Home Case Index All Cases Income Tax Income Tax + AT Income Tax - 2021 (11) TMI AT This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2021 (11) TMI 209 - AT - Income TaxAddition u/s 68 - Unexplained share application money received - No proof regarding agricultural activities given - CIT-A deleted the addition - HELD THAT:- Assessing Officer merely doubted the investment made by the share applicants for the reason that they did not submit any proof regarding agricultural activities done by them. It is therefore quite evident that the Assessing Officer himself accepted the identity of the share applicants and genuineness of the transactions as entered into with them. We are of the view that the assessee company satisfactorily discharged the primary onus as cast upon it under section 68 by establishing the identity and creditworthiness of the share applicants and genuineness of the transactions as entered into with them and therefore, addition made by the Assessing Officer on account of share application money received from remaining share applicants was neither legal nor proper and was rightly deleted by the Ld CIT(A). The action of the Ld CIT(A) is therefore, confirmed.- Decided in favour of assessee. Disallowance of interest - addition made as assessee has not charged interest on loan and advance but paid interest to others - proof of sufficiency of own funds - HELD THAT:- CIT(A) was justified in deleting the addition because the interest bearing funds in possession of the assessee company were higher than the amount as advanced by it and most of the advances were carried forwards from the erstwhile firm where no interest bearing funds were used. See SA BUILDERS LTD. VERSUS COMMISSIONER OF INCOME-TAX [2006 (12) TMI 82 - SUPREME COURT], RELIANCE UTILITIES & POWER LTD. [2009 (1) TMI 4 - BOMBAY HIGH COURT] and HERO CYCLES (P.) LTD. [2015 (11) TMI 1314 - SUPREME COURT] - Decided in favour of assessee.
|