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2019 (3) TMI 1131 - ITAT MUMBAIAddition u/s 68 - assessee failed to produce share holders from whom share premium was received - parties did not appear before the AO or the assessee could not produce the parties in person before the AO - CIT-A deleted the addition - identity, creditworthiness and genuineness of the investor companies - case selected for scrutiny and notices u/s 143(2) and 142(1) issued - discharge of initial onus - HELD THAT:- In this case, the AO, except doubting genuineness of transaction for charging higher premium on shares, did not bring on record any other evidence to disprove the voluminous evidences filed by the assessee in respect of 5 companies to prove identity and genuineness of transactions. In fact, the assessee has filed complete set of documents for all 5 subscribers. The parties have responded to notices u/s 133(6) by filing necessary evidences. Therefore, merely for the reason that the parties did not appear before the AO or the assessee could not produce the parties in person before the AO, the whole set of documents produced to prove the identity and genuineness of transactions, cannot be disregarded when the AO does not have anything more than suspicion in his possession to doubt the transactions. Therefore, we are of the considered view that the AO was erred in bringing to tax share capital received from 5 companies u/s 68 as unexplained credit. Assessee has discharged its initial burden by filing enormous details to prove identity and genuineness of transactions. AO, having accepted the fact that identity has been proved, could not have proceeded to make addition only on the basis of charging higher premium, because charging higher premium on issue of shares is a decision between parties and the AO would not have any role to play as long as genuineness of transaction is not in doubt. - Decided against revenue
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