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2021 (2) TMI 182 - ITAT KOLKATARevision u/s 263 - Addition u/s 68 - HELD THAT:- CIT(A) in his order was wrong in presuming that the AO had passed his order u/s 143(3) of the Act as a consequence to the order passed u/s 263 of the Act by the Pr. CIT. This is not a case where the Pr. CIT has passed any order u/s 263 of the Act. This wrong presumption in our view influenced the decision of the ld. CIT(A). There are five shareholders in this case. The documents and evidences that were filed by the assessee in support of the transaction are given at page 2 of the AO’s order. Copies of the same are fled before us by way of a paper book. The identity of the investor companies stand proved. As far as the justification for the question of share premium is concerned, the assessee has furnished a share valuation certificate. The AO has not pointed out any infirmities or errors in this share valuation certificate. He has not rejected any of the documents filed by the assessee. Thus the share premium charged is justified in this case. The assessments of the share subscriber companies have been completed by the Income Tax Department u/s 143(3) of the Act. When the assessments of the share applicant companies are completed u/s 143(3) of the Act, the identity of the shareholder companies cannot be doubted. When the share applicant companies who have invested in the share capital of the assessee company, and when their respective assessments are completed u/s 143(3) of the Act, no addition can be made in the hands of the assessee company u/s 68 - See M/S. C.P RE-ROLLERS LTD. VERSUS D.C.I.T, CIR-1, DURGAPUR [2019 (4) TMI 557 - ITAT KOLKATA] We hold that the assessee in this case has proved the identity and creditworthiness of the share applicant companies and the genuineness of the transaction. The Revenue has not brought out any contrary evidence on record. Under these circumstances, we delete the addition made u/s 68 of the Act and allow the appeal of the assessee.
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