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The Tax PublishersITA No. 302/Del/2014
2021 TaxPub(DT) 0712 (Del-Trib)INCOME TAX ACT, 1961
Section 68
Assessee by furnishing ITR along with audited financial statements and bank statements of share applicants and share application forms, etc., proved identity and creditworthiness of share applicants and genuineness of transactions of receipt of share application money and, therefore, amount received could not be treated as unexplained credit under section 68.
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Income from undisclosed sources - Addition under section 68 - Receipt of share application money -
Assessee-company received share application money from certain entities. As share applicants were not found at the address given, AO treated the amount received as unexplained credit under section 68 and made addition. Held: Assessee by furnishing ITR along with audited financial statements and bank statements of share applicants and share application forms, etc., proved identity and creditworthiness of share applicants and genuineness of transactions. Banks statement did not indicate any cash deposit to establish that assessee introduced its own money. Therefore, amount received could not be treated as unexplained credit under section 68, especially when Inspector's Report had clearly stated wrong address.
REFERRED :
FAVOUR : In assessee's favour.
A.Y. :
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