Home Case Index All Cases Income Tax Income Tax + AT Income Tax - 2015 (5) TMI AT This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2015 (5) TMI 679 - AT - Income TaxUnexplained cash credits u/s.68 - addition made by the AO being an amounts of share capital and share premium - Held that:- In the instant case there is contradiction between the statement deposed by the directors of the alleged three investment companies and the audited statement, bank accounts, confirmations and share application forms executed by the three investor companies. In the above circumstances, it is to be adjudicated that which is to be believed, the fact revealed by various documents or the facts claimed by three deponents without any corroborative evidences. We find that the Honourable Bombay High Court in the case of ACIT Vs. Miss Lata Mangeshkar [1973 (6) TMI 13 - BOMBAY High Court] held that once the testimony of the witness is unreliable, then the addition on the basis of such testimony cannot be made. In view of the above decision in our considered view the facts disclosed by the documentary evidences on record cannot be ignored merely on the basis of unsubstantiated statement of the directors. Further, we find that the identities of the three investors in the shares of the assessee company are not in dispute and the investment were made through their bank accounts is also established from their bank statements as well as their audited financial statements. The Honourable Supreme Court in the case of CIT versus Lovely Exports (P) Ltd.S.L.P. (CIVIL)[2008 (1) TMI 575 - SUPREME COURT OF INDIA] wherein held that if the share application money is received by the assessee-company from alleged bogus shareholders, whose names are given to the AO, then the department is free to proceed to reopen their individual assessments in accordance with law. Thus addition made in the instant case cannot be sustained. - Decided in favour of assessee.
|