Home Case Index All Cases Income Tax Income Tax + AT Income Tax - 2019 (1) TMI AT This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2019 (1) TMI 109 - AT - Income TaxAddition u/s 68 - undisclosed share application money received by the assessee-company - Held that:- Investors who have been examined by the A.O. on oath were not subjected to cross-examination on behalf of the assessee, therefore, their statements cannot be read in evidence against the assessee. The only material left for consideration was the documentary evidences filed by the assessee on record which supports the explanation of assessee that assessee received share application money from large number of investors who have made very small investment in assessee-company in each case. No evidence has been brought on record if the investment made by the investors have actually emanated from the coffers of the assessee so as to enable it to be treated as undisclosed income of the assessee. Therefore, considering the smallness of the issue and the fact that assessee was incorporated only in preceding assessment year, therefore, in the light of decision of Bharat Engineering & Construction Co. (1971 (9) TMI 14 - SUPREME COURT), there were no justification for the authorities below to sustain the addition. - Decided in favour of assessee Addition on account of difference in balance of one creditor - Held that:- ustification to interfere with the Orders of the authorities below. Learned Counsel for the Assessee submitted that no addition can be made under section 68 of the I.T. Act on account of difference in balance of the creditor. I do not agree with the submissions of the Learned Counsel for the Assessee. Section 68 would be applicable if assessee failed to explain sum of the amounts credited in the books of account of assessee to the satisfaction of the A.O. The party has however, denied of having outstanding balance with the assessee in response to notice under section 133(6) of the I.T. Act. Therefore, addition was correctly made against the assessee - decided against assessee Addition u/s 68 on account of loan received from one Director - Held that:- Creditworthiness of the creditor have been accepted by the authorities below and that the creditor is connected with the assessee-company, therefore, the matter requires reconsideration in the light of documentary evidence and statement of affairs of the creditor along with ITR filed on record. I, accordingly, set aside the Orders of the authorities below and restore the issue to the file of A.O. with a direction to re-decide this issue, by giving reasonable, sufficient opportunity of being heard to the assessee. - Decided in favour of assessee for statistical purposes.
|