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2010 (5) TMI 869 - AT - Income TaxBogus Share application money - genuineness of transaction not proved - onus to prove on assessee or revenue - HELD THAT:- Since the assessee has discharged its onus by proving the identity of subscribers and even otherwise had any suspicion still remained in his mind, nothing prevented him to initiate action as per the provisions of the Act. The existence of subscribers to share application is not in doubt as the assessee duly furnished their names. Age, address, date of filing the application, number of shares for which respective applications were made, amount given and the source of income of the applicant. There is no justification for making the impugned addition because once the existence of the investor/share subscribers is proved, onus shifts on the revenue to establish that either the share applicants are bogus or the impugned money belongs to the assessee company itself. Once the confirmation letters are filed, no addition can be made on account of share application money in the hands of the company. Our view finds support from the decision in Shri Barkha Synthetics Limited v. ACIT.[2005 (8) TMI 67 - RAJASTHAN HIGH COURT] The case like CIT v. GP International Limited [2009 (12) TMI 33 - PUNJAB AND HARYANA HIGH COURT],CIT v. Steller Investment Limited [1991 (4) TMI 100 - DELHI HIGH COURT] supports the case of the assessee. charging of interest u/s 234B - HELD THAT:- We have found that no specific section has been mentioned for charging of interest and merely it has been mentioned that charge interest if any, as per law. Since the issue of share application has been decided in favour of the assessee and the addition made u/s 68 has been deleted, therefore, charging of interest is consequential in nature, meaning thereby that it is not leviable/chargeable. In view of these facts and judicial pronouncements both these appeals of the assessee are allowed. Finally, the appeals of the assessee are allowed.
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