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TMI Blog2016 (1) TMI 1394X X X X Extracts X X X X X X X X Extracts X X X X ..... d the identity and creditworthiness and genuineness of the transactions of the receipt of share application money from M/S.Kalisaran Properties (P) Ltd. We, therefore, hold that the addition made by the AO and sustained by CIT(A)should be deleted. A copy of the source of funds of Jai Kali Properties (P)Ltd and Kalisaran Properties (P)Ltd for making investment in share application of the assessee is given as annexure to this order. In the light of the evidence on record we are satisfied that the action of the revenue authorities while making the impugned addition u/s 68 of the Act cannot be sustained. Accordingly the said addition is directed to be deleted. - decided in favour of assessee. - ITA No.1908/Kol/2012 - - - Dated:- 20-1-2016 - ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... erties (P) Ltd are as follows :- To satisfactorily explain the receipt of share application money from Jai Kali Properties (P) Ltd., the assessee filed a copy of the balance sheet of Jai Kali Properties (P) Ltd to prove the genuineness and creditworthiness of the transactions of receipt of share application money. The AO found that Schedule-D of the balance sheet so filed, gave list of loans and advances. Under the sub-head Investment ₹ 5,00,000/- appeared in the balance sheet as on 31.03.2004 and 31.03.2005. Since there was no change in the figure of investments on both the aforesaid dates the AO was of the view that no investments could not have been made by Jai Kali Properties (P)Ltd during the previous year. In reply to the q ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rities Pvt. Ltd. The assessee has issued three cheques for ₹ 1,50,000/- each on 16.02.2005, 18.02.2005 and another cheque for ₹ 50,000/- on 23.02.2005 towards share application money of the assessee company. The AO was of the view that the money was deposited in the bank account just before the investment by Jai kali Properties (P)Ltd in the assessee company. According to the AO the very nature of deposits and withdrawals proved that Jai Kali Properties (P)Ltd. Was floated to provide adjustment entry. The AO thus concluded that a sum of ₹ 5,00,000/- credited to the account of the assessee company as share application money was not satisfactorily explained. 5. The CIT(A) concurred with the view of the AO. 6. We have h ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... n Properties (P)Ltd and such proceeds being utilised to make investments in share application money of the assessee company. The reasons assigned by the and CIT(A) for making addition u/s 68 of the Act are identical as were given while treating the investments by Jai Kali Properties (P)Ltd as unexplained. It is clear from the evidence on record that the assessee has established the identity and creditworthiness and genuineness of the transactions of the receipt of share application money from M/S.Kalisaran Properties (P) Ltd. We, therefore, hold that the addition made by the AO and sustained by CIT(A)should be deleted. 8. A copy of the source of funds of Jai Kali Properties (P)Ltd and Kalisaran Properties (P)Ltd for making investment in ..... X X X X Extracts X X X X X X X X Extracts X X X X
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