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TMI Blog2011 (2) TMI 980X X X X Extracts X X X X X X X X Extracts X X X X ..... etion of addition of Rs. 97,82,000 out of the total addition of Rs. 1,04,69,300 made by the Assessing Officer on account of unexplained cash credit under section 68 of the Act. 2. The crux of arguments on behalf of the assessee is that the assessee has established the identity of the investors, genuineness of the transactions and creditworthiness of the investors as required under section 68 of the Act. All the transactions by the shareholders were claimed through banking channel for which reliance was placed upon the decision of the Indore Bench of the Tribunal in the case of Shri Kela Prakashan (P.) Ltd. [2010] 14 ITJ 539 and CIT v. Lovely Exports (P.) Ltd. [Application No. 1193 of 2007, dated 11-1-2008] for the share capital of Shri Sur ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rsons who invested their share capital. Brief facts are that the assessee is a private limited company incorporated on 24-12-2003. The assessee after incorporation could not start its business till 31-3-2006. The assessee showed loss of Rs. 1,29,482 for which the assessment was completed on the income of Rs. 1,03,39,820 by making addition of Rs. 1,04,69,300. During the year, the assessee issued share capital of Rs. 1,40,000 being share money received from 18 shareholders. The share contribution made by these 18 share subscribers is summarized as detailed in Annexure-A attached herewith. Out of the aforesaid 18 shareholders, the learned Commissioner of Income-tax (Appeals) deleted the addition for 16 and maintained for the remaining two i.e ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... assessee of that previous year. The expression "the assessee offers no explanation" means where the assessee offers no proper, reasonable and acceptable explanation, as regards the sums found credited in the books maintained by the assessee. It is true that the opinion of the Assessing Officer for not accepting the explanation offered by the assessee as not satisfactory is required to be based on proper appreciation of material and other attending circumstances available on record. The opinion of the Assessing Officer is required to be formed objectively with reference to the material available on record. Application of mind is the sine qua non for forming the opinion. A close reading of sections 68 and 69 makes it clear that in the case of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... o 19.4 of the impugned order. The claim of the assessee is that Shri Surendrakumar Singh derives income from trading in shares and assessed to tax. It is pertinent to mention here that for the assessment year 2006-07 no return was filed by him. The claim of the assessee is that since the income was below taxable limit, no return was filed. The conclusion drawn by the learned Commissioner of Income-tax (Appeals) is that the appellant did not sufficiently discharge the onus of proving the amount invested by Shri Surendra Kumar Singh and the identity, genuineness of the transaction and creditworthiness of the shareholder is clearly not established. He further held that the investor was also not produced before the Assessing Officer. It is pert ..... X X X X Extracts X X X X X X X X Extracts X X X X
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