9911796707
TMI Blog2016 (8) TMI 1463X X X X Extracts X X X X X X X X Extracts X X X X ..... y point to the assessee disclosing materials such as the bank accounts, the share particulars, income tax details and other materials which would have enabled further enquiry by the AO. CIT (A) further also records that on a scrutiny of the bank accounts of the share applicants, the source of deposit of 3.5 crores, except a small amount of 84,858/-, are by way of account payee cheques, there was no cash inclusion. In case AO so wished, it was open for him to make further enquiries. That he did not do so, in our opinion, would not mean that the assessee failed to discharge the initial burden in establishing the genuineness of the transaction or the creditworthiness of the share applicants. - Decided against revenue X X X X Extracts X X X X X X X X Extracts X X X X ..... tments & Consultants (P) Ltd., M/s Parvantra Capital & Fin Services (P) Ltd., M/s Vimka Impex (P) Ltd. and SGC Publishing (P) Ltd. did not find any mention in the statements of the three persons who were questioned during the course of seizure procedures. The AO was informed of the fact in the course of Section 147/143 proceedings, that a survey was conducted under Section 143. In the survey proceedings, the assessee had apparently acknowledged the unaccounted amount of ₹ 3.85 crores. The CIT (A) observed that however there was no nexus between the addition of ₹ 3.85 crores and the survey material or any other material to the contrary. The CIT (A) took note of all the materials made available to the AO in reassessment proceeding ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... (Appeals) has noted further that as per material produced by assessee (page Nos. 253 to 255 of the paper book ), the subsource of share capital of ₹ 3.85 crores, except an insignificant amount of ₹ 84,858 that too is sum total of miscellaneous small amounts have been made through cheques duly credited in bank accounts of shareholders. Thereafter the Learned CIT(Appeals) at page- Nos.44 to 46 of the First Appellate Order has noted about the particulars and documents of 16 shareholders furnished by the assessee to corroborate the submissions and highlighting the identity and creditworthiness of the shareholders and genuineness of shares subscription transactions. The Learned CIT(Appeals) has noted further that all the shareholders ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... sidered the submissions. It is no doubt correct that Section 68 casts an initial burden upon the assessee to disclose the identity of the applicant/investor as well as the genuineness of the transaction. In this case, it is evident that the discussion of the facts by the CIT(A) and the ITAT, has resulted from the materials on record. The AO shall undoubtedly be justified as to the identity of the share applicants. This Court is however unpersuaded by the revenue submission that the genuineness of the transaction or the creditworthiness of the assessee had to be established in the given facts of this case. The factual narration by the CIT(A) which was affirmed by the ITAT unequivocally point to the assessee disclosing materials such as the b ..... X X X X Extracts X X X X X X X X Extracts X X X X
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