Section 68 of the income tax Act, 1961 — Cash Credit — Additions made were correct as assessee failed to discharge the onus placed upon it under Section 68 to establish the genuineness of the transaction and the creditworthiness of the investors/ creditors.[2019] 52 ITCD 69 (DEL)
Facts: CIT (Appeals) had deleted the addition of Rs. 1.17 Crore made by the Assessing Officer on account of unexplained cash credits under Section 68 of the Income Tax Act. The assessee had filed its return of income on 30.11.2004 declaring ‘Nil’ income. However, tax was paid under Section 115JB on the book profit of Rs. 24,86,664/-. The assessee’s case was selected for scrutiny. During the year, the assessee company received fresh share application money to the tune of Rs. 1,54,40,710/- from 16 entities.The assessee was asked to furnish details of the share application money received, and was also asked to furnish copy of the ITR and audited accounts for Assessment Year in question of all the persons who had advanced the share application money to the assessee company. Bank statements from where the said investment in share application money was made were also called for. After examining the materials produced, the Assessing Officer made the aforesaid addition, since the Assessing Officer was not satisfied with the explanation offered by the appellant assessee.
Held,that we have consciously extracted the findings returned by the Assessing Officer as well as by the ITAT, only to demonstrate that there is in-depth consideration of all the facts & circumstances as emerging from the record, and it is absolutely clear and evident that the assessee failed to discharge the onus placed upon it under Section 68 of the Act to establish the genuineness of the transaction and the creditworthiness of the investors/ creditors. The assessee had only disclosed the identity of the investors, who too remained faceless despite notices to them. In our view, no question of law arises for our consideration in the present appeal since the impugned order is primarily premised on appreciation of evidence.