ACIT Vs Jay Bharat Mehta (ITAT Mumbai)
ITAT Mumbai held that addition towards section 68 of the Income Tax Act deleted as assessee discharged initial onus by proving identity, creditworthiness and genuineness of transaction. Accordingly, appeal allowed.
Facts- During assessment proceedings, AO made an addition of 1,68,55,71,440/- as unexplained cash credit u/s. 68 of the Act in respect of consideration received by the Assessee during the relevant previous year from sale of 22,62,512 equity shares of JBCPL to Tau Investment Holdings Pte. Ltd. on the ground that the Assessee had failed to explain the nature and source thereof. Further, AO also restricted the deduction of INR.11,90,38,405/- claimed by the Assessee u/s. 54F of the Act on account of purchase of new residential house utilizing the proceeds from the sale of shares of JBCPL to INR.5,95,29,202/- (being 50% of claim of INR.11,90,38,405/- made u/s. 54F of the Act) observing that the Assessee was joint owner of the residential house purchased alongwith his wife and therefore, the Assessee held only 50% share in the aforesaid new residential house. However, AO recorded that no separate addition was being made as the total sale proceeds of INR.1,68,55,71,440/- were added to the returned income of the Assessee by invoking provision contained in Section 68 of the Act.
