The Tax Publishers2020 TaxPub(DT) 5611 (Mum-Trib)

INCOME TAX ACT, 1961

Section 68

Assessee-company by furnishing address, PAN, Certificate of incorporation, MOA and AOA subscribers who subscribed shares, Balance-sheet, Profit and Loss Account and Bank Statement of all subscribers, etc., proved identity and creditoworthiness of investor and genuineness of transactions and, therefore, AO was not justified in making addition under section 68.

Income from undisclosed sources - Addition under section 68 - Receipt of share capital/premium - Assessee proved identity, creditworthiness and genuineness

Assessee-company received share capital along with premium. AO treated the same as unexplained credit under section 68 and made addition. Held: Assessee-company by furnishing address, PAN, Certificate of incorporation, MOA and AOA subscribers who subscribed shares, Balance-sheet, Profit and Loss Account and return of income of share applicants, form of application of shares, photocopy of cheque receipt towards share application, photo copy of bank deposit slip reflecting deposit of above cheque, extract of Bank Statement of all subscribers duly highlighting entries of share money and premium money given by them to the company along with copy of Board resolution, resolving decision of investment into assessee-company proved identity and creditoworthiness of investor and genuineness of transactions. Therefore, AO was not justified in making addition under section 68.

Relied:CIT v. Lovely Exports Pvt. Ltd. (2008) 216 CTR 195 (SC) : 2009 TaxPub(DT) 261 (SC), Pr. CIT v. Himachal Fibers Ltd. (2018) 98 Taxmann.com 173 (SC) : 2018 TaxPub(DT) 5572 (SC), Pr. CIT v. Bharat Securities (P.) Ltd. (2020) 13 Taxmann.com 32 (SC) : 2020 TaxPub(DT) 309 (SC), Pr.CIT v. Rohtak Chain Co. (P.) Ltd. (2019) 110 Taxmann.com 59 (SC) : 2019 TaxPub(DT) 7297 (SC), Pr. CIT v. Ami Industries Pvt. Ltd., 1231 of 2017 : 2020 TaxPub(DT) 845 (Bom-HC), CIT v. Gagandeep Infrastructure Pvt. Ltd. ITA No. 1613 of 2014 (Bom) : 2017 TaxPub(DT) 1238 (Bom-HC), CIT v. Orchid Industries Pvt. Ltd., ITA No. 1433 of 2014 : 2017 TaxPub(DT) 1911 (Bom-HC), Jasamrit Constructions Pvt. Ltd. v. ITO, ITA. No. 1091/M/2016 ITAT-Mum, dated 8-2-2018, Pr. CIT v. Apeak Infotech, Nagpur, ITA No. 26/2017 (Bom-HC), dated 8-6-2017 : 2017 TaxPub(DT) 4092 (Bom-HC) and Umbrella Projects Pvt. Ltd. v. ITO-18(1), ITA. No. 5955/Del/2014, dated 23-2-2018.

REFERRED :

FAVOUR : In assessee's favour.

A.Y. : 2009-10 & 2010-11



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