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2016 (1) TMI 1092

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..... contends that the assessee has furnished whatever material it could, and as considerable time has elapsed no further burden should be put on the assessee to furnish any further evidences. We find force in these submissions of the assessee. The A.O. in our view should not put further burden on the assessee. This case should be set aside to the file of the AO for fresh adjudication. We issue the following directions to be followed by the A.O. (a) The assessee should be confronted with the information and material based on which the AO made this addition and there after pass a speaking order after considering the contentions of the assessee. (b) Similarly, in case the A.O. chooses to rely on the statement of any person, copies of the .....

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..... ,50,88,000/- (i.e. ₹ 3,51,00,000 (-) 12,000/- refund) with premium from 54 companies. The A.O. has given details in his order. When asked to substantiate the genuineness of this share application money, the assessee filed certain details such as copies of confirmation from the companies, Pan details, evidence of filing of income tax returns by these companies and copies of bank statements of the share applicants. The AO at page 4 observed the following defects/deficiencies in the evidences filed. 1. Verification affidavits do not bear the date and month; 2. Signature on affidavits are not attested; 3. Stamp Venders from whom papers purchased are common; 4. Affidavits do not carry own address of the director; 5. Sh.Jeet .....

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..... sessee company by way of share application money, is its own money but rooted through the bank accounts of various persons/firms/companies. 2.3. Thereafter the AO referred to the information received from DIT (Investigations), New Delhi and the statements of the alleged Directors of these companies recorded u/s 131 of the Act in the month of April, 2005 by Addl. DIT (Investigation), New Delhi, wherein they had admitted that they are not men of means and were providing accommodation entries on commission basis. Thereafter, he placed reliance on a number of case laws and came to conclusion that the amount of ₹ 3,50,88,000/- are unexplained cash credits appearing in the books of accounts. He made an addition u/s 68 of the Act. 3 .....

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..... the investigation Wing of the Deptt. as reproduced in the assessment order that the said entities merely functioned as entry operators and not carried out any actual business. g) that the inspector also reported on local enquiries that all the said companies are either not existing at the given address or the impugned premises found locked. h) that the assessee company failed to produce the Directors of the said concerns. i) even at the time of remand proceedings, the assessee company failed upon by first appellate authority are not applicable at all. Inter-alia, it is also not a case where share application money was received in a public offer. 3. The learned CIT(Appeals) has erred In deleting addition U/S 14A of &# .....

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..... of the decision in the case of India Metals Ferro Alloys Ltd. Vs. CIT 193 ITR 344, where it was held that it is for the assessee to prove that the borrowed fund has been utilized for business purposes. 4. The appellant craves leave to add, to alter, or amend any grounds of the appeal raised above at the time of hearing. 5. We have heard Shri Pradeep Dinodia, the Ld.Counsel for the assessee and Shri R.S.Negi, the Ld.Sr.D.R. on behalf of the Revenue. On a careful consideration of the facts and circumstances of the case, perusal of material on record, orders of lower authorities, case laws cited, we hold as follows. 6. The Ld.CIT(A) in this case has deleted the addition on the sole ground that the identity of the share applic .....

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..... clusion. He further contends that the assessee has furnished whatever material it could, and as considerable time has elapsed no further burden should be put on the assessee to furnish any further evidences. We find force in these submissions of the assessee. The A.O. in our view should not put further burden on the assessee. 9. In view of the above discussion, we are of the considered opinion that this case should be set aside to the file of the AO for fresh adjudication. We issue the following directions to be followed by the A.O. (a) The assessee should be confronted with the information and material based on which the AO made this addition and there after pass a speaking order after considering the contentions of the assessee. .....

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