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2021 (9) TMI 469 - MADRAS HIGH COURTAddition u/s 68 - Unexplained share application money - onus to prove - ITAT allowed the relief - HELD THAT:- Onus is on the assessee to establish the creditworthiness of various persons and as to how the share application money was brought in - furnishing the list of names or stating that the monies were paid by cheques will not, by itself, establish the creditworthiness and genuineness of the transaction. The initial onus is on the assessee to discharge the burden cast upon them to prove the creditworthiness and genuineness of the transaction. In the case on hand, the assessee miserably failed to discharge the primary onus cast upon them - AO conducted a detailed enquiry, issued summons, recorded statements, permitted the authorized representative of the assessee to peruse the seized records and in fact, came to a provisional conclusion as to how he intends to proceed and gave further opportunity to the authorized representative of the assessee, who had filed a written submission on 03.12.2007 raising certain factual issues and relying upon certain decisions. Those factual issues were considered and held to be not sustainable and the decisions, which were relied upon by the assessee, were also distinguished and in our considered view, are rightly so. - Decided against assessee.
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