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TMI Blog2015 (3) TMI 1112X X X X Extracts X X X X X X X X Extracts X X X X ..... wards the alleged share application money in return of cash." 2. "On the facts and in the circumstances of the case and in law, the Ld. CIT(A) erred in not appreciating the fact that the assessee has failed to discharge the onus cast upon it to prove the credit entries of share application money as required under the statute." 2. The figure in grounds of appeal for A.Y 2008-09 is a sum of Rs. 5,00,000/-. These appeals were argued together by both the parties and for the sake of convenience both these appeals are disposed of by a single order. 3. The assessee is engaged in the business of financial services. It received share capital subscription of Rs. 10,00,000/- from M/s. Talent Infoway Ltd. & M/s.Buniyad Chemicals Ltd. in respect of A.Y 2007-08 and Rs. 5,00,000/- from M/s. Alpha Chemie Trade Agencies Pvt. Ltd. in respect of assessment year 2008-09. The concerns from whom such share capital was received were floated by Mr. Mukesh C. Choksi, who alongwith all related concerns was searched by Investigation Wing. In the statement issued to DIT(Inv) by Mr. Mukesh Choksi and Mr. Jayesh Sampat, they admitted ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ddition and his order should be set aside and that of AO be restored. 5. On the other hand, it was submitted by Ld. AR that assessee has submitted the copies of various statements recorded by the Department of Mr. Mukesh C. Choksi, which are dated 25/11/2009, 11/12/2009, 3/2/2010, 14/05/2010 and 16/3/2012 and are submitted from pages 135 to 169 of the paper book and as per submissions made by the assessee before AO assessee's name was not appearing in any of the statement and such contention of the assessee has not been controverted by the Revenue till date. It was further submitted that bank account of the assessee firm was also submitted to show that there was no cash withdrawals or deposit. Reference was made to page 22 to 25 of the paper book in which share application money has been deposited. The assessee has also furnished details of the shareholder companies at page 26 to 32 of the paper book and pages 65 to 71 of the paper book in respect of Talent Infoway Limited and M/s.Buniyad Chemicals Ltd., which include resolution, confirmation form, balance sheet copy, PAN Card and Memorandum of Aassociation and Article of Assoc ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ces submitted by the assessee and relying upon certain decisions has come to the conclusion that such addition was not called for. On the basis of the similar statement other transactions entered into by other assessees with the concerns of Mr. Mukesh C. Choksi were considered as bogus and this issue had come before the Tribunal and Tribunal after considering the facts has deleted those additions. For the sake of completeness relevant observations of the Tribunal from the said decisions are reproduced: (i) ITO vs. Radhika Ravindrakumar Toshniwal (supra) - In the said case addition of Rs. 26,73,536/- was made in respect of sale of shares of M/s. Talent Infobay Ltd. and the same was treated as bogus transaction. The Tribunal deleted the addition with the following observations: "4. At the outset it was submitted that the similar issue was agitated in assessment year 2005-06 in the husband's case on the basis of which the learned CIT (A) also examined the issue and deleted the addition. In the order of the ITAT in ITA No.5302/Mum/2008 for assessment year 2005-06 in assessee's husband's case is as under: "11. Having heard both the parties and having co ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... (A) also deleted the addition based on the same, we do not see any reason to interfere with the order of the CIT (A). Accordingly the Revenue grounds are dismissed. 6. In the result appeal filed by the Revenue is dismissed. (ii) In the case of Smt. Jyoti D. Shah vs. ITO an addition of Rs. 13,13,256/- was made in respect of sale of shares of M/s. Buniyad Chemicals Ltd. as the same belong to concerns of Mr. Mukesh C. Choksi and the said addition was deleted by the Tribunal with the following observations. "6. The AO has not considered the supporting evidences during the course of assessment before concluding that the assessee too was actively involved as a beneficiary by paying cash to the Mukesh Choksi group. The learned Assessing Officer had merely relied on the fact that "the main person of the @ group, Shri Mukesh Choksi, had admitted that all the transactions carried out by his various companies were bogus and he only provides accommodation bills. 7. Learned AR also placed reliance in the case of Shri Anantrai B Shah vs. ITO 21(1)(1), Mumbai vide IT Appeal No. 1842 of 2012, order dated 14/12/2012, wherein it was held that Shri Mukesh Choksi has issued a general state ..... X X X X Extracts X X X X X X X X Extracts X X X X
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