Case Law Details
B.R. Petrochem (P) Ltd. Vs. ITO (Madras High Court)
In the present case, the finding of fact is to the effect that neither the credit worthiness nor the genuineness of the parties has been established by the assessee. The detailed investigations carried out by the assessing officer establish the position that the contributors to share capital were persons of insignificant means and their credit worthiness to have made the contributions has not been established. The assessing authority had put the result of his inquiries to the assessee granting him opportunity to offer its explanations. The appellant however failed to establish the genuineness of the cash contributions as well as the capacity of the persons to have made such contributions in the first place. The findings of the fact arrived at by the tribunal are accepted and nothing has been placed on record to show that they are perverse.Therefore, addition under section 68 was rightly made.
Full Text of the High Court Judgment / Order is as follows:-
The following Substantial Questions of Law have been admitted by this court for consideration in an appeal challenging an order of the Income Tax Appellate Tribunal dated 27-4-2007 in respect of assessment year 2001-02.
‘1. Whether the Tribunal is correct in law in concluding that the assessment of share capital contribution in terms of section 68 of the Act even though the decision of the Supreme Court in the case of M/s. Steller Investments Limited would nullify such an action in the hands of the Appellant on various grounds?
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