| The Tax Publishers2021 TaxPub(DT) 3315 (Chd-Trib) INCOME TAX ACT, 1961
Section 68
Assessee furnished each and every detail of share applicant companies in response to queries raised by AO and thus, assessee prima facie discharged onus of establishing identity and creditworthiness of investors and genuineness of the transaction and accordingly, AO was not justified in making addition under section 68 as regards share application money received by assessee.
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Income from undisclosed sources - Addition under section 68 - Receipt of share application money -
Assessee-company received a share application money and furnished relevant details asked for. However, AO treated the same as unexplained credit under section 68. Held: Assessee furnished each and every detail of share applicant companies in response to queries raised by AO such as Annual Return, Corporate Information BSE, Intimation regarding shifting of office, PAN Card, Income-tax jurisdiction details of the assessee, RoC status as per IT Department, Name, designation and addresses of directors, statement of bank account, IT Return for the assessment year 2015-16, share certificate, etc. Thus, assessee prima facie discharged onus of establishing identity and creditworthiness of investors and genuineness of the transaction and accordingly, AO was not justified in making addition under section 68.
Applied:CIT v. Gagandeep Infrastructure Pvt. Ltd. (2017) 80 taxmann.com 272 (Bom.) : 2017 TaxPub(DT) 1238 (Bom-HC), Pr. CIT v. Softline Creators (P) Ltd. (2017) 81 Taxmann.com 269 (Del) : (2016) 387 ITR 636 (Del-HC) : 2016 TaxPub(DT) 4531 (Del-HC) and CIT v. Expo Global India Ltd. 2014 361 ITR 147 (Del). Distinguished:CIT v. Durga Prasad More (1971) 82 ITR 540 (SC) : 1971 TaxPub(DT) 375 (SC), Sumati Dayal v. CIT (1995) 214 ITR 801 (SC) : 1995 TaxPub(DT) 1173 (SC), Smt. Shanta Devi v. CIT (1998) 171 ITR 532 (P&H) : 1988 TaxPub(DT) 658 (P&H-HC) and CIT v. N.P. Portfolio Ltd. ITA No. 134/2012 : 2013 TaxPub(DT) 1173 (Del-HC).
REFERRED :
FAVOUR : In assessee's favour.
A.Y. : 2012-13
IN THE ITAT, CHANDIGARH BENCH
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