ACIT Vs Prasanna Purple Mobility Solutions Private Limited (ITAT Pune)
ITAT Pune restored the assessment order as assessee neither filed any evidence nor provided material in an attempt to discharge the onus cast upon it in terms of provisions of section 68 of the Income Tax Act.
Facts- The assessee is a company engaged in the business of Transport operations. AO formed an opinion that income escaped assessment to tax based on the information that the assessee company issued shares of Face Value of Rs.10/- at a high premium of Rs.1584/-per share and received share capital/share premium of Rs.30,00,00,364/-, accordingly issued notice u/s.148 of the Act on 09.11.2017. The assessment was completed by the AO by making addition of share capital/share premium as unexplained money of assessee company.
CIT(A) concluded that the essential ingredients, viz., Identity, creditworthiness and genuineness of the transaction stood satisfied, accordingly directed the AO to delete the addition. Being aggrieved, revenue has preferred the present appeal.
Conclusion- Held that the order of the CIT(A) is bereft of factual discussion on the above aspects. Nor the assessee company filed any evidence or material in an attempt to discharge the onus cast upon it in terms of provisions of section 68 of the Act. Therefore, the finding of the CIT(A) to the extent of deleting the addition on account of share capital/share premium from the above parties is reversed. In the absence of any material on record discharging the onus cast upon the asseseee company in terms of provisions of section 68 of the Act, we are not inclined to remand the matter to the lower authorities. Accordingly, the assessment order is restored and the appeal filed by the Revenue stands allowed.
