TaxTMI 
TaxTMI 
2008 (7) TMI 546
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....n and consideration of this court : "(A) Whether from the facts and circumstances of the case the assessee discharged the onus as per the provisions of section 68 of the Income-tax Act for the cash credits ? (B) Whether on the facts and circumstances of the case the Tribunal was justified in law to delete the addition on account of cash credits of Rs. 50,00,000 under section 68 of the Income-tax Act with-out considering the evidence on record and on the basis of incorrect interpretation and application of law ?" 3. The brief facts giving rise to the present appeal are that the return of income was filed by the assessee on October 31, 2002, declaring total income of Rs. 3,00,210. The assessment under section 143(3) of the Act was complete....
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....(Appeals) considered the facts and circumstances of the case and the addition of Rs. 50 lakhs made by the Assessing Officer on account of cash credit under section 68 of the Act was upheld by the Commissioner of Income-tax (Appeals). She has further submitted that, while reversing the finding given by the Assessing Officer and the Commissioner of Income-tax (Appeals), the Tribunal has not considered the relevant issues and without dealing with those findings straightaway deleted the additions. She has, therefore, submitted that the same is contrary to the law laid down by this court in the case of Rameshchandra M. Luthra v. Asst. CIT [2002] 257 ITR 460. She has further submitted that creditworthiness of the five companies was not establishe....
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.... post ; (b) Explanation of the sources from which investments were made by the respective companies ; (c) Copy of the bank statement showing the aforesaid transaction. 12. The following facts are apparent on record to establish the credit-worthiness of the share applicant-companies : (i) All the applicant-companies are 9 to 10 years old companies as can be verified from the date of incorporation written on the return of income ; (ii) All the share applicant-companies are having authorized and paid up share capital ranging from 50 lakhs to 65 lakhs ; (iii) All the share applicant companies are non-banking finance companies registered with the Reserve Bank of India to carry on the business of non-banking financial institution ; (iv) Al....
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....clearly discharged its onus of proving identity of parties, genuineness of transaction and creditworthiness of share applications inasmuch as evidently their returns of income, assessment orders, balance-sheets showing investment, explanation regarding how they raised funds have been submitted before the lower authorities. The Tribunal has also found that the adverse inference drawn by the Assessing Officer is misplaced as their expectations from the assessee travelled beyond the ingredients of onus as prescribed by section 68 of the Act. After giving this factual finding, the Tribunal has referred to the decision of this court in the case of CIT v. Pragati Co-operative Bank Ltd. [2005] 278 ITR 170 and held that the Assessing Officer has go....