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TMI Blog2022 (5) TMI 1095X X X X Extracts X X X X X X X X Extracts X X X X ..... bunal. There is, thus, concurrent findings of fact by the two lower authorities, we confirmed the order of the Tribunal. In present case, the relevant assessment year is 2012-13, which is pre-amendment period to the first proviso to section 68 of the Act introduced by Finance Act, 2012 w.e.f. 01.04.2013 as well as the assessee has placed on record the name, address, PAN, confirmations and genuineness of the transaction through banking channel, thereby, the ld. CIT(A) has deleted the addition made under section - Decided in favour of assessee. - I.T.A. No.758/Chny/2020 - - - Dated:- 18-5-2022 - Shri V. Durga Rao, Judicial Member And Shri G. Manjunatha, Accountant Member For the Appellant : Mr. P. Sajit Kumar, JCIT For the Respondent : Mr. Y. Sridhar, C.A. ORDER PER V. DURGA RAO, JUDICIAL MEMBER: This appeal filed by the Revenue is directed against the order of the learned Commissioner of Income Tax (Appeals)-8, Chennai, dated 21.02.2020 for the assessment year 2012 - 13. 2. The appeal filed by the Revenue is delayed by 116 days in filing the appeal due to outbreak of pandemic COVID-19 and hence, the delay in filing the appeal is condoned and admit ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... decided on merits as per the submission made and after considering all material evidences. I would also place on record that recently in ACIT vs Modi Revlon Pvt Ltd., the Delhi ITAT held that the Commissioner of Income Tax (Appeals) can admit additional evidences produced by the assessee but if the Assessing Officer does not file remand report even after several reminders, the bench clarified that, in such cases, Rule 46A of the Income Rules would not be treated as violated. 5.3 It is no less important to note that Rule 46A cannot over ride Principles of Natural Justice. In case evidences surfaced after the assessment orders and the appellant moved with such evidences and produces the same before the CIT (A) which are the vital evidences and touch the roots of the case, the admissibility of such evidences cannot be denied overriding the principles of natural justice. In the case of Jute Corporation of India Ltd. v. CIT 1991 AIR 241, 1990 SCR Supl. (1) 340 the Hon'ble Supreme Court, while dealing with the powers of the Appellate Assistant Commissioner observed that an appellate authority has all the powers which the original authority may have in deciding the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... edit worthiness of the share of the applicant and also the genuineness of the transaction has been established more than adequately. To conclude, having established the identity and credit worthiness of the investor as also the genuineness of the transaction, I find that there was no scope for invoking the provisions of Section 68 of the IT Act. 5.4.3 At this juncture it would also be important to briefly discuss the recent amendments in Section 68 of the Act. A proviso to section 68 state as follows: Provided that where the assessee is a company (not being a company in which the public are substantially interested), and the sum so credited consists of share application money, share capital, share premium or any such amount by whatever name called, any explanation offered by such assessee-company shall be deemed to be not satisfactory, unless (a) the person, being a resident in whose name such credit is recorded in the books of such company also offers an explanation about the nature and source of such sum so credited; and (b) such explanation in the opinion of the Assessing Officer aforesaid has been found to be satisfactory: In the appellant's case ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... led to consider the judgement of the Hon ble Supreme Court in the case of PCIT v. NRA Iron Steel (P) Ltd. [2019] 412 ITR 161. 6. On the other hand, the ld. Counsel for the assessee has pointed out that the addition made by the Assessing Officer was only on the ground that the assessee has failed to produce confirmation letter from the creditors and he has not discussed anything else in the assessment order. Therefore, once the assessee has produced the confirmation letter before the ld. CIT(A), the ld. CIT(A) has called for remand report, the Assessing Officer failed to submit the remand report. By considering the confirmation letter as well as explanations submitted by the assessee and considering the facts of the case, the ld. CIT(A) allowed the appeal of the assessee. He strongly supported the order passed by the ld. CIT(A). The ld. Counsel has also pointed out from the paper book in respect of the confirmation letter issued by IRIS Media Works Ltd., wherein, it was submitted that all the amounts were received from banking channel. It was the submission that the first payment was received on 17.03.2012 for ₹.80,00,000/-, the second payment was received on 21.03.2012 f ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... iling all the details, in our opinion he has discharged burden cost upon him and therefore, the Ld. CIT(A) by calling the remand report from the A.O and the A.O was not responded. We are of the considered opinion that by considering all the facts and circumstances of the case and also by following the judgment of the Hon ble Supreme Court in the case of Lovely Exports Ltd. (supra), the ld. CIT(A) has rightly deleted the addition made by the A.O. 9. So far as case law relied on by the Revenue in the case of PCIT v. NRA Iron Steel (P) Ltd. (supra), the Hon ble Supreme Court has considered the facts of the case that the A.O has made an independent and a detailed enquiry and the field report revealed that the shareholders were either non-existent or lacked creditworthiness. In this case, under those circumstances, the Hon ble Supreme Court held that the onus to establish the identity of the investor companies was not discharged by the assessee and confirmed the order of the A.O by Hon ble Supreme Court. In the present case, the assessee has discharged a burden by proving identity of the creditors, genuineness of the transactions and creditworthiness of the creditors. Therefore, th ..... X X X X Extracts X X X X X X X X Extracts X X X X
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