TMI Blog2018 (9) TMI 789X X X X Extracts X X X X X X X X Extracts X X X X ..... r investment in the assessee’s company. AO has not made any adverse comments on the acceptance or otherwise of other 400 people as shareholders, we find that the AO has also not given the breakup of the investment made by the 10 persons or the percentage of investment which has been proved by the assessee to accept the entire investment as genuine. Thus deleting the entire additions on the basis of few sample shareholders is not correct. Therefore, we deem it fit and proper to remand the issue to the file of the AO with a direction to verify the investments atleast to the tune of 25% to 50% and findings on such material may be adopted for coming to any conclusion. - Decided in favour of revenue for statistical purposes. - ITA No.1003/Hyd/2 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... re application money. The balance amount of ₹ 24,58,47,240 was found to have been received during the year as fresh share capital. The assessee was, therefore, asked to furnish the complete details including the name, address, PAN Nos. etc., of the persons who have been contributed for the capital of the company. The assessee submitted basic details and the AO observed that a sum of ₹ 24,58,47,240 was received from 416 persons out of which an amount of ₹ 9,73,95,000 was received from three companies while the balance was received from 413 persons all of whom are allegedly agriculturists. The AO therefore, asked the assessee to furnish details of the names and addresses, date and mode of payment, source of income, copy of t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of the share capital. The CIT (A), therefore, allowed the assessee to furnish the information and called for a remand report from the AO. The AO, in his remand proceedings, randomly picked up 10 persons out of 413 persons and asked the assessee to produce those persons to examine the genuineness of share application money allegedly invested by them. The said persons and other seven persons were also produced along with their ID proof, pattadar pass book as proof of owning agricultural land. The AO also recorded the statements of such shareholders and submitted his report on 28.03.2017 recording that the creditworthiness of these shareholders was satisfactorily explained. Taking the same into consideration, the CIT (A) deleted the additions ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ment in the assessee s company. Though the AO has not made any adverse comments on the acceptance or otherwise of other 400 people as shareholders, we find that the AO has also not given the breakup of the investment made by the 10 persons or the percentage of investment which has been proved by the assessee to accept the entire investment as genuine. Therefore, we are of the opinion that deleting the entire additions on the basis of few sample shareholders is not correct. Therefore, we deem it fit and proper to remand the issue to the file of the AO with a direction to verify the investments atleast to the tune of 25% to 50% and findings on such material may be adopted for coming to any conclusion. 7. In the result, Revenue s appeal is ..... X X X X Extracts X X X X X X X X Extracts X X X X
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