September 2023

Section 68 — The department without dislodging the primary onus that was duly discharged by the appellant under section 68 of the Act could not have drawn adverse inferences and treat the transaction as unexplained cash credit.

By Jagdish T Punjabi, Chartered Accountant
Devendra Jain, Advocate

Reading Time 5 mins

29. ITO vs. Sharda Shree Agriculture & Developers (P.) Ltd
[2022] 99 ITR(T) 143 (Raipur – Trib.)
ITA No.:84 (RPR) OF 2017
A.Y.: 2012–13

Date: 5th August, 2022

Section 68 — The department without dislodging the primary onus that was duly discharged by the appellant under section 68 of the Act could not have drawn adverse inferences and treat the transaction as unexplained cash credit.

FACTS

During the relevant A.Y. 2012–13, the assessee company had received share application money of Rs. 26,00,000 from its directors and close relatives and had received share application money of Rs. 2,44,00,000 from two companies namely M/s Chandika Vanijiya Pvt Ltd and M/s Neel kamal Vanjiya Pvt Ltd Out of the above, the assessee company had refunded the amount of Rs. 26,00,000 to its directors and close relatives in the same A.Y. i.e., A.Y. 2012–13 and the assessee company had refunded amount of Rs. 38,50,500 to M/s Chandika Vanijiya Pvt Ltd in the same A.Y. i.e., A.Y. 2012–13 and balance amount of Rs. 95,00,000 in A.Y. 2015–16.

During the scrutiny proceedings, to substantiate the genuineness of the above transactions, the assessee company had submitted the following documents — copies of return of income along with computation of income, audited financial sta

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