Case Law Details
ITO Vs M/s Citymaker Builder Pvt. Ltd. (ITAT Mumbai)
As two of the share applicant companies as per the information received by the A.O from the office of the DGIT(Inv), Mumbai, were the companies controlled an infamous accommodation entry provider, therefore, it was incumbent on the part of the lower authorities to have carried out an in depth verification of the genuineness of the transaction of receipt of share application money by the assessee from the said parties. However, as observed by us hereinabove, the authorities below had not done even the bare minimum for verifying the genuineness of the transaction of receipt of share application money by the assessee company from the aforesaid applicant companies. We are afraid that such a casual approach on the part of the lower authorities, wherein they had dispensed with the basic verifications which they were obligated to carry out cannot be subscribed on our part.
FULL TEXT OF THE ITAT JUDGEMENT
The present appeal filed by the revenue is directed against the order passed by the CIT(A)-4, Mumbai, dated 09.03.2017, which in turn arises from the order passed by the A.O under Sec. 143(3) of the Income Tax Act, 1961 (for short „I.T. Act‟) dated 27.03.2015 for AY. 2012-13. The revenue assailing the order of the CIT(A) has raised before us the following grounds of appeal :
“1. On the facts and in the circumstances of the case and in law, the Ld.CIT(A) erred in deleting the addition of Rs. 1,35,00,000/- made u/s 68 of the Act, without appreciating the fact that the genuineness of the transactions and the credit worthiness of these parties have not been proved.
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