| The Tax Publishers2021 TaxPub(DT) 1386 (Kol-Trib) INCOME TAX ACT, 1961
Section 68
Assessee by furnishing Income Tax Return, PAN details, Audited accounts and bank statements of the shareholders, confirmations and share application forms, etc., discharged its onus to prove identity and, creditworthiness of share applicants and genuineness of the transactions. Thereafter, onus shifted to AO to disprove documents furnished by assessee. If he could not do so, then evidence furnished by assessee could not be brushed aside by AO to draw adverse view and such an action could not be countenanced. In the absence of any investigation, much less gathering of evidence by AO against the assessee, addition could not be sustained merely based on inferences drawn by circumstance. Therefore, addition was deleted.
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Income from undisclosed sources - Addition under section 68 - Receipt of share capital/premium - Assessee produced Income Tax Return, PAN details, Audited accounts and bank statements of the shareholders, confirmations and share application forms, etc.
Assessee-company received share capital along with premium. As directors of assessee-company as well as share subscribing company failed to appeal before AO, therefore, AO disbelieved genuineness of the transaction and made addition of the amount concerned under section 68. Held: Assessee by furnishing Income Tax Return, PAN details, Audited accounts and bank statements of the shareholders, confirmations and share application forms, etc., discharged its onus to prove identity and, creditworthiness of share applicants and genuineness of the transactions. Thereafter, onus shifted to AO to disprove documents furnished by assessee. If he could not do so, then evidence furnished by assessee could not be brushed aside by AO to draw adverse view and such an action could not be countenanced. In the absence of any investigation, much less gathering of evidence by AO against the assessee, addition could not be sustained merely based on inferences drawn by circumstance. Therefore, addition was deleted.
Relied:CIT v. Gangeshwari Metal (P) Ltd. [ITA No. 597 of 2012, dated 21-1-2013] : 2013 TaxPub(DT) 1319 (Del-HC), Nova Promoters and Finlease Pvt. Ltd. (2012) 342 ITR 169 (Del) : 2012 TaxPub(DT) 1558 (Del-HC), CIT v. Lovely Exports (2009) 319 ITR 5 (SC) : (2009) 216 CTR 295 (SC) : 2009 TaxPub(DT) 261 (SC, CIT v. Lovely Exports Pvt. Ltd. (2009) 319 ITR 5 (SC) : (2009) 216 CTR 295 (SC) : 2009 TaxPub(DT) 261 (SC)Dy. CIT v. Global Mercantiles Pvt. Ltd. ITA No. 1669/Kol/2009, dated 13-1-2016 : 2016 TaxPub(DT) 1420 (Kol-Trib).
REFERRED :
FAVOUR : In assessee's favour.
A.Y. : 2012-13
IN THE ITAT, KOLKATA BENCH
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