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2021 (3) TMI 52 - AT - Income TaxBogus LTCG - addition u/s 68 - share application money treated as unexplained in the hands of the assessee - HELD THAT:- Assessee proved identity of the Investors and also furnished sufficient documentary evidences to prove creditworthiness of the Investors, genuineness of the transaction in the matter. Therefore, initial onus upon the assessee to prove ingredients of Section 68 of the I.T. Act, 1961 stands discharged. The decisions relied upon by the Ld. D.R. have also been considered in the Group cases as above and did not find in favour of the Revenue because the assessee has been able to prove creditworthiness of the creditors and genuineness of the transaction. Therefore, the decisions relied upon by the Ld. D.R. would not support the case of the Revenue. Considering the totality of the facts and circumstances of the case and above discussion, we are of the view that entire addition made by the authorities below of ₹ 6.7 crores is wholly unjustified and is liable to be set aside. In view of the above, we set aside the Orders of the authorities below and delete the entire addition. All the grounds raised by the assessee are allowed. Deemed dividend u/s 2(22)(e) - HELD THAT:- Since the assessee is NBFC Company registered with RBI and as per assessment order itself the nature of business of assessee is financing and investment and the details submitted by Learned Counsel for the Assessee clearly show that assessee is mainly engaged in finance business for giving loans and advances and earn interest thereon, would clearly prove that assessee is mainly in the business of lending of money to others, therefore, business transaction would not attract the provisions of Section 2(22)(e) of the I.T. Act and as such the case of the assessee would fall to the exception provided in sub-clause-(ii) of Section 2(22)(e) of the I.T. Act, 1961. In view of the above, we set aside the Orders of the authorities below and delete the addition - Ground of the appeal of the Assessee is allowed.
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