SLP dismissed – No section 68 additions if identity of applicants was clearly revealed
[2018] 98 taxmann.com 173 (SC)
SUPREME COURT OF INDIA
Principal Commissioner of Income Tax
v.
Himachal Fibers Ltd.*
Section 68 of the Income-tax Act, 1961 – Cash credit (Share capital)
– In course of assessment, Assessing Officer noted that assessee was a sick company during relevant year but had nevertheless collected substantial amounts to extent of Rs. 12 crores invested by two share applicants – Assessing Officer took a view that identity of shareholders and genuineness of transaction had not been established and, accordingly, brought to tax said amount
-Tribunal as well High Court found that even though assessee was a sick company earlier, yet it pulled out of woods in year 2010 – It was also noticed that identity of share applicants was clearly revealed but Assessing Officer did not conduct any enquiry except resting his conclusions on surmises – Accordingly, addition made by Assessing Officer was deleted – Whether on facts, SLP filed against order passed by High Court was to be dismissed – Held, yes
[Para 2] [In favour of assessee]*
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