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| The Tax Publishers2020 TaxPub(DT) 0227 (Kol-Trib) INCOME TAX ACT, 1961
Section 68
Assessee having filed PAN details and ITR acknowledgements of share applicants, their audited accounts of incorporation and bank statements, etc., discharged primary onus of proving identity, creditworthiness of investors and genuineness of impugned transactions accordingly, no adverse inference could be drawn on mere non-production of directors of investors companies and AO was not justified in making addition under section 68.
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Income from undisclosed sources - Addition under section 68 - Receipt of share capital/premium - Non-production of directors of investor companies before AO--Assessee having proved identity, creditworthiness and genuineness
Assessee-company received share capital/premium. AO treated the same as unexplained credit under section 68 on the ground that assessee had failed to produce directors of investor companies before AO. Held: Assessee having filed PAN details and ITR acknowledgements of share applicants, their audited accounts of incorporation and bank statements, etc., discharged primary onus of proving identity, creditworthiness of investors and genuineness of impugned transactions accordingly, no adverse inference could be drawn on mere non-production of directors of investors companies and AO was not justified in making addition under section 68.
Relied:Bidit Financial Management (P) Ltd. v. Dy.CIT ITA No. 579/Kol/2017, decied on 15-3-2019. Distinguished:Pr. CIT v. NRA Iron & Steel Pvt. Ltd. [Civil Appeal No. 2463 of 2019, dt. 5-3-2019] : 2019 TaxPub(DT) 1628 (SC).
REFERRED :
FAVOUR : In assessee's favour.
A.Y. : 2012-13
IN THE ITAT, KOLKATA BENCH
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