TMI Blog2010 (10) TMI 64X X X X Extracts X X X X X X X X Extracts X X X X ..... of Income Tax Act, 1961 (for brevity "Act, 1961") challenging the order dated 28th August, 2009 passed by the Income Tax Appellate Tribunal (in short "Tribunal") in ITA No. 1015/Del/2009, for the assessment year 2001-2002. 2. Mrs. Sonia Mathur, learned counsel for Revenue submitted that Tribunal had erred in law in deleting the addition made on account of unexplained cash credit. Learned counsel for Revenue further submitted that the Tribunal had erred in law in deleting the addition made on account of commission paid by the assessee to the entry operator @2%. 3. However, upon a perusal of the file we find that the said addition was deleted by the Commissioner of Income Tax (Appeals) [in short "CIT(A)] and the Tribunal on the ground tha ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... se CIT Vs. Lovely Export 299 ITR 268 (SC) which has confirmed the order of the Delhi High Court it has been held that once the identify of the share holder have been established, even if there is a case of bogus share capital, it cannot be added in the hands of the company unless any adverse evidence is not on record. In the instant case, the appellant has provided evidence in the form of PAN, ROC details, copy of IT return filed and copy of confirmation to establish the genuineness of the transaction. xxxx xxxx xxxx xxxx After going through various facts of the case and judicial pronouncement on this issue, cited supra, it is seen that the appellant's case is fully covered by the above judgments. 4. The Tribunal while dismissing the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ect to the above, Special Leave Petition is dismissed." 6. In this view of the situation, we are of the opinion that addition has rightly been deleted by the learned CIT (Appeals) as the necessary particulars were placed on record by the assessee to prove the identity of the share applicants. 7. So as it relates to deletion of addition made on account of commission, it is observed that since principal amount is deleted, the question of assess ability of commission paid thereon does not arise and addition of the same is rightly deleted by the learned CIT (Appeals)." 5. In our considered opinion, the approach adopted by the Commissioner and ITAT is in consonance with the decision of Supreme Court in Commissioner of Income Tax Vs. Lovely ..... X X X X Extracts X X X X X X X X Extracts X X X X
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