The cross-appeal challenges the order passed under section 250 of the Income Tax Act, 1961 by the CIT (A). The primary contention is regarding the addition made by the Assessing officer under section 68 of the Income Tax Act, 1961. The Assessing officer observed that the assessee company had received share premium during the year under consideration.

Further reassessment proceedings were initiated based on the information received and a notice was issued under section 148 of the Act. The Assessing Officer treated the entire amount of share premium and share capital as bogus and unexplained cash credit, adding the aggregate amount to the total income of the assessee under section 68 of the Act.

The CIT (A) granted partial relief to the assessee, directing the deletion of significant portion as genuine share application money and further held certain amount as unexplained. The Assessee raised an objection against the CIT (A)’s decision in confirming the addition on account of unsecured loans, stating that the said sum was received by the assessee in earlier years and not during the year under consideration.

The Hon’ble Tribunal observed discrepancies in the submissions and evidence provided by the assessee and the Assessing Officer’s findings. The Tribunal thus remanded the matter back to the Assessing Officer for a fresh examination and verification. (AY. 2009-10)