9911796707
TMI Blog2012 (5) TMI 645X X X X Extracts X X X X X X X X Extracts X X X X ..... EMBER For the Appellant: Shri Vikas Suryavanshi, Sr.DR For the Respondent: Shri Salil Aggarwal, Advocate ORDER PER RAJPAL YADAV, JM: The revenue is in appeal before us against the order of the Learned CIT(Apapeals) dated 23.12.2009, passed for the assessment year 2003-04. The grounds of appeal taken by the revenue are not in consonance with Rule 8 of the ITAT s Rules, they are descriptive and argumentative in nature. In brief the grievance of revenue is that Ld CIT (A) has erred in deleting the addition of ₹ 70,00000/- which was added by the Assessing Officer with the aid of Section -68 of the IT Act 1961. 2. The brief facts of the case are that assessee has filed its return of income on 25.11.2003, decl ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ount for amount received and paid back. b. Copy of bank statement for amount received and paid back to the party. c. Copy of share application money. d. Copy of balance sheet as at 31.03.2003. e. Copy of ITR for the AY 2003-04. f. Copy of affidavit. The Ld Assessing Officer without conducting any inquiry observed that contentions of the assessee are not acceptable his observations are worth to note, they read as under: The assessee company s contentions are not tenable on facts prevailing as per record. The trail of cheques issued to the cash deposit in the bank account of M/s Mahaan Enterprises Ltd had been clearly established from the copy of bank statements furnished. There is a systematic plan in which the cash ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... in the case of CIT Vs. Orissa Corporation reported in 159 ITR 78, it also relied upon judgment of Hon ble Supreme Court in the case of CIT Vs. Lovely Export and judgment of Hon ble Delhi High Court in the case of M/s Devine Leasing and Finance Ltd reported in 299 ITR 268. On the strength of all these decisions, Ld First Appellate Authority has deleted the addition. 7. The Ld DR while impugning the order of Ld CIT (A) submitted that the issue in dispute is covered in favour of the revenue by the judgment of Hon ble Delhi High Court rendered in the case of Nova Promotors reported in 342 ITR page 169. On the other hand Ld Counsel for the assessee submitted that after the Nova Promotors the Hon ble Delhi High Court has upheld the deletion i ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e of the credits appearing in the books of accounts could be found satisfactory. In the present case when Assessing Officer confronted the assessee with regard to sum of ₹ 70,00000/- received from 3 companies. The assessee has submitted the details extracted in paragraph -3 of the present order. In a way assessee has discharged its onus put upon it by Section 68 of the IT Act. Once the assessee has submitted basic documents and offered an explanation, then it is the duty of the Assessing Officer to verify those documents and thereafter point out as to how the evidence submitted by the assessee is not reliable. The Assessing Officer did not assign any reason as to why the explanation of the assessee is not tenable. He simply observed t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... odation entries and the said statement conclusively proves that share money of 30,00,000/- allegedly received by the respondent-assessee from 5 companies are sham and bogus transactions. 3. We have examined the said contention and find that the assessee during the course of assessment proceedings has filed confirmation letters from the companies, their PAN number, copy of bank statements, affidavits and balance sheet. Thereafter the Assessing Officer had asked the assessee to produce the said Directors/Parties. Assessee expressed its inability to produce them. The Assessing Officer did not consequent thereto conduct any inquiry and closed the proceedings. This is a case where the Assessing Officer has failed to conduct necessary inquiry ..... X X X X Extracts X X X X X X X X Extracts X X X X
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