Shanti Prime Publication Pvt. Ltd.
Section 68 of Income Tax Act, 1961 – Cash credit – Addition made under section 68 deleted as assessee discharge its onus of establishing the identity, genuineness and creditworthiness of source of the funds received.
Facts: "Whether CIT (A) had erred in deleting the addition of Rs. 1,57,00,000/- on account of unconfirmed share capital/premium and unsecured loan u/s 68 ignoring the fact that the assessee had failed to discharge its onus of establishing the identity, genuineness and creditworthiness of source of the funds received."
Held, that from the evidence/s placed on record by the assessee as well as share applicants, it is seen that the identity and existence of share applicants cannot be doubted as the replies have been received in response to notice issued u/s 133(6). By placing on record the bank account particulars, PAN, ITRs and financials etc. the assessee has also submitted the prima-facie material to prove the creditworthiness and genuineness of transactions. In such circumstances, non-production of directors, without bringing any contrary material on record, cannot be adversely viewed against the assessee. In the case of assessee, not only the replies have been received in response to all the notices sent u/s 133(6) but the share applicants and the lenders have also filed copy of their ITRs, copy of their financials and copy of their bank account even mentioning the source from which the money has been given to the assessee company. Thus, addition made was deleted – ITO Vs. COMMITMENT FINANCIAL SERVICES (P.) LTD. [2020] 181 ITD 682 (ITAT-DELHI)