| The Tax Publishers2019 TaxPub(DT) 7273 (Pune-Trib) INCOME TAX ACT, 1961
Section 68
Assessee had furnished copy of acknowledgement of return, copy of balance sheet, details of PAN, and bank account of investor company AVPL, its application for investment in shares, confirmation and Board Resolution for investment in shares and documents filed with RoC etc. per contra, AO did not gather any iota of direct evidence or indirect evidence to demonstrate that the AVPL was bogus concern or sham concern or accommodation entries provider. Thus, assessee had discharged onus to prove identity and creditworthiness of subscriber company and genuineness of transaction of receipt of share application money, accordingly, addition made under section 68 could not be sustained.
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Income from undisclosed sources - Addition under section 68 - Receipt of share application money - Assessee established identity, creditworthiness and genuineness
Assessee-company received share application money from AVPL. AO based on information emanated from investigation wing treated share application money as unexplained credit under section 68.Held: Assessee had furnished copy of acknowledgement of return, copy of balance sheet, details of PAN, and bank account of investor company AVPL, its application for investment in shares, confirmation and Board Resolution for investment in shares and documents filed with RoC etc. per contra, AO did not gather any iota of direct evidence or indirect evidence to demonstrate that the AVPL was bogus concern or sham concern or accommodation entries provider. Thus, assessee had discharged onus to prove identity and creditworthiness of subscriber company and genuineness of transaction of receipt of share application money, accordingly, addition made under section 68 could not be sustained.
Relied:CIT v. First Point Finance Ltd. (2006) 286 ITR 477 (Raj) : 2006 TaxPub(DT) 388 (Raj-HC), CIT v. Arunananda Textiles Pvt. Ltd. (2011) 333 ITR 116 (Del) : 2011 TaxPub(DT) 0177 (Karn-HC), CIT v. K.C.Fiber Ltd. (2011) 333 ITR 116 (Karn) : 2011 TaxPub(DT) 177 (Karn-HC), CIT v. Victor Electrodes Ltd. (2010) 332 ITR 481 (Del) : 2010 TaxPub(DT) 4 (Del-Trib) and CIT v. Ujala Dying & Printing Pvt. Ltd. (2010) 328 ITR 437 (Guj) : 2010 TaxPub(DT) 154 (Guj-HC).
REFERRED :
FAVOUR : In assessee's favour.
A.Y. : 2010-11 to 2012-13
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