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2018 (10) TMI 61 - AT - Income TaxAddition u/s 68 - undisclosed cash credit - accommodation entries - CIT (A) deleted the addition as held that since the identity and existence of the share applicants are true the share application money and the share capital have been routed through banking channel cannot be added in the hands of the assessee - Held that:- In the present case assessee before lower authorities could not rebut the relationship of the assessee, a private limited company with Shri Tarun Goyal and his accomplices in making investment at such a huge premium. The surrounding circumstances and test of Human probabilities also shows that there is no reason to invest those companies in the shares of the assessee company at such a huge premium. Therefore the ratio laid down by the Hon Supreme court squarely applies in the case of assessee. Based on above, we are of the opinion that the ld CIT (A) has deleted the addition based on irrelevant documents, which does not prove the identity, creditworthiness, and genuineness of the shareholders/transactions. Therefore in view of above facts we reverse the order of the ld CIT (A) deleting the addition u/s 68 of the act of ₹ 1,94,00,000/- from 8 companies whose creditworthiness and genuineness of the transaction of issue of shares at a high premium and restore the order of the ld AO. - decided in favour of revenue Addition on account of commission paid on accommodation entries from undisclosed sources - Held that:- As the accommodation entries are taken from Mr Tarun Goyal, CA, who has confirmed the rates of accommodation entries, we find no infirmity in the order of the ld AO in making addition on that basis where the assessee could not prove that no such expenditure is incurred. Accordingly, addition of ₹ 97,000/- of unaccounted expenditure is also confirmed. Ground No 2 of the appeal is allowed.
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