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2017 (12) TMI 1203 - AT - Income TaxAddition u/s 68 - genuineness of the transaction - share capital and share premium - identity and creditworthiness of the investors - the genuineness of the transaction - several other Companies having their Registered Offices at the same address - Held that:- Evidences and material on record clearly prove identity of the Investors, their creditworthiness and genuineness of the transaction in the matter. We rely upon the decision of the Hon’ble Supreme Court in the case of Orissa Corporation Pvt. Ltd. [1986 (3) TMI 3 - SUPREME Cour]. Since the assessee produced sufficient evidence before A.O. therefore, initial burden upon assessee to prove identity of the Investors, their creditworthiness and genuineness of the transaction have been discharged. The case set-up by the A.O. against the assessee was that the premises belong to M/s. Bhushan Steel Companies and other companies are having same registered office. This created a suspicion in the mind of the Revenue. The Ld. CIT(A) therefore, rightly noted that there is no Law that more than one Company cannot have its registered Office at one address. The Investor Companies would have changed their address later on. It is also an admitted fact that source of the capital introduced in these companies were established during the respective assessment proceedings, including in the assessee. No evidence was found during the course of search or survey to indicate introduction of unaccounted cash/funds in the form of share capital in these companies. - Decided in favour of assessee.
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