Case Law Details
Ashtech Industries Pvt. Ltd. Vs DCIT (ITAT Delhi)
Conclusion: Addition under section 68 on mere reason of non-production of directors in the person of shareholder companies was not justified and AO had not brought any cogent material on records in assessment order to demolish the copious evidences furnished by assessee.
Held: In the instant case, AO made addition under section 68 on account of accommodation entries. It was found that assessee had filed all evidences like share application form, board resolution confirming investment made, confirmation of share capital raised, share certificate, income tax particulars of share holders, bank statement of share holders and form 2 for allotment of shares along with their audited final a/c in support of share capital recd.. Further, no where any shareholder company was found to be fictitious or non existing rather all share holder companies were duly found to be existing as summons had been served on them. No cogent material was brought on records in assessment order to demolish the copious evidences furnished by assessee. AO nowhere made any independent enquiry from concerned and competent AO of share holder companies etc. AO only on basis of investigation wing report (unconfronted to assessee) acting purely on borrowed satisfaction without any independent application of mind. Addition made u/s 68 for mere reason of non production of directors in person of share holder companies could not be a justified ground to draw adverse inference u/s 68.
FULL TEXT OF THE ITAT JUDGEMENT
This appeal is filed by assessee against the Order dated 08.3.2018 passed by the Ld. CIT(A), New Delhi relating to Assessment Year 2009-10 on the following grounds:-
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