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2019 (3) TMI 1701 - AT - Income TaxAdditions u/s 68 - share application money - Genuineness and valid reasons for issuing shares at a high premium - cash credit - discharge of duty casted upon the assessee to explain the nature and source of credit found in his books - Held that:- section 68 of the Act provides that if any sum found credited in the year in respect of which the assessee fails to explain the nature and source shall be assessed as its undisclosed income. In the facts of the present case, both the nature & source of the share application received was fully explained by the assessee. The assessee had discharged its onus to prove the identity, creditworthiness and genuineness of the share applicants. The PAN details, bank account statements, audited financial statements and Income Tax acknowledgments were placed on AO's record. Without doing so, the addition made by the AO is based on conjectures and surmises cannot be justified. - Additions deleted. Disallowance u/s 14A - Held that:- section 14A will not apply if the assessee does not receive any exempt income during the relevant previous year. - Additions deleted.
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