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2018 (7) TMI 1480 - AT - Income TaxAddition u/s 68 - CIT-A adding share application/premium money of ₹ 31.69 crores to be both genuine and creditworthy - Held that:- We find considerable merit in the Revenue’s instant argument. It has come on record that the above investor entities had meagre incomes mainly from share transfers only from one account to another, no business activity or fixed assets, their common directors had failed to file any response to Assessing Officer’s repeated notices, as well as the fact that the assessee’s bank account had seen corresponding deposits followed by frequent withdrawals in the relevant accounting period(supra). CIT(A) has failed to consider all these relevant facts whilst accepting the assessee’s contentions going by only documentary evidence on record without applying human probabilities test hereinabove We therefore conclude that the CIT(A)’s findings do not deserve to be concurred with par se on merits qua genuineness and creditworthiness aspect. oming to the CIT(A)’s finding that such kind of a share premium is not taxable as revenue receipt, as per hon’ble apex court’s decision in Vodafone case (2012 (1) TMI 52 - SUPREME COURT OF INDIA) we are of the view that there is no dispute about the said settled legal position. The question that is involved in this appeal is altogether on a different footing. The assessee has failed to prove the genuineness and creditworthiness of its share premium in view of the above overwhelming circumstances raising serious doubts in view of multiple factual aspects hereinabove. We therefore are of the opinion that the hon’ble apex court’s decision would apply only if the assessee satisfies all the relevant parameters of identity, source, genuineness and creditworthiness of the amounts received from investor entities only and not in isolation. The CIT(A)’s findings are therefore contrary to section 250(6) of the Act - thus we leave it open for the Assessing Officer to examine the entire issue once again - Revenue’s appeals allowed for statistical purposes.
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