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2012 (8) TMI 732 - ITAT, HYDERABADAddition towards share capital introduced by HUF of Managing Director of the appellant company – source of the application money along with confirmation being furnished – karta of HUF being in hold of 10 acres of cultivatable land - Held that:- Identity of the person investing in share application is not in doubt who happens to be the MD of the company. When the identity of the investor is not doubted and the fact that he is holding agricultural land to the extent of 10 acres has not been disputed, the AO should not have treated the share application money as unexplained cash credit at the hands of the assessee company only because of a doubt in his mind that this amount could not have been earned from agricultural operations. If at all there was any doubt regarding the source of investment, proceedings should have been initiated against MD in his individual capacityand no addition could have been made at the hands of the assessee company - Decided in favor of assessee
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