The ACIT, Central Circle-4, Surat V. Pioneer Syntex Pvt.Ltd., Surat

ITA 2096/AHD/2009

• Counselvise Citation: [2009] 115 COUNSELVISE.COM (IT) 1888 (ITAT-AHMEDABAD)
• Duration Of Justice: 5 month(s) 8 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 10-12-2009
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: A
• Next Hearing Date: 07-12-2009
• Assessment Year: 2003-2004
• Appeal Filed On: 02-07-2009
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: RAJEEV AGARWAL
• Keywords: Accommodation entries; Onus to prove; Retraction; Set aside
• Section: 133A; 133(6); 195; 68; 132

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL A BENCH AHMEDABAD (BEFORE DR. O. K. NARAYANAN, VP AND SHRI BHAVNESH S AINI, JM) ITA NOS.2096, 2097 AND 2098/AHD/2009 A. Y.: 2003-04, 2004-05 AND 2005-06 THE A. C. I.T., CENTRAL CIRCLE-4, AAYAKAR BHAVAN, ROOM NO.508, MAJURA GATE, SURAT VS PIONEER SYNTEX PVT. LTD., PLOT NO.391, GIDC, PANDESARA, SURAT PAN NO. AABCP 3984 C (APPELLANT) (RESPONDENT) ITA NOS.2099 AND 2100/AHD/2009 A. Y.: 2003-04 AND 2004-05 THE A. C. I.T., CENTRAL CIRCLE-4, AAYAKAR BHAVAN, ROOM NO.508, MAJURA GATE, SURAT VS PRATIBHA FABRICS LTD. PLOT NO.398-99, GIDC, PANDESARA, SURAT PAN NO. AABCP 7943 B (APPELLANT) (RESPONDENT) ITA NOS.2101, 2102, 2103 AND 2104/AHD/2009 A.Y.: 2002-03, 2003-04, 2004-05 AND 2005-06 THE A. C. I.T., CENTRAL CIRCLE-4, AAYAKAR BHAVAN, ROOM NO.508, MAJURA GATE, SURAT VS SPECTRUM DYES & CHEMICALS PVT. LTD., B-502,503 NATIONAL HIGHWAY NO.8, PANDESARA, SURAT PAN NO. AADCS 3979 A (APPELLANT) (RESPONDENT) ITA NO.2105/AHD/2009 A.Y.: 2003-04 THE A. C. I.T., CENTRAL CIRCLE-4, AAYAKAR BHAVAN, ROOM NO.508, MAJURA GATE, SURAT VS GUJARAT EMBROIDERIES LTD., B-18/13, SACHIN UDYOG SAHKARI MANDALI, HOJIWALA ESTATE, VANZ, SACHIN, SURAT PAN NO. AAACG 8626 M (APPELLANT) (RESPONDENT) ITA NOS.2096 TO 2106/AHD/2009 PIONEER SYSNTEX PVT. LTD. AND OTHERS 2 ITA NO.2106/AHD/2009 A.Y.: 2003-04 THE A. C. I.T., CENTRAL CIRCLE-4, AAYAKAR BHAVAN, ROOM NO.508, MAJURA GATE, SURAT VS KAMDAR FAB PVT. LTD. , 7B, RUDRARAJ APARTMENT, OPP. ARIHANT COMPLEX, NEAR GATEWAY HOTEL, PARLE POINT, SURAT PAN NO. AACCK 3459 L (APPELLANT) (RESPONDENT) APPELLANT BY SHRI RAJEEV AGARWAL, DR RESPONDENT BY NONE O R D E R PER BENCH: ALL THE ABOVE DEPARTMENTAL APPEALS ARE DIRECTED AGAINST DIFFERENT ORDERS OF THE CIT(A)-II, AHMEDABA D IN CASES OF VARIOUS ASSESSEES FOR THE ASSESSMENT YEARS MENTIONED ABOVE, RAISING THE IDENTICAL ISSUES, CHALLENGING THE DELETION OF ADDIT IONS ON ACCOUNT OF CASH CREDITS AND IN DELETING THE DISALLOWANCES OF INTERE ST ON ACCOUNT OF THE UNSECURED LOANS. 