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TMI Blog2022 (11) TMI 811X X X X Extracts X X X X X X X X Extracts X X X X ..... ening the assessment u/s. 148 merely on presumption and having no adverse material on record. 3. The Ld. CIT(A) has erred in confirming the addition of Rs.1,00,000 on account of share application money received from Rapid Impex Pvt. Ltd. and has also erred in recording the receipt as a paper transaction. 4. The Ld. CIT(A) has erred in confirming the addition of Rs.1,92,500/- on account of sale consideration of shares of M/s.Taurus Packaging Pvt. Ltd. received from M/s. Globetch Solutions Pvt. Ltd. and has also erred in recording the receipt as a paper transaction. 5. The Ld. CIT(A) has erred in confirming the disallowance of Long term capital gain of Rs.11,236/- derived by the assessee on the sale of shares of M/s. Taurus Packaging Pv ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... f M/s. Taurus Packaging Pvt. Ltd. Assessing Officer, however, disbelieved the contention of the assessee on the reasoning that as per the information available on record, the concerned parties, who have entered into transaction with the assessee do not have any business activity or creditworthiness to invest money towards share application and purchase of shares, respectively. 4. Having held so, he treated the amount received by the assessee towards share application money and sale of shares as unexplained cash credit and added to the income of the assessee. Further, being of the view that the amount received towards share application money and consideration for sale of shares are in the nature of accommodation entry, the Assessing Officer ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... confirmation to establish the identity of the share applicant. He submitted, simply relying upon a statement recorded from one Shri S.H. Malik, the assessing officer made the addition, that too, without allowing cross-examination to the assessee, inspite of a specific request being made by the assessee. Further, drawing my attention to the statement recorded, learned counsel submitted, nowhere the concerned person has referred to the name of either M/s. Rapid Impex Pvt. Ltd. or M/s. Globetec Solution Pvt. Ltd. Therefore, the conclusion of the assessing officer that these two entities are controlled by Shri S.H. Malik is without any basis. As regards the sale of shares of Taurus Packaging Pvt. Ltd. to M/s. Globetec Solution Pvt. Ltd., learne ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the assessing officer had tangible material to form prima facie belief that income had escaped assessment. At that stage, the final outcome of the proceeding is not relevant. Hence, the assessing officer was not required to conclusively establish the fact of escapement of income. That being the position in law, I do not find any merit in assessee's challenge regarding validity of reopening of assessment under Section 147 of the Act. Accordingly, I hold that the assessing officer has validly reopened the assessment under Section 147 of the Act. 11. As regards the merits of the additions made, undisputedly, the assessee had received share application money of Rs.1,00,000 from M/s. Rapid Impex Pvt. Ltd. It is evident, the aforesaid amount was ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the company is in existence. This is further corroborated by the fact that for the assessment year under dispute, the company has filed income tax return in Delhi jurisdiction. Thus, the share applicant company is in the roll of the department. In case, the assessee was unable to produce the company and the summons issued were not responded, the assessing officer could very well have obtain necessary information regarding the share applicant company through the assessing officer having jurisdiction over the share applicant company. No such inquiry has been conducted by the assessing officer. It is a further fact on record that despite of assessee's specific request for cross-examination of Shri S.H. Malik, whose statement was heavily relie ..... X X X X Extracts X X X X X X X X Extracts X X X X
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