ignored paper books/evidences filed before Assessing Officer as well as him in appellate order. Hence addition made is unjustified. 2. Rival contentions have been heard and records perused. The facts in brief are that originally, the assessment was framed under section 144, wherein several additions were made on account of subscribing share application money from directors and shareholders. The additions so made were confirmed by the CIT(A), in the appeal filed by the assessee before the Tribunal, the Tribunal vide its order dated 17-1-2005, restored the matter back to the file of the Assessi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... that both the lower authorities have not given any finding with regard to efficacious and voluminous matter and evidence relied upon. The Tribunal also observed that assessee has placed before the lower authorities voluminous evidence, inter alia, confirmation of income-tax particulars, bank details regarding share capital credited by the assessee during the year . After the matter was set aside, the Assessing Officer again started proceedings and passed order on 28-12-2006, in which addition of Rs. 8.90 lakhs was retained on account of share capital, in place of addition of Rs. 37,99,500 made originally. The addition so retained pertained to amount of share capital of Rs. 2 lakhs received from Smt. Kamla Devi relative of director Ramesh A ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the amount received through account payee cheque which was duly credited in the bank account State Bank of Travencore, Noida hence, genuineness of transaction was also proved. The learned Authorised Representative relied on the decision of Delhi High Court in case of CIT v. Value Capital Services (P.) Ltd. [2008] 307 ITR 334 (Delhi), wherein it was held that burden is on the revenue to show that assessee has no money to make investment, the investment made by the assessee actually emanated from the coffer of the assessee so as to enable it to be treated as undisclosed income of the assessee. Since this has not been done, the Hon'ble High Court held that under these circumstances, the Tribunal has not committed any error in deleting t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... gone through the orders of authorities below. There is no dispute to the fact the money so received was on account of share application and the same was credited by the assessee in his share capital account. To discharge the burden, the assessee company has filed confirmation, PAN, copy of balance sheets of the share applicants before the Assessing Officer. The plea on which the Assessing Officer has declined to accept the same was that these persons did not appear in person before the Assessing Officer and creditworthiness of these persons could not be proved. From the record, we found that assessee company has filed confirmation in respect of all the three share applicants the amount of which was received by account payee cheques. In resp ..... X X X X Extracts X X X X X X X X Extracts X X X X
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