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2019 (8) TMI 1607 - AT - Income TaxUnexplained cash credit u/s 68 - assessee has not proved the identity and creditworthiness of the creditor and genuineness of the transactions - AO on the basis of information collected during the course of survey u/s 133A conducted on the assessee and on the basis of admission of one of the directors of the assessee company made the addition - HELD THAT:- Tribunal in assessee’s own case [2019 (3) TMI 1835 - ITAT MUMBAI] has held that the assessee has filed all the necessary evidences before the AO and AO has not carried out any further investigation to find out the truth. The bench further held that the assessee has proved the identity and creditworthiness of the creditors and genuineness of the transactions. We, therefore, respectfully following the same uphold the order of Ld. CIT(A) and ground raised by the revenue is dismissed. Interest paid to lenders after deduction of TDS is genuine and the same has rightly been allowed by the Ld. CIT(A). Unsecured cash credit under section 68 - assessee has not proved the identity and creditworthiness of the creditors and genuineness of the transactions - HELD THAT:- As during the year, the assessee allotted shares to seven parties out of which the AO made an addition in respect of three companies by stating the same to be related to Shri Pravin Kumar Jain. During the course of assessment proceedings the assessee filed all the necessary evidences in the form of share application forms, allotment returns, copy of bank statements of the investors, copy of the balance sheet of the investors, their confirmations etc. along with ITR copies. However, the AO did not carry out any further investigations to find out the truth. It is also undisputed that the corresponding investment entries were duly appearing in the respective balance sheets of these investors and were examined by the respective AOs during assessment proceedings and were accepted in the assessment framed u.s 143(3) of the Act. None of these three investors who bought share capital in the assessee company were appearing in the said statement of Shri Pravin Kumar Jain and therefore we do not find any merit in the conclusion drawn by the AO that all these three entries were related to Shri Pravin Kumar Jain. Further, we note that the AO has not made any investigation or enquiry despite the assessee having filed all the necessary evidences before the AO to prove the identities and creditworthiness of the investors and genuineness of the transactions. As investors were existing and assessee has filed all the evidences proving the identities and creditworthiness of the investors and genuineness of the transactions but the AO did not make any further enquiries or investigations to find out the truth and relied upon the statements which stood retracted. Under these circumstances we are of the considered view that order of Ld. CIT(A) is correct in deleting the addition. - Decided in favour of assessee.
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