TMI Blog2023 (8) TMI 1305X X X X Extracts X X X X X X X X Extracts X X X X ..... tement of the respondent-assessee etc, had concluded that the respondent-assessee had discharged the initial onus lying upon it. The evidence considered by CIT(A) does not establish the genuineness and creditworthiness of the share application money. Thus, CIT(A) had failed to enquire into the creditworthiness and genuineness of the transactions and there is no evidence brought on record establishing the genuineness and creditworthiness of the share application money. Thus, the order passed by the ld. CIT(A) is perfunctory and not based on any material on record. Thus, the doctrine of fraud can be squarely invoked to the facts of the present case. Decided in favour of revenue. - Shri Inturi Rama Rao, Accountant Member And Shri Par ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the hearing, the order of the CIT(A) may be set aside and the order of the Assessing officer restored. 3. Briefly, the facts of the case are as under : The respondent-assessee is a company stated to have been engaged in the business of trading of M.S. Scrap, TMT Bars and Allied Products of Steel. The Return of Income for the assessment year 2010-11 was filed on 25.03.2011 declaring Rs. Nil income. There was no regular assessment was made against the said return of income. Subsequently, on receipt of the information from the DDIT (Investigation)-II, New Delhi that the respondent-assessee was a beneficiary of accommodation entries from the entities promoted and controlled by Shri Surendra Kumar Jain and Shri Virendra Kumar Jain of Del ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of Form 2 filed with Registrar of Companies. e. Copies of the annual report and Income Tax return filed acknowledgement of the referred company. 5. The ld. CIT(A) considering the submissions made before him held that the initial onus of proving the genuineness and creditworthiness of the transactions on respondent-assessee was discharged, the Assessing Officer had not brought any material on record to discharge the veracity of the evidence filed by the respondent-assessee placing reliance on the decision of the Hon ble Gujarat High Court in the case of PCIT vs. Chartered Speed Pvt. Ltd. [2015] (3) TMI 809 (Gujarat) deleted the addition. 6. Being aggrieved by the decision of the ld. CIT(A), the Revenue is in appeal before us in the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... iscussed the modus of operandi adopted by Shri Surendra Kumar Jain and Shri Virendra Kumar Jain of Delhi in providing these accommodation entries to the various people. Admittedly, the respondent-assessee is beneficiary of these accommodation entries. From mere perusal of the assessment order, it could reveal that the respondent-assessee had not discharged the initial onus of proving the identity, genuineness and creditworthiness of the share application money. However, the ld. CIT(A) considering the share application form, board resolution of the company, share receipt letter and confirmation, copy of bank statement of the respondent-assessee etc, had concluded that the respondent-assessee had discharged the initial onus lying upon it. The ..... X X X X Extracts X X X X X X X X Extracts X X X X
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