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2014 (8) TMI 313 - AT - Income TaxNature of Expenses towards ROC fees and stamp duty incurred for increasing authorized share capital - Held that:- CIT(A) confirmed the view taken by the AO – relying upon Punjab State Industrial Development Corporation Ltd. V/s. CIT [1996 (12) TMI 6 - SUPREME Court] - expenditure incurred for enhancement of capital was held to be of capital nature - CIT(A) upheld the disallowance made by the AO – thus, the matter is remitted back to the AO for determination of the the eligibility and quantum of admissible deduction u/s 35D of the Act – Decided in favour of assessee. Addition u/s 68 – Unsecured loan and share application money is disbelieved – Held that:- Assessee has not only established the identity of the share-holders who have made the investments, but also filed confirmation letters from them, who have explained sources for the investments made – assessee is a corporate entity and has discharged the onus on it, having identified the source from which it has received the share application money, and also attempted to explain their sources as well - there is no justification for any addition in that behalf in the assessment of the assessee-company. CIT(A) has accepted the evidences for accepting the sources for the share application money from two individuals, namely, GVK Raju and G.Uma, but has sustained the addition made by the AO, with respect to unsecured loans under S.68 of the Act - CIT(A) have accepted the genuineness of the transactions, identity of the parties and credit-worthiness of the three parties, while deciding issue of contribution to share capital, is not justified in arriving at contrary conclusions, by proceeding to examine the source of the source - the additions confirmed by the CIT(A) u/s 68 towards unsecured loans from these two individuals is deleted – Decided partly in favour of Assessee.
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