2. SINCE IDENTICAL ISSUES ARE INVOLVED IN ALL THE A BOVE DEPARTMENTAL APPEALS AND THE LEARNED CIT(A) HAS PASSED THE IMPUG NED ORDERS ON THE IDENTICAL REASONING, THEREFORE, ALL THE APPEALS WER E HEARD TOGETHER AND ARE BEING DISPOSED OF THE SAME THROUGH THIS COMMON CONSOLIDATED ORDER. 3. WE HAVE HEARD THE LEARNED DR, PERUSED THE FINDIN GS OF THE AUTHORITIES BELOW AND THE MATERIALS AVAILABLE ON RE CORD. THE ASSESSEES HAVE FILED WRITTEN SUBMISSIONS. NOBODY APPEARED ON BEHALF OF THE ASSESSEES AT THE TIME OF HEARINGS OF THE APPEALS. T HE WRITTEN SUBMISSIONS FILED BY THE ASSESSEES ARE PERUSED AND TAKEN INTO C ONSIDERATION IN WHICH THE ASSESSEES HAVE REITERATED THE SUBMISSIONS MADE BEFORE THE LEARNED CIT(A). ITA NOS.2096 TO 2106/AHD/2009 PIONEER SYSNTEX PVT. LTD. AND OTHERS 3 4. BRIEFLY STATED, THE FACTS LEADING TO FILING OF T HE ABOVE DEPARTMENTAL APPEALS ARE THAT ON 08-02-2007, A SEARCH/SURVEY WAS CONDUCTED U/S 133A OF THE INCOME TAX ACT IN THE CASES OF THE ASSE SSEES ALONG WITH SEARCH U/S 132 OF THE INCOME TAX ACT IN THE CASES O F ITS DIRECTORS. THE SEARCH AND SURVEY WAS ALSO CONDUCTED AT THE PREMISE S OF SHRI PUSHKAR AGARWAL, CHARTERED ACCOUNTANT AND HIS STATEMENTS WE RE RECORDED U/S 133A OF THE INCOME TAX ACT ON 08-02-2007, WHEREIN H E STATED THAT HE HAD FACILITATED PRATIBHA GROUP BY PROVIDING ACCOMMO DATION ENTRIES IN THE FORM OF SHARE CAPITAL AND UNSECURED LOANS THROU GH CERTAIN PRIVATE LIMITED COMPANIES. ON THE BASIS OF HIS STATEMENTS, THE AO HAS TREATED THE LOAN TAKEN AND SUBSCRIPTION IN THE SHARE APPLIC ATION AS BOGUS AND MADE THE ADDITIONS U/S 68 OF THE INCOME TAX ACT AFT ER DISCUSSING THE DETAILS IN THE ASSESSMENT ORDERS AND ALSO DISALLOWE D THE INTEREST EXPENDITURE IN RESPECT OF THOSE LOAN ENTRIES AS MEN TIONED IN THE RESPECTIVE ASSESSMENT ORDERS. IT MAY, HOWEVER, BE S TATED THAT THE NAMES OF THE PARTIES FROM WHOM SHARE APPLICATION MONEY AN D UNSECURED LOANS WERE TAKEN ARE HAVING DIFFERENT NAMES BUT FACTS ARE IDENTICAL IN ALL THE CASES. 