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TMI Blog2007 (7) TMI 626X X X X Extracts X X X X X X X X Extracts X X X X ..... ness of the cash creditors and genuineness of the transactions. It is apparent from the order of the Tribunal that it has not gone into the question of credit worthiness of creditors and genuineness of the transaction. Since, in the present case, the Tribunal has not gone into credit worthiness of the creditors and genuineness of the transaction, it is a fit case which ought to be remanded to the Tribunal give its finding on these two issues. Learned counsel for the revenue has also stated during the course of argument that she has no objection if the matter is remanded on these issues. Thus, we remand the matter back to the Tribunal with directions to give its finding on creditworthiness of the creditors and genuineness of the transa ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... mations substantiating the genuineness, credit-worthiness and identity of the persons/creditors. The assessee furnished only the list of shareholders but not their addresses, and as such, the Assessing Officer could not verify the correctness of the claim made by the assessee and, therefore, made an addition of ₹ 5,87,27,000 to the income of the assessee under section 68 of the Income-tax Act, 1961 (for short as Act ) treating the same as income from undisclosed sources. 6. The assessment order passed by the Assessing Officer was challenged before the Commissioner of Income-tax (Appeals) [ CIT(A) for brevity]. The CIT(A) held that the assessee has failed to establish the credit-worthiness and genuineness of the transactions to th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... t-payee cheques and addresses of the shareholders had been furnished. However, CIT(A) held that the assessee failed to establish the creditworthiness of the cash creditors and genuineness of the transactions. 11. Further, the Tribunal in its order states that :- from the particulars furnished by the assessee it is clear that the assessee has duly identified and established the existence of the share applicants in question and no material has been brought on record to doubt the genuineness of the assessee s share issue. 12. It is apparent from the order of the Tribunal that it has not gone into the question of credit worthiness of creditors and genuineness of the transaction. 13. In Divine Leasing Finance Ltd. s case (supra), ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ssing Officer for his perusal, all the information contained in the statutory share application documents. In the case of private placement the legal regime would not be the same. A delicate balance must be maintained while walking the tightrope of sections 68 and 69 of the Income-tax Act. The burden of proof can seldom be discharged to the hilt by the assessee; if the Assessing Officer harbours doubts of the legitimacy of any subscription he is empowered, nay duty-bound to carry out thorough investigations. But if the Assessing Officer fails to unearth any wrong or illegal dealings, he cannot obdurately adhere to his suspicions and treat the subscribed capital as the undisclosed income of the company. Further, a distillation of the prec ..... X X X X Extracts X X X X X X X X Extracts X X X X
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