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2021 (6) TMI 1013 - AT - Income TaxAddition u/s 68 - unexplained share Capital and Share Premium - need for share - applicants to appear before the Id AO when they filed confirmations, bank accounts, statements, ITRs and also complied with statutory notices u/s 133 (6) - HELD THAT:- Most of the share - applicants were also simultaneously subjected to scrutiny assessment u/s 143(3) wherein the matter of investment in shares of appellant - company and the sources of same were being examined by the AOs. AO could have informed the concerned AO to make any verification he wanted to. As argued that the Id AO is duty bound to inform concerned AO of share - applicant and not to do direct inquiry with them, as held in the decision RANCHHOD JIVABHAI NAKHAVA [2012 (5) TMI 186 - GUJARAT HIGH COURT] by the jurisdictional High Court. That the share applicants did not turn up before the Id AO, cannot a reason for addition, when all confirmatory documentary evidences are furnished. Considering these above facts and circumstances, we are of the view that assessee has satisfied three ingredients of the Section 68 , viz: (i) identity, (ii) creditworthiness and (iii) genuineness of the transactions.That being so, we decline to interfere with the order of Id. CIT(A) in deleting the aforesaid additions. His order on this addition is, therefore, upheld and the grounds of appeal of the Revenue are dismissed. Estimation of Gross Profit (GP) - No reason of downfall of GP with supporting evidences by assessee - CIT-A deleted the addition - HELD THAT:- We note that while deleting the addition on account of estimation of Gross Profit, the CIT(A) held that books of accounts can be rejected only on cogent finding of defects in the books of accounts, when the AO has not examined the books of accounts, there is no question of rejection of the same.We note that there is no infirmity in the conclusion reached by the ld CIT(A). The conclusions arrived at by the ld CIT(A) are, therefore, correct and admit no interference by us. We, approve and confirm the order of the CIT(A). - Decided against revenue.
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