COMMISSIONER OF INCOME-TAX, JAMSHEDPUR EAST SINGHBHUM Vs. BHARAT SAFETY GLASS (P) LTD. SARAIKELLA-KHARSAWAN

JUDGEMENT

(1.) Heard learned counsel appearing for the appellant and learned counsel appearing for the respondent. The respondent-Assessee-company received Share Applications worth Rs. 41.10 Lakhs from 19 different persons. When return for the assessment year 2004-05 was submitted, income was shown as 'NIL'. Thereupon letters of enquiry were issued to all the share applicants to which they except four persons, whose names have been disclosed In the assessment order, responded and submitted relevant documents showing investment of the money. Since, those four persons were shown to have invested a sum of Rs. 17.50 Lakhs in the assessee company, the Assessing Officer made the addition of Rs. 17.50 Lakhs on account of non-proving of the existence and the identify of those four persons, as those four persons did not respond to notice issued in terms of Section 133(6) of the Income Tax Act, 1961.

(2.) That order was challenged before the appellate authority where necessary documents such as copies of audited account, copy of returns etc., showing investment by those four persons were filed. The appellate authority, having taken into account those documents did find the share-holders as genuine persons, thus, having satisfied with their credit worthiness, deleted the addition which had been made by the assessing authority.

(3.) Being aggrieved with that order, second appeal was filed before the Tribunal but the Tribunal did not find any illegality with the order passed by the appellate authority. Hence, dismissed the appeal. That order is under challenge.