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2017 (6) TMI 130 - AT - Income TaxAddition u/s 68 - proof of genuineness of transaction - accommodation entries - Held that:- Five companies are claiming to have invested a sum of ₹ 5 lac each in the assessee company, but, the facts about their total income vis-à-vis the value of assets, do not prove the genuineness of transaction. It is further relevant to note that the assessee is claiming to have issued its share with face value of ₹ 10/- at a premium of ₹ 90/-. It is beyond my comprehension as to why a person will purchase the shares of the assessee company at such a huge premium, more so, when there is no payment of any dividend, etc. No prudent investor will park his funds at such a high premium without the expected return commensurate with the investment. When all the facts and circumstances are seen in entirety, it becomes evident that the assertion of Shri Surender Kumar Jain group (entry operator) about providing accommodation entries to the assessee was correct as the assessee could not prove the genuineness of transactions. CIT(A) was justified in sustaining the addition. - Decided against assessee.
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