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2017 (1) TMI 1051 - AT - Income TaxAddition u/s 68 - Held that:- Perusal of the chart given shows that the companies do have creditworthiness. Some of these investing companies are NBFCs and registered with the RBI. Such companies cannot be treated as paper companies without the A.O. gathering any evidence in support of such a finding. The assessee has furnished letters of confirmations from the investors, their full address, income tax Permanent Account numbers, copies of investors bank statements, acknowledgments of these companies of filing returns of income, balance sheets, P & L A/c etc., which does demonstrate the identity of the investing companies. The creditworthiness is proved by the substantial funds that these companies have. A perusal of the report of the Inspector of Income Tax shows that, nothing adverse has been recorded consequent to inspection and investigation. Each of the investment has not been individually examined by the A.O. It is well settled that for making an addition u/s 68 of the Act each credit has to be separately investigated and conclusions arrived at. In this case a general view has been taken by the revenue authorities. Each investment has not been examined separately. No material has been gathered by the A.O. to contradict the evidence filed by the assessee. The A.O. merely rejected the evidences without proper reason. Under these circumstances, we are of the considered opinion that the addition made under section 68 cannot be sustained. - Decided in favour of assessee
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