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TMI Blog2006 (1) TMI 603X X X X Extracts X X X X X X X X Extracts X X X X ..... genunity of the applicants before allotting the shares. If for any reasons the address given in the applications were to be incorrect or for any reasons if the said applicants have changed their residence or the notices sent by the assessing officer has not been received by such applicants, the assessee/company cannot be blamed. Therefore, we are of the view that the Tribunal was not justified in allowing the appeal of the revenue only relying upon the statement of Sri Anil Raj Mehta, a Chartered Accountant. It is also seen by us that he has opened a joint account with three applicants viz., Sri Radheshyam. Sri Ramesh N Bothra and Sri Jabbar Singh. At the First instance he has denied the connection with that of the 10 persons and later on ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ve mentioned 24 persons. Since the assessee failed to produce the applicants who sought for allotment of shares, doubting the transaction has treated the aforesaid amount as income of the assessee and accordingly, an order of assessment was passed. 2. Aggrieved by the same, the assessee filed an appeal before the Commissioner of Income Tax (Appeals), which came to be allowed on the ground that the assessee has discharged its burden by giving the name and address of the applicants who sought for allotment of shares to show that the aforesaid amount of ₹ 10,00,000/- did not belong to the assessee. Considering the statement recorded by the assessing officer viz., one Anil Raj Mehta and having found that he had joint account belong to 24 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nt of shares and thereafter an enquiry has been conducted. Some of the applicants have confirmed the applications made by them and some of the applicants did not appear and even the notice sent to them have been returned with a share No such person . The assessing officer only relying on the ground that the assessee has filed to produce the correct address of the applicants has come to the conclusion that the transaction is not a genuine transaction. 6. Having heard the learned counsel for the parties, we notice that whenever a company invites applications for allotment of shares from different applicants, there is no procedure contemplated to find out the genuineness of the address or the genunity of the applicants before allotting the sha ..... X X X X Extracts X X X X X X X X Extracts X X X X
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