9911796707
|
Home
Issues involved:
The issues involved in this judgment are related to the addition of share application money under section 68 of the Income Tax Act, 1961, and the genuineness of the transactions. Issue 1: Addition of Share Application Money The appeal was filed by the revenue against the order passed by the CIT (A) for Assessment Year 2002-03, challenging the deletion of the addition of Rs. 45,00,000 on account of share application money under section 68 of the Income Tax Act, 1961. The assessee submitted that the amounts received were on account of share application money for allotment of shares, supported by documentary evidence including affidavits, audited certificates, and bank statements. The Assessing Officer applied Section 68 and made the addition of Rs. 55,01,125. The CIT (A) found that the share application money received was only Rs. 45 lac and not the entire amount. The CIT (A) deleted the addition based on the evidence submitted by the assessee, including share application forms, bank statements, and confirmation from shareholders. The CIT (A) referred to various judicial pronouncements and held that the initial onus was discharged by the assessee, hence deleting the addition. Issue 2: Validity of Re-assessment Proceedings The re-assessment proceedings were initiated based on information received from the Investigation Wing, indicating that the assessee had received accommodation entries from entry operators. The assessee challenged the validity of the re-assessment proceedings. The CIT (A) called for a remand report and found that the share application money received from seven companies was Rs. 45 lac, not the entire amount. The CIT (A) concluded that the issue to be decided was only with respect to the sum of Rs. 45 lac and not the total amount. The revenue appealed against the deletion of the addition made with respect to the share application money. Separate Judgment: No separate judgment was delivered by the judges in this case.
|
