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TMI Blog2024 (12) TMI 1536X X X X Extracts X X X X X X X X Extracts X X X X ..... r should be examined when the assessing officer proposes to invoke this power under Section 68 of the Act. The broad principles which were laid by the Hon'ble Supreme Court in so far as the credits of the share capital/premium are that the assessee under a legal obligation to prove the genuineness of the transactions, the identity of the creditors and creditworthiness of the investors who should have financial capacity to make the investment in question to the satisfaction of the assessing officer, so as to discharge the primary onus. The second aspect is with regard to the duty of the assessing officer, wherein it was held that the assessing officer is duty bound to investigate the creditworthiness of the creditors/subscribers, verify the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... attacharyya For the Appellant : Mr. Smita Das De, Adv. Mr. Soumen Bhattacharjee, Adv. For the Respondent : Mr. Abhratosh Majumdar, Sr. Adv., Ms. Swapna Das, Adv., Mr. Siddharth Das, Adv. ORDER The Court : This appeal filed by the assessee under Section 260A of the Income Tax Act, 1961 (the Act) is directed against the order dated 8th August, 2023 passed by the Income Tax Appellate Tribunal, "C" Bench, Kolkata (the Tribunal) in ITA No. 22/Kol/2021 for the assessment year 2012-13. 2. The revenue has raised the following substantial questions of law : "(i) Whether the Learned ITAT has was justified in law to delete the addition of Rs. 85,61,00,000/- on account of unexplained receipts of share application money, ignoring the fa ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... der Section 68 of the Act was set aside. We find that the CIT (A) while examining the correctness of the transaction had taken into consideration the parameters which have been laid down in various decisions of the Hon'ble Supreme Court as to how a matter should be examined when the assessing officer proposes to invoke this power under Section 68 of the Act. The broad principles which were laid by the Hon'ble Supreme Court in so far as the credits of the share capital/premium are that the assessee under a legal obligation to prove the genuineness of the transactions, the identity of the creditors and creditworthiness of the investors who should have financial capacity to make the investment in question to the satisfaction of the assessing o ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... and/or the subscription made by them to the share capital of the assessee was not genuine and/or the source of investment was not fully explained to the satisfaction of the assessing officer. The correctness of the factual finding rendered by the CIT (A) was re-examined by the Tribunal and the learned Tribunal also found that the assessing officer has not pointed out as to what enquiry he has made and as to how in his opinion the transactions were held to be not genuine. The only aspect which borne in the mind of the assessing officer was that the directors of the erstwhile subscribers company, though were issued summons, did not personally appear. However, it is not in dispute that the documents were all placed before the assessing officer ..... X X X X Extracts X X X X X X X X Extracts X X X X
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