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TMI Blog2015 (12) TMI 497X X X X Extracts X X X X X X X X Extracts X X X X ..... pose before the AO failed to do so. The Ld. AR had nothing to say as to why the persons could not present themselves before the AO. The fact that the share application money had been received through account payee cheques is, at best, neutral. Section 68 permits the AO to add the credit appearing in the books of accounts of the assessee if the latter offers no explanation regarding the nature and source of credit or if the explanation offered by him is not satisfactory. The failure on the part of the assessee in producing the share applicants for deposition before the AO lends credence to the theory that the monies emanated from the coffers of the assessee company. As decided in CIT vs. Nova Promoters and Finlease (P) Ltd. (2012 (2) TMI ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ining prior approval from the concerned authority issued notice u/s 148 of the Act. In compliance to the said notice, the assessee submitted that the original return filed vide acknowledgment No. 1975 dated 31.10.2002 may be considered as return filed in response to the notice u/s 148 of the Act. It is also seen from the records that assessment u/s 143(3) of the Act for the year under consideration was completed vide order dated 30.11.2004 in which the returned income of the assesee was accepted. 2. During the course of proceedings u/s 148 of the Act, summons u/s 131 of the Act were issued to Smt. Manju Aggarwal, Prop M/s. Arpit Sales and Shri Vishal Aggarwal for their personal deposition. However only letters of confirmation were receiv ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ng share application money received during the year. It is the AR's contention that the receipts of ₹ 5 lacs were duly examined by the AO by making specific inquiries and verifying various documents and evidences filed during the course of assessment proceedings u/s 143(3). The Ld. AR further submitted that the assessment order was passed after examination of the evidences by the AO and as such there was no failure on the part of the assessee to disclose fully and truly all the material facts necessary for assessment and that the AO had accepted the assesse's claim after due deliberation. Ld. AO further submitted that subsequent issuance of notice u/s 148 has been issued after change of opinion formed earlier and these additio ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s placed on the judgment of the Hon'ble Delhi High Court in the case of CIT vs. Nova Promoters and Finlease (P) Ltd. (supra) wherein the Hon'ble Delhi High Court has held that where sums were shown as share application moneys and information had been received from investigation wing about the assessee being a beneficiary of accommodation entries, failure on the part of the share applicants to respond to summons would absolve the AO from the duty of proving that the monies emanated from the coffers of the assessee. On the facts of the case and respectfully following the judgment of the Hon'ble Delhi High Court in CIT vs Nova Promoters and Finlease (P) Ltd. (supra), we find no reason to interfere with the order of the Ld. CIT(A) a ..... X X X X Extracts X X X X X X X X Extracts X X X X
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