TMI Blog2022 (6) TMI 888X X X X Extracts X X X X X X X X Extracts X X X X ..... A) that he examined the financials of these companies who have given share application money and found any cogency in that. It is settled law that ld. CIT (A) has co-terminus power to that of AO. Though we are not in agreement with the ld. CIT (A) s finding that everything was submitted before the AO and AO has falsely passed the assessment order that nothing was submitted before the AO, as it is not the case that ld. CIT (A) has called for the assessment records and found that AO has made false observation. The manner in which ld. CIT (A) passed the appellate order needs much to be desired. It was incumbent upon the ld. CIT(A) to give a finding upon the financial statements of the parties reportedly copies of which have been given to th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... se or otherwise acquire land, building to develop and dispose or maintain the same. The Assessing Officer (AO) has taken up the case by prefacing the assessment order that in connection with the search and seizure operation in the case of Amrapali Group on 07.08.2013, the case of the assessee is centralized to his jurisdiction. 4. In the assessment order, the AO observed that during the year under consideration, assessee in its books has shown share application money pending allotment amounting to Rs.211,42,36,245/-. In order to ascertain the creditworthiness of the parties from whom the assessee company received share application money and the genuineness of the transactions, AO made certain enquiries for obtaining information regardi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... idence such as books of account, bank statements to prove the identify, creditworthiness and genuineness of the transaction. However, the assessee failed to discharge the onus cast upon it. (iii) The aforementioned case laws squarely applies to the assessee s case. 4.8 Therefore, the assessee company has failed to discharge its onus to prove the identity of the share applicants, their creditworthiness and the genuineness of the transactions in respect of share application money amounting to Rs.9,25,36,245/-. 4.9 In view of the field inquiries conducted coupled with the noncompliance of the notices u/s 133(6) and summons u/s 131 of the Act issued by the undersigned, it has been held that the antecedents of the investing com ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d preliminary enquiries. He observed that all the informations were given to the AO and AO does not make further enquires so adverse inference cannot be taken against the assessee. He found that assessee has discharged its onus and he found no justification in the addition. 6. Against this order, Revenue is in appeal before the ITAT. 7. We have heard the ld. DR for the Revenue. None is appearing on behalf of the assessee for the past several occasions. Hence, we are proceeding to adjudicate the issue after perusing the records and hearing the ld. DR for the Revenue. We note that in this case, AO has given a finding that assessee has not produced any detail and that the parties have not responded to issue of notice including that u/s 1 ..... X X X X Extracts X X X X X X X X Extracts X X X X
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