CIT Vs. GANGESHWARI METAL PVT LTD

JUDGEMENT

(1.) In this appeal the following question of law has been framed for our consideration by virtue of the order dated 16.10.2011: -

(2.) The learned counsel for the revenue/ appellant submitted that the Commissioner of Income Tax (Appeals) and the Income Tax Appellate Tribunal were both wrong in deleting the addition of Rs. 55.5 lakhs on account of unexplained share application money under section 68 of the Income Tax Act, 1961 (hereinafter referred to as "the said Act'). The present case pertains to the assessment year 2004-05. The assessment proceedings were completed by the assessing officer on 16.12.2009. The assessment order indicates that initially the respondent was asked to explain as to why an amount of Rs. 1,11,50,000/- should not be added to the respondent's income. It was explained by the assessee that there was several entries which had been taken into account twice over and by removing the duplicate entries the amount received as share application money by the respondent/ assessee was only Rs. 55,50,000/- and not Rs. 1,11,50,000/-. In response to the query with regard to the said sum of Rs. 55.5 lakhs, the respondent/ assessee had furnished various documents in support of the share application money received by it. Those documents included: -

(3.) However, despite the respondent/ assessee furnishing the above information/ documents, the assessing officer found the explanation to be unacceptable and held that the sum of Rs. 55.5 lakhs was unexplained in the hands of the assessee and thereby made an addition to the assessee's income.