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2018 (12) TMI 1443 - AT - Income TaxUndisclosed share capital u/s 68 - identity of share capital - non issue of summons u/s 131 - Held that:- The undisputed fact is that Shri Achchan Khan is an existing share holder of the appellant company. Therefore, his identity cannot be disputed. Moreover, the notice issued u/s 133(6) was duly served upon Shri Achchan Khan, who not only confirmed the transaction, but also furnished necessary details. AO has made addition only because Shri Achchan Khan could not be produced and he was a man of no means. I fail to understand what prevented the AO to issue summons u/s 131 on Shri Achchan Khan. Secondly, when the AO was fully aware that Shri Achchan Khan has made investment of ₹ 8.50 lakhs as share application money with the appellant company, nothing could have prevented the Assessing Officer to ask the source of investment from Shri Achchan Khan - if the source was not properly explained, addition could have been made in the hands of Shri Achchan Khan as unexplained income. By no stretch of imagination addition can be made u/s 68 in the hands of the appellant company since it has discharged the initial onus cast upon it by virtue of provisions of section 68. Addition is uncalled for and directed to be deleted. - Decided in favour of assessee.
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