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TMI Blog2013 (4) TMI 314X X X X Extracts X X X X X X X X Extracts X X X X ..... of the Act. 3. The appellant craves leave to add, alter or amend any ground of appeal raised above at the time of hearing. 2. The brief facts of the case are that the assessee is engaged in the trading of computer parts and it filed its return of income on 22.10.2010 showing nil income. The case was selected for scrutiny. During assessment proceedings, the Assessing Officer observed that company was incorporated on 1.4.2004 and there was no working till 31.3.2006. The Assessing Officer has also observed that assessee had mainly entered into transactions with two companies namely M/s Datamini Computers Ltd. and M/s Acceton India (P) Ltd. The Assessing Officer observed that up to October, 2006 the assessee had made sales of Rs.20.05 lakhs w ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s were bogus. In view of above, he treated all expenditure except audit fees as bogus and made addition of Rs.22,47,517/-. 3. Dissatisfied with the order, the assessee filed appeal before Ld CIT(A) and submitted as under:- i) That Assessing Officer was not justified in rejecting the books of accounts of the appellant and disallowing expenses of Rs.22,47,517/- whereas proper books of accounts were maintained and even ledger remained with Assessing Officer for about a month. ii) That Assessing Officer was not justified in making addition of Rs.25 lakhs u/s 68 on account of share application money received from EN Singapore by alleging that main motive of the assessee company was to adjust unexplained cash credit money. iii) That when book ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... on made by the Assessing Officer. The relevant portion of Ld CIT(A)'s order is reproduced below:- "I have carefully gone through the assessment order and the submission of the appellant. On perusal of the details of this total expenditure of Rs.22,47,517/- disallowed by the Assessing Officer, the expenses on salary is Rs.11,97,881/- major portion of salary has been found to be paid by cheque and TDS has been deducted and few certificates have been filed with Assessing Officer copy of which has been filed with me at paper book No.71-76 along with copy of letter dated 21.10.2009 submitted before Assessing Officer. Management consultancy was paid of Rs.4 lakhs which is confirmed by the recipient of these expenses and the balance are minor exp ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Officer. The Assessing Officer has not conducted any further verification even though sufficient time was available and has without bringing any evidence on record proceeded to add the amount u/s 68 of the Act by concluding that the main motive of the company is to adjust the unexplained cash credit. In the light of the prevalent judicial ruling, the fact that the names and address was available with the Assessing Officer for further enquiry and the payments were through regular banking channels and the Assessing Officer has not brought any material to prove that this money is of the appellant company, I am of the view that the addition u/s 68 is unjustified and directed to be deleted." 6. Aggrieved, the revenue filed appeal before this T ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nformation was required by her but she did not ask for anything. He further argued that assessee had replied to each query of Assessing Officer and in this respect our attention was invited to pages 4 to 11 of paper book wherein each observation of Assessing Officer was replied to. 9. With regard to addition of Rs.25 lakhs, it was argued that assessee had submitted all evidences regarding identity, creditworthiness and genuineness of the party from whom share application money was received and moreover money was received from proper banking channel and therefore the Ld CIT(A) has rightly deleted the addition. 10. In his rejoinder, the Ld DR submitted that assessee had not submitted any proof for allotment of shares. 11. We have heard the ..... X X X X Extracts X X X X X X X X Extracts X X X X
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