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2019 (8) TMI 1695 - AT - Income TaxAddition made unexplained cash credit u/s. 68 - assessee has failed to prove the identity, genuineness and credit worthiness of lender parties, invested as share application money in the assessee company - HELD THAT:- We are of the considered view that the Ld.AO was erred making additions towards share capital received from three companies, even though the assessee has discharged, its onus cast upon u/s 68 of the Act, on the basis of third party information without providing such information to the assessee and also to provide cross-examination of the person, who gave statement. Further, as regards, the additions towards share capital, once the assessee has discharged its onus by filing various documents, then the onus shifts to the AO to prove otherwise. Unless, the AO has discharges its onus, by conducting necessary enquiries, he cannot proceed to make additions only on the basis of information received from third party. Hon’ble Bombay High Court in the case of CIT vs. Gagandeep Infrastructure Pvt.Ltd. [2017 (3) TMI 1263 - BOMBAY HIGH COURT] had considered an identical issue and held that proviso to section 68 inserted by the Finance Act, 2012 with effect from 01/04/2013 is applicable from AY 2013-14 onwards, as per which before insertion of provision to 68 of the Act, the assessee need not to prove source of source of an investment. Once, he proved credit worthiness of the parties, it is sufficient enough to come out of provision of section 68. We are of the considered view that the Ld. CIT(A) has rightly deleted additions made by the AO towards share capital received from three companies, on the basis of various evidences filed by the assessee, including confirmation letter from the shareholders. We do not find any error or informative in the findings of Ld. CIT(A) and hence, we are inclined to uphold order of the Ld.CIT(A) and dismissed appeal filed by the revenue.
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