9911796707
|
Home
Issues involved: Appeal against deletion of additions u/s 68 of the Income Tax Act 1961 for A.Y. 2006-07.
Summary: The revenue appealed against the deletion of additions of Rs. 50,00,000/- u/s 68 of the Income Tax Act 1961. The assessee company had shown share application money received from its Director, Shri Sujit Acharya. The AO treated the amount as undisclosed income due to lack of satisfactory explanation on the source of money. However, the CIT(A) deleted the addition after considering the evidence provided by the assessee, including PAN card, consent letter, and bank account details of Shri Sujit Acharya, establishing his identity and the genuineness of the transaction. The CIT(A) also referred to the Supreme Court decision in the case of Lovely Exports to support the deletion of the addition. In the appeal, it was established that the identity of the shareholder, Shri Sujit Acharya, was not in dispute as evidenced by his PAN card, consent to be a director, and bank account details. The CIT(A) verified the identity and existence of Shri Sujit Acharya and found no reason to justify the addition of share application money. The department failed to provide evidence to suggest the transaction was bogus or an accommodation entry. The CIT(A) upheld the deletion of the addition based on the established identity of the shareholder and the lack of evidence against the genuineness of the transaction. The Tribunal upheld the CIT(A)'s decision, noting the similar view taken in a previous case. The Tribunal emphasized the importance of establishing the veracity of submissions made by the assessee and criticized the Assessing Officer for insisting on the production of share applicants without valid justification. Referring to legal precedents, the Tribunal supported the decision to delete the addition of share application money. The appeal filed by the revenue was dismissed, and the order of the CIT(A) was upheld based on the established facts and legal principles. In conclusion, the Tribunal dismissed the revenue's appeal and upheld the deletion of the addition of Rs. 50,00,000/- as share application money received by the assessee from Shri Sujit Acharya. The decision was pronounced in open court on 22nd January, 2010.
|
