9911796707
TMI Blog2009 (1) TMI 25X X X X Extracts X X X X X X X X Extracts X X X X ..... 996-97. 1.1 The sole issue raised in the appeal is the deletion of Rs 71 lakhs received by the assessee on account of share application money by the Commissioner of Income Tax(Appeals) [hereinafter referred to as the 'CIT(A)'] which has been sustained by the Tribunal. 2. In order to dispose of this appeal the following facts require to be noted:- 2.1 The assessee had filed its income tax return declaring a loss of Rs 35,09,344/-. The said return was filed on 29.11.1996. The assessee's return was picked up for scrutiny and a notice was issued under Section 142(1) of the Act. During the course of enquiry the assessee, amongst other information, was required to furnish the names, addresses, confirmation, bank account details and other detai ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s T.T. Finance Ltd has been used to route the assessee's own unaccounted money....." 2.4. The assessee being aggrieved by the aforesaid order passed by the Assessing Officer preferred an appeal to the CIT(A). The CIT(A), by his order dated 31.01.2000, allowed the assessee's appeal subject to certain remarks made in paragraphs 5 and 7 of the appeal. In respect of the issue at hand the CIT(A) noted that the assessee had discharged its onus in satisfying the requirements of Section 68 of the Act. He particularly noted that the assessee had filed copies of the applications made by the subscribers to the issue and bank pass books of the investors. He further noted that the applications clearly indicated the identity of the subscribers in the fo ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... capital money could not be treated as undisclosed income of the assessee as there was neither any direct nor circumstantial evidence to the contrary. 2.6. The Revenue being aggrieved has preferred the present appeal. The learned counsel appearing for the Revenue, Smt. Prem Lata Bansal submitted that the appeal deserves to be admitted in view of the fact that the Tribunal failed to take into account the fact that the assessee had not established all the ingredients necessary to steer clear of the ambit of the provisions of Section 68 of the Act, which are, the identity, the credit worthiness and the genuineness of the transaction. It was further contended that the Tribunal failed to appreciate that the investment in issue, by T.T. Finance ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... efore the CIT(A) on 15.12.1999, 05.01.2000 and 21.01.2000. The Assessing Officer, however, did not submit any report. As a matter of fact the CIT(A) records that both on 24.01.2000 and 27.01.2000 the Assessing Officer orally informed the CIT(A) to decide the appeal based on the facts available on record. 2.9. Given the afore-mentioned circumstances, we find it difficult to accept the submission made by the learned counsel for the Revenue, that the matter be remanded to the Assessing Officer for passing a speaking order. 3. Coming back to the case, in so far as the learned counsel for the assessee Shri Rajiv Bansal was concerned, he relied upon the order passed both by the CIT(A) as well as the Tribunal. It was his statement that there are ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of the NSE and is involved in sale and purchase of shares. In these circumstances, we are of the view that the assessee has been able to discharge its onus in respect of the veracity of the transactions. This aspect of the matter has been squarely dealt with in a Division Bench judgment of this court in CIT v. Divine Leasing and Finance Ltd; (2008) 299 ITR 268 in paragraphs 12 and 13 at pages 278 and 279 and paragraphs 18 and 19 at pages 282 and 283. It is important to note that in the said judgment the Division Bench has taken note of the judgment of the Full Bench of this Court in CIT v. M/s Sofia Finance Ltd; (1994) 205 ITR 98. The Division Bench in Divine Leasing and Finance Ltd (supra) was considering a batch of petitions which include ..... X X X X Extracts X X X X X X X X Extracts X X X X
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