TMI Blog2016 (2) TMI 114X X X X Extracts X X X X X X X X Extracts X X X X ..... Shri H. S. Sidhu, Judicial Member And Shri Prashant Maharishi, Accountant Member For the Petitioner : Sh. P. Dam Kanunjna, Sr. DR For the Respondent : Sh. Ved Jain, Adv ORDER Per H. S. Sidhu : JM The Revenue has filed this appeal against the Order dated 31.12.2012 passed by the Ld. CIT(A)-IX, New Delhi on the following grounds:- 1. The order of the Ld. CIT(A) is erroneous and contrary to facts and law. 2. On the facts and in the circumstances of the case and in law, the Ld. CIT(A) has erred in deleting the addition of ₹ 59,00,000/- made u/s. 68 as all the 17 shares applicants failed to establish creditworthiness and genuineness of transactions. 3. On the facts and in the circumstances of th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... bunal. 5. Ld. DR relied upon the order passed by the AO and reiterated the contentions raised in the grounds of appeal. He stated that the AO has asked the assessee to furnish the requisite information to establish the genuineness of receipts of share application money and establish the genuineness thereof and creditworthiness and identity of the share holders. In response to the same, assessee filed some information. The AO examined the same and found that the money deposited in the Bank Account of the share applicant and later on issuance of cheque to the assessee company were originated from the assessee company and the socalled alleged share applicants are benami persons of the company. He further submitted that Ld. CIT(A) has wrongl ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 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 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. 14. The view taken by the CIT(A) that t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... mputation and balance sheets of all the investors filed by them for the AIY. 2006-07 before your good self. Perusal cash in hand as on 31.03.2006 to deposited the same in their respective bank accounts. Copies of all the above mentioned documents have also been submitted for the AIY. 2008-09, 2009-10, 2010-11 and 2011-12 before your good self which proves that the investors are genuine people, existing and doing gainful vocations. c. All the investors, in response to notice u/s. 133(6) issued by the AO to verify the genuineness of transactions, have responded with confirmation of account, copy of bank statement, proof of filing returns of income and a sworn affidavit affirming the investments made by them with the appellant company. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s supplied with a copy of the statement of the bank accounts of subscribers. The payments were made by way of a cReque. Finding of fact in respect of those ingredients had been returned both by the Commissioner (Appeals) as well as the Tribunal. In those circumstances, it could be said that the assessee had discharged its onus in respect of the veracity of transactions. 3. CIT vs. Steller Investment Ltd. [1991] 59 Taxman 568 (Delhi) Delhi High Court Inter-alia held as under: Even if it be assumed that the subscribers to the increased share capital were not genuine, nevertheless, under no circumstances can the amount of share capital be regarded as on undisclosed income of the assessee. It may be that there are same bogus share ..... X X X X Extracts X X X X X X X X Extracts X X X X
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