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2016 (8) TMI 1463 - DELHI HIGH COURTAddition u/s 68 - initial burden to prove identity of the applicant/investor as well as the genuineness of the transaction - ITAT deleted the addition - HELD THAT:- AO shall undoubtedly be justified as to the identity of the share applicants. This Court is however unpersuaded by the revenue submission that the genuineness of the transaction or the creditworthiness of the assessee had to be established in the given facts of this case. The factual narration by the CIT(A) which was affirmed by the ITAT unequivocally point to the assessee disclosing materials such as the bank accounts, the share particulars, income tax details and other materials which would have enabled further enquiry by the AO. CIT (A) further also records that on a scrutiny of the bank accounts of the share applicants, the source of deposit of ₹ 3.5 crores, except a small amount of ₹ 84,858/-, are by way of account payee cheques, there was no cash inclusion. In case AO so wished, it was open for him to make further enquiries. That he did not do so, in our opinion, would not mean that the assessee failed to discharge the initial burden in establishing the genuineness of the transaction or the creditworthiness of the share applicants. - Decided against revenue
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