TMI Blog2016 (5) TMI 461X X X X Extracts X X X X X X X X Extracts X X X X ..... se of Sinhal Products (P) Ltd. [2012 (3) TMI 523 - ITAT DELHI] wherein under similar facts and circumstances, the Tribunal has held that the assessee has discharged its initial onus to prove the identity, creditworthiness and genuineness of the transaction. We also found that it is not a case where department has received any information with regard to the fact that the share application were bogus entry or it is in the shape of accommodation entry. The share application is by the associate concern of the assessee which is also assessed with IT Department. Respectfully following the decision of coordinate bench vis-ŕ-vis finding recorded by CIT(A), we do not find any reason to interfere in the order of CIT(A) resulting into deletion of addi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ontentions have been heard and record perused. Facts in brief are that the assessee is engaged in the business of execution of projects in the infrastructure sector. During the course of assessment, the AO observed that during the year there was increase in share capital by ₹ 14 crores and the amount had been received from following three parties :- i) All-in-one Finance investments Pvt. Ltd.- Rs.2,00,00,000/- ii) Yamuna Estate Pvt. Ltd. Rs.6,00,00,000/- iii) Akash Organics Pvt. Ltd. Rs.6,00,00,000/- The AO found that in the case of All-in-One finance Inv ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... font. (iii) Though in the balance sheet. all the parties had shown worth however. in effect nothing was there as duly evidenced from the bank statements where balance was not even ₹ 1.00,000/- (iv) All the above three companies appeared simply or, paper. These companies do not have any business whatsoever. (v) All the three parties have shown huge increase in share capital and share premium. however, no party had paid ROC fees and majority amount was received as share premium. (vi) Out of total share capital share premium taken of ₹ 14 crores. ₹ 60 lacs only has been received by cheque and balance amount was received though Book entries. Therefore, balance amount of ₹ 1340 lacs was credited merely by book entries ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e assessee and is also being assessed to income-tax. Copies of income-tax returns have also been filed. The evidence which has been relied by the learned CIT (A) for deleting the addition is copy of confirmation letter, copy of bank ITA Nos.3852, 3853 3854/D/2009 statement, return acknowledgement of SOPL, the balance sheet of SOPL and the allotment of share to SOPL in subsequent years. The Assessing Officer has not pointed out any discrepancy in the said evidence and has just applied Section 68. Learned CIT (A) has rightly held that the assessee has discharged its initial onus to prove the identity, credit worthiness and genuineness of the transaction and his such findings are based on the material made available by the assessee to the As ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he period 01.04.2006 to 31.03.2007, it was observed that effectively balance of not more than ₹ 1 lakh had been maintained for five consecutive days. Number of cash deposits and cash withdrawals were reflected and looking to the number of cheques issued and deposited in the bank account it was concluded that company exists only on paper and effectively no business whatsoever has been carried out. The entire amount due to M/s. Akhil Marketing Pvt. Ltd. of ₹ 1,01,39,592/- was treated as unexplained cash credit and accordingly taxed u/s.68. 7. By the impugned order the CIT(A) deleted the addition after having the following observations :- 4.4 The submission has been considered. The A.O. had held that-as the entries are ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... t. Further finding was recorded to the effect that these companies were assessed with I.T. Department for several years. The identity and genuineness of the transaction was duly accepted. The detailed finding recorded by CIT(A) are as per material on record. Moreover the issue is also covered by the decision of the coordinate bench in the case of Sinhal Products (P) Ltd., ITA No.3852/Del/2009, dated 7-3-2012, wherein under similar facts and circumstances, the Tribunal has held that the assessee has discharged its initial onus to prove the identity, creditworthiness and genuineness of the transaction. We also found that it is not a case where department has received any information with regard to the fact that the share application were bogu ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
