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2016 (2) TMI 1161 - AT - Income TaxAdditions u/s 68 - increase in share capital, while the assessee has failed to establish the genuineness of the transactions - unaccounted purchase transactions and restricting the profit element to the extent of 13.39%. - Held that: - In the given facts the AO had not brought any material or evidence which would indicate that the share applicants were (a) benamidars or (b) fictitious persons or (c) that any part of the share capital represented the company's own income from undisclosed sources. In view of the facts and precedent before us, we are of the view that CIT(A) has rightly deleted the addition and we confirm the order of CIT(A) on this issue. Regarding unaccounted purchase transactions - Held that:- AO issued summons u/s. 131 to Uttam Ray and Chinu Ray, who denied the diaries belonged to them but accepted that the contents of details of job work were undertaken by them and these diaries are maintained by assessee company on their behalf. - In view of the above and facts and circumstances, we are of the view that the CIT(A) has acted on the remand report of the AO and re-worked the unaccounted purchase and treating the same restricted the addition by applying profit rate. We find no infirmity in the order of CIT(A) and hence, the same is confirmed. This issue of assessee as well as revenue is dismissed.
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