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TMI Blog2024 (2) TMI 212X X X X Extracts X X X X X X X X Extracts X X X X ..... he addition u/s 68 amounting to Rs 5,18,00,000 (share capital of Rs 2,59,00,000/- and share premium of Rs 2,59,00,000/-) received from Sh Vinod Kumar Sharma (Director) without appreciating the reasons given by the AO. 2. On the facts and circumstances of the case & in law, the Ld. CIT(A) erred in deleting the addition u/s 68 amounting to Rs 5,18,00,000 (share capital of Rs 2,59,00,000/- and share premium of Rs 2,59,00,000/-) by holding that the assessee has discharged the onus of establishing identity and creditworthiness of the creditor and genuineness of transaction without appreciating that No ITR for AY 2014-15 was filed by Sh Vinod Kumar Sharma (Director) and thus his sources were never examined by his AO. 3. On the facts and cir ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... balance sheet that the assessee has received share capital of Rs. 2,60,00,000/- and share premium money of Rs. 2,59,00,000/- aggregating to Rs. 5,19,00,000/- during the year. On query, the assessee submitted that this share application money came from the Director Sh. Vinod Kumar Sharma who held 99.81 % share holding in the assessee company. Confirmation letter dated 05.11.2016 from Sh. Vinod Kumar Sharma was filed wherein he confirmed that he has invested Rs. 5,18,00,000/- as share application money through account payee cheque in the assessee company during the year. 4. The explanation offered by the assessee was not acceptable to the Ld. AO who observed that Sh. Vinod Kumar Sharma has not filed his ITR for A.Y. 2014-15. Further his bank ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he appellant is that the AO chose to ignore the submission and also did not record submission of the assessee in his note sheet. He produced the copy of submissions made to ITO where in following information's were submitted- * Copy of state of affairs of Mr. Vinod Kumar Sharma showing net worth of Rs. 13,41,59,300/-. * The assesses had also disclosed Canara Bank sanction letter of term loan of Rs. 4.12 crores and loan. * Confirmation of Rs. 5,20,00,000/- from RB Build Worth Pvt. Ltd. as on 31/03/2014 to our Vinod Kumar Sharma * The Assesses had also furnished copy of its bank statement and also bank statement of share applicant Mr. Vinod Kumar Sharma wherein all the transactions had been made through account payee cheque on ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... pellant Company whose all relevant details were filed to the AO and who has been assessed independently in the Ward 44(4) Delhi Statement of affairs of Sh. Vinod Kumar Sharma wherein his net worth at Rs.13.41 crores conforms his creditworthiness. He is also found to have availed a loan facility of Rs. 4.12 crores from Canara Bank. It is also noticed that Sh. Vinod Kumar Sharma has received a loan of Rs. 5.20 crore from M/s R.B Builders Pvt. Ltd. during the year. 5.7 Issue of cheques preceded by similar credit entry in the books/share applicant account does not make the transaction doubtful ipso facto unless it is proved that preceding credit entries are basically either bogus or non existent entries. However, this is not the case here. R ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ition under section 68 in hands of assessees justified -Held No. (in favour of assesses)" * In the case of PCIT vs. Aquatic Remedies Pvt. Ltd., it was held by Hon'ble Bombay High Court that "If copies of share application forms share allotment register, bank statement and its all shareholders have filed affidavit declaring fact that they are investing in the assesses company accounts, the assesses has fulfilled the requirement of genuineness of the transactions, identity of share holders/investors, addition cannot be made under section 68." 6. Dissatisfied, the Revenue is in appeal before the Tribunal and all the grounds relate thereto. 7. None appeared for the assessee on 25.10.2021, 11.05.2022, 03.08.2022, 09.01.2023, 23.03.2023, ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... It was urged that on these facts, impugned addition is not warranted. 11. It is revealed from the appellate order that the assessee had also inspected his assessment records and pointed out to the Ld. CIT(A) that vide letter dated 19.12.2016 to the Ld. AO, the assessee had submitted copy of statement of affairs of Sh. Vinod Kumar Sharma for F.Y. 2013-14 and copy of letter explaining the source of funds of Sh. Vinod Kumar Sharma for F.Y. 2013- 14 which the Ld. AO did not record in his note sheet, though the letter is available in the assessment records. Despite this, the Ld. AO questioned the source of funds of Sh. Vinod Kumar Sharma ignoring the above evidence. Then vide letter dated 21.12.2016 the assessee submitted to the Ld. AO - (a) c ..... X X X X Extracts X X X X X X X X Extracts X X X X
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