TMI Blog2009 (1) TMI 25X X X X Extracts X X X X X X X X Extracts X X X X ..... r. Rajiv Bansal with Mr.Harshit Agarwal for the Respondent. JUDGMENT The judgment of the court was delivered by RAJIV SHAKDHER, J - The Revenue has preferred the present appeal under Section 260A of the Income Tax Act, 1961 (hereinafter referred to as the "Act") against the judgment of the Income Tax Appellate Tribunal (hereinafter referred to as the 'Tribunal') dated 19.05.2006 passed in ITA No. 2206/D/2000 in respect of the assessment year 1996-97. 1.1 The sole issue raised in the appeal is the deletion of Rs 71 lakhs received by the assessee on account of share application money by the Commissioner of Income Tax(Appeals) [hereinafter referred to as the 'CIT(A)'] which has been sustained by the Tribunal. 2. In order to ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... .T. Finance Ltd is concerned the only observation that the Assessing Officer made with respect to the addition of the said amount of Rs 71 lakhs is as follows:- ''..In the case of amount received from M/s T.T. Finance Ltd., it is clear that assessee's own fund has come back in the form of share capital. All the entries are book entry and merely routed through T.T. Finance Ltd and therefore the amount of Rs 71 lakh is added u/s 68 of the Income Tax Act. This company M/s T.T. Finance Ltd has been used to route the assessee's own unaccounted money....." 2.4. The assessee being aggrieved by the aforesaid order passed by the Assessing Officer preferred an appeal to the CIT(A). The CIT(A), by his order dated 31.01.2000, allowed the assessee ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tage of assessment in the form of names, addresses and PAN numbers of the subscribers of the share capital, the money had been received through banking channels. In these circumstances, it came to the conclusion that the assessee had been able to establish the identity of the investors and the initial burden which rested on the assessee had been shifted. In view of the fact that the share capital money have been received through a cheque, the Tribunal concluded that the share capital money could not be treated as undisclosed income of the assessee as there was neither any direct nor circumstantial evidence to the contrary. 2.6. The Revenue being aggrieved has preferred the present appeal. The learned counsel appearing for the Revenue, S ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ed by him to the Assessing Officer vide letter dated 03.11.1999 requesting him to furnish his comments/reports on or before 16.11.1999. He further noted that on 01.12.1999 the assessee's counsel appeared before him and submitted a letter with certain enclosures. These were also forwarded by the CIT(A) to the Assessing Officer vide letter dated 01.12.1999. The Assessing Officer's report was sought on or before 14.12.1999. Thereafter, the counsel for the assessee put in an appearances before the CIT(A) on 15.12.1999, 05.01.2000 and 21.01.2000. The Assessing Officer, however, did not submit any report. As a matter of fact the CIT(A) records that both on 24.01.2000 and 27.01.2000 the Assessing Officer orally informed the CIT(A) to decide the ap ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ts of T.T. Finance Ltd. The payments, in issue, was made by way of a cheque. Findings of fact in respect of these ingredients had been returned both by the CIT(A) as well as the Tribunal. The Assessing Officer's observations justifying the addition on the other hand, to say the least are bald. 4.2 It is noted that T.T. Finance Ltd is a widely held company having its own paid up share capital amounting to Rs 3.4 crores. The assessee, as noted by the authorities below, is a member of the NSE and is involved in sale and purchase of shares. In these circumstances, we are of the view that the assessee has been able to discharge its onus in respect of the veracity of the transactions. This aspect of the matter has been squarely dealt with in ..... X X X X Extracts X X X X X X X X Extracts X X X X
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