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2022 (11) TMI 22 - HC - Income TaxAddition u/s 68 - funds received from M/s. Rachna Finlease Pvt. Ltd. - identity and creditworthiness proved or not? - entire gamut of facts making it evident that the transaction was in the nature of accommodation entry - HELD THAT:- Creditworthiness and genuineness of said M/s. Rachna Finlease Pvt. Ltd. was not established and that towards the share application money, the said party was a non-filer assessee company. It was sought to be argued that when the amount was given towards share application money, the assessee was not free from suspicion. Once the Books of Accounts and the facts reflected therein showed the source of the fund and the identity of the party and the aspect that Books of Accounts of the assessee also reflected the receipt and the amount was repaid by the assessee, it was not open to the AO to raise doubts about the creditworthiness of the creditor. AO ignored the relevant material. Appellate Authority as well as the Income Appellate Tax Tribunal concurrently reversed the findings of the Assessing Officer on the said count. It could not be said that any question much less any substantial question of law arise in the appeal.
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