INCOME TAX ACT, 1961

Article 137 Section 68

Review petition - Supreme Court - Addition under section 68 - Receipt of share capital/premium--Identity, creditworthiness and genuineness of transaction not proved

Assessee preferred Review Petition against the judgment and Order of Supreme Court dated 5-3-2019 in Pr. CIT v. NRA Iron & Steel (P) Ltd. [Civil Appeal No. 2463 of 2019 (Arising out of SLP (Civil) No. 29855 of 2018), dt. 5-3-2019] : (2019) 412 ITR 0161 (SC) : 2019 TaxPub(DT) 1628 (SC), whereby the Supreme Court held that assessee clearly failed to prove identity and creditworthiness of share applicants and genuineness of transaction and, therefore, addition made under section 68 was justified.Held: There was delay of 228 days in filing the Review Petition. However, considering the averments made in the application seeking condonation, the delay was condoned. The basic issue as framed in para 3.4 of the Judgment dated 5-3-2019 was considered in the light of the facts on record. After noting the relevant decisions, the emerging principles were set out in para 11, in the light of which the facts were considered from para 12 onwards. Finally, the conclusions drawn by the AO were found to be correct and it was found that the lower Appellate Authorities had erred in interfering with such conclusions. The Appeal was, therefore, allowed and the order passed by the AO was restored. The court had gone through the contents in the Review Petition and did not find any substance in the submissions raised therein. Consequently, the Review Petition was dismissed.

REFERRED :

FAVOUR : Against the assessee.

A.Y. :

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