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TMI Blog2018 (2) TMI 1213X X X X Extracts X X X X X X X X Extracts X X X X ..... ccordingly charging the same to tax. Both the lower appellate fora and in our view rightly confirmed the order of the A.O. - Decided against assessee - I.T.T.A.No. 137 of 2005 - - - Dated:- 20-12-2017 - MR. C. V. NAGARJUNA REDDY AND MR M. S. K. JAISWAL, JJ. For The Appellant : Sri A.V.Krishna Kaundinya For The Respondent : Ms. K.Mamata JUDGMENT: ( per Hon ble Sri Justice C.V.Nagarjuna Reddy ) The assessee, being unsuccessful before both the lower appellate fora , filed this appeal by raising the following substantial question of law: Whether on the facts and circumstances of the case the Hon ble Income Tax Appellate Tribunal is right in sustaining the order of the CIT (Appeals) who confirmed ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... judgment of Delhi High Court in Commissioner of Income Tax Vs. Stellar Investment Limited (1991) 192 ITR 287 (Del.) and also the order dated 20-07-2000 of the Supreme Court confirming the said decision. Learned counsel has also referred to and relied on the judgment of a Division Bench of this Court in Commissioner of Income Tax Vs. LANCO Industries Limited (2000) 242 ITR 357 (AP) . 3. Opposing the above submissions, Ms. M.Lalitha, learned counsel, representing Ms. K.Mamata, learned senior standing counsel appearing for Income Tax Department, has submitted that under Section 68 of the Income Tax Act, 1961 (for short, the Act ), the initial burden lies on the assessee to satisfy the A.O. that the amount found as cash credit is ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s not, in the opinion of the Assessing Officer, satisfactory, the sum so credited may be charged to income tax as the income of the assessee of that previous year. It is evident from the said provision, where assessee offers no explanation about the nature and source of the cash credit or the explanation offered by him is not, in the opinion of the A.O., satisfactory, such cash credit is liable to be charged to income tax as the income of the assessee of the previous year. As concurrently found by all the fora below including the A.O., a number of opportunities were given to the assessee to substantiate its stand that the amount was collected towards allotment of shares to third parties. Except submitting a list of the persons from ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... vil appeal filed against the said order, no ratio as such has been laid down therein. In LANCO Industries Limited (2nd supra ), a Division Bench of this Court held that if the ostensible shareholders failed to explain the means of investment, that should have been treated as unexplained income in their hands and in order to add it to the income of the assessee, there must be a further finding that in fact the shareholders were mere name-lenders and the money allegedly invested by them really belonged to the directors of the assessee company. The Court further held that in the absence of a finding that the persons to whom the share certificates were issued on receipt of consideration as per the book entries were in fact dummies or stooges ..... X X X X Extracts X X X X X X X X Extracts X X X X
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