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TMI Blog2023 (2) TMI 633X X X X Extracts X X X X X X X X Extracts X X X X ..... f an amount of Rs.30,00,000/- made by Assessing Officer holding the receipt of share capital to be not genuine particularly when there is no link between the date of deposit of cash by the mediators on 20.10.2007 as alleged by the AO and the receipt of capital whereas the capital amount of Rs.30,00,000 by the appellant through banking channels on 02.04.2009. 2. That on the facts and circumstances of the case, the Learned CIT (A) has erred both on facts and in law in confirming the addition of Rs.54,000/- made by the Assessing Officer on account of alleged commission merely on the basis of suspicion and without any material on record. 3. Brief facts of the case are that in this case, assessment was reopened on information received from ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... The law allows the Assessing Officer to lift the corporate veil to unmask the real from the apparent and also to go behind the transaction to understand their true import. The law also allows the authorities to test the transactions on a touches tone of human probability to arrive at a conclusion which the rationale mind would arrive at. After going behind the transactions on paper and after lifting the corporate veil, as discussed in earlier paragraphs, it has been proved that the apparent was not real. 11.3 I conclude therefore in view of the foregoing discussion that a sum of Rs.30,00,000/- credited in the books of account of the assessee fails to pass the test of genuineness within the meaning of Section 68 of the Act and is held to ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... easons. * Where there is admission before the investigation wing of the department that the subscribers to share capital had availed accommodation from bogus entry operators creditworthiness must be proved and these factual aspects and circumstances as proved before investigation wing cannot be simple to ignore. * Documents must also stand the tests of human conduct, surrounding circumstances and preponderance of probability. * When surrounding circumstances and attending facts predicate a cover-up, the taxing authorities cannot put on blinkers while looking at documents but are required to go beyond documents to look into surrounding circumstances to segregate the real from apparent 5.2.18 Once the appellant was made aware of t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... al authorities have decided the cases in favour of revenue after going through the entirety of the facts and circumstances. The case laws relied upon by the by the appellant have been decided with reference to the specific facts and situations present in the context of those distinct cases and cannot be made universally and squarely applicable to all cases where similar issues but in different setting of facts and accompanying circumstances are found to be involved. 5.2.21 In view of the facts and circumstances borne out of the assessment order and legal precedents as discussed above, I am of the view that documents submitted as evidences to prove the genuineness of transaction are themselves found to serve as smoke screen to cover up th ..... X X X X Extracts X X X X X X X X Extracts X X X X
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