1997 (8) TMI 111
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....ance Ltd. (1993) 113 CTR (Del)(FB) 472 : (1994) 205 ITR 98 (Del)(FB)? 2. Whether, on the facts and in the circumstances of the case, the Tribunal was justified in law in deleting the addition of Rs. 18,575 added by the AO under s. 68 of the IT Act without appreciating the fact that the restaurant was running in loss and the assessee was not able to explain the sources of cash credit? 3. Whether, on the facts and in the circumstances of the case, the Tribunal was justified in law in holding that creditworthiness of shareholders was not to be established by applying ratio of Delhi High Court decision in the case of CIT vs. Sophia Finance Ltd. (1993) 113 CTR (Del) (FB) 472: (1994) 205 ITR 98 (Del)(FB)? 4. Whether, on the facts and in the ci....
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....culars also reveal the financial status of the shareholders. It is seen from the paper book that affidavits, confirmation letters and replies were placed before the authorities below, especially before the AO during the assessment proceedings. Therefore, there is no substance in contending that the source of credit amounting to Rs. 8,24,000 remains unexplained. The fact that the assessee is incorporated under the Companies Act, is not disputed. The names of the parties purchasing the shares with the amount subscribed were furnished before the AO and the same is reproduced in the paper book. The particulars contained relevant details for such investments. However, the AO expected the assessee to produce more evidence. Of course, the AO would....