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TMI Blog2025 (1) TMI 1120X X X X Extracts X X X X X X X X Extracts X X X X ..... inted on the aspect for failure on the part of the assessee particularly when provisions of section 147 (1) was attracted in this case. Since original assessment order was already passed u/s 143(3) of the Act and after due verification of the transaction, AO allowed the same by accepting the same after verification of various documents submitted before him. CIT (A) sought for the assessment records in order to verify the above submissions of the assessee, however no records were traceable at that point of time. Since the assessee has submitted relevant information with regard to submission of various informations relating to receipt of share application money. Since the issue involved is application of provisions to section 147(1) of the Ac ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ome. In response, assessee vide letter dated 15.04.2014 intimated that earlier return of income filed on 30.10.2007 be considered for the purpose of proceedings initiated u/s 147 of the Act. As requested, the copy of reasons for initiation proceedings u/s 147 was supplied to the assessee vide letter dated 24.09.2014. Subsequently, notices u/s 142(1) were issued and served on the assessee. In response, assessee furnished details of capital / application money received along with confirmation of the invoices and copies of bank statement, ITR, etc.. 3. During assessment proceedings, the AO observed from the Balance Sheet that assessee had issued 2,71,000 shares on face value of Rs. 10 each and premium was also charged of Rs. 90 per share. He ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... missions of the assessee and the assessment order, ld. CIT (A) considered the submissions of the assessee that Rs. 45 lakhs was received in the previous assessment year and as per the information received from Investigation Wing relating to transaction with MARRASS Industries Ltd. who has subscribed to the share capital of Rs. 15 lakhs only. With regard to other share application money received from other applicants of Rs. 2,11,00,000/- assessee has submitted all the relevant information during original assessment proceedings carried out u/s 143(3) of the Act. The ld. CIT (A) also considered the detailed submissions on the issue of making addition u/s 68 relating to share application money relying on several cases. In order to verify the co ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nt the addition u/s 68 of the Act is not sustainable, accordingly he deleted the additions. 6. Aggrieved with the above order, Revenue is in appeal before us raising following grounds of appeal :- "1. Whether in facts and circumstances of the case and in law. The Ld. CIT(A) is legally justified in deleting the addition of Rs. 2,71,00,000/- made u/s 68 of the IT Act on the basis of self serving evidence produced by the assessee in form of documents of paper companies used to provide accommodation entries to several hundred beneficiaries including the assessee and by ignoring finding of enquiry made by the Assessing Officer? 2. Whether on the facts and circumstances of the case and in law, the Ld. CIT(A) is justified in holding that find ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d that assessee has raised ground on the issue of reopening of the assessment. He submitted that assessment was completed after detailed verifications u/s 143(3) of the Act and assessment was reopened beyond four years. He brought to our notice page 167 of the paper book wherein the reasons recorded for reopening was enclosed and submitted that the reasons recorded were only with borrowed satisfaction and there is no investigation report with the AO at the time of recording of satisfaction. He further submitted that the sanction u/s 151(2) has to be obtained from JCIT as per the provisions of section 151 (2) of the Act. He brought to our notice page 67 of the paper book wherein reasons recorded for reopening was shared with the assessee as ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... was attracted in this case. Since original assessment order was already passed u/s 143(3) of the Act and after due verification of the transaction, the AO allowed the same by accepting the same after verification of various documents submitted before him. Further we observed that ld. CIT (A) sought for the assessment records in order to verify the above submissions of the assessee, however no records were traceable at that point of time. Since the assessee has submitted relevant information with regard to submission of various informations relating to receipt of share application money. Since the issue involved is application of provisions to section 147(1) of the Act, non-recording of failure on the part of the assessee in the reasons reco ..... X X X X Extracts X X X X X X X X Extracts X X X X
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