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2018 (7) TMI 1080 - AT - Income TaxAddition u/s 68 - genuineness of share capital received - shares issued at high premium - Held that:- No adverse inference can be drawn against the assessee, even if replies were not received from the share subscribers Companies though the notices u/s 133(6) were duly served on them; that it is not the case of the AO that notices had come back unserved or share subscriber Companies were not available at the address given by the assessee Co. - assessee Company produced sufficient documentary evidence including the confirmations, bank statements, balance sheets, ROC records, ITRs & PAN indicating Ward/Circle of the share applicants where they were assessed to income tax and hence, the onus which lay on the assessee to prove the identity, genuineness and creditworthiness of the share subscriber Companies stood duly discharged. Accordingly, ground No. 2 of appeal of the assessee deserves to be allowed. Addition u/s. 69C on account of commission/premium allegedly paid @ 1% to entry operators out of assessee’s undisclosed income for receiving bogus accommodation entries in the form of share capital of ₹ 30,50,000, is concerned - Held that:- In view of deletion of connected addition on account of share application money, the addition made u/s. 69C of the Act cannot be sustained. Accordingly, ground No. 3 of assessee’s appeal also deserves to be allowed. Addition on account of high premium paid for shares cannot be sustained unless and until some material was brought on record by the AO to show that confirmation and other evidences placed by the Assessee were not genuine. No such material is available on record before us. Accordingly, the impugned order of ld. CIT(A) does not suffer from any infirmity while deleting the addition
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