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| The Tax Publishers2019 TaxPub(DT) 0789 (Mum-Trib) INCOME TAX ACT, 1961
Section 68
Since assessee had filed sufficient evidences to prove identity and creditworthiness of share application and genuineness of transaction of receipt of share application money share application money could not be treated as unexplained cash credit under section 68.
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Income from undisclosed sources - Addition under section 68 - Receipt of share application money -
AO received information from investigation wing as to assessee having received share application money from alleged entry operator. Therefore, AO treated share application money received by the assessee as unexplained cash credit and accordingly made addition under section 68.Held: Assessee had filed details of share applicants inter alia name and addresses of share applicants; PAN and income-tax return acknowledgements of share applicants, copies of audited balance sheet and profit and loss account of share applicants and details of investment made by them inter alia, cheque No. and date of cheque, and the bank on which said cheques were drawn. Also, assessee filed copy of bank statement of the assessee of banking account in which account payee cheques received from share applicants were deposited and credited to its acocunt and copies of share allotment and share certificate issued by the assessee. Thus, assessee had duly discharged onus cast on it to prove identity and creditworthiness of share application and genuineness of transaction of receipt of share application money. Accordingly, no addition could be made under section 68.
REFERRED :
FAVOUR : In assessee's favour.
A.Y. : 2008-09 & 2007-08
IN THE ITAT, MUMBAI BENCH
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