Supreme Court in this Case upheld the Judgment of Hon’ble Delhi High Court and dismissed the Special Leave Petition filed by Income Tax Department.
High Court held that AO did not dispute the veracity of the documents produced. Furthermore, the two individuals who had applied for shares, were made Directors of the assessee company. Prima facie, therefore, the assessee had discharged the onus that was placed upon it to disclose the identity of the share applicants and the genuineness of the money infused having regard to the this.
High Court further held that initial burden cast upon the assessee had been adequately discharged by sufficient evidence. The fact that the share applicants were Directors of the assessee was also undisputed. High Court upheld the ITAT order which set aside the addition of Rs. 4,16,18,889.
Read High Court Order on above