ITAT deletes Addition of ₹2.30 Crore u/s 68, upholds Assessee’s Burden of Proof

The Kolkata Bench of the Income Tax Appellate Tribunal (ITAT) deleted an addition of ₹2.30 crore made under Section 68 of the Income Tax Act, 1961. The case involved the assessee successfully establishing the identity, creditworthiness, and genuineness of the share transactions, despite the Assessing Officer (AO) initially concluding otherwise based on the company’s low creditworthiness. The ITAT emphasized that the burden of proof lies with the assessee to provide adequate documentation, which, in this case, was fulfilled, shifting the onus back to the AO to investigate further. This ruling highlights the importance of proper documentation and the assessee’s burden of proof in establishing the legitimacy of transactions. Taxpayers should ensure they maintain thorough records to support their claims and avoid similar disputes.