No section 68 addition merely based on AO’s surmises & conjectures

Blue Lotus Designers Pvt. Ltd Vs ITO (ITAT Kolkata) Conclusion: Since both the nature & source of the share application received was fully explained by assessee thus, assessee had discharged its onus to prove the identity, creditworthiness and genuineness of the share applicants and addition made by AO u/s 68 was based on conjectures and surmises which could not be justified. Held: AO treated assessee’s share capital / premium of ₹ 2,01,50,000/- as unexplained cash credits u/s 68. He contended that summons u/s 131 remained un-complied with as per lower appellate findings under chal...