Case Law Details
This Court notices that the assessee had provided several documents that could have showed light into whether truly the transactions were genuine. It was not a case where the share applicants are merely provided confirmation letters. They had provided their particulars, PAN details, assessment particulars, mode payment for share application money, i.e. through banks, bank statements, cheque numbers in question, copies of minutes of resolutions authorizing the applications, copies of balance sheets, profit and loss accounts for the year under consideration and even bank statements showing the source of payments made by the companies to the assessee as well as their master data with ROC particulars. The AO strangely failed to conduct any scrutiny of documents and rested content by placing reliance merely on a report the Investigation Wing. This reveals spectacular disregard to an AO’s duties in the remand proceedings which the Revenue seeks inflict upon the assessee in this case. No substantial question of law arises. The appeal is dismissed.
Full Text of the High Court Judgment is as follows:-
The Income Tax Appellate Tribunal’s (ITAT) order upholding the Appellate Commissioner’s opinion that the additions made in the course of reassessments were unsustainable, were challenged by the Revenue. The reassessment notice was issued to the assessee for AY 2002- 03 on the ground that information received from the Investigation Wing pointed to its being the beneficiary of the accommodation entries that were subjected to addition under Section 68. The Assessing Officer (AO), in the reassessment proceedings, added a sum of Rs. 70,77,290/-. Upon appeal, the CIT(A) took note of the materials filed by the assessee and provided an opportunity to the AO to remand proceedings. The AO merely objected to the materials furnished but did not undertake any verification. The CIT(A), found favor with the assessee, and directed that the amounts brought to tax should be deleted inter alia observing as follows:
“………Reliance is placed on the following decisions of the Apex Court and the jurisdictional High Court of Delhi:-
(i) CIT V. Lovely Exports (P) Ltd. 2008 (216) CTR (SC) 195;
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