Addition u/s 68 can be made on account of share applicants’ lack of resources

CA Sandeep Kanoi

Lovely Exports Pvt. Ltd. (supra) is an authority for the proposition that the assessee is under an obligation to dispel any doubts regarding the genuineness of an investor and the genuineness of the transaction. Here, though the assessee furnished particulars relating to three share applicants, the further inquiry made by the AO raised more questions than answers. The share applicants’ lack of resources, the assessee’s position vis-à-vis share amounts received and its commercial condition a

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