2023 (3) TMI 772 - AT - Income Tax

Addition u/s 68 - unexplained sundry creditors - sale of unquoted shares in the course of assessment in absence of identity, genuineness and creditworthiness of the purchaser/buyer companies - lack of genuineness and creditworthiness of the transactions in question - CIT-A deleted the addition - HELD THAT:- Nowhere in the course of assessment proceedings, any dispute has been raised about the transactions relating to purchase of equity shares made by the assessee during the preceding year. Neither the sale transaction has been disputed and only the consideration received against such sale of equity shares held as investment in current year has been disputed by the ld. AO.

Since all the details necessary to prove the identity and creditworthiness of the sundry creditors and genuineness of the transactions for sale of equity shares stands filed, assessee has discharged the primary onus casted upon it and their correctness remains unrebutted by the ld. D/R.

We fail to find any infirmity in the finding of fact given by the ld. CIT(A). Our view is further supported by the decision of this Tribunal in the case of Abdhut Vinimay Pvt. Ltd [2018 (10) TMI 1430 - ITAT KOLKATA] dealing with similar issue where investments were brought forward from the preceding year and were sold during the year and provisions of Section 68 was invoked by the Assessing Officer this Tribunal decided in favour of the assessee.