9911796707
TMI Blog2009 (8) TMI 1204X X X X Extracts X X X X X X X X Extracts X X X X ..... . by treating the share application money as unexplained cash credit u/s 68 of Income tax Act, 1961. 2. On the facts and in the circumstances of the case, the ld. CIT (A) has erred in law and facts in deleting the addition of ₹ 20,000/- made by the A.O. on account of commission paid @ 2% for obtaining unexplained cash credit of ₹ 10,00,000/-." 2. A sum of ₹ 10 lacs was added by the Assessing Officer as unexplained share application money. The Assessing Officer has mentioned the details of two parties from whom the assessee has received share application money at page 4 of the assessment order, which is as under :- S.No. Name Amount Cheque No. Date 1. M/s. Chintpurni Credits & Leasing P. Ltd. 2,50,000/- 0 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Assessing Officer during the assessment proceedings, the assessee had given details of share application money of ₹ 5 lacs received by it. The Assessing Officer without giving any reason and without verifying the books of account, bank statements and other documents has on the basis of balance sheet stated that the assessee had received ₹ 10 lacs as share application money during the year. Thus, learned CIT (Appeals) has observed that Assessing Officer has neither applied his mind nor made any investigation while framing the assessment order and the assessment order has been framed only on the basis of information received from investigation wing without making any further investigation. It has been further observed by the learn ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... CIT (Appeals). 5. We have carefully considered the submissions of learned Senior DR. We have also carefully gone through the assessment order as well as order of CIT (Appeals). The Assessing Officer observed at page 5 of the assessment order that merely furnishing PAN, assessment particulars and confirmation by the share applicants is not enough. This observation of Assessing Officer is contrary to the law explained by Hon'ble Supreme Court in the case of Lovely Exports Pvt. Ltd. (supra). It is not disputed in the present that both the share applicants are private limited company, the whereabouts of the company were given to the Assessing Officer along with PAN, assessment particulars and confirmations and in this manner, identity of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... t ₹ 5 lacs, it has been specifically pointed out by the learned CIT (Appeals) that the same was due to typographical error and during the course of assessment proceedings, such a mistake was pointed out by the assessee in response to details of share application money called for by the Assessing Officer and Assessing Officer ignored that explanation of the assessee. If such is a position then we find no infirmity in the order of CIT (Appeals) vide which after going through the balance-sheet of both the years, he has found that share application money received by the assessee during the year was only ₹ 5 lacs. Therefore, on this account also, there is no infirmity in the order of CIT (Appeals) which is being confirmed. 9. In the ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
