Case Law Details
Bhatia Energy and Minerals Pvt. Ltd Vs ITO (ITAT Raipur)
ITAT Raipur held that matter needs to be restored in absence of necessary verification by AO in characterizing share application money as unexplained cash credit u/s 68 and non-cooperation and evasive conduct of the assessee.
Facts- During the course of the assessment proceedings, it was observed by the A.O that the assessee company was in receipt of share application money of Rs.25 lac from M/s. Debraj Vincom Pvt. Ltd. As the assessee had failed to substantiate the authenticity of the aforesaid transaction of receipt of share application money from the aforementioned share subscriber company, therefore, the A.O vide his order passed u/s.143(3)/147 dated 28.12.2018 dubbed the same as unexplained cash credit u/s.68 of the Act and determined the income of the assessee company at Rs.25,00,000/-.
Aggrieved, the assessee carried the matter in appeal before the CIT(Appeals) but without success. Being aggrieved, the present appeal is filed.
Conclusion- I am unable to persuade myself to subscribe to the view taken by the lower authorities in the absence of necessary verifications of the factual position by them. At the same time the conduct of the assessee also does not inspire any confidence. Neither the assessee company had before the A.O or before CIT(Appeals) placed on record any such clinching documentary evidence which would substantiate the authenticity of the transaction in question. Considering the totality of the facts involved in the case before me, I am of the view that the characterization of the share application money of Rs.25 lac by the A.O as unexplained cash credit u/s.68 of the Act is clearly devoid and bereft of necessary verifications by him. At the same time the non-cooperative and evasive conduct of the assessee before the lower authorities can also not be lost sight of.
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