2019 (3) TMI 471 - AT - Income Tax

Unexplained cash credit u/s 68 - share capital and share premium received by the assessee - high premium charged by the assessee - HELD THAT:- AO had lost sight of the fact that high premium charged by the assessee cannot be a ground for making the addition, because what section 68 of the Act, pre-supposes to charge to the Income Tax, is the sum found to be credited in the books of the asseseee if, (i) the nature and source of the same is not explained by the assessee, (ii) the explanation offered by the assessee is not found satisfactory by the AO.

From the records, we observed that assessee had duly proved the above ingredients. Moreover, in the present case, the share premium was paid by two parties but the addition was made only in respect of one concern. Thus it can be concluded that AO had accepted the receipt of share premium in case of other concern.

Assessee has discharged its onus by adequately disclosing the transaction in its books of accounts, filing statutory forms as regards allotment of shares, providing name, address and PAN of the shareholders, etc. the assessee has sufficiently discharged the onus cast upon it for the purpose of section 68 of the Act and no addition can be made on this account.

CIT(A) had passed a detailed order while relying upon various judgments cited by the parties and also considering the principles laid down in the case of Lovely Exports Pvt. Ltd. [2008 (1) TMI 575 - SUPREME COURT OF INDIA] and moreover, no new facts have been brought on record before us in order to controvert or rebut the findings so recorded by CIT (A). Therefore, there are no reasons for us to interfere into or deviate from - Decided in favour of assessee.