TMI Blog2011 (10) TMI 602X X X X Extracts X X X X X X X X Extracts X X X X ..... r with respect to the credit worthiness and identity of creditors and genuineness of the transactions. 3. The appellant craves leave to add, alter or amend any ground of appeal raised above at the time of hearing. 2. The return declaring an income of ₹ 4,25,942/- was filed by the assessee on 30th October, 2002 which was processed. Upon receipt of an information from the Investigation Wing of Delhi, the re-assessment proceedings were initiated vide notice issued u/s 148 dated 26th March, 2009. The information revealed that the assessee had received accommodation entries from the entry operators after paying unaccounted cash The information revealed that the following amounts were received by the assessee as accommodation entr ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the ground that the assessee itself had expressed its inability to produce its own shareholders for examination and the assessee can insist on such cross examination only after discharging the onus which is placed upon it in the light of the statements made by Shri Mahesh Garg. It is further recorded in the assessment order that the share applicants carried no other activity besides providing the accommodation entries and from the modus operandi adopted by them, it is clear that the transactions were not genuine. Considering the explanation submitted by the assessee unsatisfactory, ld. Assessing Officer has applied the provisions of Section 68 and made the addition of ₹ 55,01,125/-. The aforementioned addition was agitated in an appe ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... submissions, learned CIT (A) has come to the conclusion that the share application money received by the assessee from seven companies is only ₹ 45 lac and the other amount of ₹ 7,51,125/- received by the assessee on 7th September, 2001 is from Shri Vishnu Kumar Jain and after examining this fact from the entries in the bank account, it was found that no such money was received by the assessee at any time during the financial year from Shri Vishnu Kumar Jain. Therefore, he held that the issue to be decided was only with respect to a sum of ₹ 45 lac and not ₹ 55,01,125/-. The revenue has also agitated the addition made with respect to the share application money and its grounds of appeal is restricted to a sum of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ual return in Form 2-B filed with ROC (filed during appellate proceedings, where 4,50,000/- shares have been allotted to the 7 companies referred to above). 5. After referring to the aforementioned evidence placed by the assessee on record and referring to the following judicial pronouncements, learned CIT (A) has deleted the addition on the ground that initial onus laid upon the assessee was duly discharged and no addition could be sustained in view of the evidence placed by the assessee on record:- CIT vs. Lovely Export (P) Ltd. (SC); CIT vs. Stellar Investment Ltd. 251 ITR 263 (SC); DCIT vs. GSV Investment (P) Ltd. 146 ITD 36 (ITAT); CIT vs. Ashwani Gupta 2010 ITA No.1264/2008 (Delhi High Court) ITO vs. Orbital Communic ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ld. Counsel of the assessee that even fresh affidavits of all the share applicants were filed. It was observed from the record that fresh affidavit in respect of shares allotted to M/s Royal Credits (P) Ltd. was not placed on record. The learned AR was requested to furnish the same on record. The learned AR was also directed to submit the certificate from the director of the assessee company to show the latest position of the shares which have been allotted to the aforementioned share applicants. Accordingly, the learned AR has furnished the affidavit of the Director of M/s Royal Credits (P) Ltd. in which it has been stated that they had applied for 80,000 shares and had provided share application money of ₹ 8 lac on 4th August, 2001 ..... X X X X Extracts X X X X X X X X Extracts X X X X
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