5. IT WAS SUBMITTED BEFORE THE LEARNED CIT(A) THAT ADDITIONS/DISALLOWANCES ARE SOLELY MADE ON THE BASI S OF STATEMENT OF SHRI PUSHKAR AGARWAL, CHARTERED ACCOUNTANT WHEREIN HE HAD STATED THAT HE HAD PROVIDED ENTRIES ON COMMISSION BASIS TO PRAT IBHA GROUP WHEREAS SHRI BOOPSINGH JANI, AN EMPLOYEE OF PRATIBHA GROUP ON BEHALF OF MAHENDRAKUMAR CHAUDHARY USED TO HANDOVER HAND OVER CASH TO HIM AND IN TURN HE ISSUED CHEQUES TO VARIOUS COMPANIES AS SHARE APPLICATION MONEY AND UNSECURED LOANS. IT WAS SUBMITTED THAT SH RI PUSHKAR AGARWAL, CHARTERED ACCOUNTANT WAS NEVER A PARTY BET WEEN THE ASSESSEES AND THE COMPANIES GIVING LOANS AND SHARE APPLICATIO N MONEY. THE ASSESSEES HAVE NOT RECEIVED ANY SHARE SUBSCRIPTION AMOUNT THROUGH SHRI PUSHKAR AGARWAL, CHARTERED ACCOUNTANT BECAUSE SHRI PUSHKAR AGARWAL, ITA NOS.2096 TO 2106/AHD/2009 PIONEER SYSNTEX PVT. LTD. AND OTHERS 4 CHARTERED ACCOUNTANT HAS JOINED THESE COMPANIES AS DIRECTOR FROM JUNE, 2006 AND THE ASSESSEES HAVE ACCEPTED SHARE APPLICAT ION MONEY FROM THESE COMPANIES PRIOR TO MARCH, 2006. HE WAS, THERE FORE, NOT INVOLVED IN ANY TRANSACTIONS OF THE ASSESSEES AND HIS STATEMENT S ARE NOT WORTH RELIANCE. SHRI PUSHKAR AGARWAL, CHARTERED ACCOUNTAN T HAS NOT NAMED THE ASSESSEE COMPANIES IN ACCEPTING ANY LOAN OR SHA RE APPLICATION MONEY. HIS STATEMENTS ARE, THEREFORE, VAGUE AND GEN ERAL. THE PROMOTERS OF PRATIBHA GROUP IN THEIR STATEMENTS RECORDED U/S 132(4) OF THE INCOME TAX ACT HAVE DENIED ANY INVOLVEMENT OF SHRI PUSHKAR AGARWAL, CHARTERED ACCOUNTANT. THE INVOLVEMENT OF OTHER PERSONS WAS AL SO DENIED. SHRI PUSHKAR AGARWAL, CHARTERED ACCOUNTANT RETRACTED FRO M HIS STATEMENTS WITHIN TWENTY FOUR HOURS ON 09-02-2007 BEFORE THE A DIT (INVESTIGATION). IT WAS ALSO SUBMITTED THAT DURING CROSS EXAMINATION OF SHRI PUSHKAR AGARWAL, CHARTERED ACCOUNTANT AT THE ASSESSMENT STA GE, HE HAD DENIED ANY STATEMENTS MADE AGAINST THE ASSESSEES ON 08-02- 2007. IN HIS CROSS EXAMINATION ALSO HE HAS CONFIRMED THAT ALL THE INVE STMENTS/UNSECURED LOANS ARE GENUINE AND RECEIVED IN NORMAL COURSE OF BUSINESS. THEREFORE, HIS STATEMENTS CANNOT BE USED AGAINST THE ASSESSEES . NO INCRIMINATING MATERIAL WAS FOUND AGAINST THE ASSESSEES DURING THE COURSE OF SEARCH TO LINK THE STATEMENTS OF SHRI PUSHKAR AGARWAL, CHARTE RED ACCOUNTANT. THE ASSESSEES RELIED UPON SEVERAL DECISIONS IN SUPPORT OF SUCH CONTENTIONS. IT WAS ALSO SUBMITTED THAT THE DEPARTMENT WAS NOT ABLE TO FIND OUT THE EXISTENCE AND WHERE-ABOUT OF BHOOPSINGH JANI WHO HA D BEEN NAMED BY SHRI PUSHKAR AGARWAL, CHARTERED ACCOUNTANT IN HIS S TATEMENTS. IT WAS SUBMITTED THAT STATEMENTS OF SHRI PUSHKAR AGARWAL, CHARTERED ACCOUNTANT WERE RECORDED U/S 133A OF THE INCOME TAX ACT AND NOT U/S 132(4) OF THE INCOME TAX ACT. IT CANNOT BE USED IN EVIDENCE BECAUSE IT COULD NOT HAVE BEEN RECORDED ON OATH. THE DECISION OF THE HONBLE KERALA