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2012 (10) TMI 487 - ITAT, DELHIBogus unexplained credit - Addition made u/s 68 - reopening of assessment - CIT (A) deleted the addition - Held that:- The CIT (A) found as a fact that the assessee had duly filed the documentary evidence concerning these two parties before the AO in the form of confirmation from the investor company, its acknowledgement of return, PAN, Board’s Resolution, Form Nos.18 and 32 filed with the ROC, bank statement and audited balance sheet. This documentary evidence was found to support the identity of the investor companies and to establish the genuineness of the share capital money transaction. AO had not brought any material on record to prove that the money in question was the assessee’s own undisclosed income & had simply explained the modus operandi involved in accommodation entry transactions and had merely relied on the information received from the Investigation Wing, without verifying the facts, that from the evidence on record, it was observed that the subscription of share capital was received by the assessee from the two investor companies through cheques and the companies were duly registered with the ROC and that it had been submitted on behalf of the assessee that the companies were having PAN and were regularly filing their returns of income, but the AO had not tried to ascertain their latest addresses from the assessee, for conducting any further inquiry in their cases, thus In the absence of these inquiries and non-verification of the details at the time of assessment proceedings, the factual findings recorded by the Assessing Officer were incomplete and sparse - in favour of assessee.
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