TMI Blog2013 (4) TMI 542X X X X Extracts X X X X X X X X Extracts X X X X ..... Share holders could not be bogus therefore, settled the issue to the extent that the Assessing Officer was to reopen the cases of those assessees Companies and not tax the same in the hands of the assessee. The assessee therefore has rightly pointed out that the law has been amended u/s.68 when specifically the share capital and share application money have been inscribed along with the cash credit which may be subjected to verification when the onus which lay upon the assessee remained undischarged has been made applicable w.e.f. 1.4.2013 only. In this view of the matter, CIT(A) is justified in deleting the impugned additions in the instant case, which we uphold and dismiss the appeal of the Revenue. Deletion of the expenses disallowe ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... called for explanation by sending notice u/s.142(1). He completed the assessment u/s.143(3) when he observed that the assessee had received share application from seven companies when information called for u/s.133(6) from these companies remained un- responded. He noted that the assessee had produced the addresses of the share holders, their PANs, copies of I.T.Return, Bank statements, balance sheets to supplement to the non-response to pursue satisfaction to be reached by the Assessing Officer. However, he held that the onus of establishing the onus of the identity, genuineness and creditworthiness had remained undischarged and therefore, the amount is to be taxed in the hands of the assessee Company. A sum of Rs. 19,70,000 as share capit ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... elaborately discussing the issue held that the share application money cannot be added in the hands of the assessee Company and keeping in view the totality of the submissions and the cited case laws, deleted the impugned additions of Rs. 19,70,000 (share capital) and Rs. 1,77,30,000 (share premium). 4. The Revenue is in appeal against this deletion and a Cross objection has been preferred by the assessee supporting the order of the learned CIT(A). 5. The learned CIT-DR initiating her arguments submitted that the Department has no alternative but to tax the same in the hands of the assessee insofar as it has been established by the Assessing Officer that the share holder assessees Companies are paper Companies and have no locostandi. S ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... pex Court in their decision in the case of CIT v. Vs Lovely Exports (P) Ltd(supra), therefore, settled the issue to the extent that the Assessing Officer was to reopen the cases of those assessees Companies and not tax the same in the hands of the assessee. The learned Counsel of the assessee therefore has rightly pointed out that the law has been amended u/s.68 when specifically the share capital and share application money have been inscribed along with the cash credit which may be subjected to verification when the onus which lay upon the assessee remained undischarged has been made applicable w.e.f. 1.4.2013 only. In this view of the matter, we are of the considered view that the learned CIT(A) is justified in deleting the impugned addi ..... X X X X Extracts X X X X X X X X Extracts X X X X
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