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2015 (10) TMI 1756 - AT - Income TaxAddition u/s 68 - whether the assessee failed to prove the identity of investors, their creditworthiness/ investments and genuineness of the transaction of capital introduction? - CIT(A) deleted the addition - Held that:- As during the course of assessment proceeding, complete details were not available with the Assessing Officer and that is why he has treated share application money as bogus and made the addition of the same. But before the CIT(A) in response to remand report when fresh commission was issued to ADIT(Inv.) Kolkata who in turn issued notice u/s 131 to all shareholders companies and in response thereto replies were filed by all the companies. All the shareholders companies have filed the copy of confirmation, copy of bank statements, copy of audited balance sheet and profit and loss account for the ended year on 31.03.2010 along with reply to the notice u/s 136 of the Act. All these details were available before the CIT(A) while adjudicating the issue and with all these evidence the genuineness of transaction identity and creditworthiness of creditor have been proved. Therefore, we are of the view that since the assessee has discharged its primary onus of proving the genuineness of transaction, identity and creditworthiness of shareholders, the addition u/s 68 of the Act is not called for. The addition cannot be sustained only for the simple reason that these shareholder companies have not responded in first round of commission. The ADIT(Inv.) has initially reported that the parties are not available at given address but in second round of commission the parties have come forward and submitted their requisite reply in order to justify the financial credibilities. In the light of all these facts, we are of the view that the CIT(A) has rightly adjudicated the issue in favour of the assessee.
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