The Tax Publishers2019 TaxPub(DT) 7865 (Del-Trib) : (2019) 179 ITD 0647

INCOME TAX ACT, 1961

Section 68

Assessee having filed various documents such as bank statement and ITR of the subscriber company, its audited financial statements where the amount invested had been duly disclosed in the balance-sheet, documents filed with ROC for allotment of share by assessee to the subscribe, Board resolution for allotment of shares and confirmations, etc., to prove identity and creditworthiness of the subscriber and genuineness of the concerned transaction. In such case, mere non-appearance could not make the transaction doubtful or colourable, especially when there were no inconsistencies in the explanation and evidences filed by assessee and not any case of accommodation entry provider nor there was any report of investigation wing.

Income from undisclosed sources - Addition under section 68 - Receipt of share application money/premium -

Assessee-company received share application money along with premium from M/s. 'A'. AO doubted the 'large share premium received and treated the amount received as unexplained credit under section 68 on the ground of assessee's failure to produce directors of M/s. 'A' before AO.Held: Assessee having filed various documents such as bank statement and ITR of the subscriber company, its audited financial statements where the amount invested had been duly disclosed in the balance-sheet, documents filed with ROC for allotment of share by assessee to the subscribe, Board resolution for allotment of shares and confirmations, etc., to prove identity and creditworthiness of the subscriber and genuineness of the concerned transaction. In such case, mere non-appearance could not make the transaction doubtful or colourable, especially when there were no inconsistencies in the explanation and evidences filed by assessee and not any case of accommodation entry provider nor there was any report of investigation wing.

REFERRED :

FAVOUR : In assessee's favour.

A.Y. : 2015-16

IN THE ITAT, DELHI BENCH

SUBSCRIBE TaxPublishers.inSUBSCRIBE FOR FULL CONTENT