TMI Blog2014 (11) TMI 1265X X X X Extracts X X X X X X X X Extracts X X X X ..... nt as undisclosed income under section 68 of the Act in its hands. In the circumstances, the Tribunal was justified in deleting the addition.The issue No.1 is already answered by this Court in favour of the assessee and against the revenue. Charging of interest u/s 217 when the assessment under Section 143(3) read with Section 147 has to be treated as an original assessment - ITAT deleted the addition - HELD THAT:- Issue concluded by the decision of the Punjab and Haryana High Court in the case of Darshan Lal Gulati [ 2008 (3) TMI 683 - PUNJAB AND HARYANA HIGH COURT ] wherein, it is held that in case an assessment had been framed in response to original return filed by assessee, first or initial assessment made by Assessing Officer wou ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the decision of this Court passed in Tax Appeal No.457 of 1999 decided on 09.08.2010 and issue No.2 is also covered by the decision of Punjab and Haryana High Court in the case of Darshan Lal Gulati Vs. Commissioner of Incometax, Jalandhar, reported in [2008] 173 TAXMAN 268 (PUNJ HAR.]. 4. We have heard learned advocate for both the parties and perused the material on record as well as the decisions relied upon by the learned advocate for the appellant. The issue No.1 is already answered by this Court in favour of the assessee and against the revenue in the decision rendered in Tax Appeal No.457 of 1999 relied upon by the learned advocate for the appellant. In the above decision, the Court has referred the decision in the case of Comm ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... w of the matter, we find that the source of funds can be clearly related to the persons as specified by the A.O. Therefore, the A.O. was not justified in brining to tax the entire amount of Rs.50 lacs in the hands of the assesseecompany by treating it as unexplained credit or investment u/s 68 of the I.T. Act. 9. Thus, from the facts emerging on record, it is apparent that during the period immediately after its incorporation the assessee company had practically done no business so as to generate income of Rs.50 lakhs. The Assessing Officer on inquiry has found many of the alleged shareholders to be benamidars or having not invested the money, but at the same time, he has traced out the source of money to some specific persons, who w ..... X X X X Extracts X X X X X X X X Extracts X X X X
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