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2020 (2) TMI 71 - AT - Income TaxAddition u/s 68 - Unexplained cash credit - onus to prove - HELD THAT:- There is nothing contrary on record to show that the assessee has complied with the requirements of the learned Assessing Officer in the exercise of forming satisfaction as to the identity and the creditworthiness of the share applicants or the genuineness of the transaction. Mere paperwork by the assessee does not take the authorities anyway, when the authorities suspected the existence of the entities that applied and paid for share application and share premium and insisted that a higher degree of proof is required in that respect. In view of the decisions of the Hon’ble jurisdictional High Court and Hon’ble Supreme Court in the case of NDR Promotors Pvt. Ltd. [2019 (1) TMI 1089 - DELHI HIGH COURT] and NRA Iron and Steel (P) Ltd [2019 (3) TMI 323 - SUPREME COURT] we are of the considered opinion that the action of the learned Assessing Officer was illegal and non-compliance with the same had rightly led to the inference that the assessee had rooted their own money in the books of accounts through the fictitious and bogus companies. On this premise we sustain the addition made by the learned Assessing Officer under section 68 of the Act. We further find that the Ld. CIT(A) had followed the procedure established under law for enhancing the additions and such additions are justified by record. Consequently, we dismiss the grounds of appeals.
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