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TMI Blog2011 (2) TMI 1452X X X X Extracts X X X X X X X X Extracts X X X X ..... 00 lakh, which are bogus and which represent income from undisclosed sources. A sum of ₹ 18.00 lakh was received from Suma Finance Investment Ltd. (Now known as Moderate Credit Corporation Ltd.) and a further sum of ₹ 6.00 lakh was received from Sehgal Television Private Ltd. Acting on the information, action was initiated u/s 147 and notice u/s 148 was issued on 20.3.2009. In proceedings u/s 147, the assessee filed copies of bank statement, acknowledgement of income-tax return, balance-sheet, assessment order and PAN card in respect Moderate Credit Corporation Ltd. In the case of Sehgal Television Pvt. Ltd., copies of confirmation of filing application for allotment of shares, cheque of ₹ 6.00 lakh drawn on State Bank of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... on it u/s 68 by producing various evidences from both the subscribers. Thereafter, the AO did nothing to rebut the evidence but relied on the findings of the investigation wing. The ld. CIT(Appeals) came to the conclusion that the evidences produced by the assessee regarding subscription to its share capital discharged the onus cast on it and thereafter it is for the AO to bring on record tangible evidence to hold that the amounts received were not in the nature of share subscription or its source remained unproved. Since the money was received as share subscription, he particularly relied on the decision of Hon'ble Supreme Court in the case of CIT Vs. Lovely Exports Ltd., in which it has been held that in case the revenue found or noticed ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... books of account. Therefore, the AO was justified in holding that the nature and source of credits does not stand proved u/s 68. Coming to the order of the ld. CIT(Appeals), it is submitted that a very crisp order was passed distinguishing the case from McDowel's case, (1958) 158 ITR 148 (SC), and mentioning that the AO failed to bring any clinching evidence on record to support the presumption made by him. It has been finally held that the share application money and the loan received by it were genuine. 5. In reply, the ld. counsel referred to the findings of the AO and relied on the decision of the Tribunal in the case of Continental Telepower Industries Ltd. in ITA No. 3503(Del)/2010 for assessment year 2001-02 dated 27.12.2010, a copy ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... order. The AO has also examined Shri Pradeep Jindal, but opportunity to cross-examine has not been given to the assessee. On the other hand, the assessee has brought on record various evidences such as annual accounts, copies of returns and confirmations from both the parties to establish the existence, capacity and genuineness of transactions. As a matter of fact both the contributors are limited companies and all these details can be found from the office of Registrar of Companies also. The whole of the evidence produced by the assessee has been rejected without finding any fault with the same. The statement of Shri Pradeep Jindal remains unauthenticated and, therefore, very little evidentiary value can be attached to it. In these circums ..... X X X X Extracts X X X X X X X X Extracts X X X X
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