9911796707
TMI Blog2024 (11) TMI 1093X X X X Extracts X X X X X X X X Extracts X X X X ..... ppeal Centre, (in short "NFAC"), Delhi under Section 250 of the Act and order passed by Principal Commissioner of Income Tax, (in short "PCIT"), Ahmedabad-3, under Section 263 of the Act vide orders dated 08.01.2024 & 06.02.2024 for Assessment Year 2018-19. Since the facts and issues for consideration are common, both appeals filed by the assessee are taken up together. We shall first deal with assessee's appeal in ITA No. 145/Ahd/2024 for A.Y. 2018-19. 2. The Assessee has taken the following grounds of appeal:- "1. Ld. CIT(A) erred in law as well as in fact in confirming addition of Rs. 3,77,39,430/- being addition made by ld. AO u/s. 68 of Income Tax Act, 1961." 3. The brief facts of the case are that the assessee company is engaged ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... eviewing the submissions, the Assessing Officer was of the view that while the company has stated the source of funds, the assessee company gave insufficient evidence to establish the creditworthiness of the shareholders and the genuineness of the transactions. The Assessing Officer held that the funds introduced were primarily from self-business activities and loans, but the significant amount of cash deposits raised concerns regarding their legitimacy and genuineness. The Assessing Officer was of the view that despite requests for further documentation, including confirmation letters from loan creditors and comprehensive financial statements, the assessee failed to provide adequate evidence to substantiate the claims made. Notices were is ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... l. The inability of the assessee company to substantiate the source of cash deposits, alongside unverified claims relating to fixed deposits and insurance, led the AO to hold that the share capital was derived from unexplained cash, routed through bank accounts, thereby indicating dubious transactions. Since the shareholders, the loan creditors, and the assessee company could not provide adequate evidence, failing to meet the burden of proof for the genuineness of the transactions, the Assessing Officer made additions in the hands of the assessee company by treating share capital amount of Rs. 3,77,39,430/- as unexplained cash credit under Section 68, read with Section 115BBE of the Act. 5. In appeal, Ld. CIT(Appeals) held that in light of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nt explanations regarding high share premiums and was not satisfied with the evidential support provided by the assessee. Accordingly, Ld. CIT(Appeals) held that the onus of proof did not shift with the submission of primary evidence by the assessee. Ld. CIT(A) held that the assessment order revealed that the assessee failed to substantiate the creditworthiness of investor companies, leading to the conclusion that the transactions in question were not genuine. Consequently, Ld. CIT(Appeals) upheld the order of AO and confirmed the addition of these amounts to the assessee's income, and the appeal filed by the assessee was dismissed. 6. The assessee is in appeal before us against the order passed by Ld. CIT(Appeals) upholding the additi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ts had indeed been confirmed as genuine in the assessments of the respective investors, there would be little justification for the AO/CIT(A) to classify these same investments as bogus in the hands of the company receiving the share capital. 8. In the result, the appeal of the assessee is allowed. Now we come to Assessee's Appeal in ITA No. 416/Ahd/2024 for A.Y. 2018-19 9. The Assessee has taken the following grounds of appeal: "1. Ld. PCIT erred in law as well as on fact in assuming jurisdiction and passing order u/s. 263 of the Act." 10. The second appeal in ITA No. 416/Ahd/2024 relates to 263 order passed by Ld. PCIT holding that the assessment order dated 15.04.2021 as erroneous in so far as prejudicial to the interest of the Rev ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
