Case Law Details
Moti Adhesives P. ltd. Vs ITO (ITAT Delhi)
Mere non production of Director of said share holder company cannot justify adverse inference u/s 68 of the Act. Even if there was any doubt if any regarding the creditworthiness of the share applicants was still subsisting, then AO should have made enquiries from the AO of the share subscribers as held by Hon’ble High Court in CIT vs DATAWARE (supra) which has not been done, so no adverse view could have been drawn. In this case on hand, the assessee had discharged its onus to prove the identity, creditworthiness and genuineness of the share applicants, thereafter the onus shifted to AO to disprove the documents furnished by assessee and in my view it cannot be brushed aside by the AO to draw the adverse view which here in present facts cannot be countenanced. Therefore addition of 25,45,000 made by AO and sustained by Ld CIT(A) are hereby deleted.
FULL TEXT OF THE ITAT JUDGMENT
The Assessee has filed this Appeal against the Order dated 26.3.2018 of the Ld. CIT(A)-22, New Delhi relating to assessment year 2009-10 on the following grounds:-
1. That on the facts and in the circumstances of the case and in law, Ld. CIT(A) erred in sustaining the order passed by AO u/s. 147/143(3) without appreciating that assumption of jurisdiction u/s. 148 was by AO was in violation of mandatory jurisdictional conditions stipulated under the Act;
Please become a Premium member. If you are already a Premium member, login here to access the full content.