HIGH COURT IN THE CASE OF PAUL MATHEWS & SONS VS CI T (2003) 263 ITR 101 (KER) WAS RELIED UPON IN WHICH IT WAS HELD THA T SECTION 133A OF THE INCOME TAX ACT DOES NOT EMPOWER ANY ITO TO EXAMINE ANY PERSON ON ITA NOS.2096 TO 2106/AHD/2009 PIONEER SYSNTEX PVT. LTD. AND OTHERS 5 OATH. THEREFORE, SUCH STATEMENTS WOULD HAVE NO EVID ENTIARY VALUE. IN SUPPORT OF THE SAME, THE DECISION OF THE HONBLE MA DRAS HIGH COURT IN THE CASE OF CIT VS S. KHADER KHAN SON (2008) 300 IT R 157 (MAD) WAS RELIED UPON. IT WAS FURTHER SUBMITTED THAT ASSESSEE S HAD DISCHARGED THE ONUS CAST UPON THEM U/S 68 OF THE INCOME TAX ACT BE CAUSE THE ASSESSEES PROVED THE IDENTITY AND CREDITWORTHINESS OF THE CREDITORS AND THE GENUINENESS OF THE TRANSACTIONS BECAUSE THE ASS ESSEES SUBMITTED THE NAMES, ADDRESSES AND PERMANENT ACCOUNT NUMBERS OF T HE DEPOSITORS/SHARE APPLICANTS. CONFIRMATION FROM THES E PARTIES, THEIR PERMANENT ACCOUNT NUMBERS AND COPY OF THE INCOME TA X RETURNS WERE ALSO FILED. IN RESPONSE TO INQUIRY LETTERS ISSUED U /S 133(6) OF THE INCOME TAX ACT, THE PARTIES HAVE CONFIRMED THEIR TRANSACTI ONS WITH THE ASSESSEES. THE ASSESSEES, THEREFORE, DISCHARGED THE IR ONUS TO PROVE THE GENUINENESS OF THE CASH CREDITS/SHARE APPLICATION M ONEY. THE ASSESSEES RELIED UPON THE DECISION OF THE HONBLE SUPREME COU RT IN THE CASE OF ORISSA CORPORATION PVT. LTD. (1986) 52 CTR 138 (SC) , DECISION OF THE HONBLE DELHI HIGH COURT IN THE CASE OF CIT VS DIVI NE LEASING AND FINANCE LTD. (2008) 299 ITR 268 (DEL), DECISION OF THE HONBLE GUJARAT HIGH COURT IN THE CASE OF DCIT VS ROHINI BUILDERS ( 2002) 256 ITR 360 (GUJ) AND THE DECISION OF HONBLE BOMBAY HIGH COURT IN THE CASE OF ORIENT TRADING CO. LTD. VS CIT (1963) 49 ITR 723(BO M). 6. THE LEARNED CIT(A) CONSIDERING THE OBSERVATIONS OF THE AO, MATERIALS ON RECORD AND THE SUBMISSIONS OF THE ASSE SSEES NOTED THAT SHRI PUSHKAR AGARWAL, CHARTERED ACCOUNTANT JOINED THESE COMPANIES AS DIRECTOR FROM JUNE 2006 WHEREAS ASSESSEE COMPANIES HAVE ACCEPTED LOANS PRIOR TO MARCH, 2006. THEREFORE, HIS INVOLVEM ENT IN ANY TRANSACTIONS HAS BEEN DENIED BY THE DIRECTORS OF TH E ASSESSEE COMPANIES. SHRI PUSHKAR AGARWAL HAD RETRACTED FROM HIS STATEME NT WITHIN TWENTY FOUR HOURS BEFORE THE ADIT (INVESTIGATION) AND DURI NG HIS CROSS EXAMINATION, HE HAD CONFIRMED THAT ALL THE INVESTME NTS/UNSECURED LOANS ITA NOS.2096 TO 2106/AHD/2009 PIONEER SYSNTEX PVT. LTD. AND OTHERS 6 WERE GENUINE AND EARLIER STATEMENTS ON THE DATE OF SURVEY WERE MADE UNDER EXTREME