Home Case Index All Cases Income Tax Income Tax + AT Income Tax - 2016 (5) TMI AT This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2016 (5) TMI 539 - AT - Income TaxAddition u/s 68 being share capital - Held that:- In this present case, regarding M/s. Ramsay International, any sanctity cannot be attached to the documents filed before the AO as on certified. The said Ramsay International Ltd. neither filed any valid documents before the 1st appellate authority nor before us in support of its contention. Therefore, we are of the view that the view expressed by the AO and CIT(A) about the creditworthiness and genuineness of transaction between assessee and M/s. Ramsay International Ltd. is justified. Thus, we hold that M/s. Ramsay International Ltd. has failed to prove its identity also as discussed above and we confirm the order of CIT(A) about creditworthiness and genuineness of transaction. In pursuance of the Section 68 of the Income Tax Act, It is for the assessee to establish the identity of the subscribers and prove their credit worthiness. In the present case, on the basis of the material available on record the identity of the Saroj Kumar Jhunjhunwala was established and identity of the M/s Ramsay International Ltd was not established. Regarding proving their creditworthiness or the genuineness of the transaction as they were not availed an opportunity given by the ITAT, Kolkata and pursuant to which, the proceedings under Section 131 of the Act. In enquiry by his inspector, AO found that one of the share applicants not existed at the given address. That both the share applicants did not choose to appear before the AO and The details could not be established. The valid details of the two concerns were not produced for examinations - Decided against assessee.
|