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TMI Blog2010 (5) TMI 859X X X X Extracts X X X X X X X X Extracts X X X X ..... laundering black money into white money or accounted money and the Ld. CIT(A) ought to have held that the assessee had not established the genuineness of the transaction." 2. Brief facts of the case are that the AO in the assessment proceedings noticed that the assessee company during the year under consideration has brought in Rs. 4,00,000/- and Rs. 20,00,000/- towards share capital and share premium respectively amounting to Rs. 24,00,000/- from four share holders being private limited companies. The AO on his part called for the details from the assessee and also from share applicants and analyxed the facts. The AO observed certain abnormal/unusual features which are mentioned in the assessment order. The AO, therefore, concluded that ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the books of an assessee maintained for any previous year and the assessee offers no explanation about the nature and source thereof or the explanation offered by him is not, in the opinion of assessing officer, satisfactory, the sum so credit may be charged to income tax has the income of the assessee of that previous year." In the present case, the appellant offered an explanation along with necessary documentary evidences Thereby the onus now shifted on to the A.O to disprove such explanation by bringing in material evidence on record. The A.Q made enquiries with regard to three companies and came to a conclusion that these are mere name lenders. The A.O also analysed the fund flow through banking channels and concluded that the compani ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ney is received by the assessee company from alleged bogus share holders, whose names are given to the Assessing Officer, the department could proceed to open their individual assessments but it could not be regarded as undisclosed income of the assessee company. The ratio laid down by the Hon'ble Supreme Court in the case of M/s. Lovely Exports Pvt. Ltd would be squarely applicable to the case under consideration. In the present case, the appellant has furnished all the details relevant to share capital contribution before the A.O and also before me. The A.O except noticing certain unusual features in fund flow chain could not establish the link between the unaccounted incomes of the appellant company and share capital contributors. Even ..... X X X X Extracts X X X X X X X X Extracts X X X X
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