9911796707
TMI Blog2004 (6) TMI 582X X X X Extracts X X X X X X X X Extracts X X X X ..... see in consequence upon a settlement arrived at with the Electricity Board, Rajasthan, which had disconnected the power supply to the assessee on the allegation of theft of power and the second issue relates to the genuineness of share application money of Rs. 4 lakhs paid by Smt. Suman Chhabra, wife of Shri Prem Chhabra of Faridabad and of Rs. 1 lakh paid by Mrs. Rajini Jindal, wife of Sh. Sunil Jindal of Faridabad. 4. Before considering the rival submissions, I am of the opinion that it will be useful if the brief facts, which are relevant for the decision of these two issues and as have been revealed from the records are recorded. 5. So far as the first issue is concerned, the brief facts are that the Officers of Rajasthan Electricity ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... concerned, the two ladies had paid the share application money for purchase of shares of assessee-company. During the assessment proceedings, the Assessing Officer called upon the assessee to provide confirmation, source of investment, proof of identity and evidence of creditworthiness of the ladies, presuming the same to be cash credits. The assessee is claimed to have confirmed confirmations from the ladies, wherein they had given their Permanent Account Numbers and also the copies of their bank account and of acknowledgements for having furnished returns of income for assessment year 1997-98. The Assessing Officer however considered both these payments as unproved cash credits by observing that "the assessee failed to provide details/inf ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... on account of electricity charges and it is so because after having detected the so-called theft of electricity, it was absolutely unthinkable that the authorities would not have proceeded to recover the electricity charges for the quantity of electricity alleged to have been consumed by the assessee without authority, i.e., alleged to have been stolen. Coming to the revenue's allegation that the payment was on account of penalty or was of penal in nature, I am of the opinion that there being no direct evidence available on record that the demand raised by the Electricity Board of an amount of Rs. 20 lakhs paid by the assessee was on account of penalty, the only course left is to make out an inference from the payments made by the assessee ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... authority), the minimum charges which the assessee was to pay for the period 27-9-1992 to 28th Nov., 1992, etc. Here, it is Important to mention that in case of Industrial power connections, the consumer has to pay minimum monthly charges irrespective of the fact as to whether he has consumed any electricity during that period or not. Mentioning of this fact is very necessary because the settlement has waived this minimum charges for the period during which the supply remained disconnected. 11. In views of the above facts and circumstances of the case and the discussion, I am of the opinion that the payment of Rs. 20 lakhs was towards cost of consumption of electricity by the assessee without any authority, i.e., the so-called electricity ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s for having furnished returns. The counsel further submitted that presuming that the assessee had not furnished these details before the Assessing Officer, but since the assessee had furnished these details before the CIT (Appeals), the CIT (Appeals) should have considered the same. Coming to the merits of the issue, the learned counsel submitted that the amounts were received not as cash credits, but as share application money and since the assessee had established the identity of the applicants, both of them were Income-tax assessees, and also the genuineness of the payments, no addition could be made. The learned counsel further submitted that even otherwise, the receipts being on account of share application money, the same could not b ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... additions, I am of the opinion that the assessee having furnished confirmation before the authorities, copies of which have been placed at pages 11 and 15 of the assessee's paper book, wherein the PAN of the ladies have been given, had discharged the onus put on it by virtue of the provisions of section 68, because in the present case it was the share application money and not the cash credits. Even otherwise, both the ladies being Income-tax assessees and the amount having been received by cheques, there was no question of making any addition in the hands of the assessee. If the revenue authorities were not satisfied with the capacity of the ladies, then action could have been taken in their personal hands when the revenue has not alleged ..... X X X X Extracts X X X X X X X X Extracts X X X X
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