Ahmedabad ITAT, in second
round of litigation, confirms unexplained cash credit addition u/s. 68 with
respect to share premium received by assessee (a private limited company
manufacturing PVC pipes) for AY 2002-03; ITAT observes that the taxpayer could not
produce even a single party out of the 13 share premium paying parties despite
they all being based locally, remarks that “the assessee has not made any
effort in discharging its initial onus so as to satisfy the basic factors of
identity, capacity, genuineness and creditworthiness of the 13 parties in
question who have paid it a very hefty share premium of Rs.90/- per share in
question.” ; Further, ITAT notes that assessee could not even submit any
original confirmation, holds that “its subsequent action in submitting all 4
photocopies of the same date indicates a very serious genuineness issue”;
Tribunal clarifies that mere filing of confirmation letter or by receiving
money through banking channel or by filing PAN particulars will not discharge
assessee’s onus; While acknowledging that there cannot be any 'straight jacket
formula' to determine share premium, Tribunal however puts onus squarely on the
assessee for its failure to even prima facie demonstrate the intrinsic value of
shares to be at par with the the exorbitant premium received; Applies Apex
Court ratios in Sumati Dayal and Durgaprasad More, wherein the Courts advocated
judging of evidence by applying the test of "human
probabilities".:ITAT
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