Share Application Money Cannot Be Deemed Unexplained Income Without Substantive Evidence

DCIT Vs J.A. Infracon Pvt. Ltd. (ITAT Ahmedabad)

Share application money cannot be added as unexplained income merely on the basis of surmises and conjectures

ITAT Ahmedabad held that addition, treating share application money as unexplained income, based on surmises and conjectures without making proper verification of facts with relevant materials and evidences is not sustainable in law. Accordingly, appeal of the revenue dismissed.

Facts- The assessee is Private Limited Company has no business activity during the financial year. During scrutiny ass

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