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TMI Blog2012 (10) TMI 676X X X X Extracts X X X X X X X X Extracts X X X X ..... established on record - in favour of assessee. - ITA No. - 581 of 2008 - - - Dated:- 17-10-2012 - Sunil Ambwani And Aditya Nath Mittal, JJ. Petitioner Counsel :- A.N. Mahajan (S.C.) Respondent Counsel :- Ritvik Upadhyay 1. We have heard Shri Dhananjai Awasthi, learned counsel appearing for the Income Tax Department. Shri V.K. Upadhyay, Senior Advocate assisted by Shri Ritvik Upadhyay appears for the respondent-assessee. 2. This Income Tax Appeal filed by the Commissioner of Income Tax under 260-A of the Income Tax Act, 1961 (in short, the Act) arises out of order dated 14.8.2008 passed by the Income-Tax Appellate Tribunal, Agra Bench, Agra in ITA No. 275/Agr/2007 for the assessment year 2004-05. The department has preferre ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ppellant-assessee did not discharge the onus of establishing the capacity, genuineness and capabilities of the persons investing in the share either during assessment or appellate proceedings; the AO had brought on record that most of the persons, who claimed to have been invested in shares. They had meager source of income and were all residing at Aligarh and Khurja, and majority of them are related to the directors of the assessee-company. The appellate authority confirmed the addition under Section 68 of the Act. 5. The Tribunal has, relying on the judgment of Supreme Court in CIT v. Lovely Exports (P) Ltd 299 ITR 268 and the judgment of this Court in Jaya Securities Limited vs. CIT-II Kanpur (2008) 166 Taxman 7 (All), held that where ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... but these are share application moneys which cannot be treated like cash credit when identity of the share applicants gets established on record. Admittedly, undoubtedly and clearly the identity of all the share applicants stood proved on record. The latest and settled legal position on this subject is that when the identity of the share applicants is established by the assessee, nothing more is required to be done by it. Undisputedly, the identity of share applicants is not in doubt. Their identity stand established and proved on record. The learned A.O wants these deposits to be treated cash-creditors and expects the assessee company to prove their creditworthiness so also the genuineness of the transactions. We do not agree with learned ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ired to be done by it. Since the identity of the share applicants is not in doubt, at all, there is no reason to decline the claim of the assessee. Therefore, we allow ground nos. 1, 4 and 5 in favour of the assessee and order to delete the entire addition made in assess's hand." 8. We are of the view that on the facts of the case and the findings recorded by ITAT questions of law are covered by the judgment in Commissioner of Income Tax v. Lovely Exports (P) Ltd (supra) and the judgment of this Court in Jaya Securities Limited vs. CIT-II Kanpur (supra). 9. The questions of law are thus answered in favour of the respondent-assessee and against the revenue. 10. The Income Tax Appeal is dismissed. - - TaxTMI - TMITax - Income Ta ..... X X X X Extracts X X X X X X X X Extracts X X X X
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