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TMI Blog2010 (10) TMI 237X X X X Extracts X X X X X X X X Extracts X X X X ..... de under section 68 of the Income-tax Act. The assessee having duly furnished the names, age, address, date of filing the application of share, number of shares of each subscriber there was no justification for the Assessing Officer for making the impugned addition because once the existence of the investors/share subscribers is proved, onus shift on the revenue to establish that either the share applicants are bogus or the impugned money belongs to the assessee itself. - 65 OF 2010 - - - Dated:- 25-10-2010 - SHANTANU KEMKAR, S.K. SETH, JJ. R.L. Jain and Ms. Veena Mandlik for the Appellant. ORDER 1. Heard on the question of admission. This is an appeal under section 260A of the Income-tax Act, 1961 challenging the order date ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... spondent by observing thus : "3. We have considered the rival submissions of ld. Representatives of both sides and perused the material available in record. Ground No. 1 is general in nature, therefore, requires no deliberation from our side. For ground No. 2 the brief facts are that the assessee-company is engaged in the business of manufacturing and trading of PVC rigid pipes, originally filed its return of loss of Rs. 22,91,022 on 30-11-2000. A search under section 132 was carried out at the premises of the assessee company on 8-10-2003. Consequent to search, a notice under section 153C read with section 153A was served upon the assessee on 3-6-2004 to which the assessee again filed the return of loss i.e., Rs. 22,91,022 as originally ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ced by the assessee-company under the name of share application money. These persons appear to be dumy persons and hence the entire amount of the share application money is considered as Bogus share application money. The assessee-company has not proved the genuineness of such person and also not proved their capacity to apply for such huge amount. These are dumy and the assessee company has introduced its own money as share application money. 4. On appeal, the ld. appellate authority by following the decision of the Hon ble jurisdictional High Court in the case of CIT v. Rathi Finlease Ltd. 215 CTR (MP) 429 to the effect that onus is on the assessee to establish the genuineness of the credits, affirmed the stand of the Assessing Officer ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... athi Finlease Ltd. (supra) to the extent that the assessee has to establish the genuineness of the credits, we are in full agreement with the argument but in the present appeal the assessee has duly established the identity, source of the credits. Even it is not the case that the shares have been issued to non-existing persons. Broadly we are of the view that once the identity and source of the subscribers is established for making share application, no addition can be made under section 68 of the Act because even the Hon ble Apex Court in the case of CIT v. Lovely Exports (P.) Ltd. 216 CTR (SC) 195 even stepped ahead by concluding as under : If the share application money is received by the assessee-company from alleged bogus shareholde ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ngs to the assessee-company itself. Once the confirmation letters are filed, no addition can be made on account of share application money in the hands of the company. Our view finds support from the decision in Shri Barkha Synthetics Ltd. v. ACIT 155 Taxman 289 (Raj.). The case like CIT v. G.P. International Ltd. 229 CTR (Punj. Har.) 86, CIT v. Steller Investment Ltd. 192 ITR 287 and Sophia Finance Ltd. 205 ITR 98 (Delhi) supports the case of the assessee. 4. As far as charging of interest under section 243B is concerned, it is argued to be consequential in nature. We have found that no specific section has been mentioned for charging of interest and merely it has been mentioned that charge interest if any, as per law. However, since t ..... X X X X Extracts X X X X X X X X Extracts X X X X
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