MENTAL TENSION AND INSTABILITY. THE L EARNED CIT(A) ALSO FOUND THAT NO INCRIMINATING DOCUMENT WAS FOUND DURI NG PERIOD OF SEARCH TO LINK INVOLVEMENT OF SHRI PUSHKAR AGARWAL, CHARTE RED ACCOUNTANT WITH ANY LOAN TRANSACTIONS. THE LEARNED CIT(A) RELYING U PON THE DECISION OF THE HONBLE KERALA HIGH IN THE CASE OF PAUL MATHEWS & SONS (SUPRA) AND THE DECISION OF THE HONBLE MADRAS HIGH COURT ION T HE CASE OF S. KHADER KHAN SON (SUPRA) HELD THAT SINCE HIS STATEMENTS WER E RECORDED US/ 133A OF THE INCOME TAX ACT, THEREFORE, THE SAME HAVE NO EVIDENTIARY VALUE. THE LEARNED CIT(A) ALSO FOUND THAT ASSESSEES HAD FILED NAMES, ADDRESSES, PERMANENT ACCOUNT NUMBERS ALONG WITH CONFIRMATIONS FROM THE CREDITORS AND COPY OF THEIR INCOME TAX RETURNS BEFORE THE AO AND ALL THE PARTIES HAVE CONFIRMED THE TRANSACTIONS WITH THE ASSESSEES IN REPLAY TO THE INQUIRY U/S 133(6) OF THE INCOME TAX ACT. THEREFORE , THE ASSESSEES DISCHARGED THE INITIAL ONUS TO PROVE THE GENUINENES S OF THE CREDITS. IN THE CASES OF SHARE APPLICATION MONEY, THE ASSESSEES REL IED UPON THE DECISION OF THE HONBLE SUPREME COURT IN THE CASE OF CIT VS LOVELY EXPORTS PVT. LTD. 216 CTR 195 (SC) IN WHICH IT WAS HELD, IF SHAR E APPLICATION MONEY IS RECEIVED BY THE ASSESSEE COMPANIES FROM ALLEGED BOG US SHAREHOLDERS, WHOSE NAMES ARE GIVEN TO THE AO, THEN THE DEPARTMEN T IS FREE TO PROCEED TO RE-OPEN THEIR INDIVIDUAL ASSESSMENT IN ACCORDANC E WITH LAW, BUT CANNOT BE REGARDED AS UNDISCLOSED INCOME OF THE ASS ESSEE COMPANIES. THE LEARNED CIT(A) CONSIDERING THE AFORESAID DECISI ON OF THE HONBLE SUPREME COURT ALSO DELETED SUCH ADDITIONS. RESULTAN TLY, THE DISALLOWANCES OF THE INTEREST ON THE ABOVE CREDITS WERE ALSO DELETED. AS A RESULT, THE APPEALS OF THE ASSESSEES ON THESE ISSUE S WERE ALLOWED. 7. THE LEARNED DR RELIED UPON THE ORDERS OF THE AO AND SUBMITTED THAT THE AO HAS RIGHTLY TAKEN INTO CONSIDERATION TH E STATEMENTS OF SHRI PUSHKAR AGARWAL, CHARTERED ACCOUNTANT FOR MAKING TH E ABOVE ADDITIONS BECAUSE HE HAD SPECIFICALLY STATED IN HIS STATEMENT S THAT HE WAS ENGAGED ITA NOS.2096 TO 2106/AHD/2009 PIONEER SYSNTEX PVT. LTD. AND OTHERS 7 IN PROVIDING ACCOMMODATION ENTRIES ON COMMISSION BA SIS TO THE GROUP CONCERNS OF PRATIBHA GROUP INCLUDING THE PRESENT AS SESSEES. THE LEARNED DR SUBMITTED THAT INVOLVEMENT OF SHRI PUSHK AR AGARWAL, CHARTERED ACCOUNTANT FOR PROVIDING ACCOMMODATION EN TRIES IS PROVED. THEREFORE, TRANSACTIONS BETWEEN THE ASSESSEES AND T HE LENDERS/SHARE APPLICATION SUBSCRIBERS