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2020 (12) TMI 1063 - AT - Income TaxUnexplained cash credits addition u/s 68 - as per revenue since the assessee’s twin investor entities had been found lacking genuineness / creditworthiness, they have been rightly treated as shell entities thereby inviting the impugned addition - HELD THAT:- We find no reasons to sustain the impugned addition. We make it clear that not only the assessee has proved itself to be genuine business entity engaged in rice mill business having turnover of ₹56,640/-from assessment year 2010-11 rising to ₹3,82,83,005/- on pertaining to assessment year 2020-21 but also it has successfully filed on record the twin investor entities supportive evidence and confirmations before the Assessing Officer. All these clinching facts have nowhere been rebutted from the Revenue side since had its case deals with documentary evidence does not itself amount to proving genuineness / creditworthiness of the investor parties in view of hon'ble apex court’s decisions in Commissioner of Income Tax vs. Durga Prasad More [1971 (8) TMI 17 - SUPREME COURT] & Sumati Dayal [1995 (3) TMI 3 - SUPREME COURT] - Twin investor parties herein have also explained source of impugned share application money as it is clear from a perusal of the page 43 wherein M/s Astha Rice Mill (P) Ltd. stated the source of impugned share application of ₹10 lakh each coming from similar three investor parties. This tribunal’s co-ordinate bench decision in M/s Sanmin Trading & Holding Pvt. Ltd. [2020 (11) TMI 606 - ITAT KOLKATA] holds that such a share capital involving investor entity’s detailed evidence, confirmation and explanation of source does not attract unexplained cash credits additions - Decided in favour of assessee.
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