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TMI Blog2012 (10) TMI 52X X X X Extracts X X X X X X X X Extracts X X X X ..... o believe that there is escapement of income, accordingly, we uphold the action of the Assessing Officer for reopening the assessment. So far as merit of addition is concerned, it is observed that AO should have brought on record positive material to substantiate the transaction of issue and repurchase of shares as bogus, having been done by paper company. However, no effort was made by the Assessing Officer or CIT(A) to establish identity of the share applicants. Matter is restored back to the file of Assessing Officer for deciding afresh as per law - Appeal of assessee allowed in part for statistical purposes. - I.T.A.No. 88/Ind/2012. - - - Dated:- 13-7-2012 - SHRI JOGINDER SINGH AND SHRI R.C.SHARMA, JJ. Appellant by : Shri S ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ors Sreevan Overseas Limited Asutosh Shukla Nandan Mercantile Suwarna Sapre Presswell Industries Vinod Sapre Sab Computing Pvt. Ltd. Vimlesh Shukla Therefore, introduction of share capital by the assessee company has been escaped assessment u/s 68 and buy back of shares by the directors can also be viewed u/s 68. 3. In the assessment framed u/s 143(3) read with Section 147, the Assessing Officer observed that the assessee was asked to submit balance sheet confirmation etc. of the companies which have invested in the assessee company. However, said details were not furnished by the assessee. On the basis of finding given at page 5 to 8 of his order, the Assessing Officer concluded that receipt of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... and hence the proceeding are barred by time. 2. That on the facts and in the circumstances of the case, the ld. CIT(A) was not justified in holding that the issue with respect to validity of notice u/s 148 was not raised before the Assessing Officer. 3. That on the facts and in the circumstances of the case, the ld. CIT(A) was not justified in not holding that the initiation of reassessment proceedings, without there being any reason to, believe, in order to make a fishing inquiry and to facilitate change of opinion is not permissible u/s 148 and hence in not holding that the entire reassessment proceedings are invalid. 4. That on the facts and in the circumstances of the case, the ld. CIT(A) was not justified in holding that there ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... m the above companies are not genuine and as such they are taxable u/s 68 as unexplained credits. In all the cases the assessee has filed the audited balance sheet, confirmation letters, copy of the resolution, Income tax returns and the bank statements. Thus, all the details were filed before the ld. Assessing Officer who brushed aside the same and held that the transactions are not genuine. He has no where challenged the identities of the companies. The ld. CIT(A) has upheld the decision of Assessing Officer on the same reasons in a short paragraph No.2.3 at page 2. 8. On the other hand, Shri Darshan Singh, ld. CIT DR supported the findings recorded by the lower authorities to the effect that these were only paper companies and the tran ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ssessing Officer for reopening the assessment. 10. So far as merit of addition is concerned, we found that the Assessing Officer has not made proper enquiry to establish the identity of the shareholder, merely on the basis of initial figures submitted by the assessee, he reached to the conclusion that transaction was not genuine. To verify the genuineness of transaction of buy back of shares at face value, the Assessing Officer should have called the subscribers and after recording their statement should have reached to proper conclusion. Assessing Officer should have brought on record positive material to substantiate the transaction of issue and repurchase of shares as bogus, having been done by paper company. However, no effort was mad ..... X X X X Extracts X X X X X X X X Extracts X X X X
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