No Addition u/s 68 for share application money received in bank if assessee establishes identity of share applicants

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INCOME TAX APPELLATE TRIBUNAL DELHI

ITA No.2059 /Del/2011 – Assessment year: 2006-07

Income-tax Officer

V/s

M/s Golden Home Furnishing Pvt. Ltd.

Date of pronouncement: 28-06-2012

Indisputably, certain discrepancies crept in while furnishing the information requisitioned by the AO from the assessee in respect of the aforesaid amount of Rs. 10 lacs from M/s Melco Sales Pvt. Ltd. and Rs. 5 lacs from M/s Poonam Corporation Ltd. towards share application money vis-à-vis information obtained by the AO from the aforesaid two companies u/s 133(6) of the Act. After examining the relevant details and documents including bank statements of the assessee and share applicants, the ld. CIT(A) concluded that in view of the evidences on record, the mismatch as observed by the AO is duly explained by the entries in the bank statement of the assessee as well as the share applicant and the assessee discharged its onus by establishing the identity of the share applicants, the genuineness of the transaction as well as the credit worthiness of the investors. Accordingly, the ld. CIT(A) deleted both the additions. The ld. DR did not place before us any material, controverting the aforesaid findings of facts recorded by the ld. CIT(A) so as to enable us to take a different view in the matter. In the absence of any basis, we are not inclined to interfere. Therefore, ground nos.1 & 2 in the appeal are dismissed.