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2013 (5) TMI 476 - HC - Income TaxAdditions u/s 68 - unexplained investment and cash credits shown as share application money received by the assessee - CIT(A) deleted the addition -Held that:- The identity of the two companies which are sister companies stood established. Furthermore, this is not a case of mere furnishing of copies of bank accounts of the subscribers. But, in the present case, as noted by the CIT (A) the assessee had filed the income-tax returns of the subscriber companies as also their bank statements and balance sheets in addition to the confirmation letters from the said two companies. A copy of the Form No. 2 filed by the assessee with the Registrar of Companies regarding the allotment of shares to the said two companies had also been furnished. It is in this backdrop CIT (A) concluded that the assessee had been able to prove its case and that the AO could not shift the burden back onto the Assessee Company without producing any tangible material to doubt the veracity of the documents furnished by the assessee.ITAT concurred with the views taken by the Commissioner of Income-tax (Appeals). Case law of Nipun Builders and Developers Pvt. Ltd. [2013 (1) TMI 238 - DELHI HIGH COURT] as relied upon by revenue in making the addition is different and is distinguishable from the present case as assessee in the present case been able to discharge the initial burden to establish the identity, creditworthiness and genuineness as regards the transactions concerning the allotment of shares. In favour of assessee.
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