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May 2024

Search and seizure — Unexplained money — Burden of proof — Share capital — Investments in share capital through banking channels — Addition made based on unproven and untested statements recorded during searches — Onus to prove investments bogus not discharged — Deletion of addition.

By K B Bhujle | Ritu Punjabi, Advocates
Reading Time 3 mins

14 Principal CIT vs. PNC Infratech Ltd.

[2024] 461 ITR 92 (All)

A.Y.: 2010–11

Date of order: 11th December, 2023

Ss. 69 and 132 of the ITA 1961

Search and seizure — Unexplained money — Burden of proof — Share capital — Investments in share capital through banking channels — Addition made based on unproven and untested statements recorded during searches — Onus to prove investments bogus not discharged — Deletion of addition.

The assessee received share capital from three entities in the A.Y. 2010–11 through banking channels. During the search u/s. 132 of the Income-tax Act, 1961, statements were recorded of directors and responsible functionaries of the investor entities and the assessee involved inthe transactions. Relying on the statements made by BK, LJ, RK, SK and SM recorded during the search proceedings, investments made in the form of share cap

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