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2017 (10) TMI 594 - AT - Income TaxAddition u/s 68 - unexplained cash credit - explanation to share capital and share premium receipts - Held that:- It is settled principle of law that for explaining any cash credit in the books of accounts of an assessee, the assessee is required to explain the identity and creditworthiness of the creditor and the genuineness of the transactions. In the instant case, the assessee has given certain details which according to the lower authorities are not sufficient to explain the share capital and share premium of ₹ 65 crores received by the assessee. In our opinion, the matter requires a re-visit to the file of the Assessing Officer with a direction to give one more opportunity to the assessee to substantiate with evidence to his satisfaction regarding the capacity of the two companies to purchase such shares and the genuineness of the transactions. Assessing Officer has calculated the fair market value of the shares of the assessee company at ₹ 35.76 per share and, therefore, he could not have rejected the entire share application money received by the assessee at the premium of ₹ 990/- per share. Thus the matter requires a re-visit to the file of the Assessing Officer with a direction to give one more opportunity to the assessee to substantiate its case with evidence and the Assessing Officer is directed to decide the issue afresh as per fact and law after giving due opportunity of being heard to the assessee. We hold and direct accordingly. The grounds raised by the assessee are accordingly allowed for statistical purposes.
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