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Share Transaction Not Bogus when all Relevant Documents produced but Parties are not Traceable

In CIT v. M/s. Orchid Industries Pvt. Ltd, a division bench of the Bombay High Court held that share transactions cannot be treated as bogus under section 68 of the Income Tax Act when Assessee produced all the relevant documentary evidence to prove the genuineness of the transaction in order to discharge its onus.

Justices S.V Gangapurwala and A M Badar, while dismissing the departmental, said that in such a case, the AO cannot invoke section 68 merely for the reason that the shareholders never responded to the intimations sent by him and never appeared before him.

Article referred: http://www.taxscan.in/share-transaction-cannot-treated-bogus-assessee-produced-relevant-documents-parties-not-traceable-bombay-hc/9274/?utm_source=feedburner&utm_medium=email&utm_campaign=Feed%3A+Taxscan+%28Top+Stories+%E2%80%93+Taxscan+%7C+Simplifying+Tax+Laws%29

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