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2019 (9) TMI 147 - ITAT MUMBAIAddition u/s 68 - unexplained cash credit - identity, creditworthiness of the lenders / investors to advance such monies and genuineness of the transactions - HELD THAT:- Assessee had, inter-alia, not only furnished copies of bank statements but also placed on record financial statements reflecting the source stated investments in the assessee company. This is coupled with the admitted fact that Shri Abhishek Morarka, director of as many as 3 entities visited the office of AO twice but still nothing adverse could be brought on record by AO to contradict the claim the assessee. None of the evidences submitted by the assessee were ever rebutted by Ld. AO but heavy reliance was placed on third party statements which were never confronted to the assessee and no opportunity of cross-examination was ever provided to the assessee. Nothing has been brought on record to establish the fact that any cash got exchanged between the assessee and investors which would corroborate the fact that assessee’s unaccounted money got routed back in the garb of share capital. AO, while confirming the addition, has already admitted that the bank statements of the investors were duly furnished and there is no allegation of any immediate cash deposits in those accounts. No adverse inference could be drawn on bare facts that shares were subsequently repurchased by the promoters or similar shares were issued to the promoters at face value during the year unless the said facts were corroborated by any adverse evidences, which we are unable to find. Similarly, so far as the valuation of shares is concerned, we find that the assessee had justified the valuation by adopting discounted Cash Flow Method and the onus was on revenue to rebut the method of valuation. We are unable to find any such exercise by revenue Lastly, it is trite law that no addition could be made merely on the basis of suspicion, conjectures or surmises. The extent and degree of investigation carried out by Ld. AO do not inspire us to concur with the submissions made by Ld. DR before us. We are of the considered opinion that the revenue was not able to discharge the burden of disproving the genuineness of the stated transactions. - Decided in favour of assessee.
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