The Tax Publishers2013 TaxPub(DT) 1384 (Cal-HC) : (2013) 051 (I) ITCL 0300

Income Tax Act, 1961

--Income from undisclosed sources--Addition under section 68 Share application money received --Assessee-company received share application money during the relevant year. During assessment proceedings assessee submitted the confirmation letter of the creditor, details of the transactions, its PAN etc. to assessing officer. However, assessing officer arrived at finding that procurement of money by creditor was not genuine and he added amount to the income of assessee. On further appeal both Commissioner (Appeals) and Tribunal considered the facts and observed that the share application money was paid by account payee cheque, besides the creditor appeared before assessing officer, disclosed its PAN number and also other details of the accounts. Thus, after getting the PAN number and getting the information that the creditor was assessed under the Act, assessing officer should enquire from the assessing officer of the creditor as to the genuineness of the transaction and to find whether such transaction had been accepted by the assessing officer of the creditor but instead of adopting such course, assessing officer himself cannot enter into the return of the creditor and brand the same as unworthy of credence. Held : No question of law arose to interfere on the concurrent findings of fact recorded by both the authorities, therefore appeal became infructuous.

Income Tax Act, 1961, Section 68

In the Calcutta High Court

Bhattacharya, & Sambuddha Chakrabarti, J.J.


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