TMI Blog2010 (9) TMI 122X X X X Extracts X X X X X X X X Extracts X X X X ..... ") challenging the order dated 22nd January, 2010 passed by the Income Tax Appellate Tribunal (for brevity "Tribunal") in ITA No. 3497/Del/2009 for the Assessment Year 2006-2007. 2. Ms. Suruchii Aggarwal, learned counsel for the Revenue submitted that the Tribunal had erred in law in deleting the addition on account of unexplained share application money under Section 68 of the Act, 1961. Ms. Aggarwal also submitted that the Tribunal had deleted the said addition even though the genuineness of transaction, creditworthiness and identity of the creditor had not been proved by the respondent-assessee. 3. However, upon a perusal of the file, we find that the said addition was deleted by the Commissioner of Income Tax (Appeals) [for short "C ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... cation money in lieu of which two share certificate allotting total 50,000 shares of Rs.100 each were issued to him on 1/2/07. The ratio of Supreme Court decision in the case of Lovely Exports is very clear and has been reconsidered or reviewed. In fact the ratio has been followed in many cases by other judicial authorities. Since in this case the identity of the person and genuineness of transaction is proved, in my opinion the addition of share application money in the case of appellant company is not justified. If the AO has any doubt about the source of payment, he may send the information to the AO having jurisdiction over Sh. Sujit Acharya for further necessary action. In view of this addition of Rs.50 lacs is deletled." 4. The Tri ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rts 216 CTR 195. It is also pertinent to note that it is not the case where certain investigation have been made by the department where from it has been revealed that this transaction of payment of share application money is bogus, and it is merely an accommodation entry. The department has also not been able to point out any material or evidence on the basis of which it could be said that money has been emanated from coffers of the assessee company so as to treat the share application money as undisclosed income of the assessee company. In case the department has any doubt about the source of payment made by Shri Sujit Acharya, the department is free to proceed against Shri Sujit Acharya for further action as so observed by the ld. CIT(A) ..... X X X X Extracts X X X X X X X X Extracts X X X X
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