TMI Blog2016 (3) TMI 1073X X X X Extracts X X X X X X X X Extracts X X X X ..... e Appellant: Shri Sital Prasad Roy, JCIT, Sr.DR For the Respondent: Shri S.M.Surana, Advocate ORDER Per Shri N.V.Vasudevan, JM This is an appeal by the Revenue directed against the order dated 27.12.2011 of CIT- XIX, Kolkata relating to A.Y.2005-06. 2. Grounds of appeal raised by the revenue read as follows :- 1) Whether, on the facts and in the circumstances of the case, the Ld. CIT (A) is correct in holding that the share applicants companies were in existence in spite of the fact that Departmental enquiries could not able to trace out the alleged share applicants at the given addresses. 2) Whether, on the facts' and in the circumstances of the case, the Ld. CIT (A) is correct in holding that the onus ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... lication money. 4. In reply to the query of the AO the assessee submitted confirmation from the aforesaid three companies that they had invested in the shares of the Assessee. The assessee also gave the Income tax particulars of the aforesaid three parties. The Assessee also informed the AO that M/s. Navalco Commodities Pvt. Ltd. And Shri Shyam Trexim Pvt. Ltd., were assessed by ITO,Ward-9(4), Kolkata. The assessee also brought to the notice of the AO that M/s. Jewellock Trexim Pvt. Ltd., was being assessed by the same ITO assessing the Assessee, viz., ITO-Ward-9(3), Kolkata. Copy of the order of assessment completed u/s 143(3) of the Act for A.Y.2005-06 in the case of M/s. Navalco Commodities Pvt. Ltd., and for A.Y.2004-05 in the case o ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... pellant and perused the assessment order. I have also gone through the details and documents filed by the appellant company in the course of assessment: proceedings vide letter dt.03-10-2007. On careful consideration of the facts and in law 'I am of the opinion that the AO was not justified in making, the addition aggregating to ₹ 54,00,000/- u/s.68 of the Act being the amount of' share application money by holding that the appellant company has failed to prove the identity, and credit worthiness of. The creditors as well as the genuineness of transactions. It is observed that all the three share applicant companies i.e. M/s. Shree Shyam Trexim Pvt. Ltd., M/s Navalco Commodities Pvt. Ltd. and M/s. Jewellock Trexim Pvt. Ltd. ha ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ove is also supported by them. In view of above the AO is directed to delete the addition of ₹ 54,00,000/-. The ground nos.2 and 3 are allowed. 7. Aggrieved by the order of CIT(A) the revenue is in appeal before the Tribunal. 8. We have heard the submissions of the learned DR, who relied on the order of AO. The learned counsel for the assessee relied on the order of CIT(A) and further drew our attention to the decision of Hon ble Allahabad High Court in the case of CIT vs Raj Kumar Agarwal vide ITA No.179/2008 dated 17.11.2009 wherein the Hon ble Allahabad High Court took a view that non production of the director of a Public Limited company which is regularly assessed to Income tax having PAN, on the ground that the identit ..... X X X X Extracts X X X X X X X X Extracts X X X X
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