INCOME TAX ACT, 1961

Section 68

Income from undisclosed sources - Addition under section 69 - Unexplained cash credits -

AO selected the case of the assessee for scrutiny and issued notice under section 143(2) along with a questionnaire calling upon assessee to file pending details as per questionnaire, justify share premium received, and specifically informing the assessee that no personal appearance of Authorised Representative was requested to file the details. In response to the same, assessee filed all the documentary evidences as required by Revenue in the notice which was examined by AO and lastly he did not agree with the averments made by the assessee and finally made the addition under section 68. Held: Assessee had filed all necessary documents as required for substantiating its claim under section 68. He had discharged its initial onus which lay upon it by proving the identity and capacity of share applicants and genuineness of the transactions. It cannot be said that such a conclusion was unreasonable or perverse or based on no evidence. CIT(A) had deleted the addition in dispute, therefore, no interference was called for in well reasoned order passed in the case of the assessee. Accordingly, addition under section 68 was deleted.

Followed:CIT v. Divine Leasing & Finance Ltd. (2008) 299 ITR 268 (Del) : 2008 TaxPub(DT) 0400 (Del-HC); CIT v. Sophia Finance Ltd. (1994) 205 ITR 98 (Del) (FB) : 1994 TaxPub(DT) 0556 (Del-HC); CIT v. Dolphin Canpack Ltd. (2006) 283 ITR 190 (Del) : 2006 TaxPub(DT) 1253 (Del-HC); CIT v. Lovely Exports Pvt. Ltd. (2009) 216 CTR 195 (SC) : 2009 TaxPub(DT) 0261 (SC). Relied:CIT v. Orissa Corporation Pvt. Limited (1986) 159 ITR 78 (SC) : 1986 TaxPub(DT) 1425 (SC); CIT v. Oasis Hospitalities (Pvt.) Ltd (2011) 198 Taxman 247 (Delhi) : 2011 TaxPub(DT) 0890 (Del-HC); CIT v. Creative World Telefilms Ltd. (2011) 15 taxmann.com 183 (Bom.) : 2011 TaxPub(DT) 0096 (Bom-HC).

REFERRED :

FAVOUR : In assessee's favour

A.Y. : 2012-13

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