9911796707
TMI Blog2015 (8) TMI 1463X X X X Extracts X X X X X X X X Extracts X X X X ..... (A) has examined the copy of income tax returns, which may not throw light about the credit worthiness. Further the copy of bank statement also shows that there are continuous transactions of deposits and withdrawals. Hence, in my view, the observations made by the CIT(A) that there were heavy deposits before issuing the cheque of ₹ 10.00 lakhs to the assessee company also appear to be misplaced one. Hence, in my view, the Ld CIT(A) has confirmed the impugned addition without properly appreciating facts. Unable to agree with the conclusions reached by CIT(A) in view of the foregoing discussions. Accordingly, set aside the order of CIT(A) on the issue of ₹ 10.00 lakhs and direct the assessing officer to delete the same. Conseq ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Act in the hands of M/s Dakcon Impex Private Limited and during the course of survey; the Director of the Company appears to have stated that his company has given only accommodation entries to the assessee company. Accordingly, the AO assessed the share application money of ₹ 10 lakhs as unexplained cash credit u/s 68 of the Act. The AO also presumed that the assessee would have paid commission at the rate of one percent for getting these accommodation entries and accordingly assessed a sum of ₹ 10,000/- as unexplained expenditure in the hands of the assessee. 3. Before the ld.CIT(A), the assessee submitted that it has not been provided with a copy of statement relied upon by the AO and accordingly requested the Ld CIT(A) to ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tion money of ₹ 10.00 lakhs received by it from M/s Dakcon Impex private limited. The AO, however, made the addition on the strength of alleged statement given by the Director of the share applicant company. However, later it was proved that the AO does not possess copy of the alleged statement. He submitted that the assessee has discharged the initial burden placed upon it by filing all the relevant details, viz., names and addresses of the parties, copy of the bank statement, copy of financial statement etc. Accordingly, the ld. AR submitted that the assessee has proved the genuineness of share application money by establishing the identity of the creditor, creditworthiness of the parties and also genuineness of the transactions. Th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... basis on which the impugned addition was made was proved to be wrong. Hence the Ld CIT(A) proceeded to examine the documents himself. However, he has looked into the copy of income tax return filed by the Share applicant company, instead of financial statements. He has also examined the bank account of the share applicant company and found that there were deposits on daily basis. Accordingly he drew adverse conclusions. In my view, the documents examined by the Ld CIT(A) were not sufficient to support the conclusions reached by Ld CIT(A). 7. From the paper book furnished by the assessee, I notice that the share applicant company has furnished following details before the assessing officer on 09-12-2007, i.e., before the completion of ass ..... X X X X Extracts X X X X X X X X Extracts X X X X
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