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Commissioner Of Income Tax vs Victor Electodes Ltd on 12 May, 2010

Further in the case of CIT vs. Victor Electrodes Ltd. 329 ITR 271 it has been held that there is no legal obligation on the assessee to produce some Director or other representative of the Director or other representative of the applicant companies before the A.O. Therefore, failure on part of the assessee to produce the Directors of the share applicant companies could not by itself have justified the additions made by the AO particularly when the seven share applicant companies through their present Directors have now again filed, fresh affidavits confirming the application and allotment of shares with respect to the total amount of Rs. 45 Lacs. It is observed that no attempt was made by the AO to summon the Directors of the share applicant companies. Moreover, it is settled law that the assessee need not prove the "source of source". Accordingly, it was incumbent upon the department to have enforced attendance of Shri Mahesh Garg or the erstwhile Directors of the share applicant companies and confronted them with the evidences & affidavits relied upon by the appellant and thereupon given opportunity to the assessee to cross examine these applicants".
Delhi High Court Cites 4 - Cited by 76 - V K Jain - Full Document

Commissioner Of Income-Tax, West ... vs Durga Prasad More on 26 August, 1971

Ltd. .367 ITR 306 has considered a large number of decisions including the decision of Hon'ble Supreme Court in the case of CIT Vs. Durga Prasad [1971] 82 ITR 540 (SC). According to the Hon'ble Delhi High Court basically there are two sets of judgments. In one set of case, the assessee produced necessary documents/evidence to show and establish identity of the share- holder and bank account from which payment was made. The fact that payment was received through bank channels, filed necessary affidavit of the shareholders or confinnations of the directors of the shareholder company. But thereafter no further inquiry was made by the AO. The second set of cases are those where there was, evidence and material to show that the shareholder company was only a paper company having no source of income, but had made substantial and huge investments in the form of share application money. The assessing officer has referred to the bank statement, financial 8 ITA No. 220/KOL/2023 (A.Y. 2012-2013) & ITA No. 221/KOL/2023 (A.Y. 2014-2015) Advent Vinimay Private Limited position of the recipient and beneficiary assessee and surrounding circumstances.
Supreme Court of India Cites 1 - Cited by 1107 - Full Document
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