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2014 (9) TMI 168 - HC - Income TaxOnus to prove the genuineness of transaction - Unexplained cash credit u/s 68 Held that:- Following the decision in COMMR. OF INCOME TAX Versus M/s LOVELY EXPORTS(PVT) LTD [2008 (1) TMI 575 - SUPREME COURT OF INDIA] - out of 181 share applicants, 129 share applicants had appeared when summons were issued and they have accepted their investment - apart, the names and identity of the share applicants is also available on record - when the nature and source of the amount so invested is known, it cannot be said to be undisclosed income in the hands of the Spinning Mill - the burden is on the Department to show that the investment made by the share applicants actually emanated from the coffers of the assessee, so as to enable it to be treated as the undisclosed income of the assessee revenue except making a vague statement that the managing directors have advanced monies to the alleged share applicants, did not substantiate the same with concrete evidence - the addition of subscriptions as unexplained credit u/s 68 of the Act is unwarranted - since the share applicants in are one and the same and they have confirmed the transactions, it cannot be treated as the unexplained investment of the managing directors of the company and on that score, no addition can be made in the hands of the managing directors thus, the order of the Tribunal is upheld Decided against Revenue.
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