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2015 (1) TMI 647 - AT - Income TaxUnexplained share capital introduced - CIT(A) deleted part addition made u/s 68 - Held that:- Merit in the arguments of assessee that after a period 7 years it was not possible to procure bank statements of earlier periods from the share applicants. We are of the view that the issue has rightly been considered by the ld. CIT(A) on the material available on record. Rebuttal of ld. AO in terms of Section 68 has to be effective and meaningful and not to call on the assesse to comply with difficult and nearly impossible compliance. Thus assessee has discharged its initial onus in terms of Section 68 of the Act which has not been effectively rebutted by ld. AO in meaningful terms.Therefore, the additions were rightly deleted by the ld. CIT(A). Apropos addition retained by the ld. CIT(A) in respect of M/s. A.K. Fabrics (P) Ltd., M/s. B.P. Buildtech (P) Ltd. and M/s. B.P. Infotech (P) Ltd same evidence has been filed by the assesse. Ld. CIT(A) has drawn an adverse inference from the fact that in his view these applicant companies were given PAN subsequently and their paid up share capital is low. Following our order on revenue appeal, we are of the view that earlier confirmations, transactions being through banking channels, Company share record, ROC record etc. cumulatively demonstrate that the assessee had discharged its initial onus in terms of decision of Hon'ble Rajasthan High Court in Barkha Synthetics [2005 (8) TMI 67 - RAJASTHAN High Court ], Delhi High Court in the case of CIT vs. Dwarkadhish Investment (P) Ltd. (2010 (8) TMI 23 - DELHI HIGH COURT). Thus no addition can be made in respect of these three applicants also. - Decided in favor of assessee.
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