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| The Tax Publishers2019 TaxPub(DT) 4030 (Mum-Trib) INCOME TAX ACT, 1961
Section 68
By furnishing evidences such as permanent account numbers, copies of IT Returns, bank statements of the investors and assessee evidencing payment through banking channels and audited financial statement so the investors assessee had established identity and creditworthiness of investors and genuineness of transactions, therefore, addition made by AO based on half-baked investigation could not be sustained.
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Income from undisclosed sources - Addition under section 68 - Receipt of share capital/premium - Non-response by some investors to section 133(6) notices--Assessee having established identity and creditworthiness of investors and genuineness of transactions
Assessee-company received share capital along with premium. AO treated the same as unexplained cash credit under section 68 on the ground that notices issued under section 133(6) to some of the investors on sample basis returned unserved. Held: By furnishing evidences such as permanent account numbers, copies of IT Returns, bank statements of the investors and assessee evidencing payment through banking channels and audited financial statement so the investors assessee had established identity and creditworthiness of investors and genuineness of transactions, therefore, addition made by AO based on half-baked investigation could not be sustained.
REFERRED : Pr. CIT v. NRA Iron & Steel (P) Ltd. (2019) 412 ITR 161 (SC) : 2019 TaxPub(DT) 1628 (SC), Asstt. CIT v. Rajesh Jhaveri Stock Brokers (P) Ltd. (2007) 291 ITR 500 (SC) : 2007 TaxPub(DT) 1257 (SC), CIT v. P. Mohanakala (2007) 291 ITR 278 (SC) : 2007 TaxPub(DT) 1237 (SC), JK Woollen Manufacturers v. CIT (1969) 72 ITR 612 (SC) : 1969 TaxPub(DT) 0130 (SC), CIT v. Walchand and Company (P) Ltd. (1967) 65 ITR 381 (SC) : 1967 TaxPub(DT) 0323 (SC), CIT v. M/s. Gagandeep Infrastructure (P) Ltd. (2017) 80 Taxmann.com 272 (Bombay) : 2017 TaxPub(DT) 1238 (Bom-HC), Dy. CIT v. Piramal Realty (P) Ltd. [ITA No. 2317/Mum/2017, dt. 16-11-2018] : 2018 TaxPub(DT) 7612 (Mum-Trib)
FAVOUR : In assessee's favour.
A.Y. : 2009-10
IN THE ITAT, MUMBAI BENCH
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