2009 (10) TMI 919 - AT - Income Tax

Summary

Issues involved: Appeal by revenue against deletion of addition of share application money u/s 68 for different assessment years.

For AY 2002-03: Revenue contended that genuineness of transaction not established by assessee. Assessee received accommodation entries from various entities. AO treated amounts as unexplained cash credits u/s 68. CIT(A) deleted additions. Tribunal found identity of share applicants proved through banking channel, supporting assessee's case.

For AY 2003-04: Assessee received share capital from two companies. AO added amount as unexplained cash credits u/s 68. Assessee filed income-tax returns of subscribing companies, proving identity. Tribunal upheld CIT(A)'s deletion of addition, citing precedents and emphasizing onus of proving identity and genuineness on assessee.

Separate Judgement: Tribunal dismissed revenue's appeals for both AYs, upholding CIT(A)'s decisions based on established identity of share subscribers and compliance with legal requirements.