TaxTMI 
TaxTMI 
2026 (4) TMI 472
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....th November, 2014 declaring total income of Rs. 58,68,690/-. Thereafter, the case was selected for scrutiny and assessment was completed under Section 143(3) of the Income-tax Act, 1961 on 22nd September, 2016 assessing total income at Rs. 59,17,944/- after making an addition of Rs. 49,254/- to the total income returned. Subsequently, the Principal Commissioner of Income Tax, Hisar by exercising the power conferred under Section 263 of the Act, set aside the assessment and directed a fresh assessment. Accordingly, order u/s 143(3) r.w.s. 263 of the Act was passed by the AO on 26.04.2021 by making addition of unexplained cash credit u/s 68 of the Act on account of share application: Rs. 1,95,00,000/- and made Disallowance of interest expense....
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....ers and list of the shareholders. However, learned CIT(A) neither disputed those documents nor made any further enquiry, but proceeded to confirm the Addition, therefore sought for deletion of the addition. 5. Per contra, the Learned DR submitted that, mere submission of the documents cannot establish the genuineness of the transaction and the creditworthiness of the investees in order to discharge the onus cast upon the Assessee, thus relying on the findings and the conclusion of the CIT(A), sought for dismissal of Ground No. 1 to 8 of the Assessee. 6. We have heard the parties and perused the multiracial available on record. During the First round, the Ld. CIT(A) dismissed the Appeal of the Assessee in-limine and the Co-ordinate ben....
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.... of bank accounts and shows the genuineness of the transaction by showing money in the banks is by account payee cheques or by draft, etc., then the onus to prove would shift to the Revenue. The Hon'ble Jurisdictional High Court in the case of CIT Vs. Kamdhenu Steel & Alloys Ltd. (Reported in MANU/DE/7557/2011) held as under:- "2. It is, thus, clear that initial burden lies on the assessee to explain the nature and source of the share application money received by the assessee. It is also clear that the assessee has to satisfactorily establish the identity of the shareholders, the genuineness of the transaction and the creditworthiness of the shareholders. The manner in which such a burden is to be discharged has been explained....
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....n 68 of the Act Assessee has produced various documents before the CIT (A), which are once again produced before us. We have gone through those documents. As the Ld. CIT(A) has not doubted the genuineness of the Documents and also not found it fit to make further enquiry, committed error in confirming the addition by brushing aside those documents. By following the ratio lied down by the Hon'ble Jurisdictional High Court in the case of CIT Vs. Kamdhenu Steel & Alloys Ltd. (Supra), we delete the addition of Rs. 1,95,00,000/- made by the A.O. under Section 68 of the Act, which has been sustained by the CIT(A). Accordingly Ground No. 1 to 8 are allowed. 9. Ground No. 9 of the Assessee is on account of the disallowance of the expenditure of ....