TaxTMI 
TaxTMI 
2024 (2) TMI 212
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....e case & in law, the Ld. CIT(A) erred in deleting the addition u/s 68 amounting to Rs 5,18,00,000 (share capital of Rs 2,59,00,000/- and share premium of Rs 2,59,00,000/-) received from Sh Vinod Kumar Sharma (Director) without appreciating the reasons given by the AO. 2. On the facts and circumstances of the case & in law, the Ld. CIT(A) erred in deleting the addition u/s 68 amounting to Rs 5,18,00,000 (share capital of Rs 2,59,00,000/- and share premium of Rs 2,59,00,000/-) by holding that the assessee has discharged the onus of establishing identity and creditworthiness of the creditor and genuineness of transaction without appreciating that No ITR for AY 2014-15 was filed by Sh Vinod Kumar Sharma (Director) and thus his sources ....
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.... the assessment proceedings the Ld. Assessing Officer ("AO") found from the balance sheet that the assessee has received share capital of Rs. 2,60,00,000/- and share premium money of Rs. 2,59,00,000/- aggregating to Rs. 5,19,00,000/- during the year. On query, the assessee submitted that this share application money came from the Director Sh. Vinod Kumar Sharma who held 99.81 % share holding in the assessee company. Confirmation letter dated 05.11.2016 from Sh. Vinod Kumar Sharma was filed wherein he confirmed that he has invested Rs. 5,18,00,000/- as share application money through account payee cheque in the assessee company during the year. 4. The explanation offered by the assessee was not acceptable to the Ld. AO who observed that S....
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....e identity creditworthiness and genuineness of such transaction. The contention of the appellant is that the AO chose to ignore the submission and also did not record submission of the assessee in his note sheet. He produced the copy of submissions made to ITO where in following information's were submitted- * Copy of state of affairs of Mr. Vinod Kumar Sharma showing net worth of Rs. 13,41,59,300/-. * The assesses had also disclosed Canara Bank sanction letter of term loan of Rs. 4.12 crores and loan. * Confirmation of Rs. 5,20,00,000/- from RB Build Worth Pvt. Ltd. as on 31/03/2014 to our Vinod Kumar Sharma * The Assesses had also furnished copy of its bank statement and also bank statement....
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....s to satisfy the rigors of provisions of S. 68 of the Act. Importantly, Sh. Vinod Kumar Sharma is happened to be the director of the Appellant Company whose all relevant details were filed to the AO and who has been assessed independently in the Ward 44(4) Delhi Statement of affairs of Sh. Vinod Kumar Sharma wherein his net worth at Rs.13.41 crores conforms his creditworthiness. He is also found to have availed a loan facility of Rs. 4.12 crores from Canara Bank. It is also noticed that Sh. Vinod Kumar Sharma has received a loan of Rs. 5.20 crore from M/s R.B Builders Pvt. Ltd. during the year. 5.7 Issue of cheques preceded by similar credit entry in the books/share applicant account does not make the transaction doubtful ipso fact....
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....s of creditors, it would had to discharge onus which had shifted on to it -Held yes whether no such exercise having been undertaken by revenue authorities, addition under section 68 in hands of assessees justified -Held No. (in favour of assesses)" * In the case of PCIT vs. Aquatic Remedies Pvt. Ltd., it was held by Hon'ble Bombay High Court that "If copies of share application forms share allotment register, bank statement and its all shareholders have filed affidavit declaring fact that they are investing in the assesses company accounts, the assesses has fulfilled the requirement of genuineness of the transactions, identity of share holders/investors, addition cannot be made under section 68." 6. Dissatisfied, the Re....
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....k account of the assessee company; that the creditor is Income Tax payee and has adequate financial resources and that his identity and creditworthiness has been fully established. It was urged that on these facts, impugned addition is not warranted. 11. It is revealed from the appellate order that the assessee had also inspected his assessment records and pointed out to the Ld. CIT(A) that vide letter dated 19.12.2016 to the Ld. AO, the assessee had submitted copy of statement of affairs of Sh. Vinod Kumar Sharma for F.Y. 2013-14 and copy of letter explaining the source of funds of Sh. Vinod Kumar Sharma for F.Y. 2013- 14 which the Ld. AO did not record in his note sheet, though the letter is available in the assessment records. Despite....