Home Case Index All Cases Income Tax Income Tax + AT Income Tax - 2014 (11) TMI AT This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2014 (11) TMI 65 - AT - Income TaxUnexplained cash credits u/s 68 – Addition in respect of three companies - Creditworthiness of transaction proved by assessee - Held that:- The assessee company produced the director of all the three companies and they also produced the necessary evidences i.e. photocopy of their permanent account number and their voter-ID, photocopy of the confirmation for investment in the assessee company, photocopy of confirmation of account, photocopy of acknowledgement of income tax return for the relevant assessment year and photocopy of the bank statement of the company - on what basis the AO has mentioned that from the balance sheet of these companies, the creditworthiness of the share application is not proved, is best known to the AO - CIT(A) rightly arrived at the conclusion that the assessee company has duly discharged the onus of proving the cash credit in its books of account - the assessee has duly established the identity and creditworthiness of the creditor (i.e. share applicant), and the genuineness of the transaction – thus, the order of the CIT(A) is upheld – Decided against revenue.
|