2011 (1) TMI 1422

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....me-tax Act, 1961. 2. The brief facts of the case are that the assessee company is engaged in the business of real estate development. It has filed its return of income on 30th November 2006 at ₹ 67,76,100. Assessing Officer selected the case for scrutiny assessment and issued notice under sec. 143(2) of the Act on 29th September, 2007 which was duly served upon the assessee. During the scrutiny of accounts, it revealed to the Assessing Officer that assessee had received fresh share capital of ₹ 24 lacs. He doubted the genuineness and creditworthiness of the two share applicants, namely, M/s. Athnic Creation (P) Ltd. and M/s. MV Marketing (P) Ltd. According to the Assessing Officer, both these concerns were alleged to be operati....

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....ct was submitted before the Assessing Officer. Affidavits of the directors, resolution of the companies exhibiting the fact that they were authorized to apply for shares in the assessee company, copy of the bank statement in the case of M/s. MV Marketing (P) Ltd. etc. were filed before the Assessing Officer. Learned CIT(Appeals) arrived at a conclusion that issue in dispute is squarely covered by the decision of Hon'ble Supreme Court in the case of CIT Vs. Lovely Exports reported in 216 CTR 195. Learned First Appellate Authority also referred a large number of decisions rendered by the Hon'ble Delhi High Court i.e. (i) Bhav Shakti Steels Mines (P) Ltd. Vs. CIT (2009) 18 DTR 194 (Delhi); (ii) CIT Vs. Value Capital Services Pvt. Ltd. ....

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....erefore, the Learned CIT(Appeals) and the Income-tax Appellate Tribunal, in our view were justified in holding that the identity of share applications and the genuineness of the transactions had been established by the assessee." "ITA No. 911/Del/10 8. In any matter, the onus of proof is not a static one. Though in Section 68 proceedings, the initial burden of proof lies on the assessee yet once he proves the identity of the creditor/share applicants by either furnishing their PAN number or income-tax assessment number and shows the genuineness of transaction by showing money in his books either by account payee cheque or by draft or by any other mode, then the onus of proof would shift to the Revenue. Just because the creditors/share a....