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TMI Blog2017 (4) TMI 865X X X X Extracts X X X X X X X X Extracts X X X X ..... ion of Rs. 28,83,163/- under section 68 of the Act and Rs. 58,580/- was disallowed under section 40(a)(ia) of the Act. 2. Aggrieved by the order dated 24.03.2014, the assessee went in appeal before the CIT(A). The addition under section 68 of Rs. 28,83,163/- was confirmed and the disallowance of Rs. 58,580/- was deleted vide order dated 07.12.2015. 3. The assessee is in appeal before us against the order dated 07.12.2015 and has raised the following grounds of appeal:- "1. The Order of the Hon'ble Commissioner of Income tax (Appeals), Faridabad upholding the Order of the Ld. Assessing Officer (AO) i. e. Dy. Commissioner of Income tax, Circle-I, Faridabad, to the extent of addition U/s 68 of the Income Tax Act'1961 is against the facts of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rged its onus by providing the copies of confirmation letter, ITR, Bank statement, PAN Card of the creditor. It is submitted that the creditor company is not a mere paper company and holds reserves and surplus including the share capital to the tune of Rs. 113 crores. The Ld. AR has placed reliance upon various case laws including the judgment of the Hon'ble Delhi High Court in the case of Pr. CIT Vs. Softline Creations Pvt. Ltd.,387 ITR 636. 6. The Ld. DR on the other hand relied upon the orders passed by the CIT(A) and the AO. It was submitted that notice under section 133(6) of the Act was issued to the creditor company i.e. M/s Transnational Growth Fund Ltd. and also an inspector of the Department was deputed to make local inquirie ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... that in all such cases, more often than not, the company is a private one, and persons from whom loans have been taken are known to it, since they are issued on private placement, or even request basis. If the assessee has access to the loaners/creditors applicant's PAN particulars, or bank account statement, surely its relationship is closer than arm's length. Its request to such concerns to participate in income tax proceedings, would, viewed from a pragmatic perspective, be quite strong, because the next possible step from the tax administrators could well be reopening of such investor's proceedings. That apart, the concept of "shifting onus" does not mean that once certain facts are provided, the assessee's duties are over. If on verifi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... false and cannot be acted upon, then no addition can be made in the hands of the company under sec. 68 and the remedy open to the revenue is to go after the share applicants in accordance with law. We are afraid that we cannot apply the ratio to a case, such as the present one, where the Assessing Officer is in possession of material that discredits and impeaches the particulars furnished by the assessee and also establishes the link between, selfconfessed accommodation entry providers", whose business it is to help assessees bring into their books of account their unaccounted monies through the medium of share subscription/U loans, and the assessee. The ratio is inapplicable to a case, again such as the present one, where the involvement o ..... X X X X Extracts X X X X X X X X Extracts X X X X
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