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2016 (7) TMI 540 - HC - Income TaxReopening of assessment - addition u/s 68 - Held that:- The petitioner has been vehemently contending that the amount received from the said three companies was only for the purpose of allotment of shares. It was only a loan which was received through Account Payee cheques and was also repaid during the same period relevant to the assessment year in question. The Assessing Officer, while disposing of these objections, never disputed these factual assertions of the petitioner. He merely reiterated that the share capital and share premium both are credit entries in the books and are subjected to the test of identity, genuineness of transaction and creditworthiness of the investor under Section 68 of the Act. With respect to this legal proposition, there can be no quarrel. As when the petitioner pointed out that no amount was received by the petitioner from these three companies by way of share application money, the question of applicability of legal proposition would pale into insignificance. If the Assessing Officer was in a position to rebut the petitioner's factual assertions that no funds were received from these companies by way of share application money, the issue would stand on a different footing. However, no such rebuttal has come-forth in the order disposing of the petition or even in reply filed before us in response to the present petition. The petitioner has, on the other hand, produced supporting material establishing its contention that what was received from these companies was loan, which was also repaid within a short time and there was no share application money in any form. If this be so, the very foundation of the reason recorded by the Assessing Officer for reopening the assessment fails. - Decided in favour of assessee
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