TMI Blog2015 (3) TMI 1209X X X X Extracts X X X X X X X X Extracts X X X X ..... ssment proceedings. This reopening was based on the information received from the Investigation Wing of the Income-tax Department with regard to the beneficiary of accommodation entries. Addition on account of share capital and share application money received - Held that:- Since the assessee has not done any business during the year there cannot be any occasion to generate unaccounted funds which can be routed back to the assessee company in the form of share application money. The assessee has submitted all the relevant papers before the Assessing Officer which include share application forms, confirmations, affidavits, balance sheets, certificate issued to the Board Resolution, confirmations from the party, bank statements of the part ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... CIAL MEMBER AND SHRI B.C. MEENA, ACCOUNTANT MEMBER ASSESSEE BY : SHRI VED JAIN, CA AND SHRI V.M. CHAURASIYA, ADVOCATE REVENUE BY : SHRI P. DAM KANUNJHA, SENIOR DR ORDER PER B.C. MEENA, ACCOUNTANT MEMBER : The appeal filed by the assessee emanates from the order of the CIT (Appeals)-XVI, Delhi dated 22.01.2013. 2. In this case, the original return of income was filed on 29.10.2004 declaring income of ₹ 58,120/-. A notice u/s 148 of the Income-tax Act, 1961 was issued on 25.03.2011. The assessment u/s 147/143(3) was finalized on 26.12.2011 at an income of ₹ 62,71,870/-. The action of the Assessing Officer has been affirmed by the CIT (A). Now the assessee is in appeal by taking the following grounds ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... re capital and share application money received by the assessee. (ii) On the facts and circumstances of the case, the learned CIT(A) has erred both on facts and in law in confirming the above addition despite the assessee bringing all material and evidences on record to prove the identity, genuineness of the share applicants. 6. That the above-said additions are otherwise untenable in the eye of law, having been made on the basis of the material collected at the back of the assessee and without providing copy of the same providing opportunity to rebut the same. 7. The appellant craves leave to add, amend or alter any of the grounds of appeal. 3. Ground Nos.1, 6 7 are general in nature and do not require any adjudication. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 1. Fair N Square Exports Pvt. Ltd. 20,04,000/- 2. Tashi Contractors (P) Ltd. 15,03,000/- 3. Satwant Singh Sodhi Const. (P) Ltd. 2,03,000/- 4. Rabik Exports Ltd. 25,03,750/- Total : 62,13,750/- The assessee has submitted following documents with regard to the entities:- - M/s. Satwant Singh Sodhi Constructors (P) Ltd. (i) Copy of share application form (ii) Copy of affidavit (iii) Copy of certificate issued at the end of year by the party ( ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... . (i) Copy of share application form (ii) Copy of affidavit (iii) Copy of certificate issued at the end of year by the party (iv) Copy of confirmation from party (v) Copy of Board Resolution (vi) Copy of bank statement (vii) Copy of acknowledgement of ITR (viii) Copy of balance sheet and P L account (ix) Details of PAN (x) Copy of appointment of and changes among Director (xi) Copy of Certificate of Incorporation (xii) Copy of Memorandum of Association Articles of Association We would also like to mention that this was the first year of the establishment of the company and there appears to be no business activity during the year. Therefore, the revenue s allegation that assessee has introduced his ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... any case, what is clinching is the additional burden on the Revenue. It must show that even if the applicant does not have the means to make the investment, the investment made by the applicant actually emanated from the coffers of the assessee so as to enable it to be treated as the undisclosed income of the assessee. This has not been shown insofar as the present case is concerned and that has been noted by the Tribunal also. Similarly in the case of CIT vs. Diwan Leasing Leasing and Finance Ltd. 299 ITR 268, the Hon ble High Court has held as under :- The department would not be justified in drawing adverse inference only because the creditor/subscriber fails or neglects to respond to its notices. The Hon ble Supreme Court ..... X X X X Extracts X X X X X X X X Extracts X X X X
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