TMI Blog2012 (12) TMI 25X X X X Extracts X X X X X X X X Extracts X X X X ..... SHARMA, JJ. Appellant by Shri Darshan Singh Respondent by Shri P.K. Jain ORDER PER JOGINDER SINGH , judicial member The Revenue is aggrieved by the impugned order dated 29th February, 2012 on the ground that on the facts and in the circumstances of the case, the learned CIT(A) erred in holding that the identity, credit worthiness and genuineness of the transaction of Rs.99 lacs is explained one especially when the confirmation of creditors has not been submitted during the assessment proceedings, therefore, their identity, credit worthiness and genuineness of the transaction has not been established as required u/s 68 of the Income Tax Act, 1961. 2. During hearing of this appeal, we have heard Shri Darshan Si ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... . There is a further finding that in the absence of bank details of share holders, the genuineness of the transaction was also not established. It was contended that the assessment order may be affirmed and the order of the learned CIT(A) may be reversed. 3. On the other hand, the ld. Counsel for the assessee reiterated the submissions filed before the learned CIT(A) which are available from pages 1 to 6 of the paper book (internal pages 27 to 32). It was submitted that if the Assessing Officer was not satisfied with the information filed by the assessee, he could have exercised powers to enforce the attendance of each allottee of share, therefore, the addition of the entire capital of Rs.8,99,00,000/- to the income of the assessee is n ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... and minors and from the documents furnished by the assessee, credit worthiness of all the share holders was not established and also the sources of their investment not proved for which our attention was invited to para 3 onwards of the assessment order. 4. We have considered the rival submissions and perused the material available on record. Before coming to any conclusion, we are supposed to mention certain facts. The assessee showed Rs. 1,13,93,860/- as outstanding as on 31.3.2007 from 3 sundry creditors, namely, Khusi Cotton Corporation (Rs. 72,85,970/-), Narendra Cot Fibre Industries (Rs. 23,76,467/-) and Fateh Guru Govind Singh Company (Rs. 17,31,523/-) out of which transferred Rs.70 lacs to the share application account in the ca ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ir balance to share application account. There is another categorical finding by the Assessing Officer that the assessee himself claimed that such transfer entries in the books of the company were made only to show healthy financial status and better current ratio to the bankers and more so these transfer entries were reversed on the first day of the next financial year i.e. on 1.4.2007 meaning thereby that these are merely paper entries. So far as the share application money is concerned, the process is known to the law and right from assessment stage to the stage of the Tribunal, no such application/form was filled by such alleged sundry creditors. Such creditors have never asked the assessee to issue shares of the assessee company to t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... So far as the decision relied on by the assessee in the case of ACIT vs. Bhaskar Fiscal Infrastructure Limited (2010) 16 ITJ 84 (Indore Tribunal) is concerned, we find that in that case, the share capital was increased by book entries were simply projected to show share capital for raising the loan from the bank. However, the nature and source of increase has already been explained, therefore, the facts of this case are quite distinguishable from the case of the assessee, consequently, are of no much help. So far as the other cases relied upon by the assessee (supra) are concerned, these are distinguishable on facts. In the light of the above discussion and judicial pronouncements, since the facts are not clear and no prejudice is caused ..... X X X X Extracts X X X X X X X X Extracts X X X X
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