The Tax Publishers2021 TaxPub(DT) 3432 (Sur-Trib)

INCOME TAX ACT, 1961

Section 68

Share applicant's PAN details, bank account statements, audited financial statements and income-tax acknowledgements were placed on record by assessee. Thus, assessee discharged its onus to prove identity and creditworthiness of share applicants and genuineness of the transaction. Onus was shifted to AO to disprove materials placed before him. Without doing so, addition made by AO, based on mere conjectures and surmises, could not be upheld.

Income from undisclosed sources - Addition under section 68 - Receipt of share capital and share premium - Assessee proved identity, creditworthiness and genuineness

AO, based on information emanated from investigation wing, treated share capital and share premium received by assessee as unexplained credit and made addition under section 68. Held: Share applicant was income-tax assessee and was filing its return of income, share application form and allotment letter were available on record, and share application money was paid by account payee cheques, details of the bank accounts belonging to share applicant and their bank statements, stood furnished by assessee, in none of the transactions AO found deposit in cash before issuing cheques to assessee-company, and applicant was having substantial creditworthiness represented by capital and reserve as noted in balance sheet filed by assessee. Applicant's PAN details, bank account statements, audited financial statements and income-tax acknowledgements were placed on record by assessee. Thus, assessee discharged its onus to prove identity and creditworthiness of share applicants and genuineness of the transaction. Onus was shifted to AO to disprove materials placed before him. Without doing so, addition made by AO, based on mere conjectures and surmises, could not be upheld.

Relied:Lovely Exports (2009) 216 CTR 295 (SC) : 2009 TaxPub(DT) 261 (SC).

REFERRED :

FAVOUR : In assessee's favour.

A.Y. : 2012-13



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