TMI Blog2024 (2) TMI 216X X X X Extracts X X X X X X X X Extracts X X X X ..... (A) that majority of expenses are towards salary paid and they were through banking channels. As observed that the expenses on advertisement, electricity, telephone, computer repair and maintenance, bank charges etc. were all paid through ICICI Bank and IndusInd Bank. All the above findings of the ld. CIT (A) have not been rebutted by the Revenue. We see no infirmity in the order passed by the ld. CIT (A) in deleting the above additions/disallowances. Appeal of the Revenue is dismissed. - SHRI CHALLA NAGENDRA PRASAD, JUDICIAL MEMBER AND SHRI PRADIP KUMAR KEDIA, ACCOUNTANT MEMBER For the Assessee : None. For the Department : Shri Kanv Bali, Sr. D. R. ORDER PER C.N. PRASAD, J.M.: 1. This appeal is filed by the Revenue against the order of the ld. Commissioner of Income Tax (Appeals)-1 [hereinafter referred to CIT (Appeals)] New Delhi dated 11.05.2017 for assessment year 2012-13 in deleting the addition of Rs. 1,33,32,875/- 2. In spite of issue of notice none appeared on behalf of the assessee nor an adjournment was moved. It is also noticed from the record that the notice sent to the assessee fixing the date of hearing on 28.03.2022 along with acknow ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 8. Lokesh Kumar 7,33,844.00/- Total 1,32,32,875.00/- The Assessing Officer added the said share application money on the ground that identity, capacity of the share applicant and genuineness of the transaction was not established, therefore, the same was added u/s 68 of the I.T. Act. During the course of appellate proceedings, appellant has submitted that it has received share application money from the above mentioned share applicants and in support of its contention, it has filed confirmation of the share applicants, copy of address proof of the share applicant, Form No.2, copy of PAN Card, copy of bank statement of share applicant and copy of share application form. In one case, the appellant has also filed copy of the balance sheet of the company from where the share application money was received. These evidences were forwarded to the AO for conducting enquiries. The Assessing Officer after conducting enquiries has submitted a remand report and along with the evidences collected by him. The Assessing Officer called for following information by issuing notice u/s ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ney in the appellant company for 336 shares. During the appellate proceedings, notice u/s 133(6) of the I.T. Act was issued to him which was successfully delivered to him through mail and post. However, no response was received. The appellant has filed copy of the Permanent Account Number card and bank statement of Sh. Ajay Kumar Gupta maintained with Standard Chartered Bank. The money has been received from Standard Chartered Bank on 7th December, 2011. Since, he is assessed to tax and has filed copy of Permanent Account Number, share application form, copy of bank account and confirmation, therefore, in this case identity and creditworthiness has been established. Sh. Prashant Kothari He has invested Rs. 21,81,382/- as share application money in the appellant company during FY 2011-12. During the appellate proceedings, the appellant company has filed confirmation, Share Application Form, Permanent Account Number, copy of his Passport and Visa in Paper Book from page 122 to 142. The AO issued notice u/s 133(6) vide letter dated 9.2.2017. He has confirmed the transaction with the appellant company vide his letter dated 15.2.2017 and has stated that he has invested Rs. 21,8 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... de India as entrepreneur and has transferred fund from USA. He has also filed copy of balance sheet showing investment in the shares of the appellant company and other company. Therefore, in this case identity, creditworthiness and genuineness of the transaction has been established. Sh. Saurabh Mathur. He has invested Rs. 6,84,037/- as share application money in the appellant company during FY 2011-12. During the appellate proceedings, the appellant company has filed copy of share application form, copy of Election Card, copy of Permanent Account Number, copy of bank statement in support of its contention. The AO issued notice u/s 133(6) of the I.T. Act vide letter dated 9.2.2017. He has confirmed the transaction with the appellant company vide his letter dated 17.2.2017 and has stated that he has invested Rs. 6,84,037/- through bank accounts maintained with HDFC Bank and State Bank of India. He has stated that he is working with Google as a Software Engineer in USA and funds have been transferred from his bank account maintained with CITI Bank in USA. He has also filed copy of US Individual return in form 2009 in support of his income wherein he has declared salary in ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... uly explained sources. The investors of the share application money have confirmed with sufficient evidences and in the case of investors their identity. creditworthiness and genuineness of the transactions has been established. Therefore, the addition of Rs. 1,32,32,875/- on account of share application money received is deleted. As regards the addition of Rs. 1,00,000/- on account of share application money, it is seen that this money was received from the Director of the appellant company at the time of its incorporation and the same is reflected in the Balance Sheet of the appellant company as on 31 March, 2011. Therefore, this share application money received in earlier year cannot be added in the AY 2012-13. Hence, the same is deleted. The AO has also disallowed expenses of Rs. 53,36,782/- claimed in the Profit Loss Account during the year as no details of the same were filed during the course of assessment proceedings. During the course of appellate proceedings, the appellant has filed details of these expenses in the form of ledger accounts. The same were forwarded to the AO for examination. However, Assessing Officer has not given any comment on this issue. It is seen ..... X X X X Extracts X X X X X X X X Extracts X X X X
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