Allowing the appeal of the assessee, the Tribunal held that the assessee has filed the confirmation letters of the share holders. The shareholders have responded to the notice issued under section 133(6) of the Act. Genuineness and credit worthiness was proved. Addition was deleted. Additional evidences filed by the Revenue which mainly includes the CBI charge sheets statements recorded before CBI under S. 161 and 164 CrPC before the Magistrate correspondences between the investor companies and the State Government documents procured from various State Government Authorities, statements recorded by the AO during the penalty proceedings. documents containing allotment of land, etc are not relevant for deciding the issues arising in the appeal addition of share premium under S. 56 and share capital and share premium under S. 68 because the entire details relating to the facts are available in the orders of the lower authorities i. e the assessment order and the order of the CIT(A) and hence the additional evidences are not admitted. (AY.2008-09)
Jagati Publications Ltd. v. ACIT (2022) 215 TTJ 818 / 210 DTR 137 (Hyd)(Trib) Editorial: Special Bench constituted was quashed Jagati Publications Ltd. v. President ITAT (2015) 377 ITR 31/ 279 CTR 271/ 124 DTR 131 (Bom)(HC). SLP of Revenue is pending and No stay of proceedings. (Diary No. 42483 / 2015 filed on 18th December, 2015. Case No SLP (c) No. 005296 / 2016 Registered on 19th Feb, 2016, SLP (C) No. 001974 /2016, Registered on 29th Jan. 2016.
S. 68 : Cash credits-Share premium-Income from other sources-Confirmation was filed-Valuation report was filed-Discounted Cash Flow Method (DCF)-Additional evidence filed by the Revenue-Share holders have replied to notices sent under section 133(6) of the Act-Receipt cannot be taxes as Revenue receipts-additional evidence filed by the Revenue was not admitted-Genuineness and creditworthiness was proved-Addition was deleted. [S. 28(iv), 56(1), 133(6), 263, ITAT R. R. 29]