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TMI Blog2013 (4) TMI 542X X X X Extracts X X X X X X X X Extracts X X X X ..... e onus to prove the identity and creditworthiness of the share applicants and the genuineness of the transactions which lay upon the assessee was not completely discharged. The Revenue also agitates deletion of the expenses disallowed by the Assessing Officer. 2. The brief facts as have been brought on record by the authorities below pertaining to the issue raised by the Assessing Officer are that the assessee is a first class contractor engaged in undertaking civil, electrical, sanitation works filed return of its income, when the Assessing Officer 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 informati ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... eme Court's decision was followed in various other decisions thereafter having identical facts when the ITAT, Cuttack Bench in the case of M/s.Coastal Projects (P) Ltd., v. ACIT in ITA No.181/CTK/2009, it has been held that the assessee had discharged the onus by obtaining the documents from those Companies who may have reasons best known to them not to respond to the summons issued by the Department u/s.131/133(6). The learned CIT(A) thereafter relied on other decisions of Tribunal, who on the basis of fact finding having similar circumstances after 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 cas ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ned CIT(A) on all fours. He has quoted various decisions of the Tribunal and the Hon'ble High Courts prior and after the decision of Hon'ble Apex Court in the case of CI'T Vs Lovely Exports (P) Ltd,[ (2008) 216 CTR 195] which is directly on the issue that the share application which share capital cannot be taxed in the hands of the assessee as unexplained cash credit who have followed the procedure of obtaining the share capital in accordance with the provisions of the Companies Act. Share holders could not be bogus was considered by the Hon'ble Apex 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 ..... X X X X Extracts X X X X X X X X Extracts X X X X
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