Tax Management India. Com
Law and Practice  :  Digital eBook
Research is most exciting & rewarding


  TMI - Tax Management India. Com
Follow us:
  Facebook   Twitter   Linkedin   Telegram

TMI Blog

Home

2015 (10) TMI 2057

X X   X X   Extracts   X X   X X

→ Full Text of the Document

X X   X X   Extracts   X X   X X

..... atisfy himself of their creditworthiness. As pointed out by the CIT(A), the AO failed to make any effort in that direction. He did not take to the logical end the half-hearted attempt at getting the Directors to appear before him. He did not even seek the assistance of the AOs of the concerned companies whose ITRs and PAN card copies had been produced. The view taken by the CIT(A) that the AO failed to come up with the material to disprove what had been produced by the Assessee is certainly a plausible view in the facts and circumstances of the case. Likewise, the view taken by the ITAT concurring with the CIT(A) on facts cannot be said to be perverse. - Decided in favour of assessee. - ITA 778/2015 - - - Dated:- 13-10-2015 - Dr. S. .....

X X   X X   Extracts   X X   X X

→ Full Text of the Document

X X   X X   Extracts   X X   X X

..... dealing with the proposed additions on merits. 6. Before the AO, the Assessee filed the details of the eight corporate entities which had made payments by account payee cheques of various sums of money towards subscription of shares of the Assessee. The Assessee also produced the income tax returns, PAN numbers, copies of bank statements of the aforementioned companies, affidavits by way of confirmation on behalf of the said companies confirming that the payments towards share application money were made, copies of details in the Registrar of Companies showing the status of the companies as active , copies of the balance sheets, certificates of incorporation, articles of association and the share application forms of the respective com .....

X X   X X   Extracts   X X   X X

→ Full Text of the Document

X X   X X   Extracts   X X   X X

..... es, the CIT (A) found that the addition proposed by the AO was not justified. 9. In the impugned order, the ITAT concurred with the finding of the CIT (A) on facts. The ITAT noted that the main basis for making of the addition by the AO was the information received from the DIT (Investigation). The process of examination of the Directors by issue of summons was not taken to the logical end as after the failure of the directors to attend in response to the summons issued to them no further steps were taken . The ITAT also observed that AO could have cross verified the status of these companies with the respective AOs of those companies. The statements of the third parties recorded during the course of investigation were not put to the As .....

X X   X X   Extracts   X X   X X

→ Full Text of the Document

X X   X X   Extracts   X X   X X

..... pe of enquiry can only be whether the Assessee has produced documents to discharge the initial onus of proving the genuineness and creditworthiness of the companies who were stated to have subscribed to the Assessee s shares. 13. It is not in dispute that extensive material was produced by the Assessee in the present case to prove the identity, genuineness and creditworthiness of the companies who had subscribed to its shares. Among the materials produced were the Income Tax Returns and the PAN card details of the eight companies. Even if the Directors of these companies did not respond to the summons issued by the AO, it was not impossible for the AO to make proper enquiries to ascertain the genuineness of these entities and satisfy him .....

X X   X X   Extracts   X X   X X

→ Full Text of the Document

X X   X X   Extracts   X X   X X

 

 

 

 

Quick Updates:Latest Updates