Income — Unexplained Cash Credits — Creditworthiness of creditors — Proof — Share application was money received by assessee from investors

Commissioner of Income Tax v N Tarika Properties Investment Pvt Ltd,


Income — Unexplained Cash Credits — Creditworthiness of creditors — Proof — Share application was money received by assessee from investors — During assessment, AO held that bank statements furnished by assessee omitted to show deposit of cash immediately prior to issuance of cheques for preparation of pay orders or DDs in favour of assessee regarding subscription of its share capital and thus are fabricated — Addition was made by AO in hands of assessee on ground that assessee had failed to discharge onus in proving identify of creditors/subscribers, genuineness of transactions and creditworthiness — Assessee claimed that by providing PANs, account details, share application forms and confirmation letters, he had discharged onus and no addition could be made in hands of assessee — CIT(A) deleted addition made by AO on ground that once identity was established, other parameters were not required to be fulfilled in respect of share application money/share capital — ITAT confirmed findings of CIT(A) — Held, following decision of coordinate bench in CIT v NR Portfolio Pvt Ltd and CIT v Nova Promoters and Finlease Private Limited Case (2012) 342 ITR 169 (Delhi), mere production of PAN Number or assessment particulars submitted by assessee does not establish identity of a person/investor — Identification of a person includes place of work, staff and fact that it was actually carrying on business and further recognition of said company/individual in eyes of public — Bank statements of investors furnished by assessee omitted to show that there was deposit of cash immediately prior to issuance of cheques — Extracts of bank statements furnished by assessee were found to be fabricated — Assessee failed to establish creditworthiness of investors and also genuineness of transaction — Orders of CIT(A) and ITAT were perverse in as much as they had failed to appreciate fabrication in bank statements of share applicants that had been filed by assessee.