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2018 (4) TMI 18 - AT - Income TaxAddition u/s 68 - unexplained credits introduced in the form of share application money and share premium - Held that:- Where the same set of existing shareholders invest further sum of money by way of share application and the assessee company issues shares to them, it would not be appropriate for the Revenue to challenge the identity and genuineness of the share transaction which has occurred during the year. When the assessee company has again furnished complete particulars of all these companies in terms of name, address, PAN no., copy of their confirmation, copy of their income tax returns, copy of their balance sheet and bank statements through which the cheque payment has been made. CIT(A) has returned a finding that the balance sheet and bank statement of these companies prove the credit worthiness of making further investment during the year. There is nothing on record which controvert the said findings of the ld CIT(A). We confirm the findings of the ld CIT(A) and set-aside the order of the AO in respect of these 14 companies who are existing shareholders and have made fresh investment during the year. In respect of remaining 6 companies we find that the assessee company has again furnished complete particulars of all these companies in terms of name, address, PAN no., copy of their confirmation, copy of their income tax returns, copy of their balance sheet and bank statements through which the cheque payment has been made. We find that these documents have been submitted before the DDIT, Kolkatta who has not examined these documents and merely forwarded these documents to the AO. Thus in absence of any falsity which have been found in the documents so submitted by the assessee company to prove the identity, creditworthiness and genuineness of the share transaction, these documents cannot be summarily rejected as has been done by the AO in the instant case. - Decided in favour of assessee
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