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| The Tax Publishers2021 TaxPub(DT) 0062 (Ahd-Trib) INCOME TAX ACT, 1961
Section 68
Assessee by furnishing necessary details, proved identity and creditworthiness of parties and genuineness of transactions of receipt of share capital. As AO failed to take any step to carry out investigation and demonstrate that these materials were not sufficient for discharging onus cast upon assessee, addition made under section 68 merely on the basis of conjectures and surmises could not be sustained.
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Income from undisclosed sources - Addition under section 68 - Receipt of share capital - Assessee proved identity, creditworthiness and genuineness
Assessee received share capital from certain parties. AO treated the same as unexplained credit and accordingly made addition under section 68. Held: Assessee by furnishing necessary details such as confirmation, bank statements, copies of income-tax returns, PAN data, discharged primary onus under section 68 to prove identity and creditworthiness of parties and genuineness of transactions. It was AO who had to carry out investigation and demonstrate that these materials were not sufficient for discharging onus cast upon assessee by section 68. No such steps had been taken by AO. Accordingly, addition made merely on the basis of conjectures and surmises could not be sustained.
REFERRED :
FAVOUR : In assessee's favour.
A.Y. :
INCOME TAX ACT, 1961
Section 271(1)(c)
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