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Issues involved:
The appeal challenges the deletion of addition made u/s 68 of the Income Tax Act without establishing the identity, capacity, and genuineness of the creditors. Issue 1: Addition of Share Application Money The Assessing Officer added Rs. 20,48,500 to the income of the assessee company for the Assessment Year 2003-04, as share application money received from 15 agriculturists. The AO found the assessee failed to prove the identity of the creditors, except for two, and invoked section 68 of the Act for the addition. The Commissioner (Appeals) upheld the addition, but the Income Tax Appellate Tribunal reversed it, citing that once the applicants admitted to making the payment, further inquiry was unnecessary. The Tribunal relied on judicial precedents, including the Supreme Court's decision in CIT Vs. Lovely Exports Pvt. Ltd. The assessee provided names and 7/12 extracts of the creditors, showing their agricultural land holdings, which was deemed sufficient by the Tribunal. In conclusion, the High Court dismissed the appeal, stating that no substantial question of law arose for consideration. The Tribunal's decision was upheld, emphasizing that the assessee had fulfilled the necessary requirements regarding the share application money, as per legal precedents.
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