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 assessments by making additions of Rs. 5,22,70,600/- and Rs. 1,66,64,987/- for the AY 2012-13 and 2013-14 respectively. Aggrieved by the order of the Ld. AO, the assessee filed an appeal before the Ld. CIT(A). Ld. CIT(A) considering the submissions and additional evidences made by the assessee, partly allowed the appeal. Aggrieved by the orders of the Ld. CIT(A), the Revenue is in appeal before us.

Conclusion-

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