2011 (6) TMI 748

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..... 77; 35 lacs regarding share application money received u/s 68 of the IT Act. The reasons given by the Assessing Officer in this case in brief are as under:- i) Share applicants are established entry operators and letters furnished by them prove that a) Such persons were engaged in such business of providing accommodation entries. b) They had no other business other than this money laundering business. c) They cannot explain the source of the money transferred to various beneficiaries. d) Such persons use to take commission for routing such kind of money. ii) None of the share applicants appeared in response to notices issued and in some cases notices got unserved. iii) There were cash deposits in the bank accounts of sh .....

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..... w Delhi 5,00,000/- Copies of application for shares, IT return ack., P L account, balance sheet and confirmation letter were filed. Date of incorporation is 28.07.1989 PAN : AAACF2090C 4. M/s Polo Leasing Finance Pvt. Ltd. A-24, Tagore Market, Kirti Nagar, New Delhi 5,00,000/- Copies of application for shares and confirmation letter were filed. Date of incorporation is 03.08.1995 PAN : 5. M/s MV Marketing Pvt. Ltd. WZ-134, Plot No. 170 Vishnu Garden, New Delhi 5,00,000/- Copies of application for shares and confirmation letter were filed. Date of .....

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..... despite conducting independent enquiries. In this background, Ld. Commissioner of Income Tax (Appeals) deleted the addition of ₹ 35 lacs. 5. Against the above order the Revenue is in appeal before us. 6. We have heard the rival contentions in light of the material produced and precedent relied upon. We find that assessee has received share application money from Private Limited companies. The assessee has also submitted copy of application for shares, income tax return, acknowledgement, profit and loss account, balance sheet and confirmation letter, date of incorporation and PAN numbers. Thus, it is clear that assessee has provided necessary details to establish the identity of the share applicants. However, Assessing Officer ha .....

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