2015 (11) TMI 279 - HC - Income Tax

Addition u/s 68 - ITAT deleted the addition - Held that:- Assessee by produced sufficient documentation discharged its initial onus of showing the genuineness and creditworthiness of the share applicants. It was incumbent to the AO to have undertaken some inquiry and investigation before coming to a conclusion on the issue of creditworthiness. In Nova Promoters (2012 (2) TMI 194 - DELHI HIGH COURT), the Court has taken note of a situation where the complete particulars of the share applicants are furnished to the AO and the AO fails to conduct an inquiry. The Court has observed that in that event no addition can be made in the hands of the Assessee under Section 68 of the Act and it will be open to the Revenue to move against the share applicants in accordance with law. - Decided in favour of assessee.