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2019 (2) TMI 371 - AT - Income TaxPenalty u/s 271(1)(C) - addition u/s 68 - high share premium - Held that:- When immediate source of the money was explained, the initial onus casted upon assessee got discharged and nothing more could be asked from him The details of the ongoing projects have been placed on record. Under these circumstances, the revenue, in our opinion, by questioning the wisdom / prudence of the investor could not proceed to make addition in the hands of the assessee by invoking the provisions of Section 68 without bringing on record credible contrary evidences. The additions could not be made merely on the basis of suspicion. Nothing on record indicate that any cash got exchanged between the assessee and the investor to suggest that the unaccounted money belonging to the assessee was routed in the accounts as Share Application Money. For the sake of completeness, we find that even the newly inserted provisions of Section 56(2)(viib) could not be applied to the facts of the case since these provisions have been inserted by Finance Act 2012 with effect from 01/04/2013 only and further the same has also not been invoked by the revenue - the impugned addition u/s 68 in the hands of the assessee was not justified and therefore, by deleting the same, we allow this ground of appeal. Since we have deleted quantum additions penalty against the same do not survive. - Decided in favour of assessee
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