In respect of amount of Rs.50,07,000 alleged to have been received from Swetu Stone (P) Ltd. and Chintpurni Credits, the appellant contended before the A.O. as well as before me that they have not received any share application money from those two companies. The A.O. did not contradict this submission of the appellant. The A.O. did not confront the assessee company about the information received by him from Investigation Wing and used it against the assessee without opportunity of being heard in respect of material in his possession.
The A.O. did not bring any positive evidence on the record to establish that there was any credit in the books of account of the assessee in the name of M/s. Swetu Stone (P) Ltd. and in the name of M/s. Chintpurni Credit or that the appellant has paid any money to those two companies. Considering, the above facts and judicial pronouncements quoted by the appellant, I am of the considered opinion that the A.O. was not justified in making the addition on account of share application money alleged to have been received from M/s. Swetu Stone (P) Ltd. and Chintpurni Credit. Therefore, the addition made by the A.O. is hereby deleted.
INCOME TAX APPELLATE TRIBUNAL, DELHI
ITA No. 51/Del/2011 – Assessment Year: 2002-03
Assistant CIT Vs. Puneet Mercantiles & Credits (P) Ltd.
Date of pronouncement: 15.03.2012
ORDER
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