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TMI Blog2023 (8) TMI 512X X X X Extracts X X X X X X X X Extracts X X X X ..... transaction. In our opinion, the assessee has to prove the identity and creditworthiness of the creditor and genuineness of the transaction in compliance with Section 68 - assessee company by self proclaiming itself as shell company cannot shirk and avoid its legal obligation to prove the identity and creditworthiness of the so called share applicants and genuineness of the transaction as mentioned by various Courts in respect of application of provisions of Section 68. No error or infirmity in the order of the A.O. and also the order of the CIT(A) and find no merit in the grounds of appeal of the assessee. - Shri Shamim Yahya, Accountant Member And Shri Yogesh Kumar U.S., Judicial Member For the Appellant : None For the R ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the order of the CIT(A) are as under:- The return of income was originally filed on 27.03.2010 declaring NIL income. A search and seizure operation was carried out in the case of Priya Gold Group its promoters on 16.12.2014. During the proceedings of search and seizure action at the head office of the group, substantial documents were found and seized. The information contained in these documents related to the appellant company also. Although notice u/s 148 was issued to the appellant company on 22.03.2016 assessment proceedings were abated as per proviso to section 153C r.w.s. 153A of the I.T. Act, 1961. After recording satisfaction, notice u/s 153A r.w.s. 153C was issued to the appellant on 01.09.2016. Vide letter dated 25.10.2016 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ocuments produced by the assessee, but the said explanations documents and reply by the assessee was not sufficient to prove the burden of the assessee caused in Section 68 of the Act, therefore, made the addition. The Ld. CIT(A) has also made proper analyzation of the documents produced by the assessee and found that the assessee has failed to establish the identity and creditworthiness of shares applications and genuineness of the transaction. In our opinion, the assessee has to prove the identity and creditworthiness of the creditor and genuineness of the transaction in compliance with Section 68 of the Act. The assessee company by self proclaiming itself as shell company cannot shirk and avoid its legal obligation to prove the identity ..... X X X X Extracts X X X X X X X X Extracts X X X X
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