The Tax Publishers2020 TaxPub(DT) 2381 (Kol-Trib) : (2020) 184 ITD 0357

INCOME TAX ACT, 1961

Section 68

Assessee by furnishing PAN details, bank account statements, audited financial statements and IT acknowledgements of investor companies and directors thereof discharged its onus to prove identity and creditworthiness of share applicants and genuineness of concerned transactions of receipt of share capital along with premium and since, AO failed to disprove materials placed before him addition made under section 68 on the mere ground that assessee failed to produce directors of investor companies or investing companies were having very meagre income, could not be sustained.

Income from undisclosed sources - Addition under section 68 - Receipt of share capital along with premium - Non-production of directors of investor companies before AO and investors having meagre income--Assessee proved identity, creditworthiness and genuineness

Assessee received share capital along with premium. AO required assessee to produce directors of investor companies before him, however, assessee did not do so. Further, investing companies were having very meagre income and, therefore, AO drew adverse inference against introduction of share capital along with premium and made addition of amount received under section 68. Held; Assessee by furnishing PAN details, bank account statements, audited financial statements and IT acknowledgements of investor companies and directors thereof discharged its onus to prove identity and creditworthiness of share applicants and genuineness of concerned transactions and since AO failed to disporve materials placed before him, addition under section 68, based on mere conjectures and surmises could not be sustained.

Relied:Dy.CIt v. global Mercantiles (P) ltd. ITA no. 1669/Kol/2009, dt. 13-1-2016 : 2016 TaxPub(DT0 1420 (Ko-Trib) and R.B. Horticulture & Animal Projects Co. ltd. ITA No. 632/Kol/2011, dt. 13-1-2016, ITA No. 1061/Kol/2012 in the case of ITO, Ward-3(2) Kol v. Steel Emporium Ltd. dated 5-2-2016 : 2016 TaxPub(DT0 1414 (Kol-Trib) and ITO v. Cygnus Developers (I) (P) Ltd. ITA No. 282/Kol/2012, dated 2-3-2016.

REFERRED :

FAVOUR : In assessee's favour.

A.Y. : 2012-13



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