TMI Blog2015 (10) TMI 2574X X X X Extracts X X X X X X X X Extracts X X X X ..... ences, mentioned above, furnished by assessee in support of share application money received by the assessee through banking channel have not been enquired into and commented upon by the authorities below to doubt the creditworthiness of the creditors and genuineness of the transactions. - Decided in favour of assessee - ITA No. 867/Del./2013 - - - Dated:- 30-10-2015 - SHRI I.C. SUDHIR, JUDICIAL MEMBER AND SHRI L.P. SAHU, ACCOUNTANT MEMBER For The Appellant : Shri Ved Jain, C.A. For The Respondent : Shri Rajeev Ranka, Sr. DR ORDER Per L.P. Sahu, Accountant Member: This appeal is directed by assessee against the order dated 29.11.2012 passed by the ld. CIT(A)-VIII, New Delhi for the assessment year 2001-02 on the f ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d in non supply of the statement/material relied upon him in making the impugned additions. The brief facts of the case are that the assessee filed its return of income declaring loss of ₹ 5,74,328/- on 23.10.2001, which was processed u/s. 143(1). Subsequently, on the basis of information received from Investigation Wing, New Delhi that certain persons, including Rajjan Jassal, Mukesh Gupta and Surinder Pal Singh group, were engaged in providing accommodation entries, the case of the assessee was reopened u/s. 147 of the Act. Statements of these three persons were also recorded by Investigation wing which were forwarded to the AO. The AO noticed that the assessee during the year under consideration has raised share capital from & ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of the creditors etc. The authorities below have made no independent enquiry nor commented upon these documentary evidences nor issued summons u/s. 131 or 133(6) to the creditors. The identity of the shareholders is not disputed. The reassessment proceedings have been initiated only on the general information received from Investigation wing without any independent application of mind for the belief so formed by the Assessing Officer. The report of investigation wing or the statements so recorded by Investigation Wing have never been confronted to the assessee nor any opportunity of cross-examination provided. It is submitted that the basic perquisite for issuing notice under section 148 is to form a belief independently by AO on applicatio ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ome of assessee chargeable to tax has escaped assessment. He submitted that the assessee failed to discharge its onus which lay upon him u/s. 68 of the IT Act that the alleged share applicants from whom the money was received by assessee through bank, were creditworthy and the transactions entered were genuine. The ld. CIT(A), therefore, has rightly confirmed the addition after relying upon the decisions of jurisdictional High Court. He therefore, urged for dismissal of appeal of the assessee. We have considered the rival submissions, perused the material on record and the case laws cited by both the parties. In the instant case, proceedings u/s 147 of the Act were initiated by the ld. AO after expiry of four years from the end of releva ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nder : 39. The case of Orissa Corporation (1986) 159 ITR exemplifies the category of cases where no action is taken by the Assessing Officer to verify or conduct an enquiry into the particulars about the creditors furnished by the assessee including their income-tax file numbers. In the same category fall cases decided by this court in Dolphin Canpack (2006) 283 ITR 190, CIT v. Makhni and Tyagi P. Ltd. (2004) 267 ITR 433, CIT v. Antartica Investment P. Ltd. (2003) 262 ITR 493 and CIT v. Achal Investment Ltd. (2004) 268 ITR 211.To put it simply, in these cases, the decision was based on the fundamental rule of law that evidence or material adduced by the assessee cannot be thrown out without any enquiry. The ratio does not extend beyond ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... to establish a link between the assessee and the alleged hawala operators; such a link was shown to be present in the case of Nova Promoters Finlease (P) Ltd. (supra) relied upon by the revenue. We are therefore not to be understood to convey that in all cases of share capital added under section 68, the ratio of Lovely Exports (supra) is attracted, irrespective of the facts, evidence and material. No substantial question of law arises. The appeal is accordingly dismissed. In view of these decisions and the other case laws cited by the assessee, we find that the Assessing Officer has not applied his mind independently for recording the reason that the income of the assessee has escaped assessment. The record further reveals that iden ..... X X X X Extracts X X X X X X X X Extracts X X X X
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