CIT Vs. EXPO GLOBE INDIA LTD

JUDGEMENT

(1.) The Revenue is aggrieved by an order of the Income Tax Appellate Tribunal (ITAT) dated 22.07.2011 whereby its Appeal against the CIT (A)'s order dated 03.11.2009 was rejected.

(2.) The Revenue urges that the Tribunal's order is unsustainable under the circumstances and that the disallowance of an amount of Rs.69,75,000/- under Section-68 of the Income Tax Act was warranted.

(3.) The brief facts are that in the relevant assessment year i.e. 2000-01, the Assessing Officer noted that the assessee/respondent had received share application money to the extent of Rs.69,75,000/- which included some amounts received from M/s Onyx Exim & Sales Pvt. Ltd. and M/s Shorabh Finance Pvt. Ltd. After issuing notice, the Assessing Officer concluded that assessee had not given satisfactorily explanation and included the entire amount under Section-68. The assessee appealed to the CIT (A) who by order dated 03.11.2009, allowed the same. Apparently, the CIT (A) took into consideration materials furnished by the assessee during the remand. The materials were considered which are discussed elaborately in order of the CIT (A) at pages 25-33 of the paper book. These include the entire list of 18 shareholders of whom 16 were companies. Apparently the assessee had furnished particulars such as PAN number, confirmations by the shareholders, bank statements in the case of some of them, bank statements and the balance sheets in respect of some of them and ROC particulars in regard to all the incorporated companies. The assessee had furnished further additional information.