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2023 (5) TMI 218 - AT - Income TaxUnexplained cash credit u/s 68 - identity and creditworthiness of the share applicants and genuineness of the transaction not proved - HELD THAT:- Section 68 of the Act is invoked if any sum is found credited in the books of an assessee for which the assessee either does not offer any explanation about the nature and source thereof or the explanation offered by him is not satisfactory in the opinion of the AO. In the given case, though the assessee has given the explanation by filing the financial statements of the share applicants but they are in itself not sufficient to satisfy ld. AO as well as ld. CIT(A) and even we are also not satisfied with the nature and source of the alleged credit. Genuineness of the transaction is in serious doubt because why some private limited companies would invest a huge sum into the share capital of a company having no regular business activity and no concrete plan for any expansion. The assessee has failed to discharge its onus to explain the genuineness of the transaction as to why the share applicants have paid a share premium of Rs. 190/- on the equity shares having face value of Rs. 10/- of a company which has poor track record of earning profits as well as poor turnover. Where the assessee has failed to discharge its primary onus casted upon it to explain the genuineness of the transaction and the explanations offered by the assessee are not sufficient to prove the genuineness of the receipt of share capital and share premium, we are not inclined to make any interference in the well-reasoned finding of ld. CIT(A) confirming the addition made u/s 68 - effective grounds of appeal raised by the assessee are dismissed.
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