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2022 (11) TMI 717 - ITAT KOLKATAAddition u/s 68 - unexplained share capital and share premium - non compliance to summons issued u/s. 131 of the Act or non appearance of the directors of the subscribing companies before the AO - nature and source of application money received were not furnished and even proved before the AO nor any remand report was called for by ld. CIT(A) - CIT(A) allowed the appeal of the assessee by holding that the assessee has proved genuineness of transactions and creditworthiness of the investors - HELD THAT:- Non compliance to summons issued u/s. 131 of the Act or non appearance of the directors of the subscribing companies before the AO can not be basis for making addition as the assessee has filed all the necessary documents before the authorities below proving the identities, creditworthiness of the investors and genuineness of the transactions. The case of the assessee is squarely covered by the decisions of Crystal Networks Pvt. Ltd. [2010 (7) TMI 841 - KOLKATA HIGH COURT] wherein it has held that where all the evidences were filed by the assessee proving the identity and creditworthiness of the loan transactions, the fact that summon issued were returned un-served or no body complied with them is of little significance to prove the genuineness of the transactions and identity and creditworthiness of the creditors. Assessee has furnished all the evidences proving identity and creditworthiness of the investors and genuineness of the transactions but AO has commented on these evidences filed by the assessee. Under these facts and circumstances and considering underlying facts in the light of ratio laid down in the decisions as discussed above, we are inclined to uphold the order of Ld. CIT(A) by dismissing the appeal of the revenue.
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