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| The Tax Publishers2019 TaxPub(DT) 0334 (Mum-Trib) INCOME TAX ACT, 1961
Section 68
Where assessee duly discharged its onus to prove genuineness of share application money received by it and identity and creditworthiness of shareholders by furnishing relevant evidences such as allotment and confirmation letters, bank statement and PAN details, etc., additions made under section 68 solely on the basis of general statement could not be upheld.
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Income from undisclosed sources - Addition under section 68 - Receipt of share application money -
AO based on statement recorded during search in case of alleged entry operator held that assessee had received share application money from such hawala company and according, AO made addition under section 68.Held: Assessee had duly furnished copies of various documents such as copies of application form for allotment of shares, confirmation letters from respective shareholders, copies of resolution of respective allottee companies and their balance sheet and profit and loss account as well as allotment letters, issued, etc. The payment was received by cheque and PAN numbers of allottees were also provided. Thus, assessee had duly substantiated identity, creditworthiness of shareholders and genuineness of impugned trnasactions and, therefore, additions made under section 68 solely on the basis of general statement could not be sustained.
REFERRED :
FAVOUR : In assessee's favour.
A.Y. : 2008-09
IN THE ITAT, MUMBAI BENCH
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