9911796707
TMI Blog2021 (12) TMI 309X X X X Extracts X X X X X X X X Extracts X X X X ..... it worthiness of share capital and securities premium." 2. The appellant prays that the order of the Ld.CIT (A) on the above grounds be set aside and that of the AO be restored. 3. The appellant craves leave to amend or alter any grounds or add a new ground which may be necessary. 2. At the outset, the ld. Authorised Representative (ld. AR for short) for the assessee has submitted that the assessee is not pressing the transfer of appeal to Goa jurisdiction and he seeks to withdraw the application filed by the assessee for the purposes. In view of the statement given by the ld. AR, the application for transfer of appeal is dismissed as withdrawn. 3. The ld. AR had submitted that in the present case, the sole issue raised by the Revenue ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... me Amount Description Date of outstanding of amount 1 Mrs. Anjali Pathak Rs. 12,50,000/- For issue of shares at Rs. 10/- for 1,25,000 shares date is not mentioned 2 Mr. Mahendra Mehar Singh Gujral Rs. 12,50,000/- For issue of shares at Rs. 10/- for 1,25,000 shares date is not mentioned 3 M/s. Star Bio Source Private Limited Rs. 25,00,000/- Investment in equity shares 30.12.2005 4 M/s. Michigan Traders Pvt. Ltd. Rs. 25,00,000/- Investment in equity shares 04.01.2006 5 M/s. Plasticon Industries Limited Rs. 25,00,000/- Investment in equity shares 05.01.2006 6 M/s. Jajodia Textiles Mills Pvt. Ltd. Rs. 10,00,000/- Investment in equity shares 23.02.2006 7 M/s. Abode Hotels Limited Rs. 25,00,000/- Investment ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... y the respective shareholders, confirming the transaction along with the loan transactions before us as well as before the ld. CIT(A). No books of accounts of the assessee were produced before us showing credit entry of the amounts invested in the shares prior to the previous years. For the purposes of section 68, it is essential that there must be credit entry in the books of account in the previous year for which the addition are sought to be made. However, the ld. CIT(A) without verifying the credit entry in the books of the assessee, have deleted the addition merely on the basis of the bank statement of other persons. That cannot be countenanced as what is required to be satisfied by the ld. CIT(A) , was that, there exist credit entry i ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he CIT(A) regarding the additions made on account of Share Capital and Share Premium and considering the same, the CIT(A) deleted the same vide para 3.3 of the impugned order. Regarding the other addition made on account of other loans were confirmed due to the fact that there were no details filed by the assessee before the AO nor in the First Appellate proceedings. The assessee filed evidences in the form of confirmations loans, copy of Income Tax returns of two Directors by way of paper book before us and on examination of the same, we note that the said evidences are crucial and necessary to decide the issue involved in the present appeal and also goes to the root of assessee as rightly contended by the ld. AR. In this regard an affidav ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... is yes, whether the amount for issuance of shares were credited in the books of account of the assessee company for issuing the shares. If the shares were issued and the amounts were received and credited by the assessee company in earlier years, i.e prior to assessment year under consideration, then the addition may be deleted. However, in case, the A.O. on factual verification conclude that the amounts are credited in the year under consideration, then onus lies on the assessee to show identity, creditworthiness of the depositors and genuineness of transactions to the satisfaction of the ld CIT(A), such is the mandate of section 68 of the Act. Therefore the assessee is directed to discharges its onus first before ld. CIT(A), he may exami ..... X X X X Extracts X X X X X X X X Extracts X X X X
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