ARE MERE PAPER ENTRIES COND UCTED BY MERE PAPER COMPANIES. THEREFORE, THE TRANSACTIONS CANNOT BE TR EATED TO BE GENUINE. THE LEARNED DR SUBMITTED THAT RETRACTION BY SHRI PU SHKAR AGARWAL, CHARTERED ACCOUNTANT IS OF NO USE BECAUSE IT WAS AF TERTHOUGHT AND TO FAVOUR THE ASSESSEES. THE LEARNED DR THEREFORE, PRA YED THAT THE ORDERS OF THE LEARNED CIT(A) MAY BE SET ASIDE AND THOSE OF TH E AO MAY BE RESTORED. 8. WE HAVE CONSIDERED THE SUBMISSIONS OF THE LEARNE D DR AND PERUSED THE WRITTEN SUBMISSIONS FILED BY THE ASSESS EES. HOWEVER, WE ARE NOT INCLINED TO AGREE WITH THE SUBMISSIONS OF THE L EARNED DR. IT IS A MATTER OF FACT THAT THE ASSESSEES HAD FILED CONFIRM ATION FROM THE CREDITORS BEFORE THE AO DISCLOSING THEIR NAMES, ADDRESSES AND PERMANENT ACCOUNTANT NUMBERS. THOSE PARTIES ALSO CONFIRMED TH E TRANSACTIONS WITH THE ASSESSEES IN THEIR REPLY TO THE NOTICES ISSUED U/S 133(6) OF THE INCOME TAX ACT. ON EXAMINATION OF THE ABOVE FACTS, WE FIND THAT THE ASSESSEES HAVE DISCHARGED THEIR INITIAL ONUS TO PRO VE THE IDENTITY AND CREDITWORTHINESS OF THE LENDERS AND GENUINENESS OF THE TRANSACTIONS. SHRI PUSHKAR AGARWAL, CHARTERED ACCOUNTANT THOUGH MADE I NITIAL STATEMENTS AGAINST THE ASSESSEES BUT HIS STATEMENTS WERE VAGUE AND GENERAL IN SHOWING THAT HE WAS PROVIDING ACCOMMODATION ENTRIES TO PRATIBHA GROUP OF COMPANIES. HOWEVER, HE HAS NOT MADE ANY SPECIFIC ALLEGATION AGAINST THE ASSESSEES. HIS STATEMENTS ARE ALSO NOT LINKED T O ANY INCRIMINATING DOCUMENTS FOUND DURING THE COURSE OF SEARCH. THUS, THIS STATEMENT SHALL HAVE TO BE READ IN ISOLATION AND HAVE TO BE SEEN, W HETHER SUCH STATEMENT IS WORTH RELIANCE IN FAVOUR OR AGAINST THE ASSESSEE S. ON PERUSAL OF THE FINDINGS OF THE LEARNED CIT(A), WE FIND THAT WHEN HE WAS SUBJECTED TO ITA NOS.2096 TO 2106/AHD/2009 PIONEER SYSNTEX PVT. LTD. AND OTHERS 8 CROSS EXAMINATION AT THE ASSESSMENT STAGE, HE DENIE D TO HAVE INVOLVED IN ANY OF THE TRANSACTIONS BETWEEN THE LENDERS AND THE ASSESSEES. RATHER, HE HAS SUPPORTED THE CASE OF THE ASSESSEES TO HAVE ENTERED INTO GENUINE TRANSACTIONS OF RECEIVING LOANS AND SHARE APPLICATI ON MONEY. HE HAS ALSO CONFIRMED IN HIS STATEMENT THAT HIS INITIAL STATEME NT WAS MADE UNDER MENTAL TENSION AND INSTABILITY OF MIND. SHRI PUSHKA R AGARWAL, CHARTERED ACCOUNTANT IMMEDIATELY RETRACTED FROM HIS EARLIER S TATEMENTS MADE ON 08-02-2007 BEFORE THE ADIT(INVESTIGATION) ON 09-02- 2007 ITSELF. IT WOULD, THEREFORE, SHOW THAT HIS STATEMENT RECORDED AT THE INITIAL STAGE IS