Home Case Index All Cases Income Tax Income Tax + AT Income Tax - 2016 (4) TMI AT This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2016 (4) TMI 575 - AT - Income TaxAddition on account of unexplained share capital, share application money and share premium received - CIT(A) deleted the addition - Held that:- According to provision of section 68 it is primary onus of the assessee to prove identity, creditworthiness and genuineness of the transaction. In this case the assessee has submitted extensive details about each of the creditors and despite that addition has been made u/s 68 of the Act. AR has also submitted a chart which also shows that some of the credit entries which are converted into allotment of share capital are credited in the books of account of the assessee in previous year. When the assessee has given the full details stating the name, address, PAN no, details of bank account, Income Tax return, bank statement and confirmation of those parties, we agree with learned Commissioner of Income-tax (Appeals) that addition u/s 68 cannot be made. Further the pattern observed by the AO may be relied upon if there have been a detailed enquiry made by the AO regarding cash deposit by the person and then transfer entries given about the such deposits to the assessee’s depositors. No such Inquiries have been done. Therefore in view of the above we confirm the order of learned Commissioner of Income-tax (Appeals) on this ground and in result the appeal of the revenue is dismissed. - Decided in favour of assessee
|