2023 (3) TMI 781 - AT - Income Tax

Addition u/s 68 - accommodation entry - issue of shares for consideration other than 'cash' - assessee has not discharged his primary onus to prove that the sum credited in the books of accounts were related to F.Y. 2007-08 - HELD THAT:- As decided by CIT-A correctly onus to prove the three factum i.e. identity, creditworthiness and genuineness is on the assessee as the facts are within the assessee's knowledge. Mere production of copies of agreement with a number of persons without giving their PAN, source of income, IT details, bank statement is totally insufficient to prove the identity, creditworthiness and genuineness of transactions. Further, facts like non-maintenance of bank accounts, reliance only on self serving documents, Inability to produce the primary share allottees and present directors & share holders, filing of forms and returns of earlier many years with ROC in FY 2015-16 gives conviction to uphold the findings of Ao.

"Adjustment by way of book entry" can only be in the case where there is already some liability/asset/entry in books of account's which is to be adjusted. However, in the instant case that was not the case. There was no entry subsisting in the books of account's which was adjusted.This was a fresh issue of equity shares for consideration other than cash, and was not issued against any of liability in the books of accounts.

We find that CIT(A) by well reasoned and detailed order and after considering the submissions of the assessee and for the reasons which have been reproduced hereinabove dismissed the appeal of the assessee. Before us assessee has not placed any material on record to point out any fallacy in the findings of AO and CIT(A). In such a situation we find no reason to interfere with the order of CIT(A) and thus the grounds of assessee are dismissed.