ITAT : Delivers Sec. 68 blow for assessee's miserable failure in demonstrating share premium genuineness

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