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2019 (2) TMI 618 - AT - Income TaxUnexplained cash credit u/s 68 - share application money - amount was received during the earlier years - entries made during the current year for converting deposits into share application money - Held that:- The assessee has only passed a journal entry in respective parties accounts and treated the deposits as Share Application Money, which also is grouped under the head liabilities in its Balance sheet. In this connection, the assessee has placed on record the ledger account of the parties from the year in which deposits were received from them till the year under consideration when the sum was transferred to share application money. Under the circumstances, impugned sum was received by the assessee in earlier years and hence provisions of section 68 is not applicable in the case of the assessee, for the years under consideration. The assessee has filed various details viz Name and address of Parties, Confirmation and PAN No, Bank statement of Pooja Kandhari/Thakur Sen Kandhari reflecting payment made by them to assessee. Bank Statement of assessee reflecting payment received from Pooja Kandhari / Thakur Sen Kandhari and Sanjay Chhabria. Since assessee company could not allot shares to these parties it has refunded amount received from these parties in subsequent years. The assessee filed the copies of ledger A/c of subsequent years alongwith copy of bank statement reflecting payment made to these parties. No justification for the addition made by AO u/s.68. - Decided in favour of assessee.
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