Case Law Details
In the present case, the assessee can be said to have discharged its onus under section 68 of the Act in proving the genuineness of the share capital in respect of the impugned 22 shareholders in the light of proposition laid down by the Supreme Court and Delhi High Court in the cases cited above. The appellant has given all the necessary details in order to establish the identity of the aforementioned share applicants. It is also observed that all the share applicants are corporate assessees, incorporated under Indian Companies Act.
After considering the entire material placed on record, it is fair to conclude that the aforementioned 22 share applicants were exiting parties. It is also seen that the Assessing Officer could not point out any discrepancy in the evidences relied upon by the assessee. Further, what is the desired documentary evidence required to support the claim of the assessee as required by the Assessing Officer is not coming out of the order of the Assessing Officer. Though, the share-applicants could not be examined by the Assessing Officer, since they were existing on the file of the Income Tax Department and their income-tax details were made available to the Assessing Officer, it was equally the duty of the Assessing Officer to have taken steps to verify their assessment records and if necessary to also have them examined by the respective Assessing Officers having jurisdiction over them (share-applicants), which has not been done by him. In these circumstances, it is held that the addition of Rs.9,96,50,000/- on account of share capital and share premium u/s 68 of the Act can not be sustained and accordingly, the same is directed to be deleted.
Since issue involved in the appeal has not been considered by the CIT(A) appropriately while giving relief to the assessee, therefore, considering the entirety of facts, circumstances and material on record, we find it just and appropriate to set aside the order of the Ld.CIT(A) and restore the matter back on his file with the direction to consider the issue afresh after giving due opportunity to the assessee as well as to Assessing Officer. We hold and direct accordingly.
INCOME TAX APPELLATE TRIBUNAL, DELHI
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