TMI Blog2018 (9) TMI 1164X X X X Extracts X X X X X X X X Extracts X X X X ..... ordingly, same are directed to be deleted. - Decided in favour of assessee - I.T.A. No.836/DEL/2016 - - - Dated:- 26-7-2018 - Shri Amit Shukla, Judicial Member And Shri Prashant Maharishi, Accountant Member For the Appellant : Shri C.L. Sharma, Adv. For the Respondent : Shri Amit Jain, Sr.D.R. ORDER PER AMIT SHUKLA, J.M.: The aforesaid appeal has been filed by the assessee against the impugned order dated 31.08.2015, passed by Ld. CIT (Appeals)-VI, Delhi in relation to penalty proceedings u/s. 271(1)(c) for the Assessment Year 2006-07. The assessee is mainly aggrieved by levy of penalty of ₹ 5,04,900/- on account of addition made u/s.68 in respect of share application money from two companies for sums aggregating to ₹ 15 lacs. 2. The facts in brief qua the addition relating to levy of penalty u/s. 271(1)(c) are that, the assessee has received sum of ₹ 15 lacs towards share application money from the following two companies:- S. No. Name address Amount (Rs.) Details of cheque/DD/PO No. bank M/s. Ganga Infin ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... see company has discharged its onus by filing above documents evidencing their identity. b) The statements given by the above persons are vague and general in nature and these persons have not specifically mentioned the name of the assessee company. The assessee may be provided an opportunity to cross examine them. The statements relate to their activities in the past and not to the any transactions undertaken during the year under assessment. c) The payments have been received through banking channels and have also since been refunded on 23.10.2007 and 15.11.2007. d) The assessee having furnished confirmations from the creditors, the onus on it u/s 68 stands discharged. It is not for the assessee to find out the actual source or sources from where the creditor has accumulated the amount in question. e) The assessee may be given an opportunity to cross-examine the person viz. Sh. Mahesh Garg and his associates, mentioned above. 4. However, the Assessing Officer after detailed discussion, added the amount of ₹ 15 lac as unaccounted money of the assessee and also added commission for arranging such share application money @2.5% for sum of ₹ 37500 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 008, i.e., during the course of assessment proceedings. Thus, the onus cast upon the assessee stood duly discharged and nowhere has it been brought on record that Shri Mahesh Garg has stated that he has given any accommodation entry to the assessee and the documents furnished by the assessee are bogus. Hence, on these facts, no penalty can be levied. 8. On the other hand, learned Department Representative strongly relied upon the order of the ld. CIT (A) and submitted that once the entire addition has been confirmed by the Tribunal on the ground that it was a sham transaction taken from paper entities, therefore, penalty levied on such addition should be confirmed. 9. We have heard the rival submissions and also perused the relevant findings given in the impugned orders as well as material referred to before us. The assessee had received share application money of sum of ₹ 7 lacs and ₹ 8 lacs from M/s. Ganga Infin Pvt. Ltd. and M/s. Kuberco Sales Pvt. Ltd., respectively. In support of these documents, the assessee had filed sworn affidavit of the Diretors, confirmations, bank statement of the companies, copy of share application money with Board Resolution, copy o ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ew Era Infrastructure Pvt. Ltd. was out of the company's own funds and was part of the normal course of business. 6 Our company has not been allotted any share by M/s. New Era Infrastructure Pvt. Ltd. therefore, our application money has already been returned back by the above said company. The details of which has already been explained in above para. 7 We have not charged any interest on our amount for the period the same was with M/s. New Era Infrastructure Pvt. Ltd. 8 We have also not availed any other benefits for the same. 9 We are assessed to Income-tax at PAN AAACG4449G, New Delhi This reply is only to comply the summon issued to our company in the case of M/s. New Era Infrastructure Pvt. Ltd., 363, Agarwal City Plaza, Mangalam Palace, Near M2K Cinema, Rohini, Delhi-110 085. Our company has also given an affidavit, confirming our transaction with M/s. New Era Infrastructure Pvt. Ltd. for the financial year ending 31st March 2006. Your goodself is hereby requested to consider our reply as our presence against the summon issued to our company under section 131 of the Income tax Act, 1961. Thanking you, For GANGA INFIN PVT. LTD. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Private Limited. 8 We have also not availed any other benefits for the same. 9 We are assessed to Income-tax at PAN AABCK5160D, New Delhi This reply is only to comply the summon issued to our company in the case of M/s. New Era Infrastructure Private Limited, 363, Agarwal City Plaza, Mangalam Palace, Near M2K Cinema, Rohini, Delhi-110 085. Our company has also given an affidavit, confirming our transaction with M/s. New Era Infrastructure Pvt. Ltd. for the financial year ending 31st March 2006. Your goodself is hereby requested to consider our reply as our presence against the summons issued to our company under section 131 of the Income tax Act, 1961. Thanking you, For KUBERCO SALES PVT. LTD. (ANIL KUMAR) DIRECTOR 10. The only reason for making the addition was that, firstly , these parties did not appear before the Assessing Officer in response to the summons issued u/s.131; and secondly , in inquiry conducted by the Investigation Wing earlier these companies were found to be involved in providing accommodation entries. However, no specific inquiry or information pertaining to the assessee that these companies have provided the ..... X X X X Extracts X X X X X X X X Extracts X X X X
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