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2018 (1) TMI 188 - AT - Income TaxAddition u/s 68 - burden of proof - creditworthiness and genuineness of the transaction - Held that:- The word “identity” means the condition or fact of a person or thing being that specified unique person or thing. The identification of the person would include the place of work, the staff, the fact that it was actually carrying on business and recognition of the said company in the eyes of public. Merely producing certificate of incorporation, PAN number or assessment particulars did not establish the identity of the person. PAN numbers are allotted on the basis of applications without actual de facto verification of the identity or ascertaining active nature of business activity. The actual and true identity of the person or a company was the business undertaken by them. Further, these documents have their limitation and cannot be relied upon blindly when there are surrounding circumstances to show that the subscriber was a paper company and not a genuine investor. The assessee company being a private limited company, the burden of proof is clearly on higher pedestal as compared to public limited companies which it has failed to discharge in the instant case as we have discussed above in terms of creditworthiness and genuineness of the transaction and till such time, initial burden is not satisfied, the burden cannot be said to have been shifted on the Revenue to conduct further enquiries. Accordingly, we hereby affirm the action of the ld. CIT(A) in sustaining the addition of ₹ 93.30 crores in the hands of the assessee company u/s 68 of the Act. In the result, ground no. 1-3 are dismissed.
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