Home Case Index All Cases Income Tax Income Tax + AT Income Tax - 2012 (2) TMI AT This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2012 (2) TMI 528 - AT - Income TaxUnexplained Cash Credits u/s 68 - Assessee has failed to prove the identity of the share applicants, the share application money as received by the assessee, is liable be added to the income u/s 68 - Before CIT, assessee filed detailed written submissions, including address, PAN and has referred to further documentary evidences filed and compliances made by such share applicants before AO is in response to notice u/s.133(6) issued. HELD THAT:- We observed that summons were issued to the share applicants, requiring certain information u/s 131, the share applicants duly confirmed that they gave share application money to assessee through cheque, meaning thereby the identity of the share applicants was proved. Other documents were also furnished by them acknowledging the return. All these documents clearly prove their identity if the summons would not have been received or the addresses of the share applicants would have been fake, there was no question of service of summons and consequent reply by such share applicants. In view of these facts, the decision from Hon'ble Apex Court in the case of COMMR. OF INCOME TAX VERSUS M/S LOVELY EXPORTS (PVT) LTD [2008 (1) TMI 575 - SC ORDER], clearly comes to the rescue of the assessee, where it was held that even if such share applicants are bogus, but their identity is proved, then no addition is warranted in the case of the assessee. In the present appeal, since the identity of such share subscribers, as we have discussed above, was established, therefore, no addition u/s 68 is warranted in the case of the assessee company- Decision in favour of Assessee.
|