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2016 (6) TMI 1184 - HC - Income TaxGovernment subsidy received - capital receipt or revenue receipt - Held that:- Revenue did not seriously dispute that the subsidy received by the assessee was a capital receipt. Therefore, the same could not have been subject to taxation. Bogus share capital addition - assessee failed to furnish evidences of identity and creditworthiness of the persons from whom share capital was claimed to have been received and also genuineness of the said transaction - Held that:- When any sum is found credited in the books of accounts of the assessee, either on account of a capital receipt or a revenue receipt, the assessee is liable to prove that the money was actually received. The assessee is also liable to prove the nature of receipt. Therefore, the Assessing Officer was well within his right to make enquiry. Upon enquiry, it transpired that the so called shareholders were non-existent. The Assessing Officer, in the circumstances, was entitled to take the view which he did by his order dated March 31, 2006. The submission advanced by assessee that if the Assessing Officer was in a hurry to complete the assessment and he, therefore, had no time to scrutinise the evidence adduced by the assessee, it cannot be said that the assessee failed to discharge his burden is not without substance. Therefore, the appropriate course will be to remand the matter to the Assessing Officer who shall consider issue.
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