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2013 (4) TMI 542 - ITAT CUTTACKUnexplained cash credit in respect of share application and share premium money - as per AO the onus to prove the identity and creditworthiness of the share applicants and the genuineness of the transactions which lay upon the assessee was not completely discharged - CIT(A) deleted the addition - Held that:- As decided in CIT Vs Lovely Exports (P) Ltd [2008 (1) TMI 575 - SUPREME COURT OF INDIA] the share application which share capital cannot be taxed in the hands of the assessee as unexplained cash credit who have followed the procedure of obtaining the share capital in accordance with the provisions of the Companies Act. Share holders could not be bogus therefore, settled the issue to the extent that the Assessing Officer was to reopen the cases of those assessees Companies and not tax the same in the hands of the assessee. The assessee therefore has rightly pointed out that the law has been amended u/s.68 when specifically the share capital and share application money have been inscribed along with the cash credit which may be subjected to verification when the onus which lay upon the assessee remained undischarged has been made applicable w.e.f. 1.4.2013 only. In this view of the matter, CIT(A) is justified in deleting the impugned additions in the instant case, which we uphold and dismiss the appeal of the Revenue. Deletion of the expenses disallowed by the Assessing Officer - CIT(A) has partly sustained the disallowances indicating the nature which part only could be disallowed and has been accepted by the assessee respondent as per their Cross objection on record. As no further material has been placed by the rival parties the order of the CIT(A) upheld - appeal of revenue dismissed.
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