TaxTMI 
TaxTMI 
2015 (6) TMI 55
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....e I.T.Act. Ignoring the following fate :- (v) All companies from whom the assessee received share application money are providers of accommodation entries. (vi) All companies (accommodation entries providers) first deposited cash of the same amount in their bank accounts and then issued cheques to the assessee. (vii) In their statements the accommodation entries providers have categorically stated that when they provided cheques in lieu of cash to the assessee, they also signed same paper, which were handed over to these beneficiaries and these paper might be confirmation deeds or gifts etc. (viii) The accommodation entires providers have given statements under oath to the income Tax authorities that they are entry providers and have re....
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....his 2nd appeal with the grounds as reproduced hereinbefore. 4. The Ld. Departmental Representative (DR) submitted that the CIT(A) has erred in deleting the addition made by the AO on account of unexplained credits u/s 68 of the Act by the including certain glaring facts that all companies from whom the assessee received share application money are accommodation entry providers and as per Modus Oprendi adopted by them, the entry providers deposited cash of the same amount in their bank accounts and then issued cheque to the assessee and at the same time they also signed same papers which were handed over to the beneficiaries and these papers were confirmation deeds and other fabricated documents to support the bogus transaction. The Ld. DR,....
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.... persons. The Ld. Counsel further pointed out that the AO did not exercise powers available to him u/s 131 & 133(6) of the act. The Ld. Counsel vehemently contended that the AO was not right in discarding the confirmations and other relevant evidence filed by the assessee and in simply relying on statements of alleged entry providers which were recorded on the back of assessee. The Ld. Counsel supporting the impugned order submitted that the CIT(A) rectified all the mistakes committed by the AO and properly considered relevant evidence of the assessee which clearly show that the transactions were genuine and the assessing officer without examining the same simply proceeded to reject the explanation and evidence of the assessee. The Ld. Coun....
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.... AO relied on the statements of the entry providers recorded by the Investigation Wing of the department and went on to held that the assessee got the confirmation from these entry providers at the time of receiving credits of the share application money and in fact no real transaction were took place. 8. From the operative part of the impugned order, we note that the CIT(A) granted relief by following decision of Hon'ble Apex Court Vs. CIT(A) Vs. Lovely Export Pvt. Ltd. (supra) by holding as under : "5.1 It is observed that the Assessing Officer has made the addition u/s 68 of the Act on account of share capital as above, primarily in view of the information received from the office of the DIT (Inv.), New Delhi, that the assessee company....
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....f subscribers as registered with the company along with complete detail of investments. - Changed address as available with Registrar of Companies. - Certificate of incorporation along with copy of Memorandum of Association - Permanent Account no. along with copy of return of income - Confirmation / affidavit. - Copy of Resolution passed by the subscriber company authorizing its director to invest in shares of the assessee company - Share Application Form - Detail of Shares along with copy of Share Certificates - Status as per ROC Record - Copy of bank statement with credit entry of amount received. It is further submitted that all the investing companies were incorporated many years back." In view of observations of the AO as we....