Home Case Index All Cases Income Tax Income Tax + AT Income Tax - 2019 (4) TMI AT This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2019 (4) TMI 1799 - AT - Income TaxAddition u/s 68 - unexplained cash credits - HELD THAT:- On going through the returned income filed by the Investor Companies, it was found that they have filed their returns of income at meager/low net income which ranges income in hundres to thousands only after claiming deductions. Thus, the assessee as well as the Investors have not justified for entering into such transaction. It also creates doubt in the explanation of assessee. It may also be noted here that four Investors from Kolkata have been operating from the same address. Three more Investors from Kolkata are also having the same address. Two Ludhiana parties have also given the same address, but, the postal authorities reported that no such company exist at the given address. These facts clearly show that though the assessee may be able to prove the identity of the creditors because they are assessed to tax, but, assessee failed to prove the creditworthiness of all the Investors as well as genuineness of the transaction in the matter Enquiry and investigations carried on by the A.O. reveal that the Investors do not have creditworthiness and that genuineness of the transaction has not been established by the assessee. Therefore, there was no justification for the Ld. CIT(A) to have deleted the entire addition. In view of the above discussion, we set aside the impugned Order of the Ld. CIT(A) and restore the Order of the A.O. Appeal of Revenue is allowed.
|