Shanti Prime Publication Pvt. Ltd.
Sec. 68 of Income Tax Act, 1961—Cash Credit— Even if assessee was not able to prove the identity or credit-worthiness or genuineness of the transaction, then also in this accounting year this amount cannot be added; because section 68 contemplates that where any sum is found credited in the books of an assessee maintained for any previous year, and the assessee offers no explanation about the nature and source thereof, or the explanation offered by the assessee is not, in the opinion of the AO satisfactory, then the sum so credited in the accounts may be treated as income of the assessee of that previous year and the assessee has demonstrated that it has not received any money on account of share application during this year and this statement has been proved by the assessee from the details obtained from the bank, which we have taken note of, thus, it is to be construed that no amount in real sense has been found to be credited in the accounts of the assessee and if that be so, then how an inquiry for the purpose of section 68 can be made, therefore, there is no need to examine this evidence i.e. confirmation, capacity and genuineness of 28 applicants, therefore, the addition is not sustainable and it is deleted. - DEEM ROLL TECH LTD. V/s DEPUTY CIT -  28 ITCD Online 048 (ITAT-AHMEDABAD)