"7. We have considered the rival contentions and perused the material on record. In this case, the assessment under section 143(3) have been passed on scrutiny assessment. The A.O. from the books of account of the assessee-company found that assessee-company has received fresh share application money of the impugned amount from M/s . Jaisri Properties Exports Pvt. Ltd., The A.O. asked the assessee-company to prove the genuineness of the transaction in the matter with supporting documentary evidence. The assesseecompany filed confirmation of the Investor Company along with its particulars, bank statement and copy of the income tax return filed with the Department. The A.O. noted that there were high value transactions conducted by the Investor Company. The Investor Company has filed return of income at Rs.2,80,610 and copy of the balance sheet is not filed. The assessee-company has filed copy of the balance sheet before the authorities below. Copy of the same is also filed in the paper book . Page-53 of the paper book is balance sheet of the Investor Company to show that it has total capital of Rs.40,18,20,586 which was more than enough to make investment in share application money with the assessee-company. Thus, the objections of the A.O. have been clearly met by the assesseecompany. It may also be noted that the A.O. did not dispute the identity of the Investor Company and merely on account of low income declared by the Investor Company was of the view that its creditworthiness is not explained. The A.O. on the one hand has mentioned in the assessment order that bank account of the Investor Company reveal that there are high value transactions carried out through the Bank. Therefore, creditworthiness of the Investor Company should not have been doubted. The assessee-company produced sufficient evidence before A.O. to discharge the initial onus upon it to prove the identity, creditworthiness and genuineness of the transaction in the matter. Further the A.O. did not make any investigation on the documentary evidences filed by the assesseecompany. The A.O. did not ask for the production of the Investor Company for examination under section 131 of the I.T. Act. No enquiry have been made directly or indirectly by the A. O. on the documents filed by the assessee-company at the assessment stage. No adverse material was found during the course of search to prove that share application money received by the assessee-company was bogus or was an arranged affair of the assessee-company."
