TMI Blog2017 (3) TMI 1308X X X X Extracts X X X X X X X X Extracts X X X X ..... me at ₹ 33,23,900 after making addition/disallowance aggregating ₹ 32,03,740, on wholly illegal and frivolous grounds, untenable in law. It is prayed that the addition made to income be directed to be deleted. 2. That the Assessing Officer has erred in adding amounts received from following three entities towards share capital as undisclosed income of the assessee company under section 68 of The Income Tax, Act, 1961: (i) ₹ 10,25,000 received from M/s Galaxy Cornmonsales Pvt Ltd. (ii) ₹ 6,50,000 received from M/s Umapati Vinmay Pvt Ltd. (iii) ₹ 15,00,000 received from Sh Kunal Shikarpuri. It is prayed that the addition made to income be directed to be deleted. 3. That The Assessee company has discharged the onus cast upon it in law to establish the identity and credit worthiness of the share holder who had subscribed to the share capital of the company, and the genuineness of the transactions. The addition made to income u/s 68 of the Act, is .thus illegal, without jurisdiction, and requires to be deleted in entirety. 4.01 That the addition made to income is incorrect and is against law in view of the decision of The Hon'ble Apex ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... re, in haste and without providing any reasonable opportunity to the assessee company to defend its case, vitiating the assessment, rendering it bad in law, liable to be quashed. 4.07 That the addition made to income in respect of amount received from Kunal Shikarpuri, is on mere surmise and conjecture and disbelief, and thus illegal, unwarranted and untenable in law, liable to be quashed / deleted, as the AO expressed satisfaction with regard to identity, credit worthiness and genuineness of the amount received and sought no further details, information, explanation from the assessee company, and did not also make any further investigation from the share holder. 5. That the appellant company craves leave to amend, modify, delete all or any of the grounds of appeal above, and to add any further ground of appeal, before and during the appeal proceedings. 4.01 That the addition made to income is incorrect and is against law in view of 2. The brief facts of the case are that the return of income for the assessment year 2011-12 was e-filed on 30.9.2011 declaring total income of ₹ 33,23,900/- by the assessee company. The case was selected for scrutiny under CASS under ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... edgement of ITR for AY 2010-11; copy of audited financial statements of the share applicant company for AY 2011-12; copy of bank statement of the share applicant company for the relevant period; copy of bank statement of the assessee company reflecting the transactions ; copy of notice dated 17.2.2014 issued by the AO requesting the assessee to produce the controlling persons of the share applicant companies in order to prove the genuineness and creditworthiness of the parties; copy of the letter dated 22.2.2014 issued by M/s Galaxy Commonsales Pvt. Ltd. confirming the investment made in assesee company and further giving their updated address; copy of letter dated 21.2.2014 by M/s Umapati Vinimay Pvt. Ltd. confirming the investment made in assessee company and further giving their updated address and the copy of written submissions filed before the Ld. CIT(A) which was not disputed by the AO in this order. Ld. Counsel for the assessee further submitted that in spite of the aforesaid documentary evidence filed by the assessee before the revenue authority for establishing the creditworthiness, identity and genuineness of the transactions. The Revenue Authority only emphasize upon th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... using the Paper Book, we note that assessee has attached various documentary evidences which he filed before the lower authorities. The page nos. 28 to 73 have been establishing that he assessee has filed share application forms dated 11.12.2010 and 3.1.2011; copy of affidavits of the Director of Share applicant company; copy of acknowledgement of ITR for AY 2010-11; copy of audited financial statements of the share applicant company for AY 2011-12; copy of bank statement of the share applicant company for the relevant period; copy of bank statement of the assessee company reflecting the transactions ; copy of notice dated 17.2.2014 issued by the AO requesting the assessee to produce the controlling persons of the share applicant companies in order to prove the genuineness and creditworthiness of the parties; copy of the letter dated 22.2.2014 issued by M/s Galaxy Commonsales Pvt. Ltd. confirming the investment made in assesee company and further giving their updated address; copy of letter dated 21.2.2014 by M/s Umapati Vinimay Pvt. Ltd. confirming the investment made in assessee company and further giving their updated address and the copy of written submissions filed before the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Assessing Officer once the assessee had furnished all the relevant material. In such an eventuality no addition can be made under S. 68. (A Y. 2004-05). C. CIT v. KAMDHENU STEEL ALLOYS LTD., SLP (CC) no. 15640 of 2012, dated 17-09-2012 (Supreme Court) Issue Involved: Whether once the assessee has discharged the initial burden by filing adequate evidence/material, Revenue is supposed to dislodge the initial burden discharged by the assessee and to throw the ball again in the assessee's' court demanding the assessee to give some more proofs, as the documents produced earlier by the assessee either become suspect or are rendered insufficient in view of the material produced by the Department rebutting the assessee's documentary evidence? Decided in Favour of : Assessee Held: The Hon'ble Supreme Court has dismissed the Special Leave Petition filed by the Revenue against the decision of Hon'ble Delhi High Court in the case CIT v. Kamdhenu Steel Alloys Ltd. [2014] 361 ITR 220 in which it has been held: Cash credits--Unexplained investments--Burden of proof--Share application money--Assessee explaining source' of money-Identities of applicants and th ..... X X X X Extracts X X X X X X X X Extracts X X X X
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