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| The Tax Publishers2019 TaxPub(DT) 8286 (Mum-Trib) INCOME TAX ACT, 1961
Section 68
Assessee having furnished copies of share application forms, PAN Card of share applicants, their bank statements audited financial statements, income-tax return and confirmation letters, etc., discharged onus cast on it to establish identity and creditworthiness of share applicants and genuineness of concerned transactions. As no adverse material was brought on record by AO, 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 proved identity, creditworthiness and genuineness
AO took the view that assessee-company routed its own unaccounted money in the guise of share application money. Accordingly, AO treated the same as unexplained credit under section 68.Held: Assessee having furnished copies of share application forms, PAN Card of share applicants, their bank statements audited financial statements, income-tax return and confirmation letters, etc., discharged onus cast on it to establish identity and creditworthiness of share applicants and genuineness of concerned transactions. As no adverse material was brought on record by AO, addition made under section 68 could not be sustained.
Distinguished:Pr.CIT v. NRA Iron & Steel Pvt. Ltd. (2019) 412 ITR 161 (SC) : 2019 TaxPub(DT) 1628 (SC).
REFERRED : CIT v. Gagandeep Infrastructure Pvt. Ltd. (2017) 80 Taxmann.com 272 (Bom) : 2017 TaxPub(DT) 1238 (Bom-HC) : CIT v. TDI Marketing (P.) Ltd. [ITA No.340 of 2009] : 2009 TaxPub(DT) 1741 (Del-HC).
FAVOUR : In assessee's favour.
A.Y. :
INCOME TAX ACT, 1961
Section, 14
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