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2017 (11) TMI 1546 - ITAT DELHIUnexplained share application money - assessee has failed to conclusively prove the genuineness of the transactions - Held that:- AO was not justified in making sweeping observations such as fabricated and prepared documents as a made-up affair and AO was not justified in drawing adverse inference against the assessee when the assessee company has led all the evidences including bank statement etc. AO has further gone wrong in drawing adverse inference on the basis of excel sheet which in fact support the case of the assessee. The AO was not justified in drawing adverse inference in respect of amount received from its director. The Director having appeared himself and having confirmed the amount being paid to the company and the assessment of the Director being made under Section 143(3), there was no reason for AO to make addition in the hands of the appellant company. The AO went wrong in drawing adverse inference on account of rotation of money from one Group Company to another Group Company. AO cannot sit into the judgment of the assessee Group Company about rotation of the funds so long the sources of the funds are explained. The assessee having discharged its onus fully, the Assessing Officer has made the addition merely on the basis of surmises and doubts. - Decided in favour of assessee.
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