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2022 (7) TMI 1466 - AT - Income TaxAddition u/s 68 - unexplained credit - AO disregarded the share premium received on shares - HELD THAT:- AO has accepted the paid up share capital amount as genuine and on other hand disregarded the share premium received on shares as it does not satisfy the ingredients of Sec. 68 though the source of transaction is the same person and there is no rationality of bifurcation of the source. We found that the CIT(A) has admitted the additional evidence and also provided an opportunity to the A.O. to make the comments and the assessee has filed the rebuttal/ rejoinder. Even before us, the Ld.DR has nothing specific to say except placing reliance on the stand of the AO. However, once the issuance of share capital is accepted as genuine, it cannot be open to the AO to treat share premium as unexplained credit u/s 68 but the A.O. has done. A composite receipt of share application money cannot be partly explained and partly unexplained u/s 68 - CIT(A) for this reason was justified in deleting the impugned addition u/s 68 - Decided against revenue.
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