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2016 (1) TMI 1394 - ITAT KOLKATAAddition u/s 68 - unexplained cash credit - identity and creditworthiness and genuineness of the transactions - Held that:- The entries in the bank account clearly demonstrates the factum of realisation of investment in Prabhudan Securities Pvt.Ltd by Kali Saran Properties (P)Ltd and such proceeds being utilised to make investments in share application money of the assessee company. The reasons assigned by the and CIT(A) for making addition u/s 68 are identical as were given while treating the investments by Jai Kali Properties (P)Ltd as unexplained. It is clear from the evidence on record that the assessee has established the identity and creditworthiness and genuineness of the transactions of the receipt of share application money from M/S.Kalisaran Properties (P) Ltd. We, therefore, hold that the addition made by the AO and sustained by CIT(A)should be deleted. A copy of the source of funds of Jai Kali Properties (P)Ltd and Kalisaran Properties (P)Ltd for making investment in share application of the assessee is given as annexure to this order. In the light of the evidence on record we are satisfied that the action of the revenue authorities while making the impugned addition u/s 68 of the Act cannot be sustained. Accordingly the said addition is directed to be deleted. - decided in favour of assessee.
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