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2018 (9) TMI 1164 - AT - Income TaxPenalty proceedings u/s. 271(1)(c) - addition made u/s.68 in respect of share application money from two companies - Held that:- These parties did not appear before the Assessing Officer in response to the summons issued u/s.131; and secondly, in inquiry conducted by the Investigation Wing earlier these companies were found to be involved in providing accommodation entries. No specific inquiry or information pertaining to the assessee that these companies have provided the accommodation entries to the assessee was unearthed. Assessee has filed various evidences to prima-facie prove the identity of the parties, creditworthiness; and genuineness of the transaction. In light of these facts and evidences the preponderance of probability goes in favour of the assessee that the share application money has come from the known sources for which the entire transactions have been confirmed. At least in the penalty proceedings, it can be inferred that once these evidences have not been rebutted or found to be false, we do not find any reason to confirm the penalty on such additions. Accordingly, same are directed to be deleted. - Decided in favour of assessee
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