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TMI Blog2014 (11) TMI 1135X X X X Extracts X X X X X X X X Extracts X X X X ..... isallowance of Rs. 25,00,000/- made by the AO on account of share capital/share application money." 3. Briefly stated the facts giving rise to this appeal are that information was received from the Investigation Wing that the assessee has taken accommodation entries from certain entry operators and has introduced Rs. 25 lakh in the garb of share capital from three different corporate entities. The AO issued notice u/s 148 of the Act for reopening of assessment on 22.3.2010 and objections of the assessee against the said notice were dismissed by the AO's order dated 24.12.2010. Subsequently, the AO proceeded to frame reassessment and the AO made addition of Rs. 25 lakh to the income of the assessee, treating the share application money as u ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e assessee was a genuine transaction and the same was not accommodation entry. The DR finally prayed that the impugned order may be set aside by restoring that of the AO. 5. Replying to the above, ld. Counsel appearing for the assessee submitted that when the assessee has discharged its initial onus of establishing the bona fides of transaction by way of submitting identity of the subscribers, their addresses, PAN Nos., assessment particulars etc. and when the assessee has discharged the initial onus to establish the bonafides of the transaction, then the AO was not justified in ignoring various evidences submitted by the assessee. Ld. Counsel further contended that the AO kept aside all relevant evidence details and explanation of the ass ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... alone the entire addition deserves to be deleted and may kindly be held so. 7.11 In view of the factual position as well as the judicial pronouncement on the subject, discussed above, I am of the considered view that the appellant has discharged the initial onus of establishing the bona-fides of the transactions and the AO was not justified in ignoring various evidences provided to him by the appellant. Nothing adverse has been brought on record by the AO to establish that the amount of share application money of Rs. 25,00,000 Lacs received by the appellant from the said parties represents its own undisclosed income. If there was doubt about the source of investment of the said company, then additions should have been made in the case ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tions and the same was not accommodation entry. I also do not find any evidence collected by the AO which could prove otherwise. Accordingly, the AO was not justified in treating the amount of share application money received by the appellant as its undisclosed income. In view of our aforesaid discussion, I delete the addition of 25,00,000, made by the AO under Section 68 of the Income Tax Act, 1961." 7. In view of above, we are inclined to hold that the AO was not justified in rejecting the evidence and details submitted by the assessee without any further verification and examination of the same. We also observe that the AO made addition by accepting the statement of the alleged entry providers recorded by the Investigation Wing accept ..... X X X X Extracts X X X X X X X X Extracts X X X X
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