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2010 (11) TMI 628 - ITAT, NEW DELHIAddition - Commission from undisclosed sources - Unexplained cash u/s 68 - Held that :- CIT(A) relied on the decision in 'CIT vs. Lovely Exports,[2008 -TMI - 76942 - SUPREME COURT OF INDIA], wherein it has been held to the effect that where the assessee has discharged its onus u/s 68 of the Act, even if the creditor companies are found to be bogus addition, if any, can only be made in the hands of those creditors and not in the hands of the assessee - Decided in favour of assessee. Share application money in the form of stock from different entities - It is seen that the assessee had taken over the business of three concerns - Before the AO, the assessee had furnished full details of the stocks taken over - The income-tax assessment particulars of the concerns, whose businesses were taken over, were also furnished - Besides, the assessee had filed details of person-wise stock, as available on the records of the Income-tax Department in the cases of these concerns - In fact, the taking over process did not involve any presumption of any undisclosed or unaccounted income - The directors of the concerns had contributed their stocks to the assessee company as share capital - The assessee had duly established the identity and creditworthiness of the persons, as well as the genuineness of the transactions - The details filed included the names, addresses, firms, PAN, copies of income-tax return, copies of cheques received, copies of PandL A/c and copy of balance-sheet showing the closing stock of the three proprietary business - That being so, the AO was unable to show as to how the stock/cheques received remained unexplained - Decided against the revenue.
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