Case Law Details
ITO Vs M/s Yadu Steels & Power Pvt.Ltd. (ITAT Delhi)
Under Section 68 onus is upon assessee to prove three ingredients, i.e., identity and creditworthiness of credit entries. As to how onus can be discharged would depend on facts and circumstances of each case. It is expected of both sides – assessee and Ld.AO, to adopt reasonable approach. Assessee before us is a private limited company. It cannot issue shares in manner in which a public limited company does. It generally depend on persons known to its directors or shareholders directly or indirectly to buy its shares. Once monies are received and shares are issued, it is not as if share-subscribers and assessee lose touch with each other and become incommunicado. Onus thus is upon assessee to prove identity, creditworthiness of subscribers and most importantly genuineness of transactions under section 68.
Even if AO does not make inquiry, CIT(A) should do so. Relief cannot be given merely on basis of Ration Card, Share Application forms, Voter ID etc of the subscribers
FULL TEXT OF THE ITAT JUDGEMENT
Present appeal has been filed by revenue against order dated 30/10/13 passed by Ld.CIT(A)-21 for Assessment Year 2009-10 on following grounds of appeal:
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