TMI Blog2010 (5) TMI 563X X X X Extracts X X X X X X X X Extracts X X X X ..... ecorded by the Assessing Officer to the effect that the share applicants are bogus, there is nothing on record to doubt or disbelieve the confirmations and application forms submitted by the depositors - Whether burden has been discharged or not is a question of fact - Decided in the favour of assessee - 546 OF 2009 - - - Dated:- 4-5-2010 - D.A. MEHTA AND MS. H.N. DEVANI, JJ. Mrs. Mauna M Bhatt for the Appellant. ORDER Ms. H.N. Devani, J. In this appeal under section 260A of the Income-tax Act, 1961 (the Act), appellant revenue has proposed the following two questions in relation to the assessment year 1997-98: "1. Whether on the facts, in the circumstances of the case and in law, the Appellate Tribunal erred in de ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... sessing Officer found that the assessee was avoiding giving details without reasonable cause. He, therefore completed ex parte assessment on the basis of the material on record and framed the assessment under section 144 of the Act making the addition of Rs. 81,07,000 by way of unexplained share application money. The assessee carried the matter in appeal before Commissioner (Appeals), but failed. The assessee further carried the matter in second appeal before the Income-tax Appellate Tribunal (the Tribunal) and succeeded. 3. The learned Senior Standing Counsel for the appellant-revenue has invited attention to the findings recorded by Commissioner (Appeals) to submit that the Assessing Officer had served query letters to the depositors, ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... was of the view that the assessee had given the names and addresses of the share applicants, it was within the knowledge of the revenue that the said share applicants were assessed to Income-tax, hence the burden was on the revenue to make further inquiry. The Tribunal placed reliance upon the decision of the Apex Court in the case of CIT v. Divine Leasing Finance Co. wherein it has been held that when the assessee company had given the name of the shareholders, the department was free to reopen their individual assessment in accordance with law. 5. The Tribunal further observed that in respect of Mangal Finance Limited, the said company was assessed to tax on department records; the copies of the application forms were submitted by the ..... X X X X Extracts X X X X X X X X Extracts X X X X
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