TaxTMI 
TaxTMI 
2023 (11) TMI 589
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....e facts and in the circumstances of the case, Ld. CIT(A) erred in confirming the addition of Rs. 2,06,00,000/- towards Share Capital including premium as unexplained cash credit U/s. 68 of Income Tax Act, 1961. 2. That on the facts and in the circumstances of the case, Ld. CIT(A) erred in confirming the action of AO who relied upon various judicial decisions which are misplaced and contrary to law since the facts are distinguishable. 3. That the appellant craves leave to add, alter, adduce or amend any ground or grounds on or before the date of hearing." 3. A perusal of the above grounds of appeal would reveal that the assessee has agitated the addition of Rs. 2,06,00,000/- made by the Assessing Officer treating share capital and share....
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.... dated 19.03.2015 for A.Y 2009-10 of M/s Primerose Traders Pvt. Ltd., copy of Form 5 issued by PCIT-2, Kolkata in respect of Vivad Se Vishwas scheme opted by M/s Primerose Traders Pvt. Ltd. Apart from that, it was submitted that the identity of the share subscriber was duly proved, transactions were carried out through banking channel, the source of funds of the share subscriber was duly furnished. It was submitted that in the case of said share subscriber namely M/s Primerose Traders Pvt. Ltd., an assessment u/s 143(3) was carried out for A.Y 2009-10 and an income of Rs. 12,45,21,590/- was assessed, whereupon, a tax demand of Rs. 6,00,32,523/- was raised. The said share-subscriber i.e. M/s Primerose Traders Pvt. Ltd. availed Vivad Se Vishw....
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....ld. counsel, in this respect, has submitted that the director of the share subscriber company though has shown inability to appear personally on the date fixed, however, he had duly responded to the summons issued and sent the required details and evidences to the Assessing Officer. The AO has not pointed out in the Assessment Order as to what further enquiries he wanted to make from the directors of the subscribers to insist for their personal presence. The Assessee in this case, as noted above, explained about the identity, creditworthiness and financials etc. of each of the share subscriber company. The AO, in our view, could have taken an adverse inference, only if, he would have pointed out the discrepancies or insufficiency in the evi....
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....he CIT(Appeals) has taken the trouble of examining of all other materials and documents viz., confirmatory statements, invoices, challans and vouchers showing supply of bidi as against the advance. Therefore, the attendance of the witnesses pursuant to the summons issued in our view is not important. The important is to prove as to whether the said cash credit was received as against the future sale of the produce of the assessee or not. When it was found by the CIT(Appeal) on fact having examined the documents that the advance given by the creditors have been established the Tribunal should not have ignored this fact finding." 5. So far as the reliance of the Ld. DR on the decision of the hon'ble Supreme Court in the case of "PCIT v/s NRA....
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....r, verify the identity of the subscribers, and ascertain whether the transaction is genuine, or these are bogus entries of name-lenders. iii. If the enquiries and investigations reveal that the identity of the creditors to be dubious or doubtful, or lack credit-worthiness, then the genuineness of the transaction would not be established. In such a case, the assessee would not have discharged the primary onus contemplated by Section 68 of the Act." The Hon'ble Supreme court, thus, has held that once the assessee has submitted the documents relating to identity, genuineness of the transaction, and credit-worthiness of the subscribers, then the AO is duty bound conduct to conduct an independent enquiry to verify the same. However, as note....