INCOME TAX ACT, 1961

Section 68

Income from undisclosed sources - Addition under section 68 - Receipt of share application money held as bogus based on investigation report - Assessee furnished evidences to prove identity, creditworthiness and genuineness

AO based on statement recorded by investigation wing in case of alleged entry operator, treated share application money received by assesse as unexplained credit under section 68 and accordingly made addition.Held: Assessee by furnishing confirmatory letter of the share applicant, Copy of the acknowledgement of the ITR 4 and 5, Balance Sheet and P&L account, Bank statement of share applicant wherein the payments made to assessee toward share application money were appearing and Copy of ROC document (Form No. 20B, Form No. 23AC, Form No. 23ACA, Form No. 66, Form No. 23B) and Annual Return for the relevant period (F.Y. 2011-12) and (F.Y. 2015-16), proved identity and creditworthiness of share applicant and genuineness of impugned share transaction. AO had not brought any material on record as a result of any enquiry, therefore, documentary evidence produced by assessee could not be ignored or rejected and addition could not be sustained.