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2016 (4) TMI 736 - AT - Income TaxUnexplained cash credit u/s 68 - share application money received by the assessee company from seven share applicants - Held that:- In the instant case, the assessee had indeed proved the identity of the share applicants, creditworthiness of share applicants and genuineness of transactions beyond doubt by explaining firstly the source , secondly the source of source and thirdly the source of source of source. Moreover, the seven share applicants had duly confirmed the fact of making investment in share capital in the assessee company and the two jute companies had also confirmed the fact of having made the payments to the assessee company on behalf of the seven share applicants. CIT(A) dismissing the plea of the assessee, on the ground that the transactions of receipt of share capital from seven share applicants are in violation of provisions of Benami Transactions (Prohibition) Act, 1988, is not justified and unwarranted. Hence the addition made u/s 68 of the Act deserves to be deleted. See Jaydayal Poddar (Deceased) through L.R.s and Another vs Mst.Bibi Hazra and Others [1973 (10) TMI 55 - SUPREME COURT] - Decided in favour of assessee
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