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2009 (12) TMI 713 - AT - Income TaxUnexplained share capital u/s 68 - bogus share transactions - To find out the identity, creditworthiness and genuineness of the amount received, letters were issued u/s 133(6) calling for requisite information but Most of the letters were not served and were received back with the postal remark "no such party" and for some the reply was not received. HELD THAT:- In the present case in spite of all the efforts where the Assessing Officer could not even locate the respective so-called applicants, the assessee could file undated confirmations and affidavits. Therefore, it is a case where all the papers are manufactured at the instance of the assessee and not the real transaction. We, therefore, merely on the basis of such papers cannot hold that the amount received by way of share capital is explained within the meaning of section 68 of the Act. The Full Bench of the Delhi High Court in the case of Sophia Finance Ltd. [1993 (8) TMI 62 - DELHI HIGH COURT] have held that the provision of section 68 shall equally apply even in the case of amount stated to be received towards share capital. Since the assessee failed to prove even the basic identity as also the creditworthiness and the genuineness of the transaction in the form of share premium, the addition was rightly made by the Assessing Officer. In the result, the appeal is dismissed.
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