9911796707
TMI Blog2018 (3) TMI 1029X X X X Extracts X X X X X X X X Extracts X X X X ..... in share application monies of assessee company is also proved. By this, the creditworthiness of the share applicants is also proved beyond doubt. The five share applicants had paid the monies to the assessee company by account payee cheques out of sufficient bank balances available in their bank accounts, which are quite evident from the bank statements enclosed in the paper book. We agree with the arguments of the ld AR that the source of source of share applicants need not be proved by the assessee herein. The assessee had indeed proved the identity of the share applicants, creditworthiness of share applicants and genuineness of transactions beyond doubt. We find that the entire addition has been made by the ld AO based upon suspicion, surmises and conjectures and not upon proper evaluation and appraisal of the evidences and documents filed before him. - Decided against revenue - I.T.A No. 741/Kol/2014 - - - Dated:- 7-2-2018 - Shri N.V.Vasudevan, JM And Shri M.Balaganesh, AM For The Appellant : Shri G.H. Seena, Addl. CIT Sr. DR For The Revenue : Shri Subash Agarwal, AR ORDER Per M.Balaganesh, AM 1. This appeal by the Revenue arises ou ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the notice u/s 133(6) of the Act issued to the share applicants :- 1. Please furnish copy of share application. 2. Please furnish particulars of payment showing Cheque No., Date of payment, amount, quantity applied for and copy of receipt. 3. Please furnish the details when the shares have been allotted or the payment has been settled. If allotted, please furnish the Distinctive Nos. of shares also. 4. Amount of share premium paid. 5. Please explain the source of fund for such investment. 6. Please furnish copy of your accounts, copy receipt of filing of I.T. Income- Tax Return and copy of bank statement. 7. Please furnish copy of Form No. 18 as a proof of address. The ld AO observed in his remand report that in response to these letters, all the share applicants have provided information and documents as per requisition. He observed that on perusal of those replies, it was found that the share applicants did not provide the address of the concerns whose share application money was claimed as source of investment by it in the shares of the assessee company. Accordingly, the Inspector attached to the office was deputed to make enquiry in ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... such creditors to advance money and genuineness of the transactions. The various documents which were made available to the AO by the appellant and through enquiry conducted by the AO are listed as below: i. The I.T. Return of the creditor. ii. The bank statement of the Creditor. iii. Copy of share applications. iv. Balance Sheet of the Creditor. v. Particulars of payment- Cheque No., dt. of payment, amount quantity applied for, copy of receipt, etc. vi. Amount of share premium paid vii. Copy of PAN Card of the investors, viii. Statement of account of the appellant as per the books of investors, ix. Proof of address of the investors, I am of the view that the above documents are sufficient to establish the identity, capacity and genuineness of the investors. As all the investors are filing their income-tax return, the A.O. can get feed back from within the Department, if he has any doubt regarding their capacity or genuineness. In this context, certain relevant judgements of various Courts including the jurisdictional High Court has been cited by the A.R. of the appellant and these are relevant decisions i deciding whether ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... or and the genuineness of the transaction through account payee cheque has been established. We are of the view that the finding of the Id. CJT(A) is on the right footing and does not call for any interference. This view of ours also finds support from the decision of the Hon'ble Supreme Court in the case of CIT vs Lovely Exports (P)Ltd referred to supra. 3.4 In view of the discussions made earlier and also humbly following the various decisions of the Apex Court as well as the jurisdictional Tribunal at Kolkata, I am of the view that addition made by the A.O. for ₹ 1 crore on account of share application money received from various applicants and holding it as undisclosed income of the appellant has no basis and stands deleted. Ground No.1 of the appeal is allowed. ) 6. Aggrieved, the revenue is in appeal before us on the following grounds:- That on the facts and in circumstances of the case, the Ld. CIT(A) erred in holding that addition of share capital of ₹ 1,00,00,000/- as income of the assessee from undisclosed source, was not warranted, ignoring the fact that the identity, creditworthiness and genuineness of transaction in respect of share s ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he monies to the assessee company by account payee cheques out of sufficient bank balances available in their bank accounts, which are quite evident from the bank statements enclosed in the paper book. We agree with the arguments of the ld AR that the source of source of share applicants need not be proved by the assessee herein. We hold that the decision rendered by this tribunal in Subhalakshmi Vanijya relied upon by the ld DR was rendered in the context of validity of revision proceedings u/s 263 of the Act and not on the merits of the case. This tribunal in that case decided the validity of invoking revisionary jurisdiction u/s 263 of the Act by the ld CIT and whether adequate enquiries were made by the ld AO in the facts and circumstances of that case. This tribunal in Subhalakshmi Vanijya case supra never had an occasion to look into the merits of the addition proposed to be made towards share capital in the facts and circumstances of that case and no decision was rendered thereon on merits of the issue. Hence the reliance placed thereon by the ld DR does not advance the case of the revenue. In the instant case, we find that the share applicants have not denied the fact of ma ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
