Allowing the appeal of the revenue the Tribunal held that , in the case of a Private company, onus is on assessee to prove identity, creditworthiness of subscribers and most importantly genuineness of transactions- Even if AO does not make inquiry, CIT(A) should do so-Relief cannot be given merely on basis of Ration Card, Share Application forms, Voter ID etc of the subscribers -Matter was set aside to AO to decide according to the law ( ITA No. 25/Del/2014, dt. 12.12.2019)(AY.2009-10)
ITO v. Yadu Steels & Power Pvt. Ltd. (Delhi)(Trib), www.itatonline.org
S. 68: Cash credits- Share capital – In the case of a Private company, onus is on assessee to prove identity, creditworthiness of subscribers and most importantly genuineness of transactions- Even if AO does not make inquiry, CIT(A) should do so-Relief cannot be given merely on basis of Ration Card, Share Application forms, Voter ID etc of the subscribers -Matter was set aside to AO to decide according to the law . [ S.131 ]