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TMI Blog2014 (11) TMI 1265X X X X Extracts X X X X X X X X Extracts X X X X ..... of law:" 1. Whether, the Appellate Tribunal is right in law and on facts in deleting the addition of Rs.50,00,000/made under Section 68 of the Act ?' 2. Whether, the Appellate Tribunal is right in law and on facts in deleting the charging of interest under Section 217 of the Act when the assessment under Section 143(3) read with Section 147 has to be treated as an original assessment ?" 3. Learned advocate for the appellant has contended that issue No.1 is covered by the decision of this Court passed in Tax Appeal No.457 of 1999 decided on 09.08.2010 and issue No.2 is also covered by the decision of Punjab and Haryana High Court in the case of Darshan Lal Gulati Vs. Commissioner of Incometax, Jalandhar, reported in [2008] 173 TAXMAN 2 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... came from persons other than the company. It is true that the majority of the persons whose names appeared in the shareholders list admitted to having invested no money at all in the company, but at the same time, they have explained the circumstances under which they were asked to sign the application form on behalf of certain persons named by them. These specific persons, as we have noted earlier, have been summoned and examined by the A.O. himself. In this view of the matter, we find that the source of funds can be clearly related to the persons as specified by the A.O. Therefore, the A.O. was not justified in brining to tax the entire amount of Rs.50 lacs in the hands of the assesseecompany by treating it as unexplained credit or invest ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... er section 68 of the Act. The question stands answered accordingly, that is, in favour of the assessee and against the revenue. 5. Insofar far as issue No.2 is concerned, the same is already concluded by the decision of the Punjab and Haryana High Court in the case of Darshan Lal Gulati (supra), wherein, it is held that in case an assessment had been framed in response to original return filed by assessee, first or initial assessment made by Assessing Officer would be treated as regular assessment and in that situation, assessment in pursuance to reassessment proceedings could not be termed as 'first assessment' so as to come within the meaning of expression 'regular assessment' and, accordingly interest under Section 217 could not have b ..... X X X X Extracts X X X X X X X X Extracts X X X X
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