Shanti Prime Publication Pvt. Ltd.
Sec. 68 of the Income-tax Act, 1961 – Cash credit – The assessee submits that The AO added Rs. 95 lakhs as income under Section 68 of the Act considering that the Assessee had not discharged its onus to establish that the amount was received by the Assessee from the share holders as share application money. The Assessee could not prove the identity of the creditors, their credit worthiness and the genuineness of the transactions. The party from whom the Assessee had received the share amount never responded to the summons issued by the AO. However, ITAT allowed the appeal by deleting the additions made by the AO.
High Court dismissed the appeal of the revenue holding that that the assessee established the genuineness of the party such as PAN of all the creditors along with the confirmation, their bank statements showing payment of share application money and only because those persons had not appeared before the AO would not negate the case of the Assessee. SLP of the revenue dismissed as withdrawn – CIT Vs. ORCHID INDUSTRIES (P.) LTD. [2020] 271 TAXMAN 029 (SC)