The Assessing Officer had made an addition under Section 68 on the ground that the assessee failed to satisfactorily explain the nature and source of share application money received from three companies. The AO examined the genuineness and creditworthiness of the transactions and concluded that the assessee had not discharged its onus. However, the Tribunal deleted the addition, holding that the assessee had established identity and discharged its burden. The High Court reversed the Tribunal\u2019s decision, observing that mere proof of identity of the investor does not suffice under Section 68; the assessee must also prove the creditworthiness of the investors and the genuineness of the transactions, including their financial capacity to invest. The Court noted that the Tribunal had ignored material evidence considered by the AO and failed to address findings regarding creditworthiness and genuineness. Consequently, the High Court restored the AO\u2019s addition. (AY. 2011-12, 2012-13)<\/p>\n","protected":false},"excerpt":{"rendered":"
S. 68 : Cash credits-Share capital received from three companies-Mere proof of identity of investors insufficient-Assessee must establish creditworthiness and genuineness-Tribunal ignored AO\u2019s findings-Addition restored by High court [S. 260A] <\/p>\n","protected":false},"author":3,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"jetpack_post_was_ever_published":false,"_jetpack_newsletter_access":"","_jetpack_dont_email_post_to_subs":false,"_jetpack_newsletter_tier_id":0,"_jetpack_memberships_contains_paywalled_content":false,"_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[21],"tags":[],"class_list":["post-59711","post","type-post","status-publish","format-standard","hentry","category-income-tax-act"],"acf":[],"jetpack_featured_media_url":"","jetpack_shortlink":"https:\/\/wp.me\/p9S2Rw-fx5","jetpack-related-posts":[],"jetpack_sharing_enabled":true,"_links":{"self":[{"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/posts\/59711","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/users\/3"}],"replies":[{"embeddable":true,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/comments?post=59711"}],"version-history":[{"count":1,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/posts\/59711\/revisions"}],"predecessor-version":[{"id":59712,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/posts\/59711\/revisions\/59712"}],"wp:attachment":[{"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/media?parent=59711"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/categories?post=59711"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/tags?post=59711"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}