NOT ENOUGH TO SUSTAIN THE ADDITIONS AGAINST THE ASSESSE ES. MOREOVER, HIS STATEMENTS WERE NEVER RECORDED U/S 132(4) OF THE IN COME TAX ACT, BUT THE SAME WERE RECORDED U/S 133A OF THE INCOME TAX A CT DURING THE COURSE OF SURVEY. THEREFORE, THE DECISIONS OF THE H ONBLE MADRAS HIGH COURT AND HONBLE KERALA HIGH COURT RELIED UPON BY THE LEARNED CIT(A) ARE JUSTIFIED TO REJECT HIS STATEMENTS FOR TAKING I NTO CONSIDERATION FOR THE PURPOSE OF MAKING ADDITIONS AGAINST THE ASSESSEES. ONCE SHRI PUSHKAR AGARWAL HAS NOT SUPPORTED THE CASE OF THE DEPARTMEN T DURING THE CROSS EXAMINATION, THE STATEMENTS RECORDED ON THE DATE OF SURVEY ALONE CANNOT BE READ IN EVIDENCE AGAINST THE ASSESSEES. THE AO H AS ALSO NOT BEEN ABLE TO BRING ANY EVIDENCE ON RECORD TO PROVE EXISTENCE AND INVOLVEMENT OF SHRI BHOOPSINGH JANI FOR THE PURPOSE OF RECEIVING C ASH OR RECEIVING CHEQUES. CONSIDERING THE FACTS AND CIRCUMSTANCES NO TED ABOVE, WE DO NOT FIND ANY INFIRMITY IN THE ORDERS OF THE LEARNED CIT(A) IN DELETING THE ADDITIONS. SO FAR AS SHARE APPLICATION MONEY IS CON CERNED, IT IS PROVED ON RECORD THAT THE PERSONS WHO HAVE DEPOSITED THE SHAR E APPLICATION MONEY ARE IN EXISTENCE AND HAVE CONFIRMED TO HAVE DEPOSIT ED THE MONEY WITH THE ASSESSEES, THEREFORE, THE RECENT DECISION OF TH E HONBLE SUPREME COURT IN THE CASE OF CIT VS LOVELY EXPORTS PVT. LTD . (SUPRA) WOULD SUPPORT THE FINDINGS OF THE LEARNED CIT(A) IN DELET ING THE ADDITIONS. CONSIDERING THE ABOVE FACTS AND CIRCUMSTANCES AND T HE DISCUSSIONS, WE DO NOT FIND ANY ERROR IN THE ORDERS OF THE LEARNED CIT(A) IN ALLOWING THE ITA NOS.2096 TO 2106/AHD/2009 PIONEER SYSNTEX PVT. LTD. AND OTHERS 9 APPEALS OF THE ASSESSEES. SINCE THE GENUINE TRANSAC TIONS WERE ENTERED INTO, THEREFORE, THE LEARNED CIT(A) WAS JUSTIFIED I N DELETING THE DISALLOWANCE OF THE INTEREST ON THE AFORESAID SUMS. AS A RESULT, WE ARE NOT INCLINED TO INTERFERE IN THE ORDERS OF THE LEAR NED CIT(A) IN ALLOWING THE APPEALS OF THE DIFFERENT ASSESSEES. THERE IS NO MER IT IN ALL THE DEPARTMENTAL APPEALS. HENCE ALL THE APPEALS ARE DIS MISSED. 9. IN THE RESULT, ALL THE DEPARTMENTAL APPEALS ARE DISMISSED. ORDER PRONOUNCED IN THE OPEN COURT ON 10-12-2009 SD/- SD/- (DR. O. K. NARAYANAN) VICE PRESIDENT (BHAVNESH SAINI) JUDICIAL MEMBER DATE : 10-12-2009 LAKSHMIKANT/- COPY OF THE ORDER FORWARDED TO: 1. THE APPELLANT 2. THE RESPONDENT 3. THE CIT CONCERNED 4. THE CIT(A) CONCERNED 5. THE DR, ITAT, AHMEDABAD 6. GUARD FILE BY ORDER D Y. REGISTRAR, ITAT, AHMEDABAD