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TMI Blog2021 (9) TMI 354X X X X Extracts X X X X X X X X Extracts X X X X ..... 6/10/2018. The assessee being resident corporate assessee is stated to be engaged as franchisee of Reliance web store and dealing in Reliance phones and accessories. 2. Having heard rival submissions and after due consideration of material on record, our adjudication to the subject matter of appeal would be as under. 3.1 The original return filed by the assessee was processed u/s 143(1). However, during survey u/s 133A on 21/11/2013, it transpired that the assessee issued shares at high premium to Kolkata & Mumbai based entities without any justification. Accordingly, the case was reopened as per due process of law and notice u/s 148 was issued on 15/02/2016. 3.2 During assessment proceedings, the assessee was directed to substantiate th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... board of directors. Therefore, under these circumstances, the additions could not be made by Ld. AO, inter-alia, in terms of decision of Hon'ble Bombay High Court in CIT V/s Gagandeep Infrastructure Private Limited [80 Taxmann.com 272] & subsequent decision in CIT Vs. Orchid Industries Private Limited [88 Taxmann.com 502]. However, Ld. CIT(A) chose to confirm the addition. Aggrieved, the assessee is in further appeal before us. Our findings and Adjudication 5. So far as the legal position is concerned, we find that as per the provisions of Section 68 of the Income Tax Act, 1961, where any sum is found credited in the assessee's books and assessee offers no explanation about the nature and source thereof or the explanation furnished is fo ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... cordingly, the onus would shift upon revenue to dislodge the assessee's claim by bringing on record material evidences and unless this onus is discharged by the revenue, no addition could be sustained u/s 68. The Hon'ble Supreme Court in the case of Lovely Exports P. Ltd. [319 ITR 5], dismissing revenue's appeal, observed as under: - 2. Can the amount of share money be regarded as undisclosed income under section 68 of IT Act, 1961? We find no merit in this Special Leave Petition for the simple reason that if the share application money is received by the assessee company from alleged bogus shareholders, whose names are given to the AO, then the Department is free to proceed to reopen their individual assessments in accordance with law. H ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... t in its recent decision titled as Pr.CIT Vs. NRA Iron & Steel Pvt. Ltd. [412 ITR 161]. 7. Proceeding further, it is trite law that no additions could be made on the basis of mere doubts, conjectures or surmises. Once the primary onus to substantiate the transactions is discharged by the assessee, it would be incumbent upon revenue to dislodge the assessee's claim and substantiate the allegations with corroborative evidences. Until & unless this exercise is undertaken, the additions would not be sustainable in the eyes of law. 8. Applying the aforesaid principals to the facts of the case, it could be seen that the assessee has duly discharged the primary onus of establishing the identity of the investor entities, proving their respective ..... X X X X Extracts X X X X X X X X Extracts X X X X
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