TMI Blog2010 (12) TMI 1216X X X X Extracts X X X X X X X X Extracts X X X X ..... u/s 68 of the Act as unexplained cash credit. On the other hand, the assessee has taken up three substantive grounds in the cross objection. In ground nos. 1 and 2, the finding of the ld. CIT(Appeals) upholding the reopening of assessment u/s 147 has been assailed. In ground no. 3, the order of the ld. CIT(Appeals) deleting the addition of ₹ 25.00 lakh has been supported. 2. The facts of the case are that the assessee had filed the return of income on 31.10.2001 declaring total income of ₹ 15,12,830/-. This return was processed u/s 143(1) of the Act. Subsequently, information was received from the Investigation Wing, New Delhi, that certain persons have resorted to laundering of their unaccounted money by giving unaccounted ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ct of S.N. Electricals. However, statement of Shri Pradeep Jindal was recorded, who claimed to be one of the directors of M/s S.N. Electricals (P) Ltd. It appears that he deposed to the effect that his companies have been used by him for providing accommodation entries. In regard to confirmation from Suma Finance Investment Ltd., the AO found that two confirmation letters were filed in which the signatures differed. After taking into account various facts, both the contributions were held to be unexplained cash credits and the sum of ₹ 25.00 lakh was added to the total income. 2.1 In the course of hearing before the ld. CIT(Appeals), the assessee filed additional evidence by way of confirmations, PAN, copies of income-tax return, ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... y therefore be admitted to ensure proper appreciation of facts with regard to the additions made by the Assessing Officer. After considering the nature of the documents and to arrive at a fair decision, the request of the AR of the appellant regarding admission of additional evidence is being admitted. b) The Assessing Officer was provided copies of the various documents relating to assessment orders u/s 143(3) of M/s Suma Finance Investment Ltd., copy of ITR/audit accounts of M/s S.N. Electricals P. Ltd. Etc. The documents prima facie certainly indicate the existence and identity of the parties. The Assessing Officer has only submitted that the PAN No. of M/s S.N. Electricals P. Ltd. was not available and at the same time the signa ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... x court in CIT Vs. Lovely Exports, the Assessing Officer is free to initiate action against the subscribers/creditors, but there does not appear to be any case for making the addition in the hands of the appellant unless the Assessing Officer has been able to establish that any unaccounted money relating to share capital application had originated from the coffers of the assessee. After careful consideration of the facts of the case as well as the judicial pronouncements on the issue, I am of the opinion that the Assessing Officer has not been able to controvert the various documents and submissions of the AR of the appellant which establishes the identity of the subscribers. Accordingly while the Assessing Officer is free to take nec ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... /s 68 in respect of both the contributors. Therefore, nothing can be added to the income of the assessee. 4. We have considered the facts of the case and submissions made before us. We find that although the AO has mentioned about investigations carried out by the Investigation Wing, New Delhi, but the details of investigation have not been mentioned in the assessment order. The AO has also examined Shri Pradeep Jindal, but opportunity to crossexamine has not been given to the assessee. On the other hand, the assessee has brought on record various evidences such as annual accounts, copies of returns and confirmations from both the parties to establish the existence, capacity and genuineness of transactions. As a matter of fact both the c ..... X X X X Extracts X X X X X X X X Extracts X X X X
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