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| The Tax Publishers2020 TaxPub(DT) 5058 (Mum-Trib) INCOME TAX ACT, 1961
Section 68
Where AO made addition under section 68 towards share capital/share premium received from shareholders, considering that in assessee's group concerns case on identical facts, Tribunal deleted addition as assessee discharged its initial onus to prove identity, genuineness of the transaction and creditworthiness of the parties by filing numerous documents, AO was directed to delete the addition in instant case as well.
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Income from undisclosed sources - Addition under section 68 - Addition towards share capital/share premium received from shareholders -
Issue was as regards validity of addition made by AO under section 68 on account of share capital/share premium received from shareholders. Assessee contended that identical issue came up before Tribunal in assessee group concerns and Tribunal deleted the similar addition made by AO under section 68.Held: As in assessee's group concerns case on identical facts, Tribunal deleted addition as assessee discharged its initial onus to prove identity, genuineness of the transaction and creditworthiness of the parties by filing numerous documents. Addition was made without carrying out further enquiries in order to ascertain claim of the assessee. AO jumped into conclusion on the basis of financial statements of subscribers that none of them had enough sources of income to establish creditworthiness, thus, Tribunal deleted the additions. As assessee discharged its initial onus to prove the identity, genuineness of the transaction and creditworthiness of the parties by filing all such documents, AO was directed to delete the additions made towards share capital under section 68.
Applied:Aqua Proof Wall Plast (P) Ltd., v. Dy. CIT ITA. No. 2569/Mum/2018, dated 29-8-2019.
REFERRED :
FAVOUR : In assessee's favour.
A.Y. : 2010-11
INCOME TAX ACT, 1961
Section 153A Section 14A
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