- (1.) The appeal by the revenue under Section 260-A of the Income Tax Act, 1961 arises from a judgment of the Income Tax Appellate Tribunal dated 14 December 2012. The Assessment Year to which the appeal relates is Assessment Year 2007-08.
(2.) Though several questions of law have been raised by the revenue, the first question, which is in the following terms, is broad enough to cover the ambit of the controversy and reads as follows:- "Whether the Hon'ble ITAT has erred in law as well as in the facts and circumstances of the case in giving relief on account of addition being unexplained credits on wrong appreciation of law and without any basis substituting its own satisfaction in place of AO's satisfaction despite the fact that the assessee company has not discharged the onus as provided in Section 68 of the I.T. Act, 1961."
(3.) The Assessing Officer, in the course of an order of assessment under Section 153-A, made an addition of an amount of Rs.8.50 crores which was received by the assessee as share application money from a Company by the name of M/s. K.M.C. Portfolio Pvt. Ltd. In making the addition under Section 68, the Assessing Officer proceeded to hold that this amount was only a movement of the money belonging to the assessee through various channels in a colourable manner and the amount was liable to be added to the income of the assessee as an unexplained investment. A search had been carried out at the premises of the assessee on 26 March 2010. A survey under Section 133-A was carried out and the case of the department was that a Chartered Accountant by the name of Aseem Kumar Gupta was involved in providing accommodation entries to various beneficiaries under the guise of share application money. A summons was issued to the Chartered Accountant under Section 131(1A) and his statement was recorded on 22 April 2010. During the course of this exercise, the Chartered Accountant was confronted with the notings contained in a black diary which had been impounded during the course of the survey.;