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| The Tax Publishers2020 TaxPub(DT) 0482 (Kol-Trib) INCOME TAX ACT, 1961
Section 68
Where assessee failed to discharge primary onus lay on it to prove identity, creditworthiness and genuineness of the transaction of accepting share capital then the addition under section 68 was justified.
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Income from undisclosed sources - Addition under section 68 - Receipt of share capital/premium - Assessee failed to prove identitty, creditworthiness and genuineness
AO made addition under section 68 on account of unexplained fresh share capital along with premium received by assessee during the concerned year of Rs. 21,00,00,000 on the ground that assessee failed to prove identity and creditworthiness of investor parties and genuineness of concerned share transactions.Held: Directors of assessee company and investor companies were not produced before AO, the details available reflected some paper work or documentation but genuineness, creditworthiness and identity were deeper and obtrusive. Verification of all aspects was needed but due to complete non-compliance, assessee's case fell flat. None appeared and no compliance was made. No documents, to substantiate genuineness of share capital and premium, had been filed. Even audited accounts of assessee and investor companies had not been filed. High share premium charged has not been justified. Therefore, onus cast under section 68 undischarged and addition made by AO was justified.
REFERRED : Commissioner of Income Tax v. K.Y. Pilliah & Sons (1967) 63 ITR 411 (SC) : 1967 TaxPub(DT) 0232 (SC)
FAVOUR : Against the assessee.
A.Y. : 2012-13
IN THE ITAT, KOLKATA BENCH
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