Once identity & creditworthiness of investors is established addition u/s 68 unsustainable

ACIT Vs Sri K V Madhava Verma (ITAT Visakhapatnam)

Held that as identity and creditworthiness of the investors is established, merely because of delay in transferring of the shares to the prospective investors, the amount cannot be treated as unexplained investment u/s 68.

Facts-

The case of the assessee was selected for scrutiny under CASS and the statutory notices U/s. 143(2) and 142(1) of the Act were issued and served on the assessee. AO concluded the assessment

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