Law:

Section:

Section 68 of the Income-tax Act, 1961 - Cash credits - Assessing Officer treated share application money received by assessee-company in cash as its undisclosed income and made addition under section 68 - On appeal, Commissioner (Appeals) considered in detail case of each of shareholders and concluded that identity and creditworthiness of shareholders and genuineness of transactions stood established - He, accordingly, deleted addition - On appeal, Tribunal set aside order of Commissioner (Appeals) holding that he had not considered matter in right perspective and remanded matter to Assessing Officer - Whether when Commissioner (Appeals) had not only found that identity of each of shareholders stood established, but had also examined fact that each of them was income-tax assessee and had disclosed share application money in his accounts which was duly reflected in his income-tax return as well as in his balance-sheets, Tribunal was justified in concluding that Commissioner (Appeals) had not considered matter in right perspective - Held, no - Whether, therefore, order of Tribunal was to be set aside - Held, yes CASES REFERRED TO CIT v. Lovely Exports (P.) Ltd. [2008] 216 CTR (SC) 195 [Para 4] and CIT v. Divine Leasing & Finance Ltd. [2008] 299 ITR 268 (Delhi) [Para 4]. R. Santhanam for the Appellant. R.D. Jolly for the Respondent. JUDGMENT Badar Durrez Ahmed, J. - The following substantial question of law arises for consideration of this Court. "Whether the Income-tax Appellate Tribunal was justified in law in remanding back the case to the Assessing Officer when the matter has been examined on merits by the Commissioner of Income-tax (Appeals)." 2. Filing of paper books is dispense with. Counsel for the parties agreed that this appeal can be disposed of straightaway. 3. We are of the view that the question framed above needs to be answered in favour of the assessee and against the revenue. We note that the Tribunal arrived at the following conclusion :- "It is seen that it is a case of private limited company and the money has been received in cash. Therefore, a heavy duty is cast to establish not on the identity of share applicant but also the…

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