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2016 (11) TMI 323 - ITAT DELHIAddition u/s 68 - unexplained share application money - assessment u/s 153C - Held that:- When undisputedly AO has perused the relevant details pertaining to the share capital / share premium qua the year under assessments as furnished by the assessee company and has not minced a word to question the validity of those documents nor the AO has given any findings regarding the summons issued u/s 131 of the Act for personal deposition and furnishing of details by the investors in the assessee company. Even no statement of these investors was recorded by the AO. When all the shareholders appear before the AO and filed confirmations, bank statements, copy of ITRs for the AY 2007-08 to 2011-12, copy of PAN, name of directors, copy of audited accounts, etc. to establish the investment made by them in the assessee’s company, their identity cannot be questioned on the basis of conjectures and surmises. In the absence of any adverse material on record that cash receipt/deposits were noticed in the bank accounts of these companies in question, the capacity of these investors cannot be questioned. Moreover, the assessee company has received the subscription of these shareholders through banking transactions. As assessee company has duly discharged its onus to prove the identity, creditworthiness and genuineness of the share applicants who have subscribed to the shares during the years under assessment, u/s 68 of the Act, the assessee company cannot be faulted merely on the basis of conjectures and surmises particularly in the absence of any cogent material.Moreover, documents i.e. balance sheets and trial balance seized from the premises of M/s. Jagat Group pertains to the period 01.04.2010 to 04.09.2010, hence not relevant for the years under assessment. To apply the provisions contained u/s 153C, the seized material is required to be of relevant assessment year. - Decided in favour of assessee.
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