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TMI Blog2008 (12) TMI 7X X X X Extracts X X X X X X X X Extracts X X X X ..... Mr Satyen Sethi for the Respondent JUDGMENT BADAR DURREZ AHMED, J (ORAL) - The revenue is aggrieved by the order dated 23.03.2007 passed by the Income Tax Appellate Tribunal in ITA 4213/Del/2001 pertaining to the assessment year 1997-1998. 2. The assessee was before the Tribunal in appeal against the order passed by the Assessing Officer and confirmed by the Commissioner of Income Tax (Appeals) whereby an addition of Rs'20,50,000/- had been made under Section 68 of the Income Tax Act, 1961 (hereinafter referred to as the 'said Act'). The addition had been made on account of the share application money received by the assessee company from the following parties:- Sr. No. Name Amount in Rupees ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ns. 4. The Tribunal also placed reliance on the decision of this Court in the case of CIT v. Divine Leasing and Finance Ltd: 299 ITR 268 wherein this court, after analyzing the provisions of Section 68 of the said Act, concluded that the assessee has to, prima facie, prove:- (1) the identity of the creditor/subscriber; (2) the genuineness of the transaction, namely, whether it has been transmitted through banking or other indisputable channels; and (3) the creditworthiness or financial strength of the creditor/ subscriber. It was also held that:- (1) if relevant details of the address or PAN identity of the creditor/subscriber are furnished to the Department along with copies of the Shareholders Register, Share Application ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Mr Jolly, who appears on behalf of the appellant, sought to place reliance on the Full Bench decision of this Court in the case of CIT v. Sophia Finance Ltd.: 205 ITR 98 to contend that the Income Tax Officer would have jurisdiction to enquire from the assessee with regard to the nature and source of the share application money. In Sophia Finance Ltd.(supra) it was observed that enquiries are usually made in order to find out as to whether, firstly, the persons from whom money is alleged to have been received actually existed or not and, secondly, depending upon the facts of each case, the Income-tax Officer may even be justified in trying to ascertain the source of the depositor, assuming he is identified, in order to determine wheth ..... X X X X Extracts X X X X X X X X Extracts X X X X
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