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TMI Blog2025 (3) TMI 34X X X X Extracts X X X X X X X X Extracts X X X X ..... rmed that all the notices issued u/s 133(6) of the Act were served on the Investor Companies and contrary to the same, the existence of those Companies in the address have been doubted based on enquiry conducted by Income Tax Inspector, however, no date of inspection report and no reference of date of inspection has been mentioned in the assessment order. AO has not collected any evidence to prove that the transactions in questions were not genuine or the share application money/share premium received by the Assessee during the year was its own undisclosed income. It is well settled law that mere non production of Directors of share applicant cannot be termed that the entire transactions are not genuine as held in the case of CIT vs. Oriss ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... on the basis that transaction were through banking channel or by account payee instruments but it did not reflect their actual genuine business activities. 4. Whether on the facts and in the circumstances of the case and in law, the Ld. CIT (A) did not notice that the share subscribers did not have its own profit making apparatus. It merely rotated money, which was coming through the bank accounts. The bank accounts did not reflect their creditworthiness of transaction 5. The appellant craves leave for reserving the right to amend, modify, alter, add or forego any ground(s) of appeal at any time before or during the hearing of this appeal." 3. Brief facts of the case are that, the Assessee filed its return of income declaring NIL incom ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ve further submitted that, the Ld. CIT(A) has passed cryptic and non speaking order though the Assessee has not proved the ingredients of Section 68 of the Act and erroneously held that the Assessee has proved all the three ingredients of Section 68 of the Act. Further submitted that, merely filing of ITR of the Companies and finding that the transaction being done in banking channel will not be sufficient to prove the genuineness of the parties and the source of sum so credited. The Ld. Departmental Representative relying on the assessment orders, sought for allowing the Appeal. 5. Per contra, the Ld. Assessee's Representative submitted that the Ld. CIT(A) while deleting the addition dealt with all the issues. Further submitted that, ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of the Companies, a notices u/s 133(6) of the Act were issued. On receipt of the notice u/s 133(6) of the Act, all the seven companies have replied. The A.O. also observed that the entire money has been received through banking channel. The A.O. deputed an Inspector and the said Inspector found that the Companies were not running at the given address. However, in the assessment order no such date of the report or date of visit of the Inspector has been mentioned, however A.O. termed the transaction as not genuine, made addition u/s 68 of the act which has been deleted by the Ld. CIT(A). 7. It is a matter of fact that the seven subscriber companies from whom share application money/share premium of Rs. 3,00,00,000/- was received by the Asse ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... sed on enquiry conducted by Income Tax Inspector, however, no date of inspection report and no reference of date of inspection has been mentioned in the assessment order. The A.O. has not collected any evidence to prove that the transactions in questions were not genuine or the share application money/share premium received by the Assessee during the year was its own undisclosed income. It is well settled law that mere non production of Directors of share applicant cannot be termed that the entire transactions are not genuine as held in the case of CIT vs. Orissa Corporation Pvt. ltd. 1986 159 ITR 768 (S.C). Considering the above facts and circumstances, we find no error or infirmity in the order of the Ld. CIT(A) in deleting the addition m ..... X X X X Extracts X X X X X X X X Extracts X X X X
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