Home Case Index All Cases Income Tax Income Tax + AT Income Tax - 2018 (12) TMI AT This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2018 (12) TMI 1322 - AT - Income TaxAddition u/s 68 - unexplained cash credit - identity, creditworthiness and genuineness of the transaction - Held that:- We note that the director of the assessee company, Mr. Siddheswar Halder, vide its letter, dated 20.03.2015, submitted in response to notice u/s.131of the Act, the following information and documents, Viz: Copy of PAN Card for identity proof and copy of Driving License as a proof of address, Copy of Income Tax Return for the A.Y. 2010-11, 2011-12 &2012-13, Copy of Profit & Loss Account and Balance Sheet for the F.Y. 2009-10 onwards, Copy of Bank Statement for the relevant period, and other details for his personal identity. We note that ‘source of fund’ of share applicants viz. Sarvottam Commercial Pvt. Ltd., M/s. Landmark Exim Pvt. Ltd and M/s Ganpati Hirise Pvt. Ltd, is directly from M/s. Emami Biotech Ltd. (now M/s. Emami Agrotech Ltd.) and the source of source of fund of the Share Applicants viz. M/s. Ghazal Textiles and Finance Pvt. Ltd and M/s. Procton Commerce Pvt. Ltd, is also M/s Emami Biotech Ltd. (now M/s. Emami Agrotech Ltd.), which is a highly reputed company. Therefore, assessee has even proved the source of source of share applicants in the instant case. Section 68 of the Act provides that if any sum found credited in the year in respect of which the assessee fails to explain the nature and source, shall be assessed as its undisclosed income. In the facts of the present case, both the nature & source of the share application received was fully explained by the assessee. The assessee had discharged its onus to prove the identity, creditworthiness and genuineness of the share applicants. The PAN details, bank account statements, audited financial statements and Income Tax acknowledgments were placed on AO's record. Accordingly all the three conditions as required u/s. 68 of the Act i.e. the identity, creditworthiness and genuineness of the transaction was placed before the AO and the onus shifted to AO to disprove the materials placed before him. Without doing so, the addition made by the AO is based on conjectures and surmises cannot be justified. In these peculiar facts and circumstances and in view of Assessing Officer’s supportive remand report as above, no addition is warranted under Section 68 of the Act. That being so, we decline to interfere in the order passed by the ld CIT(A), his order on this issue is hereby upheld - Decided in favour of assessee.
|