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2015 (4) TMI 181 - AT - Income TaxUnexplained cash credit and expenditure - accommodation entries - entry operators - CIT(A) deleted the addition - Held that:- All the shareholders are incorporated and registered with the concerned registar of companies under the Companies Act, 1956 and are allotted company identification number by the ROC, Ministry of Corporate Affairs, Government of India after they having completed necessary formalities and their status shown is active. He noted further that all the shareholders are income-tax assessees and are assessed to tax under jurisdiction of different Assessing Officers. The genuineness of the share subscription transaction is verifiable from I.T. Records, bank statements of the subscribers and all the share holders share application form, board’s resulation etc. Besides, the shareholders have confirmed the share money transaction which were produced before the Assessing Officer. At the conclusion of the paragraph, the Learned CIT(Appeals) has directed the Assessing Officer to delete the addition on the basis that the assessee has established the identity of the 16 share-subscribers, their creditworthiness and genuineness of the share transactions with documentary evidence as per law. Also that the assessee explained and substantiated the nature and source of credits found credited in the books of account during the relevant financial year. In absence of rebuttal of these material findings of the Learned CIT(Appeals) by the Revenue, we do not find reason to interfere with the First Appellate Order in this regard. - Decided in favour of assessee. For addition as unexplained expenditure being commission @ 25 paise per 100 rupees paid for arranging entries of ₹ 3,85,00,000/-. Since this addition is consequential to the addition of ₹ 3,85,00,000/- being the accommodation entry, same is directed to be deleted as the main addition of ₹ 3,85,00,000/- has already been directed to be deleted - Decided in favour of assessee.
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