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2018 (12) TMI 197 - AT - Income TaxAddition u/s 68 - explained cash credit - proof of identity, creditworthiness and genuineness of the transaction - assessee fails to explain the nature and source - Held that:- Section 68 provides that if any sum found credited in the year in respect of which the assessee fails to explain the nature and source shall be assessed as its income of the previous year in which the same was received. In the facts of the present case, both the nature & source of the share capital received with premium were fully explained by the assessee. The assessee had discharged its onus to prove the identity, creditworthiness and genuineness of the share applicants. This is a case of a company which has genuine business of which is in the manufacturing of granite slabs and has huge turnover running into crores of rupees. All the share application companies have filed all necessary documents in support of their claim that the transactions are genuine. No adverse material is brought on record by the revenue. The PAN details, bank account statements, audited financial statements and Income Tax acknowledgments were placed before the AO. Accordingly, all the three conditions as required u/s. 68 of the Act i.e. the identity, creditworthiness and genuineness of the transaction were placed before the AO and the onus shifted to the AO to disprove the materials placed before him. Without doing so, the addition made by the AO is based on conjectures and surmises cannot be justified - no addition was warranted under Section 68 . See ITO, WARD-12 (3) , KOLKATA VERSUS M/S SPLENDOUR VILLA MAKERS PVT. LTD. [2018 (9) TMI 414 - ITAT KOLKATA] - decided in favour of assessee.
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