When assessee submits the relevant details in respect of share application money such as PAN Number, confirmation and the bank particulars it can be said that the assessee has discharged its burden

ITO Vs M/s Kailashpati Overseas Pvt Ltd (ITAT Delhi) – Whether the amount received by the assessee and sale receipts from sale of shares is rightly considered as income u/s 68 though the assessee furnished all the necessary documents to prove the transactions genuine and the AO did not investigate the modus operandi as was explained by the investigation wing – Revenue’s appeal dismissed.

Whether when assessee submits the relevant details in respect of share application money such as PAN Number, confirmation and the bank particulars it can be said that the assessee has discharged its burden and no addition can be made on the basis of investigation averments, and it is incumbent on the AO to prove that averments of investigation wing applies in the case of the assessee-Held-Yes.

In this case the assessee has received share application money from some persons- On the basis of investigation wing report AO reopened the assessment of the impugned years and direct the assessee to produce the share applicants- Assessee could not produce any body- AO made the addition- CIT(A) allowed the appeal of the assessee- Matter reached to the ITAT wherein the AR of the assessee points out that assessee has discharged its initial burden and the ball is in the court of AO to investigate further AR of the assessee relied on the decision of Oasis Hospitality- ITAT dismissed the appeal of the department.

IN THE INCOME TAX APPELLATE TRIBUNAL

(DELHI BENCH `D’ : NEW DELHI)

Please become a Premium member. If you are already a Premium member, login here to